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Subject:  Re: Global Interest Rates Date:  5/30/2013  1:14 PM
Author:  TMFHockeypop Number:  34974 of 35930

1. Thank you Wendy!

2. I have a Term Account in an Australian bank. I'm trying to decide whether to re-invest in a new Term Account or convert the AUD to USD and bring it home. With the Australian government cutting interest rates, the USD/AUD exchange rate is deteriorating so I could get fewer USDs back if I wait and the rate drops more. The problem of global bond investing is exchange rate risk.

The rate dropped about 6% in the three weeks we were there. Unfortunately for us we had prepaid most expenses (Quantas internal flights, hotel rooms, a deposit on tours).

3. Even taking into account higher labor rates, I can't figure out why costs are so darned expensive there:

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