Nouriel Roubini over Europa, Quantitative Easing 2 & China

[Playboysmurf1]

I think the world needs to realize that Yen and USD are nolonger safe haven currencies and the likes of bloomberg articles that say so are total bull shit.

Australian currency is probably one of the safest in the world being backed by massive resources and stable government

The Russian Rouble is also a safe currency because the country is massive with natural resources also, the only problem is the political stability based on history.

[MrWonkish]

@Playboysmurf1 Australia is totally dependent on a stagnating housing boom and an uncontrolled chinese economy. Once the bubble burst and the chinese hiot the brakes, australia will slide into a recession. It's one of the countries that is overloaded with foreign debt.

[Playboysmurf1]

@MrWonkish I can see your thinking but China won't suffer long and they will resume building and spending on iron etc from Australia. Because China has very minor changes to be made to its economy for re tooling for production of things it needs rather than what foreign countries need such as USA. So essentially China and therefore Australia's problem is a medium term problem. Far better than most of the rest of the worlds.

[harrybath]

@Playboysmurf1 Yes Australia's problem is better than US or other western economies, but they will have a depression that will last a decade or two. Our depression might only last 5-10 years. It will still be enough to cause 15-20 percent un employment , cause mass corporate and personal bankruptcy and a drop in house prices of more than 50 percent.

[harrybath]

@Playboysmurf1 The Australian Currency isn't safe. 1) The RBA holds huge amount of US paper 2) if the AUD appreciates more our exports will become totally unaffordable. 3) China is in a huge credit bubble, empty sky scrapers, makes Dubai look insignificant 4) the demand for minerals and resources will DIE big time when this depression hits. Australia's two speed economy is effectively going to become a one speed economy, or in other words NO economy. Wake up mate, us Aussies need to buy gold,