They should have a coin of the French marching backwards


The cheese eating surrender monkeys are having a massive sook because of plans?for a ?2 coin to celebrate the 200th anniversary of the historic battle fought by the Duke of Wellington against Napoleon Bonaparte in 1815 because it would be a ?symbol that is negative?.

I would have thought that having an army with a reputation for only winning when not led by a French man and being one of the world’s best at marching backwards would have been more negative.

The French government is attempting to block a coin commemorating the Battle of Waterloo, claiming it is a ?symbol that is negative? and would undermine the unity of the eurozone.

In an extraordinary intervention, France wants to block plans for a ?2 coin to celebrate the 200th anniversary of the historic battle fought by the Duke of Wellington against Napoleon Bonaparte in 1815.

A draft design of the coin was submitted to the Council of the European Union by Belgium, the site of the battle, in February this year.

However, just days letter France objected to the coin, claiming it could cause ?hostile reactions in France? and undermine the eurozone.

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We all like money, but do you like this better? [UPDATED]


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Rejoice! David Cunliffe used the C word

As we have seen, every crisis that Labour has focused attention on has magically fixed itself. ?Sometimes even before Labour decided a crisis was there in the first place.

So it will come as great news to the boat building industry that Labour have declared their plight worth of their attention.

The crisis will be over before you know it

The New Zealand marine industry is sinking thanks to a falsely high dollar and a Government asleep at the wheel, Labour Leader David Cunliffe said today while visiting Oceania Marine in Whangarei.

?The marine industry is in full scale collapse; hundreds of workers have lost their jobs, a few firms are just hanging on. This is an industry in crisis.

You may now cry tears of joy. ?David himself, used the C word. ?Calm down everyone – everything will be fine now.

?Industry players say having the dollar at US87 cents makes the industry uncompetitive.

?Labour’s monetary policy will keep the dollar at more competitive levels using savings and implementing changes to the Reserve Bank Act to focus on exports. This would mean a lower average dollar and less volatility so that business can be more competitive.

?Labour?s Alternative Budget released yesterday confirms our commitment to a competitive boat building industry. Read more »

Cunliffe’s economic illiteracy exposed


Jamie Whyte exposes Labour’s and David Cunliffe’s economic illiteracy.

David Cunliffe today gave a speech to the New Zealand Initiative, an economics think tank. The talk outlines the Labour Party?s economic policy. It displays so much economic confusion that it will take several posts to get through it all. Today I want to identify a fundamental conflict between Labour?s economic goal and its proposed monetary policy.

Mr Cunliffe begins his speech by saying that New Zealand businesses produce too much low value stuff. Labour wants to ?support New Zealand business in the journey from volume to value?. He then claimed that ?the biggest obstacle to our exporting businesses is the consistently over-valued and volatile exchange rate. Labour has long signalled it will review monetary policy to ensure our dollar is more fairly valued to help business and lower our external balance?.

A devalued dollar helps exporters sell more overseas by reducing the price foreigners pay for our goods. For example, if the NZ dollar fell from US$0.85 US$ 0.70, what an American pays for a NZ$1,000 widget would fall from US$850 to US$700. So Americans would buy more of those NZ made widgets. But, of course, the value of those widget sales would have fallen. The reduced exchange rate increases the volume of what we sell overseas by decreasing its value ? the exact opposite of Mr Cunliffe?s goal.

Such confusion would be funny, if only there weren?t a chance, however small, that these people will get a chance to act on their ideas.? Read more »

Conflict of Interest?

David Farrar thinks it is the stuff of conspiracy theories, but until David Shearer comes clean on just how much he has stashed in his secret offshore bank account.

David Shearer and his mates in the Greens have some kooky ideas to try to bring down the exchange rate, like firing up the money printing presses.

Given that we now know about his secret offshore bank account, David Shearer has a bit of a vested interest in driving down the Kiwi dollar to deliver bigger profits on his currency speculation.

Here are some quick calculations based on the ANZ cash rate at 10.30am today – 0.8678? Read more »

Quantitative Easing in Japan, how’d that work out?

Not so well.

The?Greens and Labour want to do here. They say it will lower the currency so our exporters can compete.

Japan is an exporting nation, and the Bank of Japan just pumped 11 trillion yen into the market:

The New Zealand dollar fell against the yen after the Bank of Japan added to its monetary easing, though not enough to weaken its currency appreciably, while markets remain subdued in the wake of Sandy and ahead of US presidential elections.

The kiwi bought 65.32 yen from 65.45 yen at 5pm in Wellington yesterday. The local currency traded at 82.07 US cents from 82.01 cents.

The yen rose against most of its trading peers after the BOJ expanded its asset-purchase program by 11 trillion yen to 66 trillion yen, about meeting expectations.

The kiwi did not get much overnight direction from equity markets, typically correlated with the currency because they are both growth assets, as Wall Street remained closed as New York was buffeted by the superstorm.

“The BOJ stuck to the script, doing just enough to placate the government but no more,” says Mike Jones, currency strategist at Bank of New Zealand. The BOJ “continues to disappoint investors looking for a bazooka approach such as the Fed is using”.

So what happened…bugger all, and the Greens and their hangers on think this is the solution for New Zealand.

This is what happens when the liberal elite take over

Europe is a prime example of why we all should be skeptical of unelected liberal elite wankers who think they know best. The whole place is rooted because of their stupid single currency.

As many of us have long argued, both these phenomena are but symptoms of what in essence is just a good old fashioned balance-of-payments crisis. This has been greatly exaggerated by monetary union, which is also preventing the application of time-honoured solutions. Utopian pursuit of the single currency is damning Europe to economic oblivion. Political hubris has eclipsed economic common sense.

Utopia was never created by bureaucrats….and never will be.

Shearer supports Muldoonism too

David Shearer is all about what the government isn’t doing and how bad they are at things.

But when he was put on the spot by Shane Taurima?on Q+A he was without any substantive ideas.

He whined about how the exchange rate is grossly over-valued…and how it was “killing our exporters”…in moaning about the exchange rate and claiming the exchange rate is overvalued he is stating that labour would intervene and practice Muldoonism and set the exchange rate.

Do we really want that to happen?

David Parker advocates returning to Muldoonism

David Parker thinks the Reserve Bank should be given special powers:

The Reserve Bank should be given more tools to deal with the high value of the New Zealand dollar, Labour MP David Parker said today.

The kiwi has climbed sharply following the US Federal Reserve’s latest stimulus package announcement.

Mr Parker, Labour’s finance spokesman, said under current laws the Reserve Bank had to focus on inflation.

But he added that its objectives needed to be broadened “so that the Reserve Bank is required to address the exchange rate and employment in New Zealand with the same priority given to that as controlling inflation”.

Mr Parker said if the Reserve Bank had that objective, it would have all the powers it needed to address “our over-inflated currency”.

What David parker is advocating is a return tot he very powers that Muldoon had…no thank you very much.

Quite how he thinks the Reserve Bank can influence the currency in an open market against…oh I don’t know…China, or even a modest sized trading room of an international bank is beyond me…it would just burn truck loads of cash and ultimately be futile.

When David Parker advocates for this he is advocating to an increase in fuel prices and almost everything else we consume….basically so that we can continue to pour money into farmers pockets.