RBA Hints at FX Intervention

Discussion in 'Currencies' started by Nukz, Jul 12, 2012.

  1. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    What an awesome idea!!! Do you really think they planned it that way??
     
  2. thatguy

    thatguy Active Member

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    Sure do, but it is one hell of a balancing act... it is best to keep them teetering without going over the edge and at the same time try grab the booty (gold)
     
  3. Roswell Crash Survivor

    Roswell Crash Survivor Well-Known Member Silver Stacker

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    This is known as The Triffin Dilemma or The Triffin Paradox.

    The Triffin Dilemma and The Saver's Curse
    http://sciie.ucsc.edu/JIMF4/OJeanne_Triffin0911.pdf
     
  4. Nukz

    Nukz New Member

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    I suspect the German's have known for a long time how this works, most German's are quite switched on with finance. The problem arises when their debt ridden fellow country's are asking for money and all eyes are on Germany to fork out.

    I'm surprised country's like the PIIGS have not simply exited the euro. This is where it's become a political issue where PIIGS country's are 'proud' to be part of the euro and don't want to be seen leaving and going back.

    As far as the USD rising that poses challenges as if it does rise the fed can use this as a buffer zone to print more essentially inflating their way out of debt. The question i have is would a high USD really effect America that badly? i see them as simply a service economy and a stronger dollar would at least bring prices of goods down assisting savings rates in a near 0% interest economy.

    I may be missing some glaring issue here it's simply because there are just so many factors to comprehend. I'm sure if i did miss something it will be picked up :)
     
  5. Water&Food

    Water&Food New Member

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    Away from this hell bent place
    It goes far beyond that buddy.

    IMF. Do this or else. Nobody likes sanctions. Nobody likes embargoes.
    Citizens have become too dependent on consumerism. Iphones are a necessity in life. Didn't you know?
    Stop the flow of iphones and people will start dropping dead.

    Like any typical junkie, they will be willing to hit rock bottom and maintain that for the rest of their lives. Well, till they 'had enough' and somehow snap the fk outta it.
     
  6. Nukz

    Nukz New Member

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    Interesting followup article today...

    No need for dollar intervention: Treasury
    August 17, 2012 - 2:45PM

    Treasury economists have rejected calls for the Reserve Bank to rein in the Australian dollar as ''misplaced'', saying conventional policies are equipped to handle the strong currency.

    Government officials have come under growing pressure in recent weeks to follow the Swiss Central Bank and intervene in global markets to restrain the dollar, which is squeezing many exporters.

    But in a blunt rebuttal from the nation's top economic department, a new Treasury paper says trying to curb the dollar through market intervention could lead to market instability.

    Read more: http://www.theage.com.au/business/t...on-treasury-20120817-24d3u.html#ixzz23mCrFHnI
     
  7. JulieW

    JulieW Well-Known Member Silver Stacker

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    Yes I saw the follow-up and thought. Right time to worry.
     

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