Disastrous? Put it this way, if a sudden shock internally/externally occurs and we see huge outflows of monies shift out of the AUD, Australian bonds could bear the brunt of a inflow of money, decimating the high yield offering of long dated Australian bonds. Forcing yield hungry bond holders to sell. For that reason (and others) every country on earth is trying stave off hyper 'hot' inflows, except Australia.
The story of two central banks and their mentally unstable 'bosses' 1. The Fed Ben Bernanke (insane loose policy) 2. The RBA Glen Stevens (insane tightening cycle) a divergence of similarities by their sheer lunacy.
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