< sigh > a depressing way to start the morning. On the "up side" we'll have cheaper iPods &c for a few more years perhaps.
Asset or currency? Clancy, Clancy, Clancy. "The big league?" Bwahahahahah. It's not a part of the "Big League" you toolsqueezer, the "Big League" warm chairs on The Fed and at Goldman Sachs. It's a tradeable item, it just happens to smell a bit better than a lot of other tradeable items. Currently the majority of commodities are priced in USD. None are priced in AUD , unless of course there are trade deals struck my individual governments. I'm with the Deutsche Bank guy, won't make a scrap of difference. The AUD is already being traded heavily for a variety of reasons, therefore it is finding itself making up an increasing proportion of assets held in Reserve Banks, it's listing is merely a reflection of the increase in trading of the AUD during the past couple of years. In much the same way that the BIS plans to make gold a Tier 1 asset, it's just the bureaucrats catching up with the flow. The damage has already been done, the AUD's performance over the past 18 months has been predictable at best, disturbing on the whole, and without precedent* at worst. The AUD in my opinion is destined to remain high. We are also destined to have a love affair with small dogs and to lose interest in procreating (*look north on an atlas if you are looking for precedents).
Imagine if we couldn't get our AUD to stay down because it was traded too much on world markets... Like, our manufacturing, farming, and other exports would be totally stuffed! I hope that doesn't happen
So AUD and CAD are in the basket. Add Yuan inevitably, devalued USD and Euro, supported by a gold base. Any others? Brazillian Real? Peso? Amero? (and agree with Dogmatix)
The reserve assets that the IMF claim as in reserve, unfortunately for them have already been reserved for the Australian people, as per our birthright, to an equal share of the commonwealth of this land, period. Our government is holding this in trust on and for our behalf. That is why we placed them there for. To protect us from Corporate and other threats like bankers that may wish to raid our accounts. Since when does the IMF make statements on behalf of We the People of Australia or the Canadians? Edit: added as below: Our currency was during the 2008 crisis, one of the more unstable currencies yet the article speaks of our stability. Remember it devalued from almost on par with the US and dropped down to around 0.63 to the US. Around a 40% drop way down the gurgler in quick time. Thats massive. Who knows what the IMF are thinking and what there definition of a Reserve currency may be and how this would actually work. Is this based on estimated mineralisation in the ground, as our reserve Bank has only around 80 tonns in reserve that is only but a drop in the sea of debt? It's the gold in the ground, that is what counts here as one of the worlds major producers of the stuff. Thats why we make the grade here for this purpose alone.
I hope the $AUD stays high for a lot longer im not finished investing OS : & we get bargain metals prices I cant understand why people want the dollar to fall .....Have you finished stacking ?
