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Back up to over $1 USD as of 30/11/2011
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Woohooo parity again!!Originally Posted by Accel
Wanted AM partner Vanguard, Myclones Dirge, G1 Victory Leo, e-hobby Dark scream ( the black version), e-hobby Magnificus
Parts- AM partner Basher-side guns, G1 Actionmaster Elite Windmill's blades[I][B]
I wonder how long they can flog the dead horse to keep it that way. Then again, in nature, parasitic infections do have a habit of finding every last cell of nutrients in their host before dying out.Woohooo parity again!!
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Haha... that is a sad yet funny way of putting it...
And yet it's sadly accurate (I suspect this is "preaching to the choir" in your case as the old saying goes, but it's worth mentioning in terms of currency values). The problem we have across the world is that we've devalued currencies and invested in debt. Last I checked the financial system was in debt globally to the tune of $1.4Q (quadrillion); $15 trillion in the case of our own banks.
This has been due to the currencies of the world being based less and less on physical production and more and more on speculation. The problem is that a currency is only worth what it physically produces. The more you physically produce goods and productive services (which either facilitate or contribute to the production of goods); the more your currency is worth. The same is true of your infrastructure, which directly impacts on your productivity.
Conversely, the less you produce and the more you invest in speculation and debt; the more worthless your currency becomes.
It's no coincidence that those booths buying up gold jewelry have shown up in shopping centres.
Unfortunately the investment bank who run the show (and in some cases, literally own half the country here and in other countries to varying degrees) aren't going to fix the problem, because the only thing that will fix the problem is a bankruptcy reorganisation which would result in them losing everything.
At this stage, it's only a matter of time before the whole financial system comes crashing down like a deck of cards and things like parity with the US dollar (let alone affordability of things), become a distant memory.
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Monetary and market value can be influenced by perception alone. I am pretty sure that if you go to the stock exchange and scream really loud 'CHINA'S ECONOMY IS SLOWING DOWN!!' you will probably wipe several cents from the $AU currency.
I also believe that the global economy is screwed up and we are currently running on fumes but those fumes may not even exist at all as perception still has a role in how this works.
Last time the $AU went under parity, there were similar news of China slowing down. Then the Chinese government came out and said 'No it's ok' and the AU$ went into surplus fairly quickly and I suspect the same thing has happened now.
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you can always slow all of em down by yelling " there's a bomb" in the stcok exchange room, that'll halt all transactions for the day. Of course you wont be able to enjoy the chaos you'll ensue coz by then youd either be trampled or beaten down by security
Call me small minded, but Im just happy we are at parity....
Wanted AM partner Vanguard, Myclones Dirge, G1 Victory Leo, e-hobby Dark scream ( the black version), e-hobby Magnificus
Parts- AM partner Basher-side guns, G1 Actionmaster Elite Windmill's blades[I][B]
The problem with that theory (which in all fairness is the economic theory perpetuated by the media) is that the financial aggregates and monetary aggregates are not the whole of the economy but a section of it.
When you look at those sections of the economy in terms of the physical aggregates, things become very clear. That's why the physical economists have been able to predict every single financial depression and collapse since the 1960s, including the GFC that all of the liars in the parliament claim that "noone saw coming".
Think of it like a house with structural problems. Which builder is going to more accurately predict when a house is likely to collapse- the one who factors in the state of the foundations, or the one who ignores them completely?
Funny you bring that up. Recently a Chinese economist has unofficially (purely because of what happens in China to those who are deemed dissidents) come out and said that "every province in China is Greece.
It's so difficult talking about this subject on here. There's so much I could go into here, but doing so would get into very political territory considering the history involved (including a nearly averted paramillitary coup in NSW). There is just so much to this, in terms of corruption, oligarchical agendas and fascism (East India Company style), that the question when discussing it is one of how far down the rabbit hole you look.
The best analogy is literally a gambling addict heavily in debt. They keep finding new ways of getting money and borrowing money they don't have, until eventually something gives and their mansion of debt comes crashing down around them.
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and back under $1 USD again
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We are back above Parity (just).
It almost seems like a game. I still believe that this ups and downs are mostly due to perception rather than anything economically solid. People are afraid about the European situation and when the news are pumping you with it, the dollar goes down. The news slow down regarding the Euro (or people get used to it) and the dollar creeps back up again..
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