Large Scale Central

Exchange rate ruminations from Down Under

General Discussion
#1

It wasn’t all that long ago that $1.00 American bought slightly over two dollars Australian.

Now a US dollar buys just under A$1.10.

The Canadian dollar is already worth more than its American counterpart. The US dollar is at its lowest point ever against the Euro.

My guess is the US will see significant price rises for imported G-scale equipment in the not-too-distant future, rises driven by the weakness of the US dollar. In the meantime, I’m not complaining. At the moment, G-scale from the US is cheaper than ever for Australians, especially if the retailer ships DHL.

#2

Hopefully we will fix the dollar problem come Nov. 2008…:frowning:

#3

Dave,

Here in the GWN we get an almost daily update on how long it has been since the Can$ was worth that much vis a vis the Greenback. I have to order a few more “needs” while the going is that good - he said as he was counting the wheelsets required. :wink: :slight_smile:

Warren,

I don’t know, but if I listen to the “experts” this is all about fundamentals … just depends on which fundamentals. :wink: :slight_smile:

#4

We’re getting fundamentally screwed. That’s the story! :frowning:

#5

I returned to NYC in late '99 to help out family, thinking I’d return to Perth after Christmas. I ended up staying 'til May '03 because every US dollar I shovelled home to Kay was worth a lot more than one dollar Australian.

At the time, my nephew was dating a very clever Texan girl who, among other things, was involved with exchange rate predictions for her firm. She correctly assessed that the Aussie dollar would weaken against the greenback, though not as precipitously as it eventually turned out.

I wanted to know why she’d made her prediction about the US-Aussie exchange rate. Apparently it turned on the demand for commodities, particularly from burgeoning economies (i.e., China). Other factors impinged, but commodity prices were critical.

As we, and the Canadians, have plenty of rocky and weedy commodities that are, at present, much in demand, I’m unsure how George W. Bush’s departure, by itself, is going to address the exchange rate issue.

In the meantime, I’ll join with Hans in satisfying what are, in economic parlance, “wants” rather than “needs”.

#6

Dave Healy said:
As we, and the Canadians, have plenty of rocky and weedy commodities that are, at present, much in demand, I’m unsure how George W. Bush’s departure, by itself, is going to address the exchange rate issue…

What it’ll address is that Americans will have a whole lot less in their pockets to spend…

#7

Ken Brunt said:

Dave Healy said:
As we, and the Canadians, have plenty of rocky and weedy commodities that are, at present, much in demand, I’m unsure how George W. Bush’s departure, by itself, is going to address the exchange rate issue…

What it’ll address is that Americans will have a whole lot less in their pockets to spend…

More than likely! Could get tricky if all those who hold Greenback reserves start trading them in.

#8

Quite frankly…I already have a whole lot less to spend and it gets worse day by day. For those of us on a somewhat fixed income it’s easier to see the royal screwing we’re getting. And you are right. It will take more than just getting rid of Bush. It’ll take a number of Americans that care enough to vote intelligently enough to put somebody in office that can both manage this countries finances and repair the damage already done. Looking at the lot running right now…we need a miracle. :frowning:

#9

Well, the coming year will be a bonanza for the tourism industry in the USA. All the folks will be taking advantage of the bargains and spending their “banka-bucks” here, instead of elsewhere.

#10
Steve Featherkile said:
Well, the coming year will be a bonanza for the tourism industry in the USA. All the folks will be taking advantage of the bargains and spending their "banka-bucks" here, instead of elsewhere.
Yup - the thought had crossed our minds!
#11

Hooray for the tourist industry. A select few (the owners) get filthy rich while their service workers scratch by on minimum wage…which in most states is around $5 an hour. Even in Spokane where the minimum wage is one of the highest in the nation…over $7 an hour, economists say it takes over $11 an hour for a single person to just survive.

#12
Dave Healy said:
Steve Featherkile said:
Well, the coming year will be a bonanza for the tourism industry in the USA. All the folks will be taking advantage of the bargains and spending their "banka-bucks" here, instead of elsewhere.
Yup - the thought had crossed our minds!
Your assuming they will be able to get Visas just to get into this country, from what I understand getting an audience with the Pope is easier than getting a US Visa these days.

Dollar in the toilet? Thanks Dubya!!! Keep up the good work and we’ll catch up with that elusive Peso yet!

#13

I don’t think Europe, Japan or Australia need visas to visit this country…unless Dubya has screwed that up too.

#14

Warren,

You know why the Israeli PM is a regular visitor at the White House? GWB has to get updates on how to build walls that won’t let anyone in. :wink: :slight_smile: