Aussie Dollar Tumbles As Stevens Says "Overvalued"; Claims "Not Jawboning"

Tyler Durden's picture

It appears it's one of those nights. In a fit of confusion, Australia's Central Bank head Glenn Stevens declared "investors are under-estimating the chance of an AUD decline" only to follow that 'jawboning' up with an explanation that he is trying "to avoid shifting language or jawboning." But then he broke the cardinal rule of central-banking - he told the truth:


But.. but.. but... Ben Bernanke said... The AUD plunged over 50 pips on the news (but like any good central bank non-jawbone is suffering from a short half-life).


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buzzsaw99's picture

he later said rates were too damned low and japanese infestors should gtfo.

Dr Benway's picture

He created one of the most bloated housing bubbles in the world, destroying the future of Australia. Now he tries to jawbone and bonersmoke his way out of accountability. The gall.

Meanwhile, his board openly accepts bribes in the form of directorships with criminal organizations. It turns the stomach.

BeetleBailey's picture

Hey Doc...what's your take on the Aussie?

Dr Benway's picture

Longterm? The grotesque Sino-Australian housing bubble is teetering on the brink of implosion like a swollen corpse fished out of a river. When Australian house prices start falling, the RBA will go to any length to protect the bubble, lowering interest to zero or beyond, sending the AUD down the toilet.

BringOnTheAsteroid's picture

Surely there are some far bigger turds going through the s-bend first?

Dr Benway's picture

Yes, BringOnTheAsteroid, there are more fraudulent and corrupt countries, but IMO there is no other country that is so fraudulent while having such a good reputation. The disconnect is bizarre. And Australia actively tries to monetize this, in financial services but also other areas such as education, selling its undeservedly good name for a quick buck. TPTB are actively and deliberately trying to turn Australia into an international center of financial fraud. This is why Chinese scams are falling over themselves to list on the ASX, to sport an ASIC-legitimized "market" price.

The_Prisoner's picture

Just saw this joker on the Herald talking about getting a redraw on his mortgage to buy shares, and getting the interest deducted on tax.

Except the fact it can only end in tears, it's all legal.

Dr Benway's picture

The author of that advice column, Noel, has previously championed buying shares on margin as a great "longterm investment strategy" for everyone, a viable strategy for society as a whole. According to him, if everyone bought shares on margin (conservatively of course), over the long term all investors would have higher returns in aggregate. So where exactly would these aggregate higher returns come from? The leatherfaced old shithead never specifies.

The_Prisoner's picture

The word circle-jerk comers to mind.

BringOnTheAsteroid's picture

The words Storm Financial come to mind. Worked with someone who lost $900,000.00 with Storm (all their superannuation).

The_Prisoner's picture

Storm Financial was a disgrace. In 07 a former co-worker was about to retire early at 55, he had reverse-mortaged his unit in Mosman under advise from Storm and leveraged it to the hilt on shares, was doing great till he lost everything. In 2010 he lost his job too.

CBA had its fingers all over the Storm Financial mess as they were originating all the margin loans. That's why the whole thing got covered up pretty quick and no one went to jail.

Emanuel Cassimatis is Australia's John Corzine.

thestarl's picture

Exactly Doc he seems to forget Storm Financial,Babcock & Brown and a host of others that went bust in 08 doing just that the old cunt.

thestarl's picture

Not to forget the Commonwelth Bank also those arseholes,shows you how gutless our regulators are.

AUD's picture

no other country that is so fraudulent while having such a good reputation

The US & UK beat us hands down. The credit of the US in particular can magically turn all sorts of shit into 'money'.



BeetleBailey's picture

Much about this year.

Dr Benway's picture

This year? Fuck I have no idea. Where the manipulators want it to perhaps?

The_Prisoner's picture

I strongly recommend Dr Benway's blog for anyone who has any money on the Australian Share Market. It helped me wake a few friends up who had money invested in LIC's.

With the end of the mining boom and the demise of industry in Australia, the government is providing cover to the banks in an effort to have Australia compete with Singapore as the Asia-Pacific money laundering haven, while screwing its own citizens. 

Dr Benway's picture

Thank you yet again for your kind words, The Prisoner, your support is very encouraging!

Macrosan1's picture

I strongly recommend that prospective investors undertake reasonable due diligence companies (including a corporate governance review), rather than rely on Chinese whispers.

The_Prisoner's picture

Sounds like the Australian financial services fraud sector finally got their own ZH troll. Caveat emptor is the default excuse for all scammers in this country.

Aussiekiwi's picture

Thank you for that, reading it now, fascinating.

