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Thread ID: 81215	2007-07-20 20:50:00	The current NZ dollar inflation debate	Digby (677)	PC World Chat

Post ID	Timestamp	Content	User
570630	2007-07-21 03:45:00	The $US has been dropping through the floor for the last year. The problem might not be us getting stronger, but the $US getting much weaker. What is the relationship between the $NZ and pound or the euro? edit: PCTech beat me to it by minutes! Yep. Once the pound was international currency. Time for the yuan?	pctek (84)
570631	2007-07-21 05:13:00	Yes you are right guys, most major currencies ARE rising against the US dollar which means that it is the US dollar which is falling. I will post some figures on this here soon. But this brings up four things. It seems that the NZ dollar is rising more than these other currencies which is bad for us. (due to our higher interest rates ?) No one in the media (so called experts) never mention this ! (still they never picked Team New Zealand would fall apart at the last America's cup !) They all say it is the NZ dollar rising - not the US dollar falling. Is the USA Fed letting its currency drop so that its exports are cheaper as a way of alleviating their balance of payments. Should (or can) NZ exporters start quoting/selling in Euro ? Regards Digby	Digby (677)
570632	2007-07-21 05:23:00	I gather one possible answer for the NZ dollar is to link it to the larger US dollar since we are but a very small cork bobbing in a very global financial ocean.	winmacguy (3367)
570633	2007-07-21 05:33:00	If we link it to the $US . . . and then that falls, that means we are still in the crap . We should link it to the Euro, that is the currency of the future . Unfortunatly the US is in a decline, with mutterings of it being terminal . Once the world loses faith in the $US, for the same reasons that we are having this debate, it will only get worse . I gather one possible answer for the NZ dollar is to link it to the larger US dollar since we are but a very small cork bobbing in a very global financial ocean .	netchicken (4843)
570634	2007-07-21 05:46:00	Yes you are right guys, most major currencies ARE rising against the US dollar which means that it is the US dollar which is falling. I will post some figures on this here soon. But this brings up four things. It seems that the NZ dollar is rising more than these other currencies which is bad for us. (due to our higher interest rates ?) No one in the media (so called experts) never mention this ! (still they never picked Team New Zealand would fall apart at the last America's cup !) They all say it is the NZ dollar rising - not the US dollar falling. Is the USA Fed letting its currency drop so that its exports are cheaper as a way of alleviating their balance of payments. Should (or can) NZ exporters start quoting/selling in Euro ? Regards Digby Even if the reserve bank dropped the interest rates to almost zero, our dollar would still be in the 70's against the US dollar, due to the US dollar weakening against all economies. Our dollar is raising at a slightly higher rate than the Australian dollar, and this is due largely to Japanese investors. People really should be blaming themselves for the hikes in interest rates, by paying over the top prices for housing, which is pushing house prices up and fueling the inflation. One of the main reason people have been paying over the top, is becasue the banks have been willing to lend people the money, at very low interest rates. However as people come up to renewing their mortage at the higher rates, they are now finding that they can't afford to continue to service their mortage, which in turn may mean that we get a lot of houses on the market in the next few year, which will push down the prices. This is what the reserve bank wants to happen. Other solutions could be -Maybe have an Anzac dollar with Australia, so our dollar is tied to a for more powerful economy. -Capital gains tax on investment properties, is also a good way to stop people profiting on properties. I just don't understand why the government is so against this. They must have too many friends who are property investors. - Making it illegal for real estate agents to trade in properties themselves. I have seen so many apartment complexes purchased off the plan by real estate agents, and these are then onsold by the agents for a fat profit. -Removing the ability of offsetting the loss on a rental property, against your personal income. This is currently being looked at by the government, but could end up pushing up rent prices. - Stricter control on lending money to people to buy household goods, and houses. The Reserve bank has recently talked to banks about this. If people can't afford to buy household goods that aren't essential for living, without putting them on HP, such as LCD TV's and gaming systems, they shouldn't really be buying them. -Tarrifs on imported goods, especiallly form china. This will never happen though. I wouldn't put any faith in money people, as they all have different views. I was recommended by one to put my money into Bridgecorp last year!	robbyp (2751)
570635	2007-07-21 05:51:00	now i know i digress a little bit, but if we don't do anything to increase the wages/salaries of teachers and nurses in this country we won't have any before long; it actually works out financially better for a graduate in this country to go overseas (losing their loan interest write-off) and work. even though they are now paying graduates to do teaching degrees, graduates are still better off overseas. so while raising their pay may cause mild inflation, it can't be any worse than the increase in minimum wages they introduced last year can it? either way if we don't do something to keep these people in the country we are going to have some serious problems further down the track. we need more pro-active decisions from the government, rather than re-active; because by they time they get around to acting it's too late now, as for exporters; it wouldn't be a problem if we weren't exporting raw goods (such as wood/meat), but manufacturing. i mean, wouldn't the cost of importing building materials/components go down? perhaps if our dollar continues to climb faster than everyone elses, we could expect a change in our exporting industry? (pure speculation here) and a question here, why does everyone compare against a falling US dollar? isn't there a more stable currency to gauge against?	motorbyclist (188)
570636	2007-07-21 05:56:00	-Tarrifs on imported goods, especiallly form china . This will never happen though . lol, how about quality control on chinese goods?:thumbs: is it possible for a NZer to get a loan from a japanese bank at a low rate, use that to buy NZ$, sit on it a bit (possibly buy property) and then pay it back to the japs after making a few cents in the dollar? and wouldn't doing so actually help to secure you currency investment?	motorbyclist (188)
570637	2007-07-21 06:15:00	now i know i digress a little bit, but if we don't do anything to increase the wages/salaries of teachers and nurses in this country we won't have any before long; it actually works out financially better for a graduate in this country to go overseas (losing their loan interest write-off) and work. even though they are now paying graduates to do teaching degrees, graduates are still better off overseas. so while raising their pay may cause mild inflation, it can't be any worse than the increase in minimum wages they introduced last year can it? either way if we don't do something to keep these people in the country we are going to have some serious problems further down the track. we need more pro-active decisions from the government, rather than re-active; because by they time they get around to acting it's too late now, as for exporters; it wouldn't be a problem if we weren't exporting raw goods (such as wood/meat), but manufacturing. i mean, wouldn't the cost of importing building materials/components go down? perhaps if our dollar continues to climb faster than everyone elses, we could expect a change in our exporting industry? (pure speculation here) and a question here, why does everyone compare against a falling US dollar? isn't there a more stable currency to gauge against? In the 70's the US dollar was worth 1.40 NZ dollars, so our high NZ dollar against the US dollar is nothing new. People compare against the US dollar, because the US is the world leading economy and the US dollar as almost a secondary currency in some countries..	robbyp (2751)
570638	2007-07-21 06:30:00	lol, how about quality control on chinese goods?:thumbs: Something like that needs to be donem as NZ has become a dumping ground for cheap chinese rubbishy products that are largely sold by these dollar shops and the warehouse . With some of the chinese junk that is imported, they should bypass the consumer and send it directly to the landfill .	robbyp (2751)
570639	2007-07-21 07:08:00	Something like that needs to be donem as NZ has become a dumping ground for cheap chinese rubbishy products that are largely sold by these dollar shops and the warehouse. With some of the chinese junk that is imported, they should bypass the consumer and send it directly to the landfill. Yes, how come when our dollar was $1.12 against the US it wasn't a bad thing? Now its less and it is? The problem is we sell sheep, logs and milk and not much else. And import crap everything else.	pctek (84)
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