Where’s bill – 15/10?

I am leaving London tonight just as the Australian dollar hits parity with the USD (although it has now come off again).

So our dollar has hit it highest level since it floated at the same time as the budget deficit is also at high historical levels relative to GDP. To remind all you readers who think that budget deficits have some inevitable tendency to cause a collapse in the exchange rate I also note that the AUD hit is lowest value 10 odd years ago when the budget had been in record surplus for some five years. Lesson: get over these fears there is no tendency or relationship between the deficit and the exchange rate.

For the weekend I hope you have fun with the Saturday Quiz and with our Guest Blog for today. I will probably be back with another topic on Monday (AEST). I had some interesting discussions today and perhaps some progress is possible in tearing down the mindless deficit terrorist edifice. That is all that needs to be torn down because there is nothing of substance lurking behind it.

It will be good to get back into the land of economic growth and the warm sun. Things are going to get very ugly here just as Winter approaches.

While I am travelling some comments that require moderation (for example, those with links to external sites) will take a while to be approved. Please be patient.