Parley Posted February 3, 2015 Share Posted February 3, 2015 The dollar has bounced back this morning because Oil and commodities are rallying. So it will depend whether Oil and commodities continue to rally or fall again as to what will happen to the $AUD. Higher commodities will make the dollar rise as it is better for the Australian economy. Link to comment Share on other sites More sharing options...
flag of convenience Posted February 4, 2015 Share Posted February 4, 2015 So a strong dollar is good for you personally then. This should not be the primary factor when determining Australia's economic policy though. If the AUD is too strong long term it damages exports, stokes up imports thereby making local producers uncompetitive, and damages tourism. All of these are bad news for jobs. A weak dollar has different disadvantages. I think you will find that a balance is trying to be struck here. As you seem to know about these things what do you think the base rate that the RBA should be setting now and what should the AUD be worth against other major currencies. A strong dollar equates a strong economy. Better for me and the nation as a whole. Not overly concerned for those that purchased over priced houses I'm afraid and kept the bubble inflating. Lower rates make it worse and drives further into the debt trap. Of course the powers that be would prefer us to be as much and caught forever in such a cycle as easy to manage. The normal rate to pay of debt is historically around 7% to which should be taking into consideration for those taking out loans plus a bit extra. I think you will find a lack of ideas what to do and while hoping to grow an ailing economy will set of housing inflation more. Already local tourists rightly find Australia too expensive. That is unlikely to change. A few dollars extra in the pocket a month big deal. The increase in house prices and stagnating of wages is of far more concern. As I said I believe the dollar should be pegged. Worked for the Malaysians years back against the doom predictions of financial markets. Link to comment Share on other sites More sharing options...
flag of convenience Posted February 4, 2015 Share Posted February 4, 2015 We are only two months away from it being three years since you first called the imminent collapse of Australia's economy... Collapse after the biggest boom in Australian history was hardly an over night job. Three years is not long in the economic cycle so to speak. Considering the amount thrown at the economy since the GFC there isn't really a lot to show for it. Link to comment Share on other sites More sharing options...
Parley Posted February 4, 2015 Share Posted February 4, 2015 Collapse after the biggest boom in Australian history was hardly an over night job. Three years is not long in the economic cycle so to speak. Considering the amount thrown at the economy since the GFC there isn't really a lot to show for it. Agreed. All that money wasted by Rudd and co made not an ounce of difference and just has saddled us with a huge mountain of debt for no good purpose. Link to comment Share on other sites More sharing options...
Guest Posted February 4, 2015 Share Posted February 4, 2015 Collapse after the biggest boom in Australian history was hardly an over night job. Three years is not long in the economic cycle so to speak. Considering the amount thrown at the economy since the GFC there isn't really a lot to show for it. It isn't short either. I think in the US they average a recession less than every 10 years Link to comment Share on other sites More sharing options...
Paul1Perth Posted February 4, 2015 Share Posted February 4, 2015 Dunnit want to make you spit??!! Could have bought land at Avalon Drive, Mandurah in 1963 for £250 :cry: Alan Bond bought 2 side by side in Perth, about the same time; that's how he started off... Cheers, Bobj. Alan Bond has spent more of other peoples money than you and me will ever see Bob. Still lives the life of a millionaire having done a minimum amount of jail time. The damage he caused to WA and a lot of people who were duped into investing in his wayward projects is terrible. He's a criminal of the worst kind and he got away with it.:cry: Link to comment Share on other sites More sharing options...
flag of convenience Posted February 4, 2015 Share Posted February 4, 2015 It isn't short either. I think in the US they average a recession less than every 10 years The boom bust cycle is around that here but has been stalled since the early 90's thanks to international conditions and the take off of the Chinese economy. The US has a very different economy to Australia being a world almost unto itself along with the North American Trade Organisation which includes Canada and Mexico. Australia is small bikkies in comparison largely dependant on outside conditions. Link to comment Share on other sites More sharing options...
