<nettime> antipodean A16 digest

["nettime's_global" <nettime@bbs.thing.net>]

Re: <nettime> A16 digest
     "scotartt" <scot@systemx.autonomous.org>
     McKenzie Wark <mwark@laurel.ocs.mq.edu.au>

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From: "scotartt" <scot@systemx.autonomous.org>
Subject: Re: <nettime> A16 digest
Date: Fri, 21 Apr 2000 10:26:48 +1000

craig,

yes. wall st goes down, so does the us dollar, the aussie dollar goes up.
wall street recovers, the aussie goes down, which is what the quote says.
[although bear in mind the SMH is not always that economically literate]
and its true, if it can't go up it will go down. expect the currency to be
weak in the short term. but if there's a long term weakness in the us
market, the aussie dollar will benefit. (should be 'benefit' i guess as I
said, a rise in value is bad for some [exporters, short sellers], good for
others [importers, long buyers, those with large debt in US $]).

there are other factors in the relationship, e.g. interest rate
differentials. also, world economy outlook. the weakness in the currency is
uncharacteristic, but a reflection of the changes being wrought by the 'new
economy' and australia's perception by the market of being 'old economy'
[resources, industrials, etc]. although i think this is more an indication
of how little connection with actual economic realities that 'market
perception' usually has. nonetheless, it makes imported cars and foreign
debt more expensive all the same.

scot.


----- Original Message -----
From: Craig Brozefsky <craig@red-bean.com>
To: scotartt <scot@systemx.autonomous.org>
Cc: <nettime-l@bbs.thing.net>
Sent: Friday, April 21, 2000 2:59 AM
Subject: Re: <nettime> A16 digest


> scotartt <scot@systemx.autonomous.org> writes:
>
> > > [ ... ] Australia is a client-state of the US economy. When Wall Street
> > falls so does the Aussie dollar.
> >
> > This last sentence is a perfect inversion of the truth. The first
> > sentence is true for everywhere.
> >
> > When Wall St falls, the value of the aussie dollar goes up, as investors
> > take their money out of the uncertainty of the stock market and invest it
> > in 'quality' (ie low risk, low yeild) investments like Government Bonds.
 <...>

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Date: Fri, 21 Apr 2000 12:12:34 +1000 (EST)
From: McKenzie Wark <mwark@laurel.ocs.mq.edu.au>
Subject: Re: <nettime> A16 digest


Good points, scot, except that when the stock market fell, so did
the Aussie dollar. Could be a few different explanations, including
the withdrawral of overseas investors.

Your point about the devaluation of the Aussie is a good one. Trading
at about 60 cents to the US dollar is a real boost to exports, esp.
in the mineral and agricultural sectors. Pity about the fascist
trade policies of Europe and America, however, which limits the
export gain. 

Of course, if the Aussie $ falls too far, you get inflationary pressures,
due to rising costof imports. Discretionary import buying may fall, but
a lot of capital equipment and components have to be imported as well.

I find the client state rhetoric a bit dated, but like all small economies
outside the major trading blocs, the self-interested trade policies of
the US and the EC are a real hinderance to export-led growth. The anti-
trade left are really just singing the tune of the Buchananite and
Euro-fascist right on this score.

k

__________________________________________
"We no longer have roots, we have aerials."
http://www.mcs.mq.edu.au/~mwark
 -- McKenzie Wark 

On Thu, 20 Apr 2000, scotartt wrote:

> > [ ... ] Australia is a client-state of the US economy. When Wall Street
> falls so does the Aussie dollar.
> 
> This last sentence is a perfect inversion of the truth. The first sentence
> is true for everywhere. 
> 
> When Wall St falls, the value of the aussie dollar goes up, as investors
> take their money out of the uncertainty of the stock market and invest it
> in 'quality' (ie low risk, low yeild) investments like Government Bonds. 
 <...>

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