Sovereign Crisis Drives Investors to Aussie Bank Bonds: Australia Credit

http://www.bloomberg.com/news/2011-06-19/sovereign-crisis-drives-investors-to-aussie-bank-bonds-australia-credit.html

SS says

This is exactly what Martin Armstrong said -

Pls see below

http://www.martinarmstrong.org/files/Australia%20Update%2006-15-2011.pdf

Bond investors seeking refuge from Europe’s sovereign debt crisis are finding Australia’s banks safer than their global peers, even after the top four lenders’credit ratings were downgraded last month.

SS says

CAPITAL WILL FLOW INTO OZ LOOKING FOR SAFETY FROM US AND EUROPEAN DEBT.
THIS WILL CREATE MASSIVE BUBBLE IN OZ AT A LATER DATE.
MARTIN SAYS EVENTUALLY AUD WILL BE AT 2 - 1 WITH USD.

YES 2.0 TO USD.
AUD NOW IS AT 1.05.

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The nation’s biggest banks, cut one level to Aa2 by Moody’s Investors Service, don’t own Greek debt and get at least 70 percent of their revenue from Australia, where growth is forecast to outpace the U.S. and the euro region next year. Speculation a Greek default would infect Europe’s banking system and slow the global economy is roiling markets.

The Reserve Bank of Australia cash-rate target is the highest in the developed world at 4.75 percent. That compares with the U.S. Fed’s range of zero to 0.25 percent, held since December 2008.

SS SAYS

OZ WILL INCREASE RATES TO TAME INFLATION.
THIS WILL CAUSE MORE MONEY TO FLOW INTO OZ.
THIS MAY STRENGTHEN THE AUD FURTHER.
EXPORTERS WILL GET HIT.
OZ WILL UNDERGO MASSIVE CAPITAL FLOW JUST LIKE JAPAN DID AFTER 1985 THAT WENT ON TO CREATE THE PEAK IN 1989

THIS IS AS PER MARTIN ARMSTRONG.

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