Predictions by Mike “Mish” Shedlock:
Those who think the Australian dollar or the Canadian dollar are some sort of safe haven will find out otherwise.
- China is in a credit bubble and when it pops it will take commodities and commodity producing currencies down with it.
- Australia’s property bubble has already popped, and a commercial real estate implosion will follow with a lag, just as happened in the US. Canada will join the implosion party as well.
- The Canadian and Australian central banks will respond with liquidity measures or interest rate cuts, sending the currencies lower.
There is no reason to like the Euro, the Yen, the Australian dollar, or the Canadian dollar.
Our guess is that Brazil might be in the same boat.
Full article here.