Im far from clever but when we floated the dollar many agreements were made to keep wages in check as it drifted down.It took alot of people to accept that it was for the better of the country to go this way.Now that the economy has drifted away from manufacturing farming etc the services industry is our big driver in small bussiness .If retail which relies on home grown dollars needs to survive while the dollar rises just maybe we need rises similar to those in mining to keep our own .I guess what im trying to say is we probably need inflation to rise in wages but checked in prices this time.I think the last goverment tried doing this with tax breaks and middle income subsidy but they never released enough Aussie dollars into the system .
Kind of funny but the money in Australian dollars was very low during this period and very high in foriegn debt.The amount of Aussie dollars in the till was falling .Its kept at a certain level by increases of around twenty billion every two years by issue of debt.What happens with that money is anyones guess but it is supposed to be used in the floating exchange i would imagine.
The chart here gives a different view on whats maybe happening to our retail sector .Our household saving ratio is the highest its been for twenty years.Some good charts here if you have never looked before .
