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Australian slang. Two bob was once known as two cents in currency, and a watch is an instrument to measure time . In todays terms ,together they form " a 2 cent watch" . Would you buy a watch for 2 cents ? and how good would you expect it to perform?. probably very erratically. Hence the ocker term "as mad as a two bob watch" related - also see Shithouse Rat and cut snake.
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