Michael Pascoe
The Greenback's on Viagra!
Headlines about a ''weak'' or crashing Aussie just demonstrate that it's human nature to have the attention span of a gnat.
Or do gnats accuse each other of having the attention span of a human?
Advertisement: Story continues below
As usual, we tend to think it's all about us. Part of the Aussie's rally came from our economic credentials - our terms of trade, status as a China proxy, a strong, growing economy with relatively high interest rates.
A large part was just the flip side of the US dollar's weakness - a faltering economy, very low interest rates, massive and growing government debt, the government wanting a weaker currency, the Federal Reserve printing money.
The political paralysis in the USof A and a bleak decade or so ahead.
None of those fundamentals has changed, so before thinking the Aussie has gone bananas, consider that maybe the greenback has slipped a half tab of Viagra.
AMERICAN DOLLARS
DON'T HAVE A VERY THICK SKIN
No comments:
Post a Comment