Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news the New Zealand dollar hit a 2010 high against the US dollar of 74.6 USc late on Friday night.
The US dollar is weakening on concerns the US Federal Reserve is about to print money, setting off another round of competitive devaluations in the Northern Hemisphere.
Cheap US dollars and Yuan are looking for homes elsewhere, hoping to acquire assets in the likes of Brazil, Australia and New Zealand before their currencies are devalued.
Luckily for New Zealand exporters, our trade weighted index is not near its highs as the New Zealand dollar is near 10 year lows vs the Australian dollar.
Australia is expected to put up its interest rates in coming months to cool down an economy doing well from the Chinese-fueled commodity boom.
Australia is doing so well that its currency is near 97 USc and set for parity.
Meanwhile, the shift to move cheap US dollars into other more solid assets is alive in the South Island where Harvard University has bought Central Otago's biggest dairy farm Big Sky Dairy for more than NZ$28 million, the Southland Times reports.
The converted farm was put into receivership in 2007 and has 6000 cows on 1,600ha.
The Dominion Post reports that more than 4,000ha of farmland has been sold in the last 3 months to Australian, UK, American and Israeli investors.
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43 Comments
Cracka day here Christov...are you ready for another week of govt BS?...fluff from Bolly about expected growth...did you cop that stuff about wgtn...prepared for the big one..NOT.
Had a bad thought the other day. Where is the volcanic hot spot that produced Banks Pen.....is it by chance now underneath Rolleston!
Glad you getting some o the golden rays Wally...and yes I am steeling myself for some real bulls$%t from the RBNZ....when he should really just say ..."oh look I don't know....I can't quite follow it.....I'd give up but the package is too good .....and I've got to think retirement....I'm not really in charge anyway ...so what difference does it make....?
Yes that would be nice......
Happy day to you Wally.
Not un-expected....paper money coming out of the woodwork and investing in something real....
It is going to get worse.......pretty obvious there is panic in the central banks/Govns now....they are stareing at the abysss created by themselves. Cant wait fo the voter to realise what a shonky load of ppl they voted in and allowed to get such high paying jobs....obviously worthless, no morals and no ideas....
Thanks guys.
Of course individual countries cant default, but what if everyone does? private blood suckers get wiped out for sure....but who cares?
Im sure voters dont....I know I dont...
regards
.......... " of course individual countries can't default " ............. seriously , you've got to be kidding . Check out the opening chapter of Rogoff & Reinhart's book " This time is different " . Only a handful of countries around the financial world have never defaulted on their debt obligations : Denmark , Canada , Australia , NZ and Thailand .
Well B.H. you did very well this morning in the interview with Danno and for once the talking head had some pointed questions for you...( no doubt handed to him by one of the Banking sponsors)...you would have noted by now that Danno is full bull on the Kiwi( the higher the better for him it seems) or is he really just feeding us policy as most of his interviews, say 75% are really just infomercials in a short dress
You made your points well.....on that one B.H. 1...Danno...nil.
Look for a little surprise out of the BOJ this week to start the next scramble for position........Bernard if Bolly is going to play the wait and see game we are going to be in deep deep doo doo........on reflection I think you are right ...we have got to get into the game because our current plan of becoming Australia's 1960's Taiwan is doomed