Ausie $$$$$
- Biker
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Ausie $$$$$
Now $AU 1.28741 for $US 1.00 !!
Starting to hurt the back pocket and still dropping even further.
Starting to hurt the back pocket and still dropping even further.
“You only live once, but if you do it right, once is enough.”
More information here http://www.dailyreckoning.com.au/austra ... 015/01/30/
Expectations regarding the upcoming interest rate decision are one of the factors.
Expectations regarding the upcoming interest rate decision are one of the factors.
"Those who can, do. Those who can't, teach. Those who can't teach, teach English."
Credit Jacked Camry & LTO
Credit Jacked Camry & LTO
I warned you a few weeks ago that 72 cents is the aim by mid year.
If Abbott has his way then it will go to 65 cents.
Biker must be an English teacher because a banking and finance guru he aint.
If Abbott has his way then it will go to 65 cents.
Biker must be an English teacher because a banking and finance guru he aint.
My Three Mothers Tell Me I'm An Attention Whore.. I Love My Mums
The Aussie was articifially strong over the past few years as a result of Chinese demand for Australian resources effectively 'sheltering' the Aussie economy from the worst ravages of the GFC. Without that factor, Australia would have suffered as much as - or even more than - other western countries.
The sheltering meant Australian (and by association, New Zealand) interest rates didn't fall to next to nothing and this created a huge demand for investments in Australian dollars - the old arbitrage game: borrow at 1% in US or the US and invest it in Australa at 5-6%.
Now the Chinese demand has fallen and the Australian economy is suffering. Couple this with the expectation of raising interest rates in the US and UK and Western Europe, and it was inevitable this would happen.
The sheltering meant Australian (and by association, New Zealand) interest rates didn't fall to next to nothing and this created a huge demand for investments in Australian dollars - the old arbitrage game: borrow at 1% in US or the US and invest it in Australa at 5-6%.
Now the Chinese demand has fallen and the Australian economy is suffering. Couple this with the expectation of raising interest rates in the US and UK and Western Europe, and it was inevitable this would happen.
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- RicePikey
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Coupled with Obama making the US dollar stronger, to punish the Crimean Russians, and the decline of the wars overseas, all other currencies go down commensurately. He's also forced oil prices down, so now Arabs and Russkies can't buy their 5th yacht.
Good thing is, with lower oil prices, the world economy may soon pick up again, *IF* oil prices stay down, we avoid WWIII, etc.
The Australian economy is dependent on China, yes, and China is now dependent on the West. Circle of life? Haha.
Abbott is making some moves ...
Good thing is, with lower oil prices, the world economy may soon pick up again, *IF* oil prices stay down, we avoid WWIII, etc.
The Australian economy is dependent on China, yes, and China is now dependent on the West. Circle of life? Haha.
Abbott is making some moves ...
Last edited by TristranandIsolde on Sat Jan 31, 2015 10:10 am, edited 1 time in total.
Fool's folly is following another fool.
- The Grand Jester
Caution: all of my posts are to be taken with a grain of salt, heroin, and Everclear. Then you can reply back to us.
- The Grand Jester
Caution: all of my posts are to be taken with a grain of salt, heroin, and Everclear. Then you can reply back to us.
The good old carry trade! (More like "borrow near 0% in US and.." for years now though.) Performed restlessly by the managers of everyone's non-cash funds in search of that ever-elusive yield. Just wait for ZIRP/NIRP almost everywhere.. wait until they see Cambodian interest rates while the peg is in place truly, "earned interest" in another currency is a net-loss if said currency is dropping even sharper. Which would only further accelerate flight from that currency, if no CB intervention.scobienz wrote:The sheltering meant Australian (and by association, New Zealand) interest rates didn't fall to next to nothing and this created a huge demand for investments in Australian dollars - the old arbitrage game: borrow at 1% in US or the US and invest it in Australa at 5-6%.
Last edited by metaleap on Sat Jan 31, 2015 10:14 am, edited 2 times in total.
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Deals and pressure on Arabs? Spigot-control? Levers and controls in the Wizard of Oz's control box? You know all the methods, already, don't you?scobienz wrote:How has Obama 'forced oil prices down'?
Also, removed conflict from the Middle East, drives oil prices down (or, you may write, removes artificial upward pressure from the price of oil).
Last edited by TristranandIsolde on Sat Jan 31, 2015 10:18 am, edited 1 time in total.
Fool's folly is following another fool.
- The Grand Jester
Caution: all of my posts are to be taken with a grain of salt, heroin, and Everclear. Then you can reply back to us.
- The Grand Jester
Caution: all of my posts are to be taken with a grain of salt, heroin, and Everclear. Then you can reply back to us.
Hahaha so Barack Obama is behind world monetary dynamics, the BIS should hire him interesting notion that he'd singlehandedly kill off most of expensive, debt-financed US shale just to save the world economy and prevent WW3. Is that why he got the Nobel Peace Price right after being elected?
I missed that news item..TristranandIsolde wrote:Also, removed conflict from the Middle East
Last edited by metaleap on Sat Jan 31, 2015 10:34 am, edited 1 time in total.
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- RicePikey
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Well, his US advisors, of course. Cabinet!!
Fool's folly is following another fool.
- The Grand Jester
Caution: all of my posts are to be taken with a grain of salt, heroin, and Everclear. Then you can reply back to us.
- The Grand Jester
Caution: all of my posts are to be taken with a grain of salt, heroin, and Everclear. Then you can reply back to us.
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I agree with what Scobienz said, but I doubt western interest rates are going to go up anytime soon. Canada very recently lowered their interest rates without warning. Ever since 2008, when their banking system proved to be one of the most stable in the world, I've looked at them as an indicator of things to come. The US is obviously over-optimistic, and I don't think western Europe will raise interest rates in the near future, or at least until people figure out what will happen with Greece. But hasn't the Aussie dollar historically been lower than the greenback anyways? A lower dollar would help Aussie exports so I don't see how it's that bad (except for expats with AUS savings of course).
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No, I am not an English teacher, I am retired and on a Ausie pension.bigphatt wrote:I warned you a few weeks ago that 72 cents is the aim by mid year.
If Abbott has his way then it will go to 65 cents.
Biker must be an English teacher because a banking and finance guru he aint.
As for a finance guru! I have never understood how the world monetary system worked and never will.
“You only live once, but if you do it right, once is enough.”
That puts you about on equal footing with the "finance gurus"Biker wrote:As for a finance guru! I have never understood how the world monetary system worked and never will.