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China devalues its currency ...

Discussion in 'Property Market Economics' started by acorn123, 12th Aug, 2015.

  1. acorn123

    acorn123 Well-Known Member

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  2. JDP1

    JDP1 Well-Known Member

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    Yup. It was likely gonna be low independent anyway.
    China is devaluing for similar reasons the rba wants our currency to be low. There is global competition for jobs and investment. This is not a bad thing- requires hard work and smarts to win.
     
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  3. Aaron Sice

    Aaron Sice Well-Known Member

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    meh.

    but hey, "currency wars" are a figment of my imagination.
     
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  4. Chilliblue

    Chilliblue Well-Known Member

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    China linked its currency to the American dollar and maintained a lower rate so that America would lose manufacturing to them and it worked.

    Only problem is that now the American dollar has improved, it is inflating the yen which in turn places pressures on the American financial system as to whether they raise interest rates or not.

    Increasing rates would create a greater gap between the two countries and in turn force more American manufacturing to go over to China.
     
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  5. acorn123

    acorn123 Well-Known Member

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    US fed reserve has been intimidating the financial world for some months, but suddenly someone else is doing the job for them: making US$ stronger. They may have to slow down or postpone rate rise, otherwise it just signals we love to collect your "bubbles":D.
     
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  6. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    Manufacturing is already facing a paradigm shift albeit in a small scale though, manufacturing is going back to its source due to automation/robotics, some are calling it 4th industrial revolution, Germany and US are at its forefront.

    This trend is going to gather pace sooner then we think and may be, just may be, the market is sniffing this and hence after more then two decades more money is flowing outwards then inwards in china.
     
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  7. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    Currency war is relative, if every one devalues whats the net result?
     
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  8. acorn123

    acorn123 Well-Known Member

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    It is definitely uncertain for longer term; a cyclic pattern could be used as a guide, and everything balances itself hopefully. By the way, we were told that robotic cars will be cruising streets for passengers in next decade or so. No private vehicles and parks are required. "Uber-robot international" could be the way to go:p.
    For now, everyone is minding his/her own pocket, so are Abbott, China, USA, and Greece etc.
    Would not expect a man with an empty pocket to have a big vision for the country or world(?).:D
     
    Last edited: 13th Aug, 2015
  9. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    Oh no....no no no
    our politicians definitely have vision.. Its just stretches to next election cycle and often focussed on their employment
     
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  10. acorn123

    acorn123 Well-Known Member

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  11. Tekoz

    Tekoz Well-Known Member

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    Yes, even just now China has reduced the interest rate: http://www.bbc.com/news/uk-34052618

    I guess we will have to be prepared for the worst in AUD$ value when the US Feds rasied their IR this year.
     
  12. Aaron Sice

    Aaron Sice Well-Known Member

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    talk just this morning of the US NOT raising rates now.

    See what a difference a rumour makes to our dollar? Imagine the actual consequences.

    We truly have a third world economy here, mired in ex-convict export ideals.

    No future fund, no safeguards - just at the whim of all markets on a hope and a prayer.
     
  13. WinDyz.

    WinDyz. Well-Known Member

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    Everybody is printing money, to devalue their currency.
    IMO Interest rate will be heading to 0 in Australia, and it will stay low for 5-10 years.

    Realestate will be one the best asset to invest (especially one with higher return)
     
  14. Leo2413

    Leo2413 Well-Known Member Premium Member

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    from your lips to gods ears please :D
     
  15. Nick Valsamis

    Nick Valsamis Real Estate Professional

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    This could be the case if there is a reallocation of money into property from other markets and continued investment out of China.
     
  16. Waterboy

    Waterboy Well-Known Member

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    Low interest rates for each participating country.

    That's why low rates are the new normal.

    Don't expect the RBA to go back to 7% in the next decade or so.