Just below parity now: $US0.9928
http://www.theage.com.au/business/do...809-1ik2x.html
Rank 8 - Deluxe Member
Just below parity now: $US0.9928
http://www.theage.com.au/business/do...809-1ik2x.html
Rank 1 - New or Inactive
As a person who makes $US I cant say i am at all surprised by AUD plummet. The currency is in no way worth the value it is, and all I am hearing is the massive job losses in Australia that are expected because of a high dollar.
In reality, Aust is already going down the toilet (just look at retail)...
The smartest thing is to send the currency down with interest rates cuts to avoid property bubble bursting and getting ppl to spend again.
Lower rates by 2-3% which will give ppl much more disposable income. That will help retail. If the currency is back to 70c its not that bad and allows us to sell high net worth industries again at competitive costs (education, tourism, consulting)...
AUD $ down will be much better for the long term prospects of Australia than getting your toys cheaper.
Rank 8 - Deluxe Member
And back up again "At the local close, the dollar was trading at $US1.0225"
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Screw the future of Australia!Originally Posted by UltraMagnus
I want cheap toys! >: D
Australia has been going down the toilet since we gutted our tarriffs and deregulated the financial sector though. The reason our dollar is so worthless now is because we've ripped the guts out of everything which made it valuable (case in point, we used to mine ore, process it into steel, make cars, then buy cars locally and export them. Now though we ship the ore overseas and buy back finished products).
Which will drive up inflation and we're already well on the path to hyperinflation (think Germany in the 30s when a loaf of bread cost a week's wages.
On the contrary, if the property bubble bursts and pollies remember who they're ACTUAL bosses are, then maybe we can actually fix up the economy, by readopting the financial reforms Chiffley tried to put through in the 40s but the Queen abused her powers to block. The property bubble bursting is only a problem under the current financial system (it's easily fixable with the passing of the Homeowners and Banking Protection Bill and a move towards a nationalised bank, which is what the commonwealth used to be before it was gutted then privatised, fixed exchange rates via treaty, massive infrastructure projects, a return to parity pricing and tarrifs and financial programs which actually promote the growth of businesses and industries which maintain and grow the physical economy).
Rank 8 - Deluxe Member
how come if the interest rate and currency go down then the price of bread goes up?
Because the entire system is moving into hyper-inflation, just like what happened with Weimar Germany where it got so bad that you needed a week's wages to buy a loaf of bread. The reason is that over the past few decades, the value of the dollar has actually decreased so much that now it's forcing up the cost of living (ie the value in money becomes less so things cost more money).
The whole reason interest rates are raised is to stave off inflation, which the govt and RBA are hesitant to do, because they know that mortgage delinquency rates are so high that another rate rise will burst the property bubble, sending our economy plummeting. But by not raising rates to prop up the property bubble, it's causing inflation to get worse and worse.
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+1 Hasbro are screwing us anyway with their pricing.
Rank 8 - Deluxe Member
Correct me if wrong isn't the AU dollar high only because the US is pretty much insolvant and compared to other currencies it just looks bad? From my understanding their pretty much screwed when they raised their debt ceiling.
BTW if anyone is into econimics as i am still learning through my spare time I'd love u to pm me and just chat here and there throguh msn or something just for me to learn quicker about all this financial/econimics stuff
Rank 10 - Admin
My thoughts on this...
If our currency and economy were more significant in the world, our dollar would be worth a lot more due to our (comparatively) fairly stable economy. But since we rely on other countries (like China) to make most of our money, it gives us a shaky foundation... short term we look great, but long term anything could go wrong with our customers and we are left little to fall back on (we don't manufacture much now). So investors don't want to risk buying up our dollars as our future prosperity relies on those 'short term' exports. It's safer to invest into the major currencies that don't rely as much on other countries to make their money. But now that the four biggest trade-able currencies (Yen, US$, Euro, Pound) are weighed down by debt and other "short term"* problems, Gold is now the safest 'currency' because it is global, so it doesn't have a value that relates to its source (like dollars).
* short term problems that investors seem to assume will be resolved over time, but some of these currencies/economies are never going to recover while the underlying problems continue to exist (unregulated capitalism). While companies and individuals put themselves before the people and the national interest, countries (tax-payers) will be constantly bailing out companies that have been run into the ground by a wealthy elite.
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