aussie economy worse off than usa?, page-30

re: current account deficit??? does it matter I believe that the value of a currency is tied chiefly to the relative investment opportunities in that country. As the attractiveness declines so does the currency. That can be influenced by many factors mostly perceived. Political climate, GDP and international markets for our produce are the main influences. Interest rates are a really just a reflection of these factors. Even if we became a nation of employees to overseas bosses our standard of living would be linked directly to investment levels and the productivity of the workforce. If these kept on rising so would our standard of living, purchasing power and relative wages, and our ability to borrow! Investment needs labour and skills that is generally supplied by us, Australian citizens. Government policy that is friendly to overseas capital is essential to this process.