Alan Kohler is one of Australia’s most experienced commentators and journalists. Alan is the founder of Eureka Report, Australia’s most successful investment newsletter, and Business Spectator, a 24-hour free business news and commentary website. He also hosts Inside Business, a half-hour Sunday programme on the ABC, is the finance presenter on the ABC News - and producer of the nightly graph (or two).
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The National Australia Bank and Goldman Sachs chief economists say the dollar's strength needs more consideration and Australia's transition from mining investment is short on support, while China sits at a turning point.
EU unemployment will continue to rise. The first potential dictator will become more apparent at the end of this year. These people normally come from the socialist end of the spectrum. They only become a problem if supported by bankers (KGB: Alan Oster & Tim Toohey, February 1).
So nothing has changed in the EU except no-one cares much about what happens in Greece.
Spain, France and Italy can throttle the Germans. So Germany cares, but has no idea about whom to care about.
The United States will slowly move closer to hyperinflation. The deflation spring is being pushed down. Tighter & tighter. There is no plan other than monetize $10T. We have $8T to go. The Fed will continue to feed zombie bankers and buy up all the bonds nobody else wants.
Tight oil needs a $90/b oil price. Lots of US dollars help achieve a high oil price. The last thing they need is a lower oil price, otherwise tight oil is not worth too much.
Enhanced Oil Recovery (from existing fields) is all the go. This requires lots of,...., CO2. Yes the US will need to produce more CO2 to enhance the flow of high margin oil.
So Australian oil & gas companies that are producing or have proven reserves can expect far higher share prices.
The local bankers are trying to maintain their margins. It all depends on how long the RBA can withhold from the belief that if they lower rates to say 2%, the $A will fall to parity. They probably will (lower rates) and it will make no difference while US bonds and by implication most bonds pay no interest above inflation.
Our banks would be better off making bigger profits to fund takeovers in the EU and the US when it all blows up.
The RBA will actually reduce our capacity to buy up others by reducing rates. The cost of money should never be lower than the inflation rate and cookery never works. The people eventually catch on and start buying all the silver coins available. The Gold market is easier to control. Silver coins can replace "money".
Comments on this article
Comments PolicyEU unemployment will continue to rise. The first potential dictator will become more apparent at the end of this year. These people normally come from the socialist end of the spectrum. They only become a problem if supported by bankers (KGB: Alan Oster & Tim Toohey, February 1).
So nothing has changed in the EU except no-one cares much about what happens in Greece.
Spain, France and Italy can throttle the Germans. So Germany cares, but has no idea about whom to care about.
The United States will slowly move closer to hyperinflation. The deflation spring is being pushed down. Tighter & tighter. There is no plan other than monetize $10T. We have $8T to go. The Fed will continue to feed zombie bankers and buy up all the bonds nobody else wants.
Tight oil needs a $90/b oil price. Lots of US dollars help achieve a high oil price. The last thing they need is a lower oil price, otherwise tight oil is not worth too much.
Enhanced Oil Recovery (from existing fields) is all the go. This requires lots of,...., CO2. Yes the US will need to produce more CO2 to enhance the flow of high margin oil.
So Australian oil & gas companies that are producing or have proven reserves can expect far higher share prices.
The local bankers are trying to maintain their margins. It all depends on how long the RBA can withhold from the belief that if they lower rates to say 2%, the $A will fall to parity. They probably will (lower rates) and it will make no difference while US bonds and by implication most bonds pay no interest above inflation.
Our banks would be better off making bigger profits to fund takeovers in the EU and the US when it all blows up.
The RBA will actually reduce our capacity to buy up others by reducing rates. The cost of money should never be lower than the inflation rate and cookery never works. The people eventually catch on and start buying all the silver coins available. The Gold market is easier to control. Silver coins can replace "money".