Tuesday, April 24, 2012

So Goes Canada... I mean Australia

I expect I will keep banging the tables on this subject:


A few quotes:

Australia is a “gigantic bubble” and the nation’s currency is set to decline in the future as commodity prices moderate, independent economist Andy Xie said.

“Australia is actually already in trouble,” Xie, a former Morgan Stanley chief Asia-Pacific economist, said at a seminar in Hong Kong Tuesday. “The Aussie dollar is so strong because everybody believes in commodities” even as demand wanes, he said. 

The day “is not far away” when the currency could fall to 50 cents against the dollar, he said.

The commodity super cycle is definitely nearing an end. If this guy believes that the Australian Dollar is going to 50 cents, I wonder what he thinks about the Canadian Dollar. Judging by the comments on this article there are so many cheerleaders that will ride this commodities bus right off the cliff.

Unfortunately I won't be joining them. 


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