Recent content by skating101

Why aren't the european banks using the capital to purchase more sovereign debt? But better to save $1 trillion worth of inflation for your own banks than waste $1 trillion on foreign banks Ok I understand the effect of deflation And none of the debt was paid off and it wasnt...

Is it possible that the reason the US have been restraining from opening the credit swap lines to the European's because they have seen that their first trillion didn't solve anything? Could they be thinking that it is a smarter idea to let Europe deflate while saving printing to capitalise...

Simple economics questions If greece leaves and then defaults on its debt would this be deflationary or inflationary on the euro? Debt monetisation - Printing money then buying the debt then cancelling it - Inflationary Debt cancellation (default) - Existing owners of debt forgiving...

Simple economics questions If greece leaves and then defaults on its debt would this be deflationary or inflationary on the euro? Debt monetisation - Printing money then buying the debt then cancelling it - Inflationary Debt cancellation (default) - Existing owners of debt forgiving...

Remember the US is one of the only country where when the economic environment turns down the value of their currency increase (risk aversion) just check the strength of the US dollar during the height of the GFC

That is also my attitude towards the Australian dollar, while there is no particular argument for the US dollar to go higher there certainly is an argument for the Australian dollar to go lower. I am considering converting a significant amount of money to US dollars waiting for QE3 then using...

Sorry my mistake I meant to say make a case for a higher Australian dollar

This is not about a higher US dollar but a lower australian dollar

Thanks for the replies guys I understand that each currency is trying to devalue itself however as stated above the US is not in a rush to do QE3 however we are in a rush to reduce interest rates. In addition to this all other drivers of the Australian dollar are turning negative and we...

For everything to go down something has to go up so if they US dollar drops then commodity prices have to rise

So why not buy US dollars?

Commodities (including gold) would fall significantly first just as they did in 2008 before rallying once liquidity was injected, instead buy US dollars then use those to buy gold prior to the printing

Dollar or treasuries

Why not the US dollar, their interest rates are at zero and monetary easing is off the table (for now) and the economic environment would need to deteriorate further before they did print so the US dollar would increase in value significantly during that period. During this same period the RBA...

http://www.macrobusiness.com.au/2011/10/australian-dollar-valuation-report/ This article from last year is fantastic, points to understand: Australian dollar is structurally higher (against US Dollar) than it was in the past. This is due to various factors. The five reasons for the...