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Aussie Dollar Tumbles As Stevens Says "Overvalued"; Claims "Not Jawboning"
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:
- *STEVENS: PEOPLE SHOULDN'T ASSUME HOUSE PRICES ALWAYS RISE
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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he later said rates were too damned low and japanese infestors should gtfo.
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.
http://drbenway.blogspot.com/ncr
Hey Doc...what's your take on the Aussie?
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.
Surely there are some far bigger turds going through the s-bend first?
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.
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.
http://www.smh.com.au/money/planning/tricky-tax-deduction-claim-is--best-left-to-the-accountant-20140625-zslc2.html
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 word circle-jerk comers to mind.
The words Storm Financial come to mind. Worked with someone who lost $900,000.00 with Storm (all their superannuation).
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.
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.
Not to forget the Commonwelth Bank also those arseholes,shows you how gutless our regulators are.
Bitchez
The US & UK beat us hands down. The credit of the US in particular can magically turn all sorts of shit into 'money'.
Much appreciated....how about this year.
This year? Fuck I have no idea. Where the manipulators want it to perhaps?
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.
Thank you yet again for your kind words, The Prisoner, your support is very encouraging!
I strongly recommend that prospective investors undertake reasonable due diligence companies (including a corporate governance review), rather than rely on Chinese whispers.
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.
Thank you for that, reading it now, fascinating.
The AUD is probably fairly valued. It's Aussie house prices that are way overpriced and in giant bubble territory.
mmm... IMO, AUD over valued, but we sure gotta a few bubbles looking for a pin.
http://rt.com/op-edge/169908-australia-economic-boom-ending/
The AUD has had its ass smacked already. Look to the NZD...that is one bloated piece of veal, IMO.
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.
He was just test flushing the AUD fiat toilet.
<Around and around she goes (counter clockwise) where she stops everyone knows.>
First thing I did when visiting the southern hemisphere for the first time was take a piss in my hotel bathroom. Small pleasures.
Did it flush anti-clockwise? :)
It made me ponder...what the fuck happens at the equator?
Goes everywhere apparently. That's why Kenyan tribes don't wear pants.
Corialis effect is like gravity, it's the law
LOL, I chucke at how a post regarding the AUD can quickly tumble into a discussion regarding piss and the laws of gravity.
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.
http://www.snopes.com/science/coriolis.asp
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.
Utah- the internet's giant septic tank.
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.
Australia sells itself to the highest bidder no matter who is in government. We've never truly become a sovereign nation.
I like to think of my country as a fiercely independent US army outpost.
Sigh....correct.
Stevens is a lying degenerate.
So, uh what's your son doing now, Doctor Stevens?
http://dailyseinfeld.com/post/79664133644
Notice he did this on the back of softer Chinese data for added effect. Meh, it was good for a quick 50 pips.
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
I've got my eye's on gbp/jpy and it's "pimp daddy" overboughtness! I'm shorting that one BITCHEZ!
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.
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.
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.
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?
https://www.youtube.com/watch?v=0PlaTF66lTw
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.
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%.
I have noticed rent is dropping in Perth as landlords desperately try to obtain some cash.
Yeah,I work in the met coal industry and its scary man how many young guys are leveraged up to their eyeballs in the property market believing the BS of never ending rising prices.
yes I know a guy who timed it perfectly, saw the bubble in Perth at its peak when his $200k property zoomed up to $600k, promptly sold it at the peak and went all into physical Gold, which I think was about $900 Aussie at that point, smart guy who goes his own way, when he sold everyone thought he was crazy at the time.
I have bought some phys with the proceeds because even if there is no upward movement in the spot price, a falling Aud will still return a profit.
yep, I live in Perth. it has a massive apartment glut, have a drive around Burswood in the evening and see how many of those apartment buildings have no lights on, its generally not talked about even when the news of lay offs in the mining sector are coming through every couple of weeks.
I recently went up to Brisbane for a couple of weeks and it is absolutely booming in comparison to Perth, businesses and construction everywhere, the contrast is massive, Perth is just waiting for the other shoe to drop..
Bogans of the West unite! You have nothing to lose but your flannel shirts!
Glenn Stevens also said "people shouldn't assume house prices always rise" several years ago, & house prices have continued to rise, as if people should assume house prices always rise.
Last November, the RBA began its special MBS monetisation program, just like it was monetising MBS before, but now on steroids. So house prices have continued to rise.
Think the Aussie housing market is bloated, look at New Zealand, the Chinese are pouring in to buy property which has resulted in a massive housing bubble and grossly overvalued currency. Why are the Chinese buying?
NZ is seen as a safe country with a low level of corruption.
There are no restrictions on buying property.
There is no capital gains tax or stamp duty etc in NZ., so your costs to buy a property in NZ are about $800 in conveyancing and maybe a LIM report from the council, I think they are around $300.
No termites or other pests to worry about in NZ.
Friendly naive people.
So many countries so willing to launder money for government crony thieves...
We of the never never nether ether.
Australian housing is outside of the control of the RBA and well under the control of Chinese investors. Only government policy can reign it in and they aren't the type to go stopping the gravy train. Locals are effectively being priced out of the major cities. There is no way the locals can compete against the immense wealth of Asia. They truly are the boss of us.
They are your boss because your politicians as you have said, have sold you out. If you take back your country and limit these foreign capital inflows you will have affordable housing.
I get that kind of feeling, you know that bad feeling in my gut that the foreign capital inflows are being used to prop up a hollowed out economy devoid of a manufacturing and resource sector. We've gone into full financialisation of the economy based on hot Chinese money. I just get that feeling, you know that helpless feeling of the little man powerless to change anything but you can see it all ending badly eventually.