gold value in US dollars, page-22

@marri

"...a weak currency is never desirable overall."

Australia is the one country that can get away with a weak currency picking up the associated trade advantage without being crushed by an increase in the cost of servicing and repayments for off short debt. This is because the extraordinary depth in AUD currency swap market. Almost no one borrows USDs to fund AUD requirements without hedging.

Between June-December 2008, the AUD-USD fell from .80 to .62 and no one but foreign travellers and buyers of flat screen TVs noticed that much.