This is exactly whats happening also in the U.S.....And some how the huge mortgages are still being payed here in Oz??? :/
We're all over fudging the stats here. http://www.theaustralian.com.au/bus...s-rate-58-in-dec/story-e6frg90f-1226803110562
I remember a few months back willrocks and I having a discussion on the future of the AUD. He basically said it will decline to about USD0.85, his premise was that the RBA was intent on pushing the value of the AUD down. I said, "nonsense you neonate" Glenn Stevens has made it very clear that the exchange rate of the AUD is not a concern of the RBA's, their mandate is to control inflation, AUD to remain at parity with the USD or at worse USD0.95. Well............ willrocks also convinced me to buy LTC when they were about $3, once I'd sorted the paperwork and opened an account with Coinjar and btc-e, well, let's just say LTC days of single figures were in the dust of the rearview mirror. :/ To be fair to shiney!, Stevens has done a major backflip in policy direction IMO.
Anything backed by the USD is a hedge against the falling Aussie dollar. US stocks/bonds, US property, gold/silver, etc. It is a good time to purchase silver as you have a lowish silver price, high GSR and a bearish Aussie dollar leveraging your gains in the long term. I wouldn't be surprised if we see the AUD/USD pair dip into the 50's in the next 5 years.
The fact that the USD index has dropped and the AUD has tanked further relative to the USD is extraordinary. Normally the AUD will strengthen. I seems plausible there are arrangements between central banks to maintain percentile relationships. It's certainly a nice idea to think we can all hold hands while we sink into the sinkhole together. :/
@Flash, have a read of this http://www.caseyresearch.com/articles/daily-pfennig-investors-finally-get-some-us-data-to-trade-on
I believe gold around $2k by the end of the year, more importantly gold producers hammered close to death by market manipulation have created a once in a lifetime investment opportunity. AUD down, gold price firming, physical demand at an all time high, global fiat uncertainty, QE#? Time to invest in gold stocks. Sorry for those who were eight months prem on this.
http://finance.yahoo.com/news/australian-unemployment-jumps-10-high-010948081.html And remember this is in the face of rising costs for essentials. Broke governments, broke consumers, broke businesses? Now that's not a pleasant scenario.
What do we do? What was done? People sold AUD! That's what they did. What should we do now? Sell after them at the lower price? Buy before they buy back in again? Lord knows!