Sorry Mates. Australia To Cut Out US Dollar.

Originally posted by rock427

Originally posted by Melbourne_Militia
Australia is not and will never be part of Asia - period!


Australia is in a gifted position to be the world leader economically.

We have a massive mining sector thats booming, unfortunately we have a pitiful leadership that has no experience in taking advantage and managing this awesome opportunity.

Manufacturing and the industrial sector has suffered enomously due to the strong Australian dollar.

A couple things Australia needs to do....

The Australian mining sector is being driven by artificial demand coming out of China. In other words, we have a bubble on our hands in the world wide commodity sector. China is mostly to blame for this. This is primarily due to Chinas fixed investment scheme which is where it derives much of its economic growth from (60% of Chinas GDP is tied to fixed investments. Can you say bubble?).

This century is unlikely to be an Asian century in the same context that last century was an American century. Again, 60% of Chinas GDP in the past 30 years has come from fixed investing. This is exactly what Japan did until that bubble popped in the late 80's to early 90's. The same will, and is, happening to China now. This is because of overcapacity from artificial demand. Look at the Chinese ghost city of Ordos. This is a perfect example of the type of overcapacity that I am referring to in China. And that is just one example on a tiny macro scale in China. Much of China is ripe with this type of malinvestment, which it counts towards GDP growth. In the west, we would not do the same until there was demand for it thus generating real economic activity. The return on investment in China is thus very poor, and only getting worse. It is said that it takes anywhere from $6-$7 of debt in China to generate $1 of GDP. This is practically unheard of, and not indicative of an economic leviathan.

China also constantly overstates economic growth and understates inflation. If the US 'massages' economic data, China tortures it! If we look at annual electrical growth, (which generally grows at a faster rate than GDP itself) we see that China has practically flat-lined in overall electrical growth for the past few years now. Its likely that Chinas real growth last year came in at barely above 3%. If you count real inflation being around 6-7%, China was actually in recession. Another problem with fixed investment and overcapacity is the debt generated from it. Chinas actual debt is not the IMF reported 17%, but closer to 80-150% of GDP once you factor in how China hides its debt. Look up Jim Chanos, Nouriel Roubini, and Gordon Chang for more info about all this. They have some great insight on the giant Chinese bubble that has literally set China on an economic treadmill to hell.

Anyways, back to your post; Australia is less than 1% of world GDP. New York, California, Florida, Texas, Ohio, each individually have a higher GDP than the whole of Australia does. And there are several states that are roughly equal to Australia in total GDP. Australia also only has 23 million people. In other words, they aren't exactly geared to be a world leader economically. I understand being patriotic and proud of your country, you certainly should be. But lets not embellish facts with our own envious wishes.

edit on 31-3-2013 by rock427 because: (no reason given)

This, couldn't have said it better myself bro.

reply to post by wemustbreakyou


I've realized from ATS that most Australians really don't like Americans. I've had more useless arguments then I can count on this website. I wish I could speak to them about how I'm not a fat uneducated floride junky that they see from their media.

I don't have anything bad to say about Austrians but if you think that China is looking out for your economic well-being you are mistaken. They would assimilate your country at the first opportunity.

Often, it is not the message, but the way the message is conveyed that rile feathers.

However, Truth fears nothing and can stand on its own, always.

The OP may foolishly seemed to be gloating about it, and think he got his middle finger up the air, this one person who does not speak on behalf of the great Australian People.

Actually, americans should thank the Australian govt for their decision.

It is not easy being the reserve currency for the world, and takes great responsibility, and often suffers more economic loss than any gain.

In the past, there were economists whom were against US being the reserve currency, but was thumbed down as being selfish, for the majority felt that USA was a rich, strong, and economically self sufficient nation to weather the rise in dollars as the demand due to its stability would be tremendous.

When that happen and became accepted by most nations, the american dollar rosed due to demand, and as a result, its export suffered. However, many argued that as its exports were high quality and hi tech, america will not suffer much.

For a time it worked, until a perverted version of mankind's aim of globalisation imposed by the greedy rich made use of cheap labour from other nations and tech stolen from the american nation to enable their rise in wealth.

As those cheap slave labor nations could compete cheaply without any research funding, purely on stolen designs and processes, american exports and demand for labor fell, and yet the US dollar is high as trade was still done in dollar.

Americans had suffered enogh for its goodwill. High time to let the US dollar fall so that its exports would be cheaper and competitive. Being a self sufficient nation, it needs not import raw materials at high price. With more cheaper exports, it would mean more businesses and employment for the american people, to build up its market share based on innovation and high quality, compared to cheap charlie nations.

Inflation may rise when more gets job and wealth is circulated, but if the govt is pro-active, it can keep it under control through regulations and monetary controls. If goods become expensive locally, the law of the free market rules - either find honest ways to cut cost to sell or pack up to open the market for others.

As for Australians and the Chinese masses, all I can say is good luck on those local currencies for trade deals. Australia is a lucky country, blessed with a rich and self sufficient bounty just like US. It's banks and the dollar are strong. But I cannot in all honesty say the same for China's mounting bad loan banks, economic transparency, and sustainablity of its current economic model to take care of 1.3 billion citizens with an oversized and overfed civil service and military.

When SHTF, may australians know USA will always be there for them. America will not abandon its long time allies and mankind.

Good luck.

reply to post by wemustbreakyou




Should the U.S. be crying or something?

Originally posted by Antonio1

This, couldn't have said it better myself bro.

I'm in investment banking. I know global markets.

I didn't even begin to address China domestically yet either. Such as a slowing urbanization rate, environmental degradation/lax regulations, a rapidly aging population, etc. all contributed to Chinas growth in the past 30-40 years, but have since been exhausted... These won't contribute to meaningful growth in China going into the future such as they have in the past. Also, if you look the Shanghia stock index, Chinas stock market has performed terribly. This is not indicative of an ongoing economic boom in a country. Some of disappointing performance is based upon the fragility in external markets, but the stock market in China has performed terribly overall. The investors know better.

This is why I can't help but shake my head at people who think this century will be Chinas. The USSR and Japan were both 'suppose' to surpass the US economically in the 80's, 90's, and 00's. The USSR collapsed, and Japan stopped being competitive with the US 20 years ago. Looking at China today, China is no different. The same things that doomed Japan and the USSR are playing out the exact same way in China.

I'll go along with the U.S. being a "sick man of the West."

That just makes the U.K. a nation that's a "has been",
Australia "wannabes",
and Canada a "never was."

The U.K. has at least held the position of THE world power at some point in its recent history. What's your excuse Australia?


Now excuse me why I go bury my head in the sand as the pillars of the "new Rome" fall down around me over this. Sheesh.

reply to post by rock427


The truth is that they want us to fail and go into economic ruin. Yes, I do take offense because it impacts normal everyday people trying to feed their families. I would be deeply saddened if any kind of economic hardship impacted the Australian people. I don't however feel that this is mutual.

Im ok with aussies decision. American gov in itself is outta control. However I believe when America is truely on our own we will as a whole repair our country from within. And it will take a great loss before we find our way again. Remember not all us American peasants are greedy warmongering pieces of shtz...

reply to post by rock427


Ty for reminding me we are a strong nation.
As for chinas economy im thinkin its hurting for a few forwign resins, like myself as an example, our family buys american whenwver its possible , i pay a little more to keep china outta my home and life, there are more then 1 of me who feel the same. Strive to help america.

"I want a dictator or a party like China has."

Said no one EVER. Aside from the actual dictator.

I think we can see where poor little Germanicus is coming from now.

bbs.chinadaily.com.cn... o=findpost&ptid=844444&pid=3075957

reply to post by wemustbreakyou


Now where am I gonna get my Fosters? Isn't my money not good enough for your beer?

reply to post by TheToastmanCometh


Do Aussies even drink that pee?

Originally posted by JDmOKI
reply to post by rock427

 

The truth is that they want us to fail and go into economic ruin. Yes, I do take offense because it impacts normal everyday people trying to feed their families. I would be deeply saddened if any kind of economic hardship impacted the Australian people. I don't however feel that this is mutual.

People need to remember, the US equates to 25% of the worlds Nominal GDP (A far more important metric than PPP). What effects 25% of the worlds GDP would be catastrophic for the other 75%. A prosperous US is in the interest of everybody. Hoping ill-will towards the US is essentially aching to cutting off ones own nose to spite their face...It's not very productive in other words.

Originally posted by lbndhr
reply to post by rock427

 

Ty for reminding me we are a strong nation.
As for chinas economy im thinkin its hurting for a few forwign resins, like myself as an example, our family buys american whenwver its possible , i pay a little more to keep china outta my home and life, there are more then 1 of me who feel the same. Strive to help america.

Environmental health hazards aside, there is nothing wrong with buying products made in China. China does help keep inflation relatively low in the US. In fact, the US exports a lot of its inflation to China. But the US is still the better investment Vs. China. The US is still a better option to open and start a business Vs. China. The US is still the worlds most innovative nation in the world, etc.

That doesn't mean that America doesn't have its issues. We certainly do. Out of control spending, an archaic foreign policy, and cognitive dissonance in regards to civil liberties and freedoms. These are issues the US has to confront. But the idea that the US is simply going to vanish, is quite laughable. Even if the China bulls were right, and the future were to be an "Asian Century" The US would still likely be the worlds most powerful country. Simply put: There is more to being a superpower, than just having a very large economy...

Why are you people still feeding the troll?

why is the op apologizing to me? i didnt make him use usd for "..."porting, not did i have any part in the volatility of the currency.

Originally posted by wemustbreakyou
China is a new hope for the world.

If you are a member of the Chinese Communist Party. Otherwise,....

How can good people continue to support our evil western governments? You bag them for your own selfish reasons. Think the IMF has done a good job? Think OECD nations and 'upward mobility' have worked? I do not.

reply to post by wemustbreakyou
Watching the United States for the last ten or so years, I saw this coming and yes , soon other countries like will dump the United States currency in favor of trading with other nations, like china, Brazil, Argentina, some European countries that are currently attempting to control their national debt. The United States was the first nation to go over a trillion dollars in debt and that was in 1973; They never did learn from that and now today, the y stand on the edge of total ruin and now no sound country would want to fall in the financial black hole along side of them. We are watching the United States implode and soon they will be like Greece and Cyprus ; only they will affect Western countries the worst like Canada, Mexico and some countries of South America.

reply to post by wemustbreakyou


I am not knocking your post at all with regard to it's sentiments. More power to any Nation who stands on there own two feet.

However, I wanted to make mention of posts like this one that refers to my Nation as America. READ HERE about America. It would be great to see people be specific by Naming the Nation I reside in as the United States (Of America). Just a small criticism on referencing of my Nation is all.

Other than that, I say Go Australia!

Originally posted by cartenz

Originally posted by greatfriendbadfoe

Originally posted by cartenz

Originally posted by greatfriendbadfoe
mates?
c'mon now what fair dinkum aussie would use mates in that context? How embarrasing

What self-respecting Australian would use the Aussie pro-noun with out capitalisation?.

How "embarrasing", as you put it.

"Fari dinkum"? really? how cliché. Just because you world view is not supported by the entirety of your countrymen, does not make it un-Australian.

You have down your location as upper echelon. imo that should be up somewhere else. This "self respecting aussie" would use a small a, especially when there are many of my keys broken on my keyboard and I have to grab letters from elsewhere using copy and paste so there are many occasions where I can't use capitals or can't find the needed capital. I guess there are times where you might not have all of the facts before you blurt out your profound thoughts. Ever heard of the saying keep your mouth shut and let people think you're stupid rather than opening it and letting people know yhou're stupid. If you haven't picked up yet, your smart ar5e reply was, imo, insipid
And re fair dinkum, some of us still use that. It's pretty common. so it makes me wonder if we have another example of a non aussie here trying to show how amazing they are. If so, go play in the kiddies sandbox with the other children junior

edit on 31-3-2013 by greatfriendbadfoe because: (no reason given)

Broken keyboard? Lets explore this statement...

To have input a capital letter, one only needs to hold down one of 2 shift keys on the keyboard, if one was broken then there is another to utilise. (located under the caps-lock key and enter key on most 101 US style keyboards respectively.) If both of these keys were broken then certain characters could be typed by the user--Characters such as the quotation marks or capitals you have utilised elsewhere in your post...

Do you get where I'm coming from?

OR--just admit you're views are redundant and you do not actually posses as good a grasp of the English language as you previously assumed....

But I'm perfectly happy with going to play in the sandpit with my fellow learned colleagues if it means not having to read the poorly composed rantings of a redundant idiot.

" on most 101 US style keyboards respectively.)" I did a quick search and couldn't find the so called 101 US style keyboard... QWERTY I believe is the word u were looking for or perhaps, QWERTZ... The QWERTZ layout is widely used in Germany and much of Central Europe. The main difference between it and QWERTY is that Y and Z are swapped, and most special characters such as brackets are replaced by diacritical characters. en.m.wikipedia.org...(computing)#section_3

The USA keeps on complaining about China & how it keeps it's currency low & the USA is doing exactly the same thing.

USA should stop poking it's nose into other peoples & countries business & telling them what they should & shouldn't be doing.

It is really one thing that gets my back up about the USA is that is is so hypocritical, it moans about Russia's human rights record when the USA's is just as bad, it proclaims itself to be the land of the free & yet it is one of the most oppressed & controlled countries, what with the government spying on all of it's citizens.