The $Oz tanked for two reasons.
1.The unwinding of the yen carry trade
2.The flight from high yield currencies due to(perceived) risk aversion.
Show me a country,any country,that is better placed to weather this perfect financial storm than Australia
Bull!!!!! There was some carry regather but its been
aversion to commodities mostly. Do your research.
Australia domestically over-leveraged and in debt beyond its years? massively!
Australian houses over valued by 60-80% and mostly over leveraged? What do you think?
Maybe Australias manufacturing base will save us? Remember Hoover and AWA plants?
Australia produces very few if any consumer big ticket items. TVs, Dryers, Sound Systems, Washers, Dishwashers etc...all foreign owned and often manufactured overseas (I think my Kiwi Fisher and Paykel top end stuff may be made here).
Sweden and Denmark. They make things of value, own them as as companies and export them.
Does that answer all
Mr Firecat?
OK so how does that affect Australia's economy if China slows down?
Why no change (When you are almost 100+% geared in domest demand and we are almost now totally dependant on foreign demand of ...well...our DIRT)?
If you have a freehold house, and a big garden, then no problem.Not going to be able to widen your horizons for a while, but so what???
Lucky man
Mr Prospector!