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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
570650	2007-07-22 00:58:00	Can't see a list of things to buy. Ah here we go: http://www.nzmade.org.nz/ :horrified Great this site lists locally made Salami and diaries and calenders. These are just the sort of things we all need to buy to turn New Zealand's balance of payments deficit round. Regards Digby	Digby (677)
570651	2007-07-22 03:06:00	Great this site lists locally made Salami and diaries and calenders. These are just the sort of things we all need to buy to turn New Zealand's balance of payments deficit round. Regards Digby Yes. :waughh:	pctek (84)
570652	2007-07-22 03:15:00	. . . it is known that the Finance Minister (Cullen) is sitting on a huge surplus . It is . . . NOT REAL MONEY . THE "SURPLUS" DOES NOT EXIST TO BE SPENT . Brian Easton: (www . eastonbh . ac . nz/?p=842) . . . This savings-before-investment figure is an accounting notion, frequently referred to as “The Budget Surplus”, even though almost all of it has been spent . When we changed to decimal currency, the $NZ would buy $US2 . By the end of the seventies they were equal . Now it's considered bad that we aren't at $US0 . 50 . So much for the global economy .	Graham L (2)
570653	2007-07-22 05:00:00	The problem is unequal inflation.	Cicero (40)
570654	2007-07-22 05:15:00	I think we need to export more locally made super yachts.	winmacguy (3367)
570655	2007-07-22 07:36:00	I think we need to export more locally made super yachts. That's right. High value, low volume - least effort for the most buck. That's much smarter than exporting unprocessed logs and our know-how.	andrew93 (249)
570656	2007-07-22 08:00:00	The $NZ is rising against all currencies including the Euro. However our focus is mainly on the $US which is essentially the default global trade money. The value of the $US has been falling for at least 3 years. The $NZ is rising because from the outside view, we are a politically stable economy, full employment, earning a good income (really only from dairy products), and pay high interest rates. Very attractive. However there are plenty of warning signs that we face a crisis. We spend far more than we earn - which makes us look and feel wealthy, but it is an illusion. Our balance of payments is seriously out of whack (export earnings less than import spending). Furthermore we are not energy self-sufficent and once our $ drops, you'll see fuel prices go through the roof = recession. No easy answers for a small remote country with its best resource being agricultural land. Nice to have but not so easy to yield high value from.	Winston001 (3612)
570657	2007-07-22 09:53:00	The $NZ is rising against all currencies including the Euro . However our focus is mainly on the $US which is essentially the default global trade money . The value of the $US has been falling for at least 3 years . The $NZ is rising because from the outside view, we are a politically stable economy, full employment, earning a good income (really only from dairy products), and pay high interest rates . Very attractive . However there are plenty of warning signs that we face a crisis . We spend far more than we earn - which makes us look and feel wealthy, but it is an illusion . Our balance of payments is seriously out of whack (export earnings less than import spending) . Furthermore we are not energy self-sufficent and once our $ drops, you'll see fuel prices go through the roof = recession . No easy answers for a small remote country with its best resource being agricultural land . Nice to have but not so easy to yield high value from . NZ is heading for a major "wake up call" in the next couple of years . It is not a matter of if, but when .	robbyp (2751)
570658	2007-07-22 10:56:00	New Zealand screwed itself, when it did away with tariffs, making NZ produced goods no longer competitive, the result was thousands of jobs disappeared, because merchants could import everything more cheaply than they could buy NZ made, not that the NZ consumer saw much of a price decrease, the importer and merchants just started making megaprofits. NZ manufacturers were told to compete or shut up shop, but how can a Kiwi compete with an Asian manufacturer who is paying their workers less than the NZ manufacturer has to pay in ACC levies. Of course they just all stop manufacturing in NZ, making NZ more dependent on the export earnings of primary industries, that by and large are trying to trade against restrictive practices in the customer countries - NZ elected to be the only virgin at the international trade orgy. So there is an uphill battle to keep trade in balance. In the brave new unregulated world the only tool open to th reserve bank is interest rate adjustments - net result the average guy gets squeezed from all sides, when its not his fault - he is everyone's victim. Housing costs are inflationary, fuel costs are very inflationary, and this propagates into every commodity that must be transported, and if the poor old worker gets a pay rise to help him cope with the soaring cost of living that is very inflationary, and he must be punished with more interest rises. The answer is of course that productivity must be increased to cover wage increases, but when the only things we are producing that is internationally saleable are primary products, going into mainly protected markets, and handicapped by a artificially boosted exchange rate due to high interest rates then you are onto a hiding for nothing, and the correction when it comes is going to cause wide spread financial agony for thousands of ordinary people whose only sin was that they wanted a home of their own for their family. Sobering thought isn't it.	KenESmith (6287)
570659	2007-07-22 19:38:00	Hi Guys Isn't it funny just about every post on this thread agrees that NZ's dollar is too high for our exporters. We all just about agree on what has happened to NZ over the last 30 years and we all agree that it has been bad and that NZ is in a potentially very bad position with our balance of payments and continue dependence on commodity type exports. We all seem to agree that we have to export more higher value products. We do export a lot of high tech gear (super yachts, communications gear, medical equipment, engineering expertise etc etc, but they all seem so small) Yet we seem to see very little recognisition of these problems and their solution by our political leaders. Labour when it came in had big ideas for expanding industry etc but they have faded away (as Jim Anderton gets older). And now it looks like National might get back in, and they tend to say a lot and do nothing. So we are in a bad position. Regards Digby	Digby (677)
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