Strong dollar threatens commodity boom.

Discussion in 'Currencies' started by Silverthorn, Jun 15, 2011.

  1. Silverthorn

    Silverthorn Well-Known Member

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    Some food for the dollar bears.

    Always like a good Icarus reference.

    http://www.smh.com.au/business/strong-dollar-threatens-commodity-boom-20110615-1g2wo.html
     
    Silverthorn, Jun 15, 2011
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  2. hiho

    hiho Active Member Silver Stacker

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    source?
     
    hiho, Jun 15, 2011
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  3. Silverthorn

    Silverthorn Well-Known Member

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    oops. added link.

    If your going to have fiat currencies they need to float. The strong dollar will ease the capital inflows and help keep inflation under control. China needs to think about raise their currency more to help keep the heat out of their economy.
     
    Silverthorn, Jun 15, 2011
    #3
  4. Jislizard

    Jislizard Well-Known Member Silver Stacker

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    I must admit I don't know much about money, never had that much to warrant looking into it but....

    Australia is a large land mass but relatively small population. Compared to Uk , Europe and America who seem to have a lot more money to do things with.

    It would seem to me that the reason that the Australian dollar is doing so well against all these other countries is that all these other countries want the Aussie dollar to go up, or at least, they want their own currency to go down.

    The Americans and Chinese were fighting over who was devaluing their currency the most, two of the world's super powers both trying to go lower and then you have Australia happy to be going higher! Are we missing something?

    On the one hand some of the Australians are celebrating because they can now buy cheaper stuff from eBay in America and cheaper stuff in the online stores and on the other hand you have all the Australian stores trying to point out that they are about to go out of business if people keep buying from abroad.

    If it does correct it will probably be once we have spent all our available savings and credit and once all the local businesses have gone broke.

    Good job we don't buy into the whole fiat conspiracy.
     
    Jislizard, Jun 15, 2011
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  5. Silverthorn

    Silverthorn Well-Known Member

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    I'm in too minds about retail in Oz. I think the smaller independent stores sourcing overseas may have issues but surely the larger stores are benefiting from cheaper imports. I noticed one story a little while back that one of the Japanese car makers was dropping its prices due to the strong dollar. Should be more of it.

    edit

    here it is.

    http://smh.drive.com.au/motor-news/honda-drops-prices-by-up-to-6300-20110603-1fk5l.html

     
    Silverthorn, Jun 15, 2011
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