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Thread ID: 61959	2005-09-22 06:13:00	What Price Tax Cuts ?	Terry Porritt (14)	PC World Chat

Post ID	Timestamp	Content	User
390069	2005-09-22 06:13:00	Remember the prediction I made about galloping inflation and double digit interest rates ? It's starting: "Kong-sized deficit threatens dollar" www.stuff.co.nz "New Zealand's balance of payments deficit: does it matter?" (Brash 1998) www.rbnz.govt.nz Maybe he should write a new speech :)	Terry Porritt (14)
390070	2005-09-22 08:39:00	Doom doom get out while we can . :stare: This is a very complex topic Terry . NZ has long run current account deficits which have always bothered me but we seem to muddle along anyway . Basically we spend more than we earn which is counter-intuitive but it has happened for years . No wonder our "high" $ is in fact historically low if you look at it over a century . We used to be a wealthy nation . But to be fair we still are well off . Its just that the Europeans and Americans and Australians are better off . I agree that all the signs are that interest rates will rise . The oil price will drive inflation too .	Winston001 (3612)
390071	2005-09-22 09:39:00	Thanks to Helen and her cronies.	Cicero (40)
390072	2005-09-22 10:59:00	What should be happening according to a free market forces Milton Friedman theory is that the dollar should be falling and falling drastically, thus reducing current account deficit and also making imports too expensive to buy, and making our exports more attractive. Also remember we no longer make very much for ourselves anymore, it all comes from China. However, this country still does have an interventionist policy whereby the Reserve Bank, no longer having reserve foreign currencies in its back pocket to play the currency game, instead plays with the interest rates to keep inflation within 3%. Apart from talking the economy up or down, it is the only tool is has. Our interest rates are arguably the highest in the western world, and this is most likely why Friedman and the Brash ideas aren't working. We are still attracting foreign investment because of high interest rates, and the dollar is remaining way too high. By comparison the Fed is 3.75% and they are regarding that as high. We are likely to be at 7% very shortly. The definition of inflation drummed into us in the late 40s early 50s was "too much money chasing too few goods". The Dominion article exemplifies that exactly. Personally I dont mind, I just re-invested a term deposit at the bank at 7%, and just ordered some CDs from Amazon before the dollar collapses :) It may be a good idea to stock up with baked beans before we get a good dose of deflation, or inflation ;)	Terry Porritt (14)
390073	2005-09-27 01:31:00	And yet more...... www.stuff.co.nz	Terry Porritt (14)
390074	2005-09-27 01:37:00	Interesting how Brash is not in power,yet he gets the blame,makes you wonder. :rolleyes:	Cicero (40)
390075	2005-09-27 01:56:00	Interesting how Brash is not in power,yet he gets the blame,makes you wonder. :rolleyes: ??????????????/ No one is blaming Brash for the balance of payments deficit, how did you get that idea? But will he still be saying it can even be argued that deficits are a good thing?	Terry Porritt (14)
390076	2005-09-27 01:56:00	I am glad we own our own home and have no mortgage or any other debt. If interest rates go up that is good for us, we will earn more in our savings. With the interest rate (minus the tax 33%) is just higher than the inflation rate by a couple of a percent, we should just stay ahead. I am just waiting for the House Price crash. We need to stop borrowing, to buy bigger and bigger houses to show off to our "friends".	KiwiTT_NZ (233)
390077	2005-09-28 06:39:00	??????????????/ No one is blaming Brash for the balance of payments deficit, how did you get that idea? But will he still be saying it can even be argued that deficits are a good thing? All I can say is,had he got in he would have sorted problem better than the pinkies. :)	Cicero (40)
390078	2005-09-28 08:56:00	Ponder this Cic, our largest exports over the last 20 years or so, have in fact been in New Zealand dollars, billions of them, which we have paid to foreigners in exchange for manufactured goods. Now just think what would happen if all those foreigners suddenly came at once to New Zealand with all those NZ dollars to spend here. Not only could these foreigners buy up nearly if not all of New Zealand, but the country would be flooded with an over supply of (devalued) dollars, ie. we would be in hyper-inflation. Not a pretty thought, would our Don have an answer? What do you think we would have to do?	Terry Porritt (14)
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