Speaking as one exporter to other exporters and to those whose livelihoods depend on exports, there is much more than monetary policy and the Reserve Bank Act involved here.
We know from experience we cannot take on the world and pumping out $5 notes, just like the United States or the Bank of England, is a race to the bottom. If you excuse an uncharacteristic bluntness, people are dreaming if they believe our Reserve Bank can set and defend an exchange rate against all comers.
While that is not hard to agree with, farmers owe $40+ billion in debt to banks for land and part of the reason New Zealand is not where it should be in the world is that this money has been loaned from foreign banks to low ROI, low tax, historically low profit and employment business in farming.
As a country – and farmers are included in this message – we need to stop living well beyond our income. The main target for this message has to be government, centrally and locally.
He may want to start with his own farmers. Â While some say they are the “backbone” of the country, the backbone has been hunchbacked from years of their own obesity from debt.