I do note though that your view that we are following the USA hasn’t yet materialised. Job figures released this month June 2010 show an improvement.
Are we therefore really following the USA “quickly”?

Offshore debt could be releaved at approx $75-100 billion per year and could really secure a large portion of our investments and save us from the inevitable. The development bank would stand or branch of the Reserve and provide safe home for our futures fund. Many economists agree but no side of the political (two headed monster or consensus) will even look at the idea.

Otherwise we’ll quickly follow the US.

Tony Zegenhagen
Democratic labor Party – DLP

will it just dissappear into the ether?
ormaybe should i withdraw it in cash & stash it somewhere ?

or buy property ? or shares ? put it in me super?
from reading above i feel nothing is safe …………..

please reply asap as this has made me very nervous &
i thought the worst of this reccession ,depression is over??

etch

The first hit is the drop in consumption tax receipts from the collapse of the services economy. Ken Henry’s tax grabbing of activity funded by mainlining from the current account deficit multiplier effected on the GDP has hit the wall and he is desperately looking for ad hoc fixes to the ponzi scheme he and Garnault and all the other wallies set up in the 80’s. You can measure the impending disaster best by looking at inventories rather than fire sale receipts bought with cash handouts, Look at merchandise imports. Of coarse Henry is really freaking out because he can see the collapse in the monthly GST filings of owner operator contractors.

In Australia’s case those exemptions given to US banks that have allowed them to lend to their broker dealers based on the face value of the worst of their asset backed securities, and than the appropriation of Tarp funds supposed to be lent into the real economy and using them to refloat the colonial empire they have mady of global resource commodities. The problem for AUD is that these programmes and exemptions are finite and the FASB close the off balance sheet vehicle 1 Jan 10.

Look back to how the AUD-USD and XMJ equities reacted in tandem to the liquidity drought that hit the hedge funds. With a finite end to funny money programmes commodities will be hit, and the AUD will be hit. Chinese stock pile building will ease at some point even if they are using them as a way to partially offset their USD exposures with less transparency than shorting US treasuries.

But at the end of it that hedge fund money must run home if liquidty meets reality (if they don’t monetise into the real US economy rather than bottomless pit balance sheets). If it runs home the AUD is a basket case at the same time tax receipts are collapsing and the ponzi scheme of Australian banking loses any efficy in it’s guarantee and bad debts and real estate asset value collapse are uncoverable by govt capacity to subsidise.

There is an inherent assumption in banking (including Australia) that asset values & debt levels, will always rise, aided by an exponenential (never ending) inflation increases.

That is not correct, there is no such thing, as exponential growth, all things have limitations, as we are now finding out!

However, OZ banks are, at present, better placed (relatively), than other US & overseas banks.

That said, unless there is a general realisation of the changes now going thru the OZ & Global economy and that change is implemented urgently, to accommodate, then the OZ banks, will follow down the same path, as US banks.