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Things are not so simple, generally I agree completely that help to businesses is much more nedeed then grants for spending and to fuel price bubbles. In any case, depend what the business is about. Also why should be bother working so hard if you get the same item from hard working chinese for...

you are right, manufacturing that was surviving with a high AU$ will do very well now. The best place to put any savings is in those businesses that are well managed and will benefit from rising importing cost from other producers around the world. About what Australiia produce and trade...

I am not saying that you can't make good money in this property market, I am saying that for investor that are borrowing big money to invest on property like you is much more risky at loosing everything if the australian economy destabilise because the RBA gambled with too low rates, as...

but still you are not going to make money out of it. if the system destabilise with too low rates and AU$ plunge big time, then, to bring the economy back in control is not that a couple of % rise in interest rates would do, it would happen like in the early 90's at best with very high interst...

to make it clear a low AU$ it will help to reduce unemployment like you said but not in the medium-short term. Australia doesn't make any goods just commodity. Australia is not going to start producing goods if the AU$ drop, we don't have plasma tv factories that can boost production. what do...

gee Shadow!!! you don't know what you are saying. It is right that if the AU$ is worth nothing your debt is worth nothing, but if you look at Iceland where that happened last year none gain out of it: In Iceland was good to have your cash into your home as any other investment or saving in the...

My alternative is parking my cash in a different currency. But if you want to keep your money in Australia, property, shares or your business (if you have one) is a good alternative. Shares and property will do well in AU$ term if the system destabilise and the AU$ will drop further.

If we would be talking about EU, Japan or others country with positive external position I would say that low rates are not stimulatory as it would be just shifting spending capacity from lender like superfund, pensioner, or any saver to borrowers like businesses and homeowners. In the case of...

yes, lower interest rates have stimulatory effect on the economy with the cost of having more debt that will weigth on future growth, in any case the more debt you take doesn't have anymore that much stimulus on the economy as you can see from this graph from US I think after this economic...

Sorry Chilliaa, I warn the readers to get different opinion as your views are very missleading. I'll reply only to point 3 about the more buffer australia has with rates, this is a very tricky point, as I said several times Australia is part of the globabilsed world and if the system was...