Aussie $$ set to fall

[the_hawk*]

Following on from other events like the fall in interest rates, high unemployment and Australians high debt.

Rumors within the investment community believe the AU$ is about to fall.

I personally believe its about to trip over and fall on its sword.

So many will say that's just being negative, I say it will happen and it will be sooner than most think 1 to 6 months and the $$ will be falling.

The net effect of this will be that prices will rocket up as so much in now imported.

[the_hawk*]

It depends on what or where you are in the scream of things, its great if your a manufacturer that exports, shame there are so few left.

As a member of the general population a falling $$ only means the cost of everything will go up and increase thre cost of living even further.

This will stretch household budgets to breaking point and leave them with no surplus to spend, the economy will further slow and the cycle will continue.

this also effects the amount of money the government collects in taxes and able to pay for services including pensions and medical for the aging population.

As for what I think is a good exchange rate, I have no idea what is ideal, I just know the rising costs wont do Joe average any good.

Also falling interest rates to try and get the economy going will further erode self funded retirees and super anuation recipients incomes.

with more people aging with decreased income and higher demand on less resourses.

[the_great_she_elephant]

I thought the discussion was about whether or not the falling Aussie dollar (or rising US dollar) was bad for the Australian economy, and without having some idea of what the optimum rate is, it is surely impossible to .say either way.

I personally, am adversely affected by the falling A$ - it makes all that lovely cashmere I buy on Ebay from the US more expensive - but I am not naive enough to assume that means it's a bad thing for the whole country.

 Most of the economists I have heard discussing it on TV seem to think it will help our economy.

[***super_nova***]

Well, I do buy most of the stuff I need from US (some UK or Germany) and I got a nasty shock when supplies that cost me about $160, only month or so ago, came to over $200 today 

But, the way I look at it is that I was so lucky getting all these supplies so cheap over several years.  Now we are going back to normal, which will make my life more difficult, unless I concentrate more on getting everything from UK and Europe, with pound and Euro being only marginally higher against our dollar in this moment . 

In any case, not all imports are dependant on the value of US dollar, so "the hit" on Australian households may not be as severe as you think.

[the_hawk*]

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@the_great_she_elephant wrote:

I thought the discussion was about whether or not the falling Aussie dollar (or rising US dollar) was bad for the Australian economy, and without having some idea of what the optimum rate is, it is surely impossible to .say either way.

I personally, am adversely affected by the falling A$ - it makes all that lovely cashmere I buy on Ebay from the US more expensive - but I am not naive enough to assume that means it's a bad thing for the whole country.

 Most of the economists I have heard discussing it on TV seem to think it will help our economy.

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GSE some people tried to make it about being good for the economy,  I just made a prediction back in early May that it was going to happen ( see OP)

There was the usual people saying no it wont, you have no idea, what would you know and so on, as time has gone past and the $$ has fallen that changed to how its good for the economy.

I realy dont know who they listen to or where they get their opinions from.

A falling $$ and interest rates is a signal we are not going well and things are not looking good, these things are having to be done in the hope that people will again start to spend money and get the economy rolling again, Its just a shame many dont have any surplus income to spend.

The next issue is, if Labour gets in they will continue to spend money they dont have and increase taxes to breaking point.

If the Libs get in they will pull the purse strings so tight people wont know whats hit them, reduced services all round and more user pays, they may even think about medicare, bearing in mind Abbot has no social  

conscience and only really cares about his rich business mates

[just_me_karen]

I scrolled back and nobody said it wasn't going to. After all, it had been on all the news shows that day, if I remember correctly.

So, I was right about "if it goes up, it's bad. If it goes down, it's bad" so I guess that's like "if labor get in, it's bad. If liberal gets in, it's bad". Lol

[the_hawk*]

LOL you didnt