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Old Nov 13, 10, 10:54 pm
  #3  
kenish
 
Join Date: Jan 2006
Location: SNA / South OC
Posts: 303
We went to Oz in June 2009 and the AUD was about 70 cents...when I booked a lot of stuff in Feb/March 09 it was about 65 cents! Glad we went when we did.

The Aussie economy is very robust thanks to the major components being raw materials and agriculture and the wisdom to align with Asia 2 decades ago. Just as important, Aussie public sector debt is a small percentage of GDP (I believe less than 10%) while ours is north of 65% and getting worse.

Our Federal Reserve has further eased rates (they are at a 53-year low) while Reserve Bank of Australia recently raised rates...all cogs in the wheel. If any of my comments about Oz financials are off, please correct them!

I think the USD will stay weak....we shipped boatloads of greenbacks to China in trade for flimsy goods. More greenbacks were printed to bail out banks who are sitting on the cash and not too eager to circulate it back into the economy. So our consumer-driven economy will stay stagnant until something thaws. (Aviation content- the 787 is getting cheaper for Qantas as the delays continue).
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