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First time in 27 years

Discussion in 'The Pub' started by Takamii, Oct 16, 2010.

  1. http://www.abc.net.au/news/stories/2010/10/15/3040079.htm

    Australian dollar hits parity with greenback

    Updated 1 hour 10 minutes ago

    The Australian dollar has hit parity with the US dollar for the first time since it floated in 1983.

    The last time parity was seriously discussed as a possibility was in 2008 ahead of the crash of Lehmann Brothers when the dollar hit 98.5 US cents.

    But as the global financial crisis unfolded, it plummeted to 60 cents.

    Just before 11.30 pm (AEDT), the dollar briefly rose to 1.0003 US cents.

    About midnight, the dollar had pulled back to about 99.69 US cents.

    The dollar has been rallying in recent months because of growing expectations the US Federal Reserve will pump more cash in to the US economy.

    That has been weakening the US dollar and sending the Australian dollar to its new post float high.
  2. That's good news. My parents used to tell me back in the late 60's and thru the 70's the Aussie dollar was always stronger than the greenback.
  3. Great time for the Ozzie dollar. Not so great for those trying to bring money from overseas back into the country... doh !!! Win some, lose some.
  4. and disaster for our export industry, on whom we depend for balance of trade and influence on inflation
  5. watch our dollar crash as everyone will be spending their money overseas
  6. Goz it wont crash - as there value of our dollar is influenced more by the loss and decline in demand for the US dollar - more people on the big currency markets want our dollar so it becomes stronger.
  7. Motolegion = correct

    Read a great article on a currency trade war, some believe the US is pumping money out so as to increase their exports, so as to hide the other problems in their economy. I tend to agree and believe the US is in serious trouble, already hey have gone back to their stupid lending practices to people that dont have the money to pay it back
  8. Halifax - the US is doing Quantitative easing to pay its debts

    means its printing more money to pay its debts thus diluting the value of the currency

    Germany under the Weimer republic did it and Zimbabwe is doing it

    if you owe $1million but only have $500,000 and so you print $500,000 which makes that original $500,000 worth half of what it was
  9. How ? - if our exports are majority raw material based - and those raw materials are needed/essential to fuel growth and development in countries that are emerging economic powerhouses ? we dont manufacture much here any more, thats an industry to be hit hard.

    However should places like Brazil etc devalue their currency in line with the US $ yes then our mining will suffer
  10. Why would they want ours? Australia is a pretty small unimportant place...
  11. But if the currency is strong and stable and stuff, that makes it worthwhile for storing your money. The size and importance of the country is secondary, and matters only to the extent that it affects the aforesaid stability/etc.

    Australia is a well known first world country with reliable resource exports (China isn't going to stop needing coal any time soon). And our cash is hard to forge -- to the point that our technology is used by several other countries :cool:.

  12. Same reason there are swiss bank accounts - is switzerland bigger or more important ?
  13. Talking about Swiss Australia is slowly & steadily becoming the next Swiss currency in terms of preferred currency for worldwide currency storage
    and business transactions.
  14. Resmen - comes from the fact that our legislators although deregulated the banking and finance sectors in the interest of open and fair competition to the consumer they still have controls over them in place.

    The Clinton administration in USA repealed the Glass-Steigal act which allowed the savings and loans banks to become merchant banks and go on a free for all creating toxic products ( ie derivatives think of the word - derived - made from something else ) in the interest of "keeping shareholders happy " as well as good bonuses for staff

    All this is just fiat currency built on fiat currency built on fiat currency in USA backed by nothing tangible but a promise to pay

    they have been writing cheques for last 20 years that they can not pay for now so they are printing money

    they have very little manufacturing base left as their corporate whore masters outsourced and shipped everything to south east asia
  15. And Australia is different to them in what way? Oh yes, I forgot. We have an infinite reserve of coal and iron ore. Which will last for ever and ever yes?

  16. you forgot Uranium
  17. Unless we have a huge population reduction (I would press the button, why wouldn't Bush?) it will all be UNOBTANIUM some day.
  18. Australia's uranium supply is expected to last a couple hundred years at least.