Capital flows are good now. The sun is shining and the country is lucky. But if we’re right and the strong Aussie dollar is mostly a function of the U.S. dollar carry trade, capital flows can reverse just as quickly. Currency traders probably love this because of the volatility. But the question is: how risky is it for Australia’s economy to source so much of its borrowing needs overseas?
November 18th, 2009 | Dan Denning | 1 comment | ContinuedMarket
Commentary on global share markets by your Daily Reckoning editors in Melbourne, Australia. Still haven’t subscribed to the Daily Reckoning? What are you waiting for… sign up here, it’s free!
A chronological listing of articles is below.
US Has Highest Unemployment Rate of All Major Economies
You give them more money, say, in unemployment assistance. Or, you give them a tax credit when they buy a new house. Or, you give companies a big tax break.
November 17th, 2009 | Bill Bonner | 3 comments | Continued
Big Drops in Stock Prices Are Always Followed by Bounces
A bounce of 50% of what was lost is not unusual. That’s what happened after the Crash of ‘29, for example. So, there’s nothing exceptional about what we’re seeing on Wall Street.
November 17th, 2009 | Bill Bonner | 1 comment | Continued
Dollar Rally the Sort of Thing that Will Lead to Correction in Gold Price
House prices were up 6.2% in the third quarter over the same time last year, according to data from the Australian Bureau of Statistics. House prices in the capital cities are surging. Stocks are surging. Gold and oil are surging.
November 17th, 2009 | Dan Denning | 5 comments | Continued
Best Investment Opportunities Emerge from Water, Agriculture, Gold and Energy
And some of those opportunities will feature a combination of these resource categories. One of the most intriguing combinations is what I call the energy-water nexus.
November 17th, 2009 | Chris Mayer | 0 comments | Continued
Gorbachev and the Most Complete Test in Economic History
Readers may know Mikhail Gorbachev as a fellow who advertises Louis Vuitton luggage. But before he made it big as a mannequin, he was the top man in the Soviet Union. It was not an easy job.
November 16th, 2009 | Bill Bonner | 6 comments | Continued
Obama Urged to Fix Airline Industry
On the surface of it, the idea is absurd. What does Obama know about airplanes? Who would want to fly in an airplane with Obama in the pilot seat?
November 16th, 2009 | Bill Bonner | 0 comments | Continued
US Economy and its Political System Has Become More Rigid and Costly
One thing Americans take for granted is that they will always be the richest, most successful people on earth. They think that because that is what they have always known.
November 16th, 2009 | Bill Bonner | 2 comments | Continued
$2,000 Gold Prediction
The weekend edition of the Australian Financial Review has gold on the cover, incidentally. You can see a picture of it a few paragraphs down. Underneath the giant golden letters it reads, “Why you shouldn’t laugh about gold hitting $US2000 an oz.” But if anyone’s laughing, it’s a nervous laughter.
November 16th, 2009 | Dan Denning | 8 comments | Continued
Gold: The Ultimate Unlevered Hard Asset
In fact, something important is happening in the gold markets right now. All through the 1990s to the present day, the world’s central banks were net sellers of gold.
November 13th, 2009 | Chris Mayer | 12 comments | Continued