flag of convenience Posted February 4, 2015 Share Posted February 4, 2015 Alan Bond has spent more of other peoples money than you and me will ever see Bob. Still lives the life of a millionaire having done a minimum amount of jail time. The damage he caused to WA and a lot of people who were duped into investing in his wayward projects is terrible. He's a criminal of the worst kind and he got away with it.:cry: Rich criminals tend to walk. The corruption in WA during those times was formidable. The 80's was gung ho wild west antics with a crooked State leader that also done time, a bank set up between government and business that went belly up costing tax payers plenty and a town full of possers flashing their wealth. No wonder known as the Wild West. A lot of ill gained money got a lot into positions of influence and wealth. Accountability a very important ingredient that should be demanded of our politicians and business leaders owing to historical events which are less overt these days but doesn't mean free from corruption and certainly greed. Link to comment Share on other sites More sharing options...
flag of convenience Posted February 4, 2015 Share Posted February 4, 2015 Agreed.All that money wasted by Rudd and co made not an ounce of difference and just has saddled us with a huge mountain of debt for no good purpose. Shouldn't have stopped the nation being swept up in the GFC of 08. Should have allowed property to decline in value and pricked the bubble before the mess we find ourselves now in. Actually it was the Howard mob that fuelled the greed by attempting to stimulate the housing market in 2000 by offering a First Time Home Buyers Grant. A result of his GST introduction that reduced consumption. The Lieberals support of resource industry not paying a fair share of the wealth they took from the ground didn't help either. QLD tax payers money being thrown at the Indian Coal company totally un necessary by the Newman government another example of government in bed with big business to the cost of the community. Link to comment Share on other sites More sharing options...
Gbye grey sky Posted February 4, 2015 Share Posted February 4, 2015 A strong dollar equates a strong economy. Better for me and the nation as a whole Just saying this does not make it so. In what way is it better? Not overly concerned for those that purchased over priced houses I'm afraid and kept the bubble inflating. Houses are almost always considered over-priced at the time. Looking back 10 or 20 years later that is never the case. As I said I believe the dollar should be pegged Assuming that you could, pegged at what rate to the USD though? The increase in house prices and stagnating of wages is of far more concern. Stagnation of wages is not helped by a strong dollar. Cheaper imports make local producers uncompetitive reducing jobs and wages. You want a strong dollar so low wages coupled with high unemployment would be the result. Why is the increase in house prices a particular concern to you; as you say you have no sympathy with those paying for them. Link to comment Share on other sites More sharing options...
Guest Posted February 12, 2015 Share Posted February 12, 2015 Another cut will be on the way after today's unemployment figures Link to comment Share on other sites More sharing options...
flag of convenience Posted February 16, 2015 Share Posted February 16, 2015 Another cut will be on the way after today's unemployment figures Quite possibly as the RBA is rather clueless in how to deal with the declining economy outside of rate cutting. Further induce the gigantic bubble that is the Australian Property Market but doubtful if business cares much now with already low rates. A bumpy ride ahead to say the least. Link to comment Share on other sites More sharing options...
FOL Posted February 16, 2015 Share Posted February 16, 2015 Must be a pain in the ass to be a first time home owner. Sure interest rates are lower, but that may only be for the first few years depending on the economy. In the meantime most will need a huge mortgage on a possibly overrated house price. If the market crashes and houses lose value up to 30% or even more, you may have lost your entire deposit and more. On the other hand, people have been talking about a propery bubble for many years, but it hasn't happened. So what should first time home buyers do? Wait? Buy? Link to comment Share on other sites More sharing options...
RioMarina Posted February 16, 2015 Share Posted February 16, 2015 Must be a pain in the ass to be a first time home owner. Sure interest rates are lower, but that may only be for the first few years depending on the economy. In the meantime most will need a huge mortgage on a possibly overrated house price. If the market crashes and houses lose value up to 30% or even more, you may have lost your entire deposit and more. On the other hand, people have been talking about a propery bubble for many years, but it hasn't happened. So what should first time home buyers do? Wait? Buy? This maybe the answer to your question! http://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&cad=rja&uact=8&ved=0CCQQqQIwAA&url=http%3A%2F%2Fwww.smh.com.au%2Fbusiness%2Fthe-economy%2Faustralian-economy-sliding-down-the-precipice-says-jp-morgan-20150216-13fwon.html&ei=NfHhVLiUCsWvU8TBgeAF&usg=AFQjCNGb23-2rJ4pD4S2P1edFxTxgT94Xg&bvm=bv.85970519,d.d24 Link to comment Share on other sites More sharing options...
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