Help me settle argument: currency

Discussion in 'Money Management & Banking' started by TMNT, 18th May, 2017.

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  1. Starbright

    Starbright Well-Known Member

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    It's kinda like when someone says X stock is cheaper because it's worth $1 and Y stock is more expensive because it's $50. They are not understanding earnings per share (or purchasing power in the case of currency).
     
    Starbright, 19th May, 2017
    #21
  2. paulF

    paulF Well-Known Member

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    I guess to their minds, it's more about purchase value as some others mentioned above.
    Say i want to buy a house in the US for 100K US. In 2011, when 1 AUD=1USD i would have to fork out only 100K AUD but these days, when 1AUD=0.74 USD , i have to fork out around 134K AUD so in a way, they do have a point.
     
    paulF, 19th May, 2017
    #22
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  3. TMNT

    TMNT Well-Known Member

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    And that goes back to my first point of the multiple of the rate is only valid if it's Inn reference to a historical rate!
     
    TMNT, 19th May, 2017
    #23
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