What causes of the devaluation of the Ausssie Dollar? what causes the down fall of the aussie stock market?

One person is at the tip of tsunami on this: Phil Gramm.

Look him up on Wikipedia. A US Republican Senator, who pushed through the great deregulations that have resulted in this crisis. (And the whole enron scandal is his fault, too!) The GOP is so bad, that it is causing economic shockwaves all around the world! Pray for us, brother. Pray that the idiots and moronic mouth-breathers do not put yet another Republican in office over here. Gday.

Doing a search & not knowing anything about the Aussie Market.. l did find two things.


someone stated. that they feel the USD is getting stronger ..

Golds getting smashed right now. High 760 is Looks like its heading down to 750. Reasons cause the USD just keeps on getting stronger.

The reduction in the value of one currency against another, either because the first currency weakened or because the second currency strengthened. If the Australian dollar were reduced in terms of the US dollar from 72 US cents to 70 US cents it would have been devalued against the US dollar. This could have been caused by a general weakening of the Australian dollar or by a burst of strength in the US currency.


l have bet on USD strength & put my money where my mouth is, so far l have outperformed gold. l am counting on this to continue for the next 12 months. l see $600/oz coming soon. So, yeah, l am shorting gold. Are u buying at $780/oz? Where is ur money? If u expect gold to rise in the coming months get in. Top up if u already have some, u seem to be inferring it is a bargain right now.

When the deflationary cycle looks to be bottoming out l will consider gold & CHF. This is there in the thread, open ur eyes hero. It is there.

Fiat is money until fiat collapses. So yes fiat is money, u can buy real stuff with it. US Fiat is outperforming gold this year. Fiat is proving to be a better store of wealth right now. l am betting on this continuing for the next 12 months, at least. Yes, l am putting money on this. Are going the other way? Please let us all know.

As far as China goes, they will not be spending their $1,7tr reserves on more gold during the deflationary cycle. They wo not be pushing the price up. The Chinese public, to whom l was referring, wo not be buying more gold either, they will be selling whatever they have to put food on the table.

The appreciation or devaluation of any currency is the result of supply & demand for that currency.

In the case of the Aussie dollar, of more people want to sell dollars than people who want to buy them, the value of the currency will fall until supply & demand r equal.

The reasons why supply & demand change r numerous l will name a few of the most basic & u can research them yourself.

Interest Rates

Inflation

Overall State of the Economy

Speculation

Import/Export Economics

The Australia economy is based in a major way on commodities export - be it precious metals, industrial metals, minerals such as coal & bauxite, agricultural products, etc. Since the global economy is currently in a major slump, & the slump appears to be getting worse, the demand for all these commodities is falling, & falling fast. This is causing a sharp drop-off in commodity prices, which (for an exporter like Australia) leads to loss of income/profits & thus causes a weakening of Australian share prices as well as weakening of Australian Dollar.

Another related factor: investors the world over r running scared, so they r pulling out of major world currencies & pouring their money into U.S. Dollars and/or U.S. Treasury bonds, for safety reasons. As such, currencies such as the Euro, Pound, Australian Dollar, etc., r all weakening in favor of the US Dollar.

Falling commodity prices, global credit crisis, and recession is most parts of the world is causing stock prices to fall as investors reduce their exposure to emerging markets. The flight to safety includes unwinding of carry trades. Such capital outflow would cause the Aussie Dollar would fall.