Economic doom and gloom episode #334

[Fukushima]

http://www.abc.net.au/news/2011-09-23/australian-markets-expected-to-nose-dive/2912824


We've lost parity with the US dollar overnight...

Which way from here? And what does it mean for us apart from imminent buttfucking by BP and Shell?

[TJ]

Only 74 yen too. Fark.

[S13]

There has been a rush to buy USD after a little bit of a swing from gold which has been a hedge against uncertainty (suspected Chinese buying) but even with this gold is saturated and will have limited upside (but also limited downside). This is likely a more shorter term trading postion rather than a sustained change in economic conditions to push the USD up therefore depreciate the AUD in relative terms. We should stay around or over parity for a fair while yet i would think

[Mad_Aussie]

The US economy is about to go bust in a gigantic way. It's been coming for a long time too.
They're going to have their very own 'winter of discontent'

[Skitzo]

74 yen? FFFFFFFFFUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU. Was goint to purchase boot lip and hub kit on monday form Japan. :(

[Buckets]

I'm not the smartest bloke around but why are people dumping Australian dollars and running to the USD when the US economy is in serious trouble, interest rates are basically zero over there and the treasury is (or has been) printing cash to try which surely devalues the dollar? I realize that Australia is traded as a proxy for some Asian currency's and we are a resources exposed economy but still. Why does our share market under perform the major US indices and usually have bigger falls than the US market in-spite the fact that most of our business's like our economy is for the most part still growing as opposed to contracting like the US / Europe.

After the last phone call to my adviser I've given up on the markets I think, it's just a bunch of gamblers with no real idea what the fucks actually going on jumping from one conclusion to the next they just clutch at straws and talk utter shit. I may as well go to the casino and chuck it all on red.

[Crispymk2]

FUUUUUUU just about to order a set of Teins from the US and need to get my tuning handset unlocked over there too at $150USD

As per above, why is USD more favourable than AUD considering US and half of Europe is up shit creek?

[shifted]

The US economy is about to go bust in a gigantic way. It's been coming for a long time too.
They're going to have their very own 'winter of discontent'

Been coming for ages!


http://www.youtube.com/watch?v=eb1n1X0Oqdw

[Jumanji]

Losing Parity with USD, doesnt that mean that the economy is coming back? ( im no economist ) but previous history shows that when the Australian dollar is weaker than USD that means that the economy is formed what would see to be correct? I would have assumed if the US Economy was going pair shaped, that would mean that the Australian dollar would only get stronger on the basis that thier money isnt worth shit?

Please feel free to correct me I dont know, I am just assuming on previous History.

[Mad_Aussie]

<iframe width="640" height="360" src="http://www.youtube.com/embed/6zZ_JfROhOE" frameborder="0" allowfullscreen></iframe>

Good clip, long though

[Ryan1080]

Dollar falling down is not all bad news though. You lose out on imports, but aus exports will now be more competitive. It was always abnormal to have parity with US dollar.

It's probably just some minor hiccup anyway.

[newbie101]

Dollar falling down is not all bad news though. You lose out on imports, but aus exports will now be more competitive. It was always abnormal to have parity with US dollar.

It's probably just some minor hiccup anyway.

^this

the overvalued AUD has been raping our balance of trade for too long anyway.

now excuse me while I go back to ignoring the world economy will I roll naked in my pile of mineral boom ca$h scrooge mcduck stylez

[JME]

Short lived, we'll sit @ parity for a while. US$ is international currency, the US has been in the shit for 20 years, it's nothing new, just come to a head now and is under scrutiny. There has been a major change in the manner in which the financial system managed. Asia pacific is the new king, for a while to come.

[devilfish]

personally high dollar = cheap personal imports (toys) :)
but work has been slow so :(
so i expect to earn more with a low dollar, but everything is more expensive...so BUY LOCAL :)

[Kaido]

Only 74 yen too. Fark.

the yen has been fucked for ages

[coFF33]

i remember 105 yen
should have imported so much more back then.
FML

[Rich]

Great for exports but unfortunately I don't want to export a set of wheels from the US I wanted to import them. Will hold out a couple weeks and see what happens.

[Skitzo]

the yen has been fucked for ages

Was at 82, 2 weeks ago.

[Turbo2.6L]

Time to buy another falcon... Local parts ftw!

[Fryman]

yen is overvalued and is killing the jap market.
australias fx and trade is all based on the us equity market and has a tendency to swing when shit gets shaky..

daily fx news.... bookmark that shiz --> http://www.economy-news.co.uk/exchange-rates/
(http://www.economy-news.co.uk/exchange-rates/)
good armchair economics.

you aint seen nothing yet, markets are shitting hard and will continue to do so, the house of cards is slowly disintegrating, us deficit, quantitive easing and instability in the euro zone = interesting times ahead.

to put it in perspective, the uk "lost" 60 billion pounds just in one day.... it pays to understand and watch whats going on outside the little perth/australia bubble

[MMM]

Time to buy shares!

[Fryman]

http://www.telegraph.co.uk/finance/financialcrisis/8782663/Debt-crisis-live.html

I (http://www.telegraph.co.uk/finance/financialcrisis/8782663/Debt-crisis-live.html)f things go pear shaped, your mining jobs lose, australia is not invincible to the world economies.

again, it pays to watch the trends of the us uk and asia

[Satan]

We're fucked

[Sevan]

so glad i get paid in dihrams right now!

[BOSS 290]

When did public sector workers earn more than private sector workers? What is this, the Twilight Zone?

The economy is screwed, we're all puppets to the masters that control the economy. The same guys that were CEO's of the banks in the US are now on the Federal Reserve Bank in the US. Go figure.