The Australian dollar killed Ford. We had a 60 cent dollar for years. It hit $1.08 last year. That killed our locals.
And manufacturing everywhere in Australia has been going broke.
The reason our dollar is so high, is mostly because the Chinese currency is fixed to the US dollar. Which is the most anti-free trade fixture of all history. China's economy has had 13% annual GDP increases for over a decade. Yet its dollar has hardly moved compared to the US dollar's valuation.
Why? I presume because the part owners of corporations in China (mostly US and also European corporations) want the Chinese currency low, so that their companies can improve their profits, and their CEO's and a few selected execs can enjoy share option benefits worth multi-millions of dollars. A floating Renminbi (few know its name because its not floating although the notes are yuán) would have resulted in a very different world.
The supplier business that feeds Ford will be hugely hurt. And they've been on their knees anyway.
So, Australia will just buy foreign stuff. We'll depend on medicine, although our pharmaceuticals are suffering too, education, adding value to food ... but hang on, those things are also being hit by our high dollar.
And when our raw material exports drop, our dollar will return to 60 cents, and our prices for goods will triple, and we'll join the third world. Not that many Australians much care. Its weird.
Edited by Melbourne Park, 23 May 2013 - 23:34.