G'day Grant Where can I get access on the net to Aus current account figures etc?
In your numbered list I found the following items possibly contractictory? 3. deteriorating current account /trade deficits (no prospect whatsoever here for the trade account to go into surplus);
7. relaxation of pressure on domestic interest rates (due theorectically to the lower priced imports)
I thought that when our current account blows out, up goes interest rates to kerb spending. Or should it be down go interest rates to reduce value of currency, oh its too hard for me :-)
This item Prognosis - the US$ may well continue to fall (due to manipulation and determination rather than to the interaction of differing market forces). But the US economy still accounts for >25% of global economic output whilst the Eurozone /EU share of global economic output is starting to shrink.
To my novice way of thinking the US$ is going down due to 1. Huge amount of US$ paper in the world 2. Large US debts 3. More paper produced
I can see how the US$ trend could reverse, this looks likely to be when the US$ index hits 80 in the first half next year? cheers Rod
