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Australian Dollar special report

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Lehman Gold AUD

Mon, Sep 15 2008, 08:15 GMT
by Clifford Bennett

FxMax


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We have consistently maintained our view that the US financial crisis would intensify as a result of continuing downward pressure on home and property values across the country. After Bear Sterns it was no secret that Lehman Brothers could be next, and after 158 years it is now gone. While some very sound efforts are occurring to prevent the domino effect from rolling on, Merrill Lynch has got out of the way by jumping under Bank of America, a further intensification of the credit crunch is likely. The outlook for the broad US economy just got a whole lot worse.

Gold is the ultimate reserve currency, and even more so when the cause of the economic crisis rests in the financial system itself.

The Australian dollar... Australia’s yield advantage over the US is dropping from “spectacular” to just “fantastic”.

Our long term forecast of parity, albeit delayed to 2009, remains in place.


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