With all the current chaos going on overseas with the real possibility of Greece leaving the Eurozone, our own Ken Henry, former Treasury secretary, believes that Australia could become a safe haven for global capital.
Speaking to ABC television, Henry explained that we could very well see some quite large capital movements into the country….
“It’s quite possible that some of that capital will come into Australia. Australia will be seen as offering something of a safe haven. The good news side of it is, that is possible maybe even likely that any capital flight associated with problems in Europe would make it easier for Australia to finance its current account deficit.”
It will see our dollar rise even higher against the US however, making exporting our products even harder.