NoWayJose's picture

The AUD is probably fairly valued. It's Aussie house prices that are way overpriced and in giant bubble territory.

UselessEater's picture

mmm... IMO, AUD over valued, but we sure gotta a few bubbles looking for a pin.


Grande Tetons's picture

The AUD has had its ass smacked already. Look to the NZD...that is one bloated piece of veal, IMO. 

August's picture

The only semi-justification I can come up with for the levitation of the NZD is that NZ's exports are largely of the digestible sort, that are consumed on an ongoing basis, and are renewable.  Once they've constructed enough railways and housing blocks, the Chinese can cut back on their iron imports, but may still want to buy dairy etc to feed the kiddies.  We don't produce rhinoceros horn and bear gallbladder, though.

Cognitive Dissonance's picture

He was just test flushing the AUD fiat toilet.

<Around and around she goes (counter clockwise) where she stops everyone knows.>

Grande Tetons's picture

First thing I did when visiting the southern hemisphere for the first time was take a piss in my hotel bathroom.  Small pleasures. 

medium giraffe's picture

Did it flush anti-clockwise? :)

Grande Tetons's picture

It made me ponder...what the fuck happens at the equator? 

medium giraffe's picture

Goes everywhere apparently.  That's why Kenyan tribes don't wear pants.

stant's picture

Corialis effect is like gravity, it's the law

Grande Tetons's picture

LOL, I chucke at how a post regarding the AUD can quickly tumble into a discussion regarding piss and the laws of gravity. 

Dr Benway's picture

That's the beauty of ZH. Or of free discussion in general. By the way, the Coriolis effect on washbasins is mythical, it doesn't work on such small scale.

Grande Tetons's picture

Next thing you are going to tell me is that there is no Santa Claus. 

Free discussion indeed. Let us hope that never goes down the drain....or....washbasin.  

medium giraffe's picture

Utah- the internet's giant septic tank.

datapanik's picture

Christine Legarde has been harping on about a strong AUD for months. I wonder how many Australians voted her into power? Stevens is just another puppet for the elite, along with Abbott, Hockey and Bishop.

mrpxsytin's picture

Australia sells itself to the highest bidder no matter who is in government. We've never truly become a sovereign nation. 

nailgunnin4you's picture

We've never truly become a sovereign nation. 

I like to think of my country as a fiercely independent US army outpost.

yepyep's picture

Stevens is a lying degenerate.

Seize Mars's picture

So, uh what's your son doing now, Doctor Stevens?

medium giraffe's picture

Notice he did this on the back of softer Chinese data for added effect.  Meh, it was good for a quick 50 pips.

Squid-puppets a-go-go's picture

well, Australia's manufacturing base is dying courtesy of that $Aussie being propped up by bigger international forces to save face for Japan

I aint sayin Stevens is a hero or a saint, im just saying he is looking out for australias interests

as for the housing bubble in australia - i wouldnt be so hasty to put that at Steven's feet either. with respects to the Dr - his blog is awesome - but Australia's economy and market is at mercy to bigger forces than the Reserve Bank of australia can reasonably resist

we  here in australia have to inflate and burst with the biggest of them. short of Cuban style economic isolation, that  is our fate

Yen Cross's picture

  I've got my eye's on gbp/jpy and it's "pimp daddy" overboughtness! I'm shorting that one  BITCHEZ!

Antihuman's picture

I can't wait to see Perth turn into a ghost town without the mines and all the cashed up bogans around to indebt themselves million dollar houses and BMW's. 


Jimbodude's picture

I just sold my house and went into a rental. I am going to sit tight for six months or maybe a year and buy myself a half price mansion. Perth is the perfect storm for a property crash.

Antihuman's picture

There's no hope trying to talk friends out of investing in property at the moment. All I can do is wince every time someone proudly declares that they've got a brand new property. Smile and nod. 

UselessEater's picture

Smile and nod, or you're looked at as a fool. Damn shame! We're giving up a great country to fit some globalist cabal agenda, but what can one say when everyone else is luvving the journey?

Out on the patio we'd sit,
And the humidity we'd breathe,
We'd watch the lightning crack over canefields
Laugh and think that this is Australia.

Jimbodude's picture

Talk to your average 25 year old bogan FIFO worker and his master plan is to gather a portfolio of 5 or so investment properties, offset any rental losses against their inflated wages via negative gearing and retire in ten years when he has sold the properties for double what he paid for them.

They buy their investment properties in the same suburb placing all of their heavilly leveraged eggs into the same basket.

Meanwhile Perth has record new starts, sales stocks have risen 5% year on year (the only city in Australia to see an increase this year) and rental vacancies sit at 5%.