Hi guys I just want to get everyones ideas on house prices in AUS and the AUD to USD exchange rate.Well I would like to express my ideas on what could happen in the short term and what is possible in the long term. (I love silver and want a lot more.) I know you are all going to throw rocks at me for saying this but I think we could see a big change in the AUD vs the USD to the down side for Australia.I have just sold my last investment property 3 months ago and now I have a large amount of cash to invest in something? I think there could be a gap between QE2 and QE3 if that was to be the case the USD would strengthen like it did when there was a gap between QE1 and QE2.I have just opened a foreign currency account with my bank that charges no fees to buy USDs.Last time there was a gap gold fell a small amount silver had a larger fall and the AUD fell from .93 to .82 in about a month.In Australia we only noticed a small drop in the silver price due to the currency drop. Could this happen again? the way some of the people at the FED are talking it could be a possible.
Some stunning remarks from Dallas Fed's Dick Fisher: " Our duty is most distinctly not to monetize - or even be perceived as monetizing - the debt of fiscally imprudent government. Throughout the history of nations, monetizing the budgetary excesses of governments has proven to be a direct path to economic perdition. Having already peeked inside that door, I feel strongly that we must now shut it, lock it and throw away the key."
My thoughts on this is they may very well shut the door at the end of QE2 but they will hang on to the key just in case the economy falls apart again.As most of us would agree it will fall apart and that will be when they need that key again.
QE2 will finish in June so from that point it may be wise to have some US dollars just in case there is a gap what do you think? I wouldn't buy US dollars now because I think our currency may keep going up along with silver in the short term.Come June if there is confirmation of a gap it could be worth a punt. As for house prices I think there is a lot more down side to come over the next couple of years if you look at this chart.Be it through currency devaluation falling house prices or a combo of both.It would be nice if you could get an average house for 100oz of gold or 800 to 1200oz of silver!!!
