The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Saturday, September 25, 2010

Saudi Australia?

From Alan Kohler's always-interesting Weekend Review (subscriber-only, but well worth it):

"I interviewed Clifford Bennett of Herston Economics in Sydney yesterday for Inside Business tomorrow, and came away feeling all fired up. He was once rated by Bloomberg as the world's most accurate currency forecaster, and he certainly has been getting the Australian dollar right lately. He also picked the bottom of the market last March.

Anyway, he reckons the Aussie dollar is going to parity and beyond and that gold is going to $US1450 an ounce. This is not because of the declining US dollar and the prospect of QE, but because Australia is the new Saudi Arabia and the two countries that like gold the most – India and China – also happen to be the fastest-growing. It all comes down to the same thing really: China (India seems to have a few problems at the minute).

Clifford says Australia is in for several years of sustained very strong growth and the big problem is going to be how to spend all the money we make. Australia, he says, is going to be a very wealthy country and the currency is potentially going to $US1.12. He thinks the Australian sharemarket will double. Gold stocks will make an absolute fortune because most of them were profitable with gold at $US350 an ounce.

You heard it here first, but watch the program as well; Clifford is definitely worth a look."