aussie economy in full blown recession next year, page-15

I think it wrong to just take out Australia and to talk of $A=0.55$US

I would say that the future of the $US will be very bleak by then.

More so when Bernanke takes over from Greenspan.

Although there are signs, I can se the main events of the US degradation coming in shocks ie one wakes up in the morning, switch on for the news and then get that tight feeling around the stomach upon hearing that the FED hasn't been able to cover the massive derivatives trading losses quickly enough.

And that is just one possibility.

At the moment, they are selling Boeing planes and then enter the sales to the Current Account which is massively in deficit. That makes it look better. Unfortunately, these sales (Where no cash is changing hands) can be wholly or partially cancelled.

I suppose when a cancellation takes place then the "Lost" amount is quietly added to the accrued loss deficit number derived over the years and nobody will have noticed it.

Take note that more of these "sales" are entered the bigger the Current Account Deficit becomes.

They should have waited till the planes were delivered.


Gerry