Sorting the high dollar

Very reassured after hearing David Shearer explain Labour’s monetary policy.

It’s fantastic they’ve found the solution to the high dollar.

Why hasn’t anyone thought of this before? Oh wait…

 


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  • Ronnie Chow

    Shearer is seriously off-balance . Much larger economies are relentlessly forcing down the value of their currencies . Unless we link back to the US dollar , there is very little that the Reserve Bank can do .
    I don’t know what ‘tools’ Shearer is talking about , unless it’s himself .

  • Orange

    Well that was mystifying.

  • Mr_Blobby

    The boys is learning fast how to say absolutely nothing.

  • blazer

    go off the floating rate and fix the dollar 65c U.S.

    • cows4me

      Oh yes that well work blazer and pray tell what we do when the dollar continues it’s slide into the sewer. Your 65c would be worth sweet piss all.

      • blazer

        perhaps you can explain why its currently ‘worth’ around 84-85 U.Sc…look forward to it.

        • Mr_Blobby

          You really have no idea what is happening, or why, do you?

          • blazer

            yes I’m confident I do….dont think Daisy does though.

          • Mr_Blobby

            No you really don’t.

            Think of it as a great, undeclared, currency world war. We have no army or weapons to fight this war, so we are like an unarmed civilian population caught up in no mans land. What happens to unarmed civilians populations in a war zone.

            For our size, the trade in our dollar makes us one of the most heavily traded countries in the world, if the Government tried to step in and control it, there a players that can buy and sell the NZ dollar and NZ before morning coffee. In short manipulate the currency and bankrupt the Government.

          • Mr_Blobby

            When our currency hit 40 cents US, the Government had to call what few friends we had left and beg then to buy NZ dollars, otherwise we would not have been able to pay our debts to them.

            Usually a strong currency is a sign of a strong economy and is a good thing, in this case it is a sign of the weakness in the US and the race to the bottom, as they print money (Quantitative easing) to pay the bills.

          • blazer

            nice contradiction.In the world of finance…perception is reality..look at case studies,i.e Malaysia …a pariah to all intents and purposes ,Dr Matthir ignored conventional fiscal policy and the country prospered.Iceland ,another great example.Historically cast your mind back to the Rogernomics ‘reforms’,Australia did not go down that track.That is when the gap between Aust and NZ widened into a chasm.

          • blazer

            You are actually agreeing with me…the floating dollar only increases risk and volatility.As for bankruptcy ,check the debt of western nations,internal and external and you can only arrive at one conclusion.

        • Goldie

          Sure.
          The $NZ is currently worth about US$0.84 because of supply and demand.
          The USD has fallen because its economy faces recession – demand is well below productive capacity (a situation very different from NZ). To stimulate the economy the Fed would slash interest rates, but it can’t because those rates are already virtually zero. The Federal government could try fiscal stimulus, but it is in such deep debt it can’t. So the Fed has taken to buying bonds with expanded money supply.
          The idea that the RBNZ can counter this is delusional.

          • blazer

            because of ‘supply and demand’….so wonderfully simple!Artificial supply and demand you mean…at the forex gambling casino,where the currrencies of smaller players are easily manipulated….ask George Soros…..find the real retard….in your mirror sport.

    • Goldie

      Umm exactly HOW can you fix the $NZ at US$0.65?
      Think about it – if anyone with money in a bank hears that the Government is about to reduce the value of the currency, there will be a rush on the banks as people frantically try to turn their $NZ into USD before devaluation. The result is the collapse of the banking system. No-one will be prepared to deal in $NZ for overseas currencies, so we can’t buy imports for TVs, TV programs, computers, cars, or petrol. There will also be a massive black market in smuggled currencies. We know this happens, because similar policies have been tried in places like Argentina and Zimbabwe.

      blazer really is a retard.

  • John Q Public

    One simple food and mouth scare will do the job nicely. Doesn’t need to be true, but the dollar would shit itself at least 10 points.

  • John Q Public

    *foot* in mouth…

  • J.M

    We don’t have much control over it, and that’s the end of it. In the time I have been trading currencies, the NZD has been as low as 40 cents US and as high as 85. Volatilty in currency to me though means good profit, and a strong NZD means cheap overseas holidays for me.

  • Goldie

    The more I listen to Shearer, the more I come to the conclusion that he isn’t a reasonably intelligent man with a bad speech defect.
    I think Shearer is just stupid. He is the Chancey Gardner of New Zealand politics.

    • Orange

      What subject did he use to teach at high school?

  • David Broome

    Here is a radical thought. Govt can stop borrowing $200m every week to help fund things like Maori quackery. For once, everyone must agree, winston peters really got one in the ribs for how to blow millions sucking up to support partners delivering a policy that you couldn’t dream up.

    • Patrick

      Re deals with support partners – Like the deal Peters did with Labour which meant the new bridge built in Tauranga would not be tolled – as it was originally supposed to be? All Pollies are as bad as each other, Peters (like Hyde) made a career out of exposing wasteful spending but the minute it suited them they wedged their snouts in the trough.

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