|
I don't know much about how the economy works, I try to read as much as I can, but one thing that has confused me over the last week, maybe someone can enlighten me. Why is the Australia Dollar dropping so rapidly against the rest of the world and the American/Canadian Dollar are staying strong, what are we doing wrong?
Its ridiculous, pretty soon our money will be worth nothing.
Here is a chart of the last 120 days
Peaked just under 98cents to the US Dollar. I have also seen it hit 0.98+ late last year. It has been raped and pillaged over the last week. It's ludicrous.
As it currently stands
1.00 AUD = 0.683832 USD
1.00 USD = 1.46235 AUD
it was sitting at 67cents about 20 minutes ago. WHAT THE FUCK IS GOING ON! I'm going to Europe in 3 weeks and this is what I have to face.
1.00 AUD = 0.500086 EUR
Literally 1:2. Basically if a week in Europe is going to cost me 1000euro, I have to take $2000.00, etc...
Can anyone explain what is going on?
 
|
no kidding. my indoor soccer team wanted to outfit ourselves with some nice jerseys from an american site but that is no longer an option since our dollar just keeps plummeting
|
Don't worry even if euro > $ we are also fucked.
With the same money i can get a clio in Europe ( google it to see how crappy it is ) instead of a Camaro in the US.
And the politicians here are proud to have a "strong currency". But for average people it'is the same, prices are uber high and you can't go to US to do shopping.
|
Great, so not only is our dollar worth nothing, but the Euro I'll be able to get with it won't be able to buy much..
|
Why should the aussie dollar fall, due to US incompetence???
|
I have a 2001 camaro I'll sell you for 2'000 bucks with 68,000 miles on it.
Oh ya there is a slight knock under the hood. I'm sure its nothing.
PayPall or pics first
Bright red 5 speed v6... lemme know.
|
On October 08 2008 21:26 Energies wrote:
Great, so not only is our dollar worth nothing, but the Euro I'll be able to get with it won't be able to buy much..
In Europe yea.
On October 08 2008 21:27 AttackZerg wrote:
I have a 2001 camaro I'll sell you for 2'000 bucks with 68,000 miles on it.
Oh ya there is a slight knock under the hood. I'm sure its nothing.
PayPall or pics first
Bright red 5 speed v6... lemme know.
I don't have my driver license + it is a pain in the ass to buy cars from another country if you are French. You have to pay extra taxes + to ship the car to Europe.
It would cost me A LOT more than 2000 bucks haha.
|
ROFL at boblion.
God im so glad i bought all my go related equipment when the currency was peaking at 98c. bought 300 dollars worth of stuff for basically the exact same in $AU.
Pretty crazy how much its dropped.
|
Interest rate drop = less attractive for foriegn sources to invest, pull money out of the Australian economy, drops the dollar. Don't worry, Australia takes it in the rear for EVERYTHING it seems. Companies price gouge the fuck out of Australia. Even when the dollar was at .98, I remember I went to buy a new release. It was 105 fucking dollars. A quick search told me it was going for a maximum of 60USD.
|
what i was told by my dad was that its due to the drop in bank interest rates, and a drop in the commodities prices. not sure if its accurate.
|
Yeah well be glad you don't live in New Zealand.
|
/glad.
Yay for falling dollar.
|
^whats the reason to be glad this time?
|
On October 08 2008 21:22 SoMuchBetter wrote:
no kidding. my indoor soccer team wanted to outfit ourselves with some nice jerseys from an american site but that is no longer an option since our dollar just keeps plummeting
damn man, when i used to play indoor we'd always pick the 5 dollar england jerseys from lowes lol. with the falling dollar i guess its shirtless time for a while
|
"Alright guys scrim time, skins vs shi.... Hmm, looks like we're just kicking the ball against the wall tonight"
|
Cauchy says its because of falling commodity prices. These should go up again though.
|
|
|
Belgium6775 Posts
every currency seems to be dropping
which one is rising?
|
Spenguin
Australia3316 Posts
Damn Russians *shifty eyes*
I kid but we are getting raped in ass so much I think we could sit on the big banana and think that we sat on a stick.
|
United States43985 Posts
On October 08 2008 23:23 Xeofreestyler wrote:
every currency seems to be dropping
which one is rising?
dollar
|
United States17042 Posts
the currency situation is just one part of a massive worldwide problem.
Any reason why the USD would be rising?
|
Yeah I've noticed out dollar fucking drop down lately i've had to stop buying things over seas right now its fuckin shit
I'm pritty fuckin baked btw 
|
|
|
Thats what you get for abandoning the pound!
|
On October 08 2008 23:47 Kwark wrote:Show nested quote +On October 08 2008 23:23 Xeofreestyler wrote:
every currency seems to be dropping
which one is rising? dollar
it's rising because divestment isn't happening as fast
couldn't tell you exactly wasup with australia
mainly coz i dont give a shit about australia
but in general currency drops when people withdraw their investments and demand for a country's goods fall. this is happening across the world because of the financial crisis as people are trying to withdraw their investments abroad and put them somewhere safe... like us government bonds (another reason the dollar is not tanking, is because it's widely viewed as a safe "reserve currency").
if you check out yahoo finance, nearly every western currency is tanking at the same rate. so what's happening in aus is nothing special, MATE. exceptions include the chinese yuan ... but the yuan is... special.
ya and the british pound is going up. not sure why?
|
USD is rising because we're the first country investors run too when their economies start tanking, especially now it shows because our government is going through a nationalizing phase which equals more money for investors. Besides that, we're exporting quite strongly for once, we export a lot of needed items such as steel and agriculture items, and for the past 2 months haven't been importing as much.
Our financial markets may be plummeting but our economy is grounded for now and appears safe. I was watching the financial news on cnn and they mentioned how german plants were closing from no demand; Americans are a huge market, and we aren't going to be demanding much of anything in the near future. We don't have many unnecessary production factories in the USA so, that type of workforce won't be killed.
|
On October 08 2008 23:23 Xeofreestyler wrote:
every currency seems to be dropping
which one is rising?
If they are dropping, then they are dropping with respect to a specific currency. Find out what the currency is and you will know which one is rising( hint: its the american dollar).
|
On October 09 2008 03:27 Railz wrote:
USD is rising because we're the first country investors run too when their economies start tanking, especially now it shows because our government is going through a nationalizing phase which equals more money for investors. Besides that, we're exporting quite strongly for once, we export a lot of needed items such as steel and agriculture items, and for the past 2 months haven't been importing as much.
Our financial markets may be plummeting but our economy is grounded for now and appears safe. I was watching the financial news on cnn and they mentioned how german plants were closing from no demand; Americans are a huge market, and we aren't going to be demanding much of anything in the near future. We don't have many unnecessary production factories in the USA so, that type of workforce won't be killed.
I read an article that said Daimler (the dudes that own Mercedes-Benz) might be bought out by an American company...
I love America. It will avenge the Daimler-Chrysler debacle.
|
when the american dollar goes down, it becomes cheaper for foreign investors to buy safe treasury bonds. to buy these bonds, they buy our money with theirs and if enough people do it, the demand for the dollar goes up, the supply goes down and money is worth more
or at least thats how i think economics went
|
last year, korean dollar was like 900 won to a dollar
now its like 1400 won to a dollar
canadian dollar was 1:1
now its 1: 1.13 canadian dollars
pound was 1 us dollar to .5 pounds
now its 1:0.579
euro was like 1 dollar : 0.67
nmow its 1:0.733
|
On October 09 2008 03:27 Railz wrote:
USD is rising because we're the first country investors run too when their economies start tanking, especially now it shows because our government is going through a nationalizing phase which equals more money for investors. Besides that, we're exporting quite strongly for once, we export a lot of needed items such as steel and agriculture items, and for the past 2 months haven't been importing as much.
Our financial markets may be plummeting but our economy is grounded for now and appears safe. I was watching the financial news on cnn and they mentioned how german plants were closing from no demand; Americans are a huge market, and we aren't going to be demanding much of anything in the near future. We don't have many unnecessary production factories in the USA so, that type of workforce won't be killed.
1.) Nationalization is not more money for investors. That's like... the opposite of nationalization.
2.) Are you John McCain's economic advisor? a.) the fed made a 25 billion dollar loan to the big 3 auto manufacturers to help them retool their factories to produce fewer SUVs and more high MPG vehicles. b.) the housing market continues to plummet c.) the spread b/t interbank loans and the treasury bill yield is something like 6%?!, the commercial paper market has tanked, meaning companies and consumer access to credit is severely limited d.) we lost 159,000 jobs last month.
|
wow that fucking sucks so bad >_<
thank god i live in canada =D
|
I think it's the general slowdown of the global economy based on the US financial collapse. Other coutnries that relie on US consumers (The developing countries and the BRIC nations) have to deal with less consumerism, so they have reduced production. Raw materials countries like Canada, Australia and Russia tend to have currencies in free fall basically.
Or it could be as the OP suggests, Aussies like to take it up the ass. Either way works.
|
On October 09 2008 10:47 ahrara_ wrote:Show nested quote +On October 09 2008 03:27 Railz wrote:
USD is rising because we're the first country investors run too when their economies start tanking, especially now it shows because our government is going through a nationalizing phase which equals more money for investors. Besides that, we're exporting quite strongly for once, we export a lot of needed items such as steel and agriculture items, and for the past 2 months haven't been importing as much.
Our financial markets may be plummeting but our economy is grounded for now and appears safe. I was watching the financial news on cnn and they mentioned how german plants were closing from no demand; Americans are a huge market, and we aren't going to be demanding much of anything in the near future. We don't have many unnecessary production factories in the USA so, that type of workforce won't be killed. 1.) Nationalization is not more money for investors. That's like... the opposite of nationalization. he probably meant more secruity when the government gets involved2.) Are you John McCain's economic advisor? a.) the fed made a 25 billion dollar loan to the big 3 auto manufacturers to help them retool their factories to produce fewer SUVs and more high MPG vehicles. b.) the housing market continues to plummet c.) the spread b/t interbank loans and the treasury bill yield is something like 6%?!, the commercial paper market has tanked, meaning companies and consumer access to credit is severely limited d.) we lost 159,000 jobs last month.
|
1226 Posts
Yeah man, I remember a couple months ago I was buying a lot of shit online from the US because it was so damn cheaper (when the AUD was like 98 US cents) but now... its ridiculous. =/ Dunno man..
|
|
|
|
|
|
|
|
EPT![[image loading]](http://img367.imageshack.us/img367/1592/59353005al6.jpg)
![[image loading]](http://cache.gawker.com/assets/images/consumerist/2008/10/economistohfuck.jpg)
