cam . # .

The argument with the Pitchford Thesis: and I think I have seen Ross Gittens argue it too, is that foreign lenders see Australia as a good bet, not only to get their money back, but also the interest too. Since Au\'s deficit is consumer/private driven (rather than government burden like in the US), it is the market in action.

But it also runs up against the common-sense point of view of honest finance. The average person\'s experiences are that you make sure money coming is greater than money flowing out. Kitchen table economics. So seeing a highly volatile graph like that, with chronic outflows, runs counter to common-sense perception.

I was looking through some Austrade graphs of the in/out flows from the states. Was interesting. I will have to post those graphs.

cam