Do you often find yourself, like I do, contemplating the reasons behind the rising prices?
Additionally, what about the plummeting stocks and shares or the fluctuations in monetary rates?
The strength of the Australian dollar against other currencies is beneficial if you enjoy vacations abroad, yet detrimental to our exports. This can help clarify the factors contributing to our price hikes.
Money is the driving force of the world, but when the most powerful nation manipulates its finances to reflect substantial overdrafts, the repercussions will be felt by everyone. The UK’s military actions in Libya incur hefty expenses related to aircraft, fuel, and munitions, which adversely affect the value of the pound. Consequently, who foots the bill? All those involved in buying and selling goods. What methods does the UK government employ to settle its debts?
However, this barely scratches the surface compared to the expenses associated with wars in Afghanistan and Iraq. Even the formidable US dollar struggles to uphold the towering debts that continue to accumulate. It’s these debts that weigh down the US dollar.
In Australia, we handle our defense expenditures wisely, and our prudent management allows us to remain solvent thanks to our valuable mineral resources. Nevertheless, the weak US dollar results in reduced export prices. This leads to increased prices at home and ultimately escalated borrowing rates. Americans recognize that the only viable solution is to disentangle themselves from their foreign commitments and drastically reduce their defense spending.
It is crucial for us to avoid being entangled in costly policing responsibilities abroad. With our mineral resources, sound budgeting practices, we simply need to bide our time until the Australian dollar stabilizes to a more reasonable exchange rate. Until that occurs, prices for food, fuel, gas, and electricity will continue to rise.
Never forget…whether victorious or defeated…wars demand a considerable financial investment.
by Professor P.T. Brown
