Mate thats not negativity but well researched reality that's not backed by a bunch of mad max vids.
In fact its in today's SMH being spruiked down (jawboned) by the RBA governor Glenn Stevens
This info can be beneficial to anyone including DSPers that plan on travelling or moving OS to hedge against a possible fall and save some $$
www.smh.com.au/business/the-economy/jawboned-rba-indicates-australian-dollar-needs-to-fall-further-20140304-341xp.html"The Reserve Bank of Australia has kept the cash rate on hold at a record low of 2.5 per cent, but indicated it wants the Australian dollar to keep falling."
Your a dooms day'er, ... If ever there was. The Aussie will fall ,,,, the aussie will fall. ..... the A$ to fall to 66c against the U.S ...
Sez who ... People bang on that the Aussie will fall back to the levels they where 10 years ago are full of crap. The Australian economy is larger than it was 10 years ago ... So telling people to hedge the Aussie at 89 cent coz the you think the Aussie will fall back to 66c is foolish if the Australian dollar rises back above parity ... Hence why the RBA is (jawboned) the Aussie, coz it wont stay down.
The reason it wont stay down is because ov several reasons. (( & none of them point to a long term fall of the Australian currency ))
It's always the same ... CHINA ... CHINA ... CHINA ... (( China was not a factor 10 years ago )) Now it is.
B4 the GFC ... the Aussie was at 47c against the US coz the world was bust ... China came along & bought up Australia's minerals in the 2000's under the Howard years (( mining boom )) This forced the world price for minerals up ..... the Aussie was rising & rising & rising & in 2008 - 2010 ( under Howard ) the Aussie dollar hit a high of $108 Against the U.S. ... The cost of Minerals where rising & rising & rising ... China knew it had to do something to stop their costs rising.
On 27 July 2011, the Australian dollar hit a record high since the floating of the dollar. It traded at a $1.1080 against the US dollar.
So they tryed to control the minerals & miners by buying Rio Tinto ... BHP Billiton fought them & logged a takeover of Rio Tinto itself ... China & BHP became locked in battle for control of the world markets.
Know-body could win. Stalemate.
So China did the only thing it could do .... Stop buying stuff & stop buying Australia's minerals. This saw the price of minerals fall ....
This saw the Australian dollar fall ....
& this saw overseas inverters leave the Australian market
This Also saw China quietly re-enter the Buying market where they saw the low price of minerals & the Australian dollar .... Where by China started buying up everything they could .... China bought up Not just Australia's minerals ..... This time while the Aussie was low .... They bought up everything they could b4 the Australian Dollar & & the mineral market prices started to rise Again.
China started to buy up mining company's, Real-estate Food Brands & company's & farms ect ect ...
The Aussie $ gradually recovered & by 2009 it was back to 94 US cents.
By October 2010, the Australian dollar reached parity .
On 27 July 2011, the Australian dollar hit a record high since the floating of the dollar. It traded at a $1.1080 against the US dollar.
... & it was still strong ... By all accounts the Aussie would have kept rising to 1.20 against the U.S dollar .... Some even said it would rise to 1.40 against the U.S
This spooked the Australian government who set about weakening the Australian dollar .... But the Australian economy was getting stronger & with 22 years of Australian growth without a rescission investors started to look at the Australian economy different .... World governments adopted Australian reforms, & Rudd was seen as a economic leader on the world stage ...
The G20 ( under Rudd ) was made the world foremost economic body. The Australian economy was given a Triple A rating
& the Australian dollar was made a reserve currency ..... The rise & rise of the Auusie was set in stone & China once again did the only thing they could .... STOP BUYING AUSTRALIAN MINERALS & COMPANY'S (( until the Australian dollar weakens ))
& this is where we are today ...
China is just waiting for the Aussie to fall low enough that it can re-enter the Australian market & start buying everything up .... But China knows .... If it lets the Aussie fall to far ... Other nations such as Japan, The European nations the USA & Canada will also re-enter the Australin market & China may miss out on the sweetheart deals & cheap contracts & bargan out there Such as Mining company's ... Dairy Companys ... Canada's Suputo has already started to buy up Australian dairy's ...
So you see despite your doom & gloom .... I dont think the Aussie will fall to 66cents .. (( if it does it wont be there for long ))
How Australia is different from 5-10 years ago ... The Australian dollar is a reserve currency now Along with the U.S dollar, & Euro ...
(( This means foreign governments & banks / company's
MUST hold Australian dollars ))
The Australian economy is now the 12th largest economy in the world.
The Australian economy has access to the Asian markets via ASEAN & APEC ... the rest of the world is drooling over that fact.
The Australian economy is geographically close to Asia .... Another advantage Australia has over Europe & the America's.
Australia has an abundances of gas, oil & minerals ... Everything the world needs most ...
Also a strong Aussie dollar means Australian exports of manufacturing products such as cars & textiles ect ectr are less competitive & see a downturn in exports ... Thats why the Australian gov & RBA jawbone the Australian currency ...
I don't think saving the car industry & the textile industries would be an issue in 2014 & beyond .... Wouldn't you agree.
So buy all means ... you hedge your money at 89cents .... I think ill wait for a better deal. (( somewhere around parity ))
Falling Aussie Dollar = higher inflation ( rising petrol & food costs ) ....... Inflation = higher rates ...... Higher rates = a rising Australian Dollar.
Australian to hut 66 cents against the u.s ... The sky is falling ... The sky is falling.
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Now that ladies and gentlemen is a good post!!! well done matey