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Cut official (cash) interest rates today effective 03 Dec 08 to 4.25%

 

A full 1% reduction.

 

Many are saying by Easter 09 the cash rate will be around 2%

 

With the lousy AUD exchange rates on top of that, I can see many (myself included) will be

re evaluating their lives in PI, Thailand and elsewhere..

 

A good result (for mortgagees) but for those of us who have scrimped, saved and worked damned hard all our lives it is another

kick in the nuts.

 

:)

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I noticed in September the Aussie Dollar was buying nearly 40 pesos and then it did a big nose dive.

 

Do you know of the reason why it took it's nose dive?

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I noticed in September the Aussie Dollar was buying nearly 40 pesos and then it did a big nose dive.

 

Do you know of the reason why it took it's nose dive?

 

In one word: Commodities. The Australian economy rides on the back of the stuff it digs out of the ground and sells overseas, mostly to the chinese. With much of the world slipping into recession, demand and therefore prices of commodities are plummeting. Will less net export value, comes a depreciating currency. Other factors include the falling interest rates in Oz making the Aussie less attractive to carry traders.

 

The lower $A is here to stay for at least a year or 2 or as long as it takes the current GFC to work it's way out.

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Yep mortgage rates down again by 1% and petrol down to $1 a litre but most pople have taken a big hit on their superannuation and lots of jobs are at risk. Rents are rising sharply and the high inflation rate during the boom has meant food prices are really high. I called into the butcher this arvo to get some steaks for a bbq. T-bone $24.99 per kilo, scotch fillet $29.99 per kilo. Even lamb loin chops were $18. We live in an inner city Perth suburb where the rents have risen from $300 to $500+ a week in the past 2 years. I can't see how people can afford to retire in Australia. We will be heading for Dumaguete as soon as our youngest has finished high school.

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Poby that's pretty much it.

 

In other words "we're stuffed" - at least until China, India and the like commence buying our dirt, gas and other raw materials again.

 

I just cannot see the AUD & cash interest rates rising (at least for 2-3 years) to the levels they were even 3 months ago - times are getting tough for all concerned.

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There was a rally to 2/3 approx of the initial bear, after the first claw, in the Great Depression.

 

Past isn't always future, the US is not going to crumble so easily. So, there is likely a rally, and some will serenade the rally in the mainstream media especially, and crow to the bears. But the facts are there. And there can be no escape by denial. Look at the "promisory notes" of debt - escalating past 7 trillion. Already it is surreal.

 

You guys, our friends from the US, our saviour in struggle, must see the crazy numbers. Already, the US debt, in dollar bills lined up end to end, extends from Earth to Saturn. The next phase seems to be the battle of the Fed for survival. I suggest, and I know I'll cop it for my views, but I will say it, which is.....our American friends should apply to come here to Australia ASAP. The stampede for the exit will otherwise overtake you.

Edited by breakfast
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Presently, this is a LOW point in migration of US nationals to Australia. It's a great time to take advantage of the favourable conditions to you. :)

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Presently, this is a LOW point in migration of US nationals to Australia. It's a great time to take advantage of the favourable conditions to you. :)

 

 

See yesterday the official rate was cut AGAIN by a full % point.

 

Now the cash rate is 3.25%

 

Woeful for those of us already battling very weak AUD exchange rates..

Edited by rico
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See yesterday the official rate was cut AGAIN by a full % point.

 

Now the cash rate is 3.25%

 

Woeful for those of us already battling very weak AUD exchange rates..

 

I think it will be cut to ribbons. I've thought that ever since the firecrackers sparked up in September last year.

 

This policy is promulgated to promote circulation of cash (ie lending). The pumps are said to be already primed, the monetary base expanded, and the Fed prepared to keep a "strong balance sheet" (print moolah), so the carrots are dangled to get the clams swapping hands.

 

Rudd is embarking on a ruinous policy that risks me having a stroke at present. He is going to spend when we do not need to spend. Imagine just giving poor people 950 AUD each. That is his economic policy! He is a GIT. We will end up owing China money we did not need to spend. I hope he gets one term in government only. He smells of a Marxist version of GWB

 

KRudd will put in a big brother internet filter which will slow down the net (just for kiddie p*orn, the silly phucker), wants to spend on computer infrastructure which is rapidly outdated rather than invest in R & D for IT development for our circumstances of huge distances, wants to take away money from the earners and give it to the breeders, and wants to spend OUR money (he might take "nationalise" our $1 T super funds) to fund his BS. What a KNOB.

 

He will make us a slave to China at this rate. Grrrrr.

Edited by breakfast
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USMC-Retired

I remember when my Aussie friends laughed back in July when it was trading 1 to 1 with the US dollar and I was getting 39 pesos to the dollar. Times have changed a Tad now. I hope it recovers and not at the expense of my US dollar.

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Presently, this is a LOW point in migration of US nationals to Australia. It's a great time to take advantage of the favourable conditions to you. ;)

 

Is it that easy for American nationals to migrate to Australia?

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Is it that easy for American nationals to migrate to Australia?

 

Go to www.immi.gov.au

 

USA has the best status, along with UK.

 

However, migration here is still laboriously bureaucratic. Its not as easy as other places. But US citizens get benefits in the process others do not.

 

It's an unusual choice to come here for a US citizen, but things are changing. My biology teacher was from Pasadena. I ended up buying and then selling his home, which he built here, beautiful it was.

 

I feel (perhaps wrongly) I'm a bit of lone voice on this one, but I expect US citizens to become a diaspora in times to come. If Rudd gets his way, he will dilute any advantage coming here. I hope his policy is blocked. My blood boils with the idiocy.

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I think it will be cut to ribbons. I've thought that ever since the firecrackers sparked up in September last year.

 

This policy is promulgated to promote circulation of cash (ie lending). The pumps are said to be already primed, the monetary base expanded, and the Fed prepared to keep a "strong balance sheet" (print moolah), so the carrots are dangled to get the clams swapping hands.

 

Rudd is embarking on a ruinous policy that risks me having a stroke at present. He is going to spend when we do not need to spend. Imagine just giving poor people 950 AUD each. That is his economic policy! He is a GIT. We will end up owing China money we did not need to spend. I hope he gets one term in government only. He smells of a Marxist version of GWB

 

KRudd will put in a big brother internet filter which will slow down the net (just for kiddie p***, the silly phucker), wants to spend on computer infrastructure which is rapidly outdated rather than invest in R & D for IT development for our circumstances of huge distances, wants to take away money from the earners and give it to the breeders, and wants to spend OUR money (he might take "nationalise" our $1 T super funds) to fund his BS. What a KNOB.

 

He will make us a slave to China at this rate. Grrrrr.

 

I don't always agree with your economic assessments but you are spot on with Rudd's economic incompetence. Australia is well placed to ride out the economic storm - or would be if it was in the hands of the previous administration. In every other aspect he has been all talk and symbolism and no action; I wish he would continue such when it comes to economics, the area labor has traditionally been hopeless at. In this case, doing nothing would be much better than what he is currently proposing/doing.

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I don't always agree with your economic assessments but you are spot on with Rudd's economic incompetence. Australia is well placed to ride out the economic storm - or would be if it was in the hands of the previous administration. In every other aspect he has been all talk and symbolism and no action; I wish he would continue such when it comes to economics, the area labor has traditionally been hopeless at. In this case, doing nothing would be much better than what he is currently proposing/doing.

 

I agree with you Poby

 

I don't watch TV much anymore but I stumbled on an interview with Paul Keating (ex-prime minister of australia) today on a very mainstream australian TV called lateline (with the same interviewer now for eons).

 

Paul Keating excellently summarises many key points I have learned and posted here in various places. It's a good interview, love him, loathe him or both.He even disagrees with KRudd. He makes a quick point about gold before being cut off and redirected, but the reasoning he presents is exactly what I have been on about here. Gold sentiment is becoming mainstream now. :o

 

http://www.abc.net.au/reslib/200902/r335492_1519593.asx

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