Any ideas on how the Australian dollar (and hence the Australian...

Any ideas on how the Australian dollar (and hence the Australian price of gold) would react to a collapse of the US dollar?

I have seen investment commentators suggest (to US investors) investing in countries with strong foreign currencies such as Australia(??). However those same commentators suggest Japanese and Chinese currencies will suffer greatly from a US dollar collapse. Surely that would affect the commodities boom which is propping up the Australian dollar.

The published figures for Australia indicate that our dollar should be under just as much pressure as the US dollar.

Inflation of M3 is proceeding apace with the US M3. (At least up to the time of the big gag)

Net foreign debt as of December of about $473 billion (compared to $193 billion when Howard came to power.) and a current account deficit of $55 billion for 2005. Quite compar-able taking the size of the economies and populations into account.

However as Costello is fond of pointing out, this debt is private debt. Will this make much difference?

Andrew