biggest costs- Energy haven't changed much fuel is much the same as the Oil price has headed higher ....
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Originally posted by elguapo View PostYou don't seem to have answer the question over why you want everyone in New Zealand to be poorer, comparatively, to reduce the cost of your business?
Yes your flat screen TV and petrol might be cheaper but higher unemployment and reduced tax income costs every NZer. The effects might be delayed somewhat but everyone in NZ is poorer for it.
The price of wants come down. The cost of needs goes up.
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Right yeah I want all NZDers to be poorer lets raise rates much higher try driving are dollar through the parity roof that'll mean we're richer right higher NZD = RICH NZD'er ---Fuel prices will head down a touch!!!! hooray (even though more likely fuel stations will just increase margin or extra tax will be imposed )
so your indirectly an exporter in other words ...indirectly affected on exchange rates ...?
on my numbers they are directly affected(I stuffed that one up) AUD/NZD .75-.85 we got av.$5 Once AUD/NZD headed over .90 the prices headed towards $4 per KG average....if we get Parity then we are going back or even lower than prices we were paid back in the mid 1990's how any NZDer's could survive on their income from 20yrs ago ? while Inflation has increase living and business expenses ..
Yes "Learning" your dead right ....many will say to like of the business I've worked in for the last 20yrs (has been operating for 35yrs)
TOO BAD if you business can handle a higher NZD then it's your own fault for not moving with the times etc ...so OK we are gone and thats that relic exporter bah bah ....thats couple hundred jobs affected of the bat NZ wide plus another few thousand indirectly affected ..no big deal we can all work WHERE ? the low pay tourism sector (will also be affected by high NZD) maybe we could become IMPORTERs instead ...put this on a true Nationwide scale as it won't just be our small sub-sector affected>>>we all can't work in the CHCH rebuild....(How different the landscape would be without the massive work load of the CHCH rebuild and low interest rate fuel property boom)Last edited by JBM; 10-05-2014, 11:11 AM.
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Originally posted by Learning View PostThe price of wants come down. The cost of needs goes up.
If it really was as simple are you portray then it would be in everyone's interests to push the dollar down as low as possible, it just isn't.
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Originally posted by JBM View Postso your indirectly an exporter in other words ...indirectly affected on exchange rates ...?
Originally posted by JBM View PostYes "Learning" your dead right ....many will say to like of the business I've worked in for the last 20yrs (has been operating for 35yrs)
TOO BAD if you business can handle a higher NZD then it's your own fault for not moving with the times etc ...so OK we are gone and thats that relic exporter bah bah ....thats couple hundred jobs affected of the bat NZ wide plus another few thousand indirectly affected ..no big deal we can all work WHERE ? the low pay tourism sector (will also be affected by high NZD) maybe we could become IMPORTERs instead ...put this on a true Nationwide scale as it won't just be our small sub-sector affected>>>we all can't work in the CHCH rebuild....(How different the landscape would be without the massive work load of the CHCH rebuild and low interest rate fuel property boom)
Do you think NZ would be better off if the exchange rate returned to 0.57 as it was in 1985? How attractive do you think Australian wages would look to New Zealander's then?
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Originally posted by elguapo View PostDirectly effected. In some ways I benefit from a high dollar, in others it's negative.
How is this rant any different to any number seen over the years from technological, or economic change? You have benefited from a low point in exchange rates in the mid 80's to 90's, after all the NZD was for quite a while worth more than the USD and almost at parity with the AUD (0.99 1974-75).
Do you think NZ would be better off if the exchange rate returned to 0.57 as it was in 1985? How attractive do you think Australian wages would look to New Zealander's then?
AUD earnings ...It's more so us NZ Primary exporters that will hurt parity or higher AUD/NZD etcLast edited by JBM; 10-05-2014, 04:27 PM.
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Originally posted by skid View PostIm thinking the reserve bank have realized that they may have used their blunt instrument a little to freely--now theres talk of forex intervention---time will tellSquadly dinky do!
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Originally posted by elguapo View PostSorry, but that is just not true. New Zealander's pay world prices for food, it's not a ring fenced market except for very perisible goods. Input costs for food production are also controlled by the world price.
If it really was as simple are you portray then it would be in everyone's interests to push the dollar down as low as possible, it just isn't.
Of course it's not that simple. Every scenario has winners and losers. If NZ was to print money to devalue the currency the interest rate the government borrows money at will jump. This is not something that NZ can afford until we are running a surplus.
Money from exports build local economies. Money from imports build foreign economies. A lower NZ$ will help build our economy and that will benefit the vast majority of the population in the long run.
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Originally posted by Learning View PostMoney from exports build local economies. Money from imports build foreign economies. A lower NZ$ will help build our economy and that will benefit the vast majority of the population in the long run.
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Originally posted by elguapo View PostWhat happens when every country in the world is trying to build their economies by exporting?
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Shoppers pull out the credit cards in May
New Zealand retail spending on credit and debit cards rose at its fastest pace in seven months in May, with gains across all six retail industries measured.
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Great to see the reserve bank keeping an eye on inflation (sub 2%) by creating more inflation in borrowing cost if all goes to plan I'll have to come up with another 13k to keep the banks happy ..great job .....will be looking to selling and downsizing debt in the short to mid term....(and even going debt free on own house)
Looking forward 2016 export values look to be looking weak OCR will be forced to drive rates even higher to keep NZD from falling and driving inflation much higher ....we could well see much pain for the average kiwi with a morg.....
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Mr Wheeler will not be displeased.
New low for NZ bank leverage
Leverage, or the number of times assets exceed shareholder funds at New Zealand banks, has fallen to its lowest level since interest.co.nz started compiling the data six years ago.
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The initial weighted average leverage ratio in March 2008 across eight banks - the Co-operative Bank was added to our database in 2010 - was 13.7 times. It peaked at 16 times in March 2009, and fell to 11.3 times in both the September and December quarters last year before dropping slightly further in the March quarter.
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