Currency rates (added every week or two).

[griffin]

As of 6th August, according to xe.com, these are the current rates for AU$1

- US$ - 1.0444 (way down, after reaching 1.10 a week ago)
- GB£ - 0.6371 (way down)
- JP¥ - 81.882 (way down)
- EU€ - 0.7308 (way down)
- NZ$ - 1.2386 (way down)

[griffin]

Dropped another US 3cents in the last 2 days.
And a similar amount with most of the other major currencies.

[bowspearer]

We've got a major problem just round the corner. The recent raising of the debt ceiling has simply put off the inevitable for a very short while.

Once that happens, China are screwed because they hold a heap of America's debt. Once that happens, China can no longer afford to build so they stop buying raw materials. At that point we kiss the mining boom goodbye.

Ironically, without crossing over into politics by getting into specifics, the way out would harm the international banks and central banks, which are trying to stay afloat, and which are powerful enough for world leaders to not want to go against.

The other problem for us is that our banks are in debt to the tune of roughly 15 trillion dollars through their derivatives holdings (it dropped down to 12 billion at the height of the GFC). In fact the only thing that's keeping them afloat are short term 90 day loans which they're generating collateral for through the housing boom.

The problem there is that we have the last uninsulated property bubble left in the world to my knowledge (as fr as I'm aware, all the others have already burst), and mortgage delinquency rates are so large (over 90 days according to a report from ANZ a while back) that the next interest rate rise will send families teethering over the edge, resulting in mass-foreclosures, bursting the property bubble and putting us so far into recession that we'll potentially be facing a depression.

All that of course, could make the exchange rate back at the height of the Asian Economic Crisis seem like we were filthy rich in comparison.

[kaiden]

Dropped another US 3cents in the last 2 days.
And a similar amount with most of the other major currencies.

wow that is depressing. i was hoping america wouldnt raise the debt ceiling and have their dollar plummet to say $1AU = $0.70US for a few years :P

[bowspearer]

wow that is depressing. i was hoping america wouldnt raise the debt ceiling and have their dollar plummet to say $1AU = $0.70US for a few years :P

Unfortunately this situation has been predicted by physical economists since the 60s. It's actually a wonder that the global monetary system has held out as long as it has.

[Paulbot]

Just below parity now: $US0.9928
http://www.theage.com.au/business/do...809-1ik2x.html

[UltraMagnus]

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.

[Paulbot]

And back up again "At the local close, the dollar was trading at $US1.0225"

[KillinSpoon]

AUD $ down will be much better for the long term prospects of Australia than getting your toys cheaper.

Screw the future of Australia!
I want cheap toys! >: D

[bowspearer]

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.

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).

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

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.

to avoid property bubble bursting and getting ppl to spend again.

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).