8th Jan.08
The Australian dollar, is over valued, it’s inflated due to the speculative ongoing boom happening in the Australian stock-market. Currently, 1 AUD = 0.8729 USD. This will drop by July, as the market boom here starts to lose momentum, and shares go down. Currently the 1 AUD = 0.6182 JOD. By June / July, this will have dropped to 1 AUD = 0.57x region. Wealthy individuals, will find it more profitable to have their money in savings here in Australia as their Interest rates are high, above 6%, just idling their money in the bank. That brings an influx of money into the economy. Australia, at present is undergoing a self-induced inflation cycle, the government raising interest rates, banks raising interest rates, – employers raising salaries, and the shops charging more & more. However, during the year, companies are forced to have a “sales”, to turnover their stock, sell something, and to account revenue, and profits. Bottom line is, the AUD is over-valued, and will drop.
The current low of the USD, is undervaluing all other currencies pegged against it, harming other nations economies, however, it is benefiting the US economy, making importing expensive, but exporting cheaper. – go figure!
Continue reading →
