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Australia interest rates to go lower, for longer
Topic Started: 5 Aug 2013, 07:13 PM (9,985 Views)
Count du Monet
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b_b
6 Aug 2013, 06:57 PM
You payin whatever currency the vendor required (which may be usd). Given the aud floats, I can aquire any major currency I need.
Yes because the RBA preserves its buying power. But the amount of USD you wish to acquire may not eventuate. You could have enough for a tanker contract one week and then have the AUD fall and find you are out of luck.

Could do the same with Zimbabwe currency?

No, it wouldn't matter how many zeros you got behind your Zim dollars, because they would all be equally worthless.
The next trick of our glorious banks will be to charge us a fee for using net bank!!!
You are no longer customer, you are property!!!

Don't be SAUCY with me Bernaisse
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b_b
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Count du Monet
6 Aug 2013, 07:03 PM
Yes because the RBA preserves its buying power. But the amount of USD you wish to acquire may not eventuate. You could have enough for a tanker contract one week and then have the AUD fall and find you are out of luck.

Could do the same with Zimbabwe currency?

No, it wouldn't matter how many zeros you got behind your Zim dollars, because they would all be equally worthless.
What on earth has that to do with the us central bank filling the us banks with reserves. The question is how does us qe impact aust interest rates.
(S – I) + (T - G) + (M - X) = 0
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miw
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newjez
6 Aug 2013, 06:54 PM
What do you think will be the driver then?
My experience is that when the needle flicks across zero, it flicks faster and earlier than anyone expects. Mainly because markets move on future expectations while most people are looking at stats that come in with a 3-month lag.

The way I see it, the US is climbing out of the hole and Europe seems to have stopped digging itself deeper, at least temporarily. If this goes on, capital will tend to flow towards those markets as longer-term yields in the US and Europe rise even if zero-maturity money is still pegged at Zirp.

So either the AUD will fall and cause inflation, causing interest rates to rise, or interest rates will be raised to pre-emptively halt the fall of the Aussie.

A lot could happen between now and then, of course.
The truth will set you free. But first, it will piss you off.
--Gloria Steinem
AREPS™
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Count du Monet
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b_b
6 Aug 2013, 07:06 PM
What on earth has that to do with the us central bank filling the us banks with reserves. The question is how does us qe impact aust interest rates.
The US commercial banks might not to lend that to Australia, deciding its not worth it. So they bank with the FED instead who in turn lends it to the Supra nationals that will lend to Aus.

So yes, if can mean a great deal!
The next trick of our glorious banks will be to charge us a fee for using net bank!!!
You are no longer customer, you are property!!!

Don't be SAUCY with me Bernaisse
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b_b
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Count du Monet
6 Aug 2013, 07:15 PM
The US commercial banks might not to lend that to Australia, deciding its not worth it. So they bank with the FED instead who in turn lends it to the Supra nationals that will lend to Aus.

So yes, if can mean a great deal!
Aussie banks lend aud to aussie customers. And the discussion is about aud interest rates.

So in summary, it means jack shit.
(S – I) + (T - G) + (M - X) = 0
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Catweasel
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miw
6 Aug 2013, 07:09 PM
My experience is that when the needle flicks across zero, it flicks faster and earlier than anyone expects. Mainly because markets move on future expectations while most people are looking at stats that come in with a 3-month lag.

The way I see it, the US is climbing out of the hole and Europe seems to have stopped digging itself deeper, at least temporarily. If this goes on, capital will tend to flow towards those markets as longer-term yields in the US and Europe rise even if zero-maturity money is still pegged at Zirp.

So either the AUD will fall and cause inflation, causing interest rates to rise, or interest rates will be raised to pre-emptively halt the fall of the Aussie.

A lot could happen between now and then, of course.
Catweasel say how it know about a inflation?

If economy structure for a high cost, it can only take a the toll.

It like a whole conundrum.

Why a Australia still the relative expensive,

even when dollar fall into toilet?

JP the Y fall into toilet,

but the have relatively noticeable impact.

Price level appear to go a cheaper!
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newjez
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miw
6 Aug 2013, 07:09 PM
My experience is that when the needle flicks across zero, it flicks faster and earlier than anyone expects. Mainly because markets move on future expectations while most people are looking at stats that come in with a 3-month lag.

The way I see it, the US is climbing out of the hole and Europe seems to have stopped digging itself deeper, at least temporarily. If this goes on, capital will tend to flow towards those markets as longer-term yields in the US and Europe rise even if zero-maturity money is still pegged at Zirp.

So either the AUD will fall and cause inflation, causing interest rates to rise, or interest rates will be raised to pre-emptively halt the fall of the Aussie.

A lot could happen between now and then, of course.
I think you may have answered bb for me. Ta.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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b_b
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newjez
6 Aug 2013, 08:50 PM
I think you may have answered bb for me. Ta.
Nope - not even close.

Our discussion related to us qe, and the impact on Australian interest rates. I still do not understand how changing the reserve balances (payment system) in the us banks, in usd, impacts Australian interest rates which is set by the by
Rba (as evidenced at 2.30pm today)
(S – I) + (T - G) + (M - X) = 0
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genX
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b_b
6 Aug 2013, 09:04 PM
Nope - not even close.

Our discussion related to us qe, and the impact on Australian interest rates. I still do not understand how changing the reserve balances (payment system) in the us banks, in usd, impacts Australian interest rates which is set by the by
Rba (as evidenced at 2.30pm today)
Why did the RBA cut rates today? They could have raised rates, or left them where they were. Why did they cut?
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newjez
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b_b
6 Aug 2013, 09:04 PM
Nope - not even close.

Our discussion related to us qe, and the impact on Australian interest rates. I still do not understand how changing the reserve balances (payment system) in the us banks, in usd, impacts Australian interest rates which is set by the by
Rba (as evidenced at 2.30pm today)
Neither does anyone else which was the point of the discussion.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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