Aussie dollar could hit $US1 by Sept

[SkinnedAussie]

http://www.news.com.au/heraldsun/story/0,21985,23741446-5005961,00.html

THE Australian dollar is tipped to reach parity with the US dollar as early as September, for the first time since the days of a fixed exchange rate in the early 1980s. Soaring commodity prices, decade-high interest rates and a weaker US dollar are expected to continue to boost the currency, making overseas holidays and imported goods even cheaper.

Mr McKay expects the Australian dollar to average $US1.01 in the first three months of 2009, but agrees it could reach parity sooner.

The Australian dollar began this calendar year around 87.57 US cents. Its all-time low was 47.78 US cents, reached in April, 2001.

Could be a good time for me to start buying up on NFL jerseys, and the like. :laugh:

[Leonard Washington]

America's economy is heading for 2nd world status in the next 50-100 years or this global economy thing is finally starting to even the playing field.

[scuppajones]

Thanks W. Worst President Ever.

[GoSkins561]

Thanks W. Worst President Ever.

What does G.W have to do with something that has been happening since the early 90's?

[chomerics]

What does G.W have to do with something that has been happening since the early 90's?

Poor monetary policy, tax policy and fiscal control.

Or do you not think that 6 years of a GOP led government has any bearing on the economy?

[GoSkins561]

Poor monetary policy, tax policy and fiscal control.

Or do you not think that 6 years of a GOP led government has any bearing on the economy?

I think it extends well beyond that into the Clinton years, hell I was one learning about the global economy in high school. I love how you guys pin every thing on GW. Must be nice to have a scape goat for everything.

[Tulane Skins Fan]

What does G.W have to do with something that has been happening since the early 90's?

Nothing. W. has never done anything wrong. All the bad things that have happened in the last 8 years, were DESTINY. All the good things were (what good things) were his brilliance.

[GoSkins561]

Nothing. W. has never done anything wrong. All the bad things that have happened in the last 8 years, were DESTINY. All the good things were (what good things) were his brilliance.

Again, he is your scape goat, however in reference to this post, other countries currency have been gaining on the $$$ since I was a kid.

So I guess it is his fault they have finally caught up? - seems fair

Such logic would allow me to blame the democratic led house for everything.

[chiefhogskin48]

This is actually a good and much-needed thing for our economy. It will finally allow other countries to import our goods, be tourists in our country, etc. For too long it's been the other way around, which is why our trade deficit is so high.

[skinfan133]

Poor monetary policy, tax policy and fiscal control.

Or do you not think that 6 years of a GOP led government has any bearing on the economy?

a president's economic policies don't effect the economy for at least 6-8 years. thats why we're doing poorly right now. bush's quick fix for clintons mess has come to roost, just like clinton's fix fixed bush part I's problems.

and we've had steady inflatioin since the 1910's. I don't think it's a coincidence that the 16th & 17th amendments were passed and the federal reserve were created in this decade. screw you reformers, thanks for ****ing up the future of this country pretty good.

[skinfan133]

This is actually a good and much-needed thing for our economy. It will finally allow other countries to import our goods, be tourists in our country, etc. For too long it's been the other way around, which is why our trade deficit is so high.

:whoknows: what about that statement is supposed to make sense? lets see, inflation=good. riiiiiight.

[isle-hawg]

Extreme unbalanced budget (loans from our "friends" in the middle east and China) weakens the value of the US dollar. The US dollar still the major marker for the price of imported oil. Gee I wonder why the price of fuel is going sky high for us. :doh:

The Canadian dollar and Euro are already worth more the the US dollar which is completely upside down from a couple years ago.

Thanks GW, for your "conservatism" of high national debt and foreign trade.

How about lower taxes even more while you continue to increase govt spending, its working great so far...

[Heisenberg]

According to GoSkins, nothing bad that happens is GW's fault . . . but if something bad is happening it is most likely Obama's fault.

In conclusion, when looking for someone to blame . . . blame Obama.

[Sticksboi05]

:whoknows: what about that statement is supposed to make sense? lets see, inflation=good. riiiiiight.

Inflation is sort of a good thing. It shows that there is economic growth. Now of course you don't want hyper inflation, you want creeping inflation which is a sign of steady growth because prices just naturally increase over time.

He's saying that because our dollar is so low, it is very cheap for other countries to import our goods which will encourage them to do so. That's the one good thing about a weak dollar.

[skinfan133]

Inflation is sort of a good thing. It shows that there is economic growth. Now of course you don't want hyper inflation, you want creeping inflation which is a sign of steady growth because prices just naturally increase over time.

He's saying that because our dollar is so low, it is very cheap for other countries to import our goods which will encourage them to do so. That's the one good thing about a weak dollar.

somebody graduated from keynesian 101. learn that from studying the topic, or from public school? in a free market economy inflation isn't a symptom of growth. if anything, prices go down with growth in a free market economy. as you compete and make more sales, you are able to lower the price to be more competitive. when two distributers or sellers have to raise prices to stay in business or be competetive, that is negative. only in a flawed keynesian system like ours with a central bank causes creeping inflation. while a free market might inflate from time to time, it can;t be charted by a straight line on a graph like the keynesian system.

more simply put, inflation is a sign of artificial economic growth, not real lasting growth. in order to maintain this growth, currency must be inflated by artificially influencing interest rates, and while this promotes growth in the now, it encourages bad investing and saving schemes and leads to problems later down the road that eventually can't be fixed with cyclical inflation. mark my words, in 50-100 years (or even sooner if policies don't change) we will reep what our forefathers sowed in the early 1900's

(a classic example of the faliure of central bank economics is Germany after WWI. the interest rates were lowered in order to cut off impending recession. eventually [since this stuff tends to go out of control in an exponential way] the interest rates became 0, which caused people to run on their money and buy as much as they could in order to retain the value of their currency by converting it to something tangible rather than fiat money. sicne the interest rates were already 0 and with inflation starting to snowball, the german central bank was helpless. inflation went into hyperinflation and even went passed that. in fact at one point a duestch mark became so worthless that 1 duestch mark circa 1920ish = 10,000,000 duestch marks around a decade later. [those numbers are no where near exact, but the rate was astronomical]. if you want a more acurate telling of this unfortunate but textbook instance of economic faliure, search for it on the internet, there's good source material out there.)

[Fergasun]

America's economy is heading for 2nd world status in the next 50-100 years or this global economy thing is finally starting to even the playing field.

Yup. But didn't you enjoy the nice returns you were having on your 401(k)? The capitalists run the country, and guess what? They aren't smart like Henry Ford who realized that you should pay your workers enough to buy the products they are making... but you can pay someone in another country 1/8th as much... hooray!

[Fergasun]

Poor monetary policy, tax policy and fiscal control.

Or do you not think that 6 years of a GOP led government has any bearing on the economy?

It's been going on for a lot longer than 6 years... sheesh... it's all of them! Both parties! If more people started to vote for a unified 3rd party, a centrist party, maybe we could make some more progress!

[Fergasun]

Inflation is sort of a good thing. It shows that there is economic growth. Now of course you don't want hyper inflation, you want creeping inflation which is a sign of steady growth because prices just naturally increase over time.

He's saying that because our dollar is so low, it is very cheap for other countries to import our goods which will encourage them to do so. That's the one good thing about a weak dollar.

Inflation is bad. Why is there inflation? Is it not because we have a fiat currency and someone is printing more money somewhere?

Anyways, inflation would be dead tommorrow if the Fed raised interest rates by 2% or so... maybe even 1% would do it... people are taking their savings out of dollars and buying stuff with it (things like gold and other good stores of value) because you can't get a decent return on something like a CD or treasury... (well maybe treasury)...

[Fergasun]

He's saying that because our dollar is so low, it is very cheap for other countries to import our goods which will encourage them to do so. That's the one good thing about a weak dollar.

Step 1: Let's have America start making less goods, those goods can come from somewhere else.

Step 2: Let's inflate the dollar. This will cause America to export more goods.

Step 3: Opps, I just realized we don't have anything good to export since we outshored all of our manufacturing.

Step 4: Hyperinflation!