The Coalition is not discounting the Australian dollar hitting $US1.25 as it shapes policy proposals for those industries which would be most affected.

In a broad-ranging speech on the economy yesterday, the shadow treasurer, Joe Hockey, said that if elected, the Coalition would ask the Productivity Commission to look into the dollar and other structural changes which were afflicting industry and ''recommend appropriate government responses''.

Mr Hockey said that according to some analysts, ''it is not inconceivable for the Australian dollar to reach $US1.25 over the next 12 to 18 months''.

Read more: http://www.smh.com.au/opinion/political-news/coalition-will-allow-some-industries-to-fail--hockey-20120307-1ukiq.html#ixzz1oTxeOAma

And the reason the Australian dollar would go up in the strastosphere is? The Australian economy is tanking due to poor management by Labor? Nupe. The Aussie economy is poised to grow somewhat while the US is tanking and the Liberal leaning profiterers on the exchange markets want to suck some blood.... Should we leave our industry exposed to help the blood suckers...? That is the dilemma... .