10-30-2007, 06:10 AM
Quote:The Australian dollar is trading now at 0.92 to the US $, up from 0.75 not too long ago. Along with the Candian loonie, the 'Roo will soon surpass the greenback in trading parity, if current trends continue (budget & trading deficits), and there's no reason to expect otherwise.
I guess I won't be going to Australia anytime soon....
But soon, the US dollar is going to experience a Wile E. Coyote moment, where it will realize there isn't any ground underneath it, and it will plunge precipitously to a mushroom cloud on a canyon floor.
Be forewarned. The consequences will be grave.
Funny you bring this up, seeing as just tonight I got in a lengthy debate about the US economy. The highlight was light heartedly coming up with ideas of how to better spend the money put into the War in Iraq.
**And before I continue, I am not implying any valuation to this at all. It's merely a pie-in-the-sky, what if there was no middle east at all, and we had that money floating around in our economy. Definitely not looking to start a political discussion on the economic merits and pitfalls of the War in Iraq.
The important topic we kept coming back to was: What is the United State's economic future? In all earnest, housing economy and other recent woes aside, the US is facing a period of turmoil in economic vision. We are no longer a country reliant on our production force. We have some great advances in science and technology, but those are shrinking quickly with other nations becoming a lot more competitive. Not to mention how troubling the years of sub-par math and science grades in school.
So what's the answer? Sadly I'm really not sure.
In the meantime, we still have a short term housing dilemma to tough out - the real consequences of which haven't been felt yet.
But hell, hockey's back on and it's almost ski season again. Those almost balance things out, right? :whistling:
Cheers,
Munk