Impact on Australia of high US inflation?

guys, if in the next year or 2 usa has massive inflation or even hyper inflation, what would happen here?

our $ would rise against the US$ but what about everything else?

would we also have an increase in inflation?

anyone have an theories of what would happen here.

Cheers
Rob

hotbmw said:

guys, if in the next year or 2 usa has massive inflation or even hyper inflation, what would happen here?

our $ would rise against the US$ but what about everything else?

would we also have an increase in inflation?

anyone have an theories of what would happen here.

Cheers
Rob

Click to expand...

I think in the scenario you have mentioned. Massive Inflation in the States would result in a weakened purchasing power of the Australian dollar. Until the US recovers things will not get any more rosy here. IMO

Would we have increased inflation?

First of all it depends who you believe about the inputs that go into calculating inflation figures in the first place. Food and Oil are not counted for starters.

gumby, are your thoughts the same for the world accross the board as a secondary market effect or are you saying we are different and your comments only apply to oz?

most of the doom economists are saying to get out of the US$ and invest into commodities abroad and foreign currencies in asia and australia.

so if the US$ starts trending downward slowly over weeks and people start listening to the doom forecasters on CNN/CNBC nightly etc and take the advice shouldnt $ start flowing into our markets & $ thus meaning our $ gets stronger.

Couldnt it be argued that this has already started to happen the last few weeks?

thoughts?

Peter Schiff in his book Crash proof thinks Gold will hit 35K an oz.
I reckon the USD will start to go down and every one will go to Gold because other currencies are unknown.
All prices will crash in OZ and O/S.
as long as China Etc lend B.O more loot for his 3m jobs then USA will put up rates to get Money into USA if China etc want their money back sooner the rates could go up soon.
Japan is heading into a depression.
I don't think inflation will be a prob. for awhile as every one will be trying to keep money coming in and prices low.
Black market could be the go???
The AUD will go down after the next IR drop in FEB. .75-1%
Shares in grog, drugs gambling up..