The RBA has a rope tied to each arm and leg and a team of horses pulling on each.

They love their household Debt Machine – it is what they have been polishing for the last 20 years – but they may be getting worried that it might not thrive on the corrugated dirt track that lies ahead. The smooth asphalt of a commodity boom is what the Debt Machine really likes.

Leveraging up the proceeds of a commodity boom does not work too well for a CAD country in the absence of a commodity boom.

They may be realising that if they want to avoid blowing up the Debt Machine they may need Governor Glen to walk in front with a red flag and the last thing they need is for it to be in top gear as it jumps the gutter at the end of the last new Chinese ghost city subdivision and heads off down a traditional low return Aussie commodity bush track.

To read the original version of this comment in the original context at Macrobusiness.com.au click this link. (link maybe locked – but there is a free trial available)