DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Australians Migrating to America in Record Numbers

**LSg44PDu** · 05-20-2010, 12:43 AM

I think the RBA is just trying to make its case in the light of ever increasing interest rates. It would be better to openly declare conservatism in credit standards in this case.

On the contrary, RBA Lucy was hinting on a pause to interest rate rises.

As for tax deductables, if you read carefully what she wrote, she has a valid point too.

Many developed countries, including the US have stopped fighting inflation. Now, inflation rate of 4% is acceptable and cash rate of .25% is inevitable.

You can write a paper to convince the world that low tax and low interest rates is the way to go, but as far as I understand, Alan Greenspan had practice this since 2001 and looked what a mess he created.

There has to be a balance somewhere, unfortunately, humans are irrational.
The microcosm of this can be seen in Madoff's investors and current Aussie homebuyers as well as people buying USD (despite US having a greater debt problem than fall guy Greece).

So far, low cash rate is a good weapon for USA to deal with a China, and it exposed how fragile the Chinese economy is, and also how immature the Chinese stockmarkets (gambling dens) are.

05-20-2010, 12:43 AM	#31
LSg44PDu Join Date Oct 2005 Posts 440 Senior Member	I think the RBA is just trying to make its case in the light of ever increasing interest rates. It would be better to openly declare conservatism in credit standards in this case. On the contrary, RBA Lucy was hinting on a pause to interest rate rises. As for tax deductables, if you read carefully what she wrote, she has a valid point too. Many developed countries, including the US have stopped fighting inflation. Now, inflation rate of 4% is acceptable and cash rate of .25% is inevitable. You can write a paper to convince the world that low tax and low interest rates is the way to go, but as far as I understand, Alan Greenspan had practice this since 2001 and looked what a mess he created. There has to be a balance somewhere, unfortunately, humans are irrational. The microcosm of this can be seen in Madoff's investors and current Aussie homebuyers as well as people buying USD (despite US having a greater debt problem than fall guy Greece). So far, low cash rate is a good weapon for USA to deal with a China, and it exposed how fragile the Chinese economy is, and also how immature the Chinese stockmarkets (gambling dens) are.
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