... aussie dollar best! ...

  1. dub
    29,587 Posts.
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    Part of an article I've just read says -

    "Considerable evidence backs up Templeton’s preference for the Australian dollar as a refuge, even though it has rebounded about 40% from a very depressed base vs. the US dollar since Jan 2002.

    According to the “The Big Mac Index” (The Economist, April 24, 2003), “Among rich economies, the most undervalued currency is the Australian dollar. The Aussie dollar [was back in April] still 31% below PPP (Purchase Power Parity) against its American counterpart.”

    The Australian Governments debt is only 18% of GDP, a better credit risk compared to “official” US government debt of over 68% (not counting horrendous “off balance sheet” obligations such as Social Security). Australian trade deficits are smaller and more manageable.

    Last but not least, the Australian dollar has historically correlated with global commodity prices. 65% of Australian exports involve commodities. Chinese economic growth actually helps Australia by putting upward pressure on commodity prices.

    The whole article can be read at http://www.financialsense.com/fsu/editorials/fox/102803.html


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