Currency Devaluation

Discussion in 'Property Market Economics' started by Cousinit, 5th Dec, 2020.

Join Australia's most dynamic and respected property investment community
  1. Cousinit

    Cousinit Well-Known Member

    Joined:
    6th Aug, 2017
    Posts:
    1,022
    Location:
    Victoria
    Just reading up the wikipedia detail on the history of our dollar and all the shenanigans that went on during the middle of last century when the UK pound was devalued from US $4.03-US$2.80 and our Australian pound followed to a degree.

    What happened at that time that this had to happen?

    History of Australian currency - Wikipedia Lots of good info here but it would be good to understand better.
     
  2. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,256
    Location:
    Australia
    Gold standard and fixed (government mandated) exchange rates make it a very different world back then.
     
    John_BridgeToBricks likes this.
  3. Cousinit

    Cousinit Well-Known Member

    Joined:
    6th Aug, 2017
    Posts:
    1,022
    Location:
    Victoria
    Yes for sure it was. The pound has had a solid history of losing value for a range of reasons.
     
  4. BunnyXiao

    BunnyXiao Well-Known Member

    Joined:
    27th Aug, 2020
    Posts:
    435
    Location:
    Estonia
    Read up on the Cantillion effect
    Also have a look at Princes of the Yen a book now with a video on YouTube
    That will help you to understand what is going on
     
    John_BridgeToBricks and Cousinit like this.
  5. willair

    willair Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    6,776
    Location:
    ....UKI nth nsw ....


    This is another way to look at things..
     
    Cousinit likes this.
  6. Blueshoes99

    Blueshoes99 Well-Known Member

    Joined:
    24th Aug, 2019
    Posts:
    145
    Location:
    Sydney
    We are printing so much money it’s like toilet paper.
     
  7. C-mac

    C-mac Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    1,348
    Location:
    Sydney
    Yes, but see it is a money-printing competition right now, all over the world. Central banks around the globe are deploying various tactics that may have different names, but all end up having the same effect: being, effectively having more currency in their system (I.e. money printing).

    For Aus it's interesting to see how stubbornly high value the AUD remains to be, at present (0.74). I know RBA and Gov would love to see this come down to the low 60s. Not sure that'll actually happen any time soon, though.
     
  8. essendonfan

    essendonfan Well-Known Member

    Joined:
    27th Mar, 2019
    Posts:
    137
    Location:
    Sydney
    Love to see low 60s, so I can bring across some USD
     
    C-mac likes this.
  9. frankjeager

    frankjeager Well-Known Member

    Joined:
    2nd May, 2019
    Posts:
    734
    Location:
    sydney
    any reason why you didnt do it 6 months ago when it was at mid .50's ?
     
  10. Cousinit

    Cousinit Well-Known Member

    Joined:
    6th Aug, 2017
    Posts:
    1,022
    Location:
    Victoria
    I sell on amazon.com and it was a great time to be getting paid in US$
     
  11. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    The change in currency value is still assessable.
     
    C-mac, Someguy and Cousinit like this.
  12. Illusivedreams

    Illusivedreams Well-Known Member

    Joined:
    3rd Oct, 2017
    Posts:
    2,454
    Location:
    Sydney
    60c for the Australian dollar is low it will have impact as the prices for goods start to rise and will bite the most struggling as prices on goods gores up.

    With the current deficit in stock av and rising import prices this would not be as good for the economy as one may think.
     
  13. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

    Joined:
    25th May, 2018
    Posts:
    2,407
    Location:
    Sydney
    Party pooper. ;-)
     
    Cousinit likes this.
  14. C-mac

    C-mac Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    1,348
    Location:
    Sydney
    Even if it's tax-assessable; you still make more net-income after tax, anyway.

    I brought a bunch back when it hit about 0.60 during the lull earlier in covid.
     
  15. Illusivedreams

    Illusivedreams Well-Known Member

    Joined:
    3rd Oct, 2017
    Posts:
    2,454
    Location:
    Sydney
    Good buy we are buying containers today at 74.3cents which is the best i have seen in recent year.

    The issue we are having the Chinese Yuan has appreciated against USD so the prices for good in China in USD is getting higher offsetting some of the gains in the AUD/USD pair. yuan.jpg
     
    C-mac likes this.
  16. C-mac

    C-mac Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    1,348
    Location:
    Sydney
    Will be interesting to see how the covid winter the USA faces, will impact their economy and consumption patterns over the next two quarters' data ahead.
     
  17. craigc

    craigc Well-Known Member

    Joined:
    25th Jun, 2016
    Posts:
    1,575
    Location:
    Melbourne
    If you’ve bought actual containers you’ve done very well.
    Worldwide container shortage and freight capacity limitations (part due to lack of flights) are sending international freight costs through the roof.
     
  18. Illusivedreams

    Illusivedreams Well-Known Member

    Joined:
    3rd Oct, 2017
    Posts:
    2,454
    Location:
    Sydney
    Correct

    We have stock in China atm and are being Quoted $8000 USD to Sydney. This is up from $1500 USD for a 40Hq say Janaury.

    Freight costs are through the roof Im bein told USA is a $10,000USD a container atm.

    Port Botany DP world and Patrick are awful and we are being charged $980 per container on top as a feee because of the congestion they created by striking non stop through the year.
     
    craigc likes this.