HKD decoupling and effects
 

The issue of decoupling from the USD to the yuan is becoming a more talked about possibility due to a myriad of different global circumstances. Not if, but when this finally does happen, and the HKD is allowed to strengthen, what will be the effects on housing prices ( i.e. Housing allowance, and it's index to pricing) our salaries ( i.e. They are denominated in a us pegged currency, if they decouple does our pay change)? What are some potential gains and pitfalls we see as HK based pilots for the future decoupling of the HKD?

Hey Ash, you do realize that you're talking to a bunch of pilots, right?

These are the same guys that gave up normal education and careers and lives and health and home to become indebted and/or risk their lives for years and decades just to end up where they are now, flying airplanes back and forth for hours on end..

Also, 75% of these guys would rather fly (again) for 5 hours to nowhere a 90-kt C-152 than buy an half an ounce of gold today, and much less would have when it was selling at less than half the price 5 years ago....the same guys who take their 50-70K housing allowance and spend it on rent rather than building equity.

I'm quite sure you lost the audience you were seeking with the big word in your subject.

Iron Skillet

You really can be an opinionated d**k at times and have NO idea of the situations of the people you are decrying. Grow up.

Iron Skillet, come on, don't sell yourself short, and maybe, do the same for others. The attitude will bite you eventually.

As for a change in the peg of the HKD to the USD, it's a long shot. Achman (a trader) has always made a ton of noise He looses as much as he makes. He's an activist guy. This big article about changing the peg ratio is being pushed from him and tactful use of the media, perception is, he's buying big in HKD. The hedge fund manager does have a history of some serious wins.

Achman is talking a 30% increase in the HKD value vs the USD. Makes you wonder what is happening in the background, likely won't happen anytime soon, but then again, look at the Swiss Franc. That all went down in seconds.

My perception of local HK government, act slow, hesitate, do nothing, as it's an easy decision that doesn't jeopardize the future prospects of the individual making the decision, protecting his government career climbing, sad really.

Maybe some expertise consultants should be hired to do their own report the advantages and disadvantages to keeping or changing the peg ratio.


Ackman? He always makes a ton of noise. Loses as much as he makes. Activst guy. Thinks HKD can appreciate 30%. Would be nice… Don’t think will happen any time soon.

Obey the Dachshund!

Amen!

Back on topic ....


The HK$ will eventually decouple from the US$. Later rather than sooner, in my view. Maybe 3 to 5 years away.

When it does decouple the HK$ will rise.

It will then quite likely be re-linked to another currency or basket of currencies. Possibly with a longer piece of elastic.

If you have a HK$ salary you will benefit. Prices of imported stuff will fall.

What will happen to those with mortgages? If you bought a house for say 20mil HKD in todays money, what happens now? Do you now instantly owe 30% more on your house if say the HKD now goes to 4:1? Does everything get revalued? Am I understanding this correctly?

You would still owe exactly the same amount of HK$, that doesn't change. As long as you get paid in HK$ you would be better off because imported goods should get cheaper, food for example. But HK did suddenly get a lot more expensive compared to other countries, so businesses might cut back in HK and move to Shanghai or Singapore. Tourists would suddenly find HK much more expensive as well.