hey guys
just heard on the tv that the aus $ is worth 90 us cents (cheapest its been in 23 years) so if ya looking to buy a tool etc.. for the us do it now:2tsup:
cheers
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hey guys
just heard on the tv that the aus $ is worth 90 us cents (cheapest its been in 23 years) so if ya looking to buy a tool etc.. for the us do it now:2tsup:
cheers
Great work little Johnny Howard better than Keatings 30c to USA $
Unless of course you were getting tipped in US $
How do you know its little johnny?? is the AUD strong or is the USD weak?Quote:
Originally Posted by wheelinround
whats the conversion to EUR like?
My guess it isn't anything to do with the AUD its the USD going down, and the AUD staying the same
Both, actually, but a democratic Government of whatever description has only a minuscule influence on the exchange rate of a currency, and Australia as a whole has a minuscule influence on the world economy.Quote:
Originally Posted by Gra
Weak USD, the Chinese are getting rid of it as fast as they can, also the arbitreurs buying Aus interest with Japanese loans. I agree with Frank and Gra the government makes very little difference. I jumped on short on the A$ a few years back as there was a short selling spree going on. Economic fundamentals remained the same and Johnny was the man, got down to US46c. Loved it!
Unless you are spending a lot of money the currency doesnt make that much difference. It gets eaten by fees and couriers.
It is the IDIOT! He has borrowed so much that the value of the US Dollar is down significantly!
Quote:
Originally Posted by Gra
It is no state secret. In fact it is very simple. Good economic management = strong currency. Mismanagement = weaker currency.Quote:
"My guess"? ...How do you know?
Comparative prices or exchange rate is a reflection of how each currency compares. Had the Australian dollar only gone up in relation to the US dollar one could argue that we kept steady and the US dropped, still steady is not a bad achievement yet that is not the case at all. Our currency has gone up in relation to all the other currencies including the Euro.
To say that governemts have littel influence in the value of the currency is a ridiculous statement. Governemt's economic management have everything to do with the aquisition power of a currency. It is true that currency value when floated is at the mercy of offer and demand and things like good economic management and zero or very low inflation can temporarily tip investors to dump it in favor of one that promises higher returns (interest), and the small Australian economy reflects this. In fact the Australian dollar is the most traded currency on the planet.
So...the value and long term prognosis of the US currency is the result of US policy, nothing else.
For those who even after 10 years of observing the "virtues" of our local NSW mafia bosses, are frothing at the mouth to return Labor in federal politics, watch this space. Once the "money for nothing" has disappeared, the wheel will turn and this time it will take much less that it took Bob and Paul to stuff it up.
Our exchange rate, our low inflation, our low unemployment and our high investment rate are all the result of good economic management.
Turned into a political bandwagon thread pretty dang quickly with none of the posters actually getting close to why it it is so strong.
To turn back to original post, this is one reason why a strong Aussie peso is not good for the economy, increased imports which places more pressure on interest rates.
Oh and for those who want to know why the dollar is so high its the resource boom and percieved advatages in interest rates. Nothing to do with who's in power, we are a resource based economy.
20 years in the financial markets........Quote:
Originally Posted by Marc
What I was saying, as I didn't have access to current rates was that it was more likely that the USD fell in value more than the AUD raised in value.
As for the amount a Govt influences the value of a CCY, it can help but not in the short term. It can only influence using long term strategies (As ALL of our political parties are so short term focused they will never influence it.... :U). The central bank will have more influence on the value of the CCY (The Setting of interest rates), as the reserve bank is a separate entity from the "govt" in this country (in name at least:U) the govt doesn't have a large say in what they do the board does. (They can make some serious hints i'm sure though)
This post probably needs to be moved, it has little to do with woodwork at the moment. As for the economic argument this bloke here has some interesting things to say http://www.abc.net.au/rn/boyerlectures/default.htm He has cred as being independentQuote:
Originally Posted by Marc
ABC and INDEPENDENT can not be spelled in the same sentence.Quote:
Originally Posted by Sebastiaan56
ABC goes with words like agenda, labor, left wing, socialist, and other words to that effect.:2tsup:
It was you who asked "how do you know" not me, I was just repeating your question and answering my own way.Quote:
Originally Posted by Gra
As for your credentials, hey, this is just chat, no need to say what you do. However, since you hinted to it, I must say that "20 years in the financial markets" does not say much at all. One can trade shares, real estate or be an accountant and still have no clue of macroeconomics.
Of course economist also haven't got the faintest idea since all they do is look backwards and assume that what they see will apply in the future.:doh:
To conclude, it is my opinion (and the opinion of many people much more informed than me), that each country's currency is the reflection of that particular country stand in the world economic arena. If someone can argue credibly that the strength of the Swiss the German and the UK currency and the weakness of the US are a product of chance I would like to hear such discourse.
Good to know, now all the world knows that political prejudice is a better guarantee of competence in macroeconomics than a doctorate or experience in the financial markets. I suppose you voted for Keating against Dr Hewson, then.Quote:
Originally Posted by Marc
Do you at least understand that this is a truism nobody has argued against and that the point is what makes the "stand"?Quote:
To conclude, it is my opinion (and the opinion of many people much more informed than me), that each country's currency is the reflection of that particular country stand in the world economic arena. If someone can argue credibly that the strength of the Swiss the German and the UK currency and the weakness of the US are a product of chance I would like to hear such discourse.
Quote:
<TABLE cellSpacing=0 cellPadding=6 width="100%" border=0><TBODY><TR><TD class=alt2 style="BORDER-RIGHT: 1px inset; BORDER- 1px inset; BORDER- 1px inset; BORDER-BOTTOM: 1px inset">Originally Posted by Sebastiaan56 http://image-mirror.cyanide.com.au/w...s/viewpost.gif
This post probably needs to be moved, it has little to do with woodwork at the moment. As for the economic argument this bloke here has some interesting things to say http://www.abc.net.au/rn/boyerlectures/default.htm He has cred as being independent
</TD></TR></TBODY></TABLE>
The "He" referred to is Ian McFarlane, Governor of the Reserve Bank of Australia for virtually all the 11 years of the Howard Government. But you dismiss his opinion because it has been broadcasted by the ABC.Quote:
Originally Posted by Marc
I think you proved beyond dispute your credibility.
Let's play the topic and not the man gents.
BTW, anyone who managed to lower the Aus dollar in the current environment would have to be a fiscal numb-nut. With China demanding resources at their present levels you couldn't help but maintain a decent balance.
I am more worried about what long term investment is being made while we are enjoying the boom times.
We should be investing in rail and port infrastructure, research, knowledge workers, water purification plants, sustainable long term (clean) energy sources and a bunch of other critical issues. Instead, this country is focussed on the short term and the price of a plasma. We are a sad lot really.
Until there are people like you around there is hope.:)Quote:
Originally Posted by Groggy
It may get moved again.:((
who gives a toss about the economy.
in good old oz weve got winners ( them with shares)
and weve got losers ( them that dont)
I am sick o living in an economy, could we get back to community
astrid:q
Yes, every now and then I would like to go and do voluntary work among the 2 billion people who still live on less than $2 a day, but then the usual excuses (health, family) prevail. Maybe we all, "winners" or "losers" according to your definition, could try to do something concrete, like supporting only policies based on humanitarian principles.Quote:
Originally Posted by astrid
It might be useful to remember that 700,000,000 of those people live in China, one of the fastest growing economies of the world, with a currency that, according to peeved importers, is kept artificially weak.
So, to address specifically the opening post, we can "strike while the iron's hot" and let the market forces take their course, or think about the world "community" and put our money to less selfish uses.
The competence in economics of our politicians is indeed outside of this topic, so those willing to discuss it might want to open a new thread. And test the fairness of the moderators.:wink:
Hi Astrid,Quote:
Originally Posted by astrid
To my simple way of thinking we live firstly in an environment (we have to breathe, drink, eat etc), then a society (everyone needs at least their mum for the first couple of years) and finally an economy. Unfortunately an economy is easier to manage than a society or an environment and our pollies are mentally lazy. This is why I believe we have so much to learn from what is left of our traditional cultures. Our obsession with cash has made us all much poorer.
Hi Marc,Quote:
ABC and INDEPENDENT can not be spelled in the same sentence.
ABC goes with words like agenda, labor, left wing, socialist, and other words to that effect.
Curious then that the ABC has produced equal numbers of member for each of the "L" parties. Actually, I rather have my $17 billion cash stolen from the Australian economy spent on the ABC than making war but that is another post.
The 90c exchange rate may be here for a while, its got me looking at timber on ebay....
We would have to define selfish then.Quote:
....or think about the world "community" and put our money to less selfish uses.
Is it selfish to take advantage of the exchange rate and buy undervalued goods made by quasi slave labor?
Or is it altruistic to share our wealth with countries who are surging from poverty to a better life stile?
Would it be less selfish if the exchange rate is 40c ? (just a thought)
Should we wait for the dollar to go down then in order to be less bad?
Rich is bad.
Poor is good.
Hard is right.
Easy is wrong......etc:doh:
OK. You go first.:)Quote:
Originally Posted by Marc
We should be more concerned about getting our democracy back. Australian politics whichever ilk has hijacked it.
OK...perhaps it is my background... Having lived in "never never land" (the land I will never go back to), having seen the results of "socialist" politics who's politicians sweep away the opposition by getting the army to do home visits at 2 am, and then the next lot of "conservative" politicians who send the police at 2am for home visits to whoever has a different view.
Once in Australia I thought that it was nice to see how politics is some sort of "dirty" subject and that decent people don't have political opinions, don't talk about it just like they don't talk about their stool consistency or smell.
Yet just like in never never, in OZ there are two kinds of people, if I may make a gross generalization. The one who expect something from the government or community and the one who want the government to allow them the freedom to do something for themselves and by extension the community.
In countries less civilized, this two opposing forces can take some rather radical form and believe me you wouldn't want to associate with neither. In OZ things are much more civilized and therefore both sides have civilized representation and therefore it seems that it is a matter of fashion who to barrack for.
Yet it is not fashion nor timing, believe me
It is a simple matter of economics, and I am sorry for those who dislike this topic and prefer the communal approach. Communities exist because there is an economic form that supports them and allows them to exist.
Yet when we get what appears to be something for nothing, make no mistake.
We always pay.
Always.