THE MAINSTREAM PRESS

 The Mainstream Press are picking up the themes in my Ping Pong Pang Series. Of note is one of Australia’s most eminent economic commentators, Robert Gottliebsen. Writing in the Australian (26^th October 2012), he assesses the potential impact of competitive devaluations (so-called currency wars) on Australia. His conclusion is not pretty.

It is also consistent with my blogs. Germany will finance Europe. There is no doubt about it, and they will do it using a manufacturing base which is world competitive in terms of product differentiation, but more so given the money printing undertaken by the European Central Bank. The United States similarly in respect of its manufacturing sector. For the United States, this will be given huge impetus given that a new era of cheap energy is going to concurrently drive that economy. Australia is going to be sidelined. In the short run, the Australian dollar is likely to appreciate against these currencies, and in the medium term, significantly depreciate. I don’t know exactly when dear readers, but consider using your powerful Aussie dollars whilst you can. The end of that era is bound to come. The era of volatility will replace it.