Can not believe the fall in US $

Cannot believe the fall in US $

> Causing havoc on our exports of coal, iron ore and wine but a bonanza on imports for purchase.

Richard, does this also mean that a strong Aus dollar is making it possible to buy imported wines from France and Spain downunder?

Cannot believe the fall in US $

We drink beer down here...
Seriously though, it's called a two-speed economy. Either you're in the mining sector or you're struggling everywhere else.

Cannot believe the fall in US $

Wash your mouth out Kent !! I only imbibe the fine OZ vino...

RADU

The US Dollar is on the way to zero along with a bunch of others. Best to get into something real thus the inflation in metals, oil and food. Actually it's not inflation just the repricing of things in dollars headed for the toilet. This ain't going to end pretty!

Oh my! Maybe you should trade your dollars for some magic beans I have for sale.

Part of that is the rise in the Aussie against all other currencies. The international carry trade in foreign currencies has allowed them to evolve a secondary purpose; they basically become commodities who's value reflects the interest rates of their home country.

Australia was the first nation to start to bring their central bank rates up after the 2007-2008 crash, so money moved to Australia has more inherent value. If there wasn't a mechanism to partially compensate for this (exchange rate) all the world's saving's would flow to the country with the best combination of rates and risk.

Japanese Government Bonds 2-Year yield 0.200%
U.S. Treasuries 2-Year yield 0.625%
U.K. Government Bonds 2-Year yield 4.500%
Australian Government Bonds 2-Yea yield 6.500%

WARNING - In addition to surveying, I run the money for a small family investment trust and am currently working on a degree in economics and finance from the international program at the London School of Economics, so don't get me started, I'm kind of geeky about this stuff. 😉

So in other words you know why things are getting out of control but can't do a dang thing about it? I can't wait for this incarnation of the federal reserve to collapse or be removed!

Thus the price of gold going up 31% USD in the last year. Oil prices to follow. Believe all the happy BS the adm. is selling these days if you want but I for one think inflation is driving the bus now and this recession is going to last a very long time. Dig in.

Guess this means Aussies should come here and spend money!

> So in other words you know why things are getting out of control but can't do a dang thing about it? I can't wait for this incarnation of the federal reserve to collapse or be removed!

From the mouth of babes. I mean what do you expect????? Two wars and spend a cool Trillion, on top of this grant a huge tax break. On top of this outsource most of your manufacturing to China and everywhere else there's cheap labor. On top of this outsource your service jobs to India. And to top it off bring in a bunch of illegal immigration to lower wages even lower. No currency can sustain it's value if a country doesn't produce anything. Of course the dollar is losing it's value as well as it should! It's been overvalued for years. Since we can't do the sensible thing and impose tariffs, let the dollar weaken and that will raise the cost of imports, lower the cost of our exports and maybe some of those lost manufacturing jobs will return here. Get it?

Makes our Caterpillar and John Deere machinery much more affordable to you and gives those folks lots of work back here in the CONUS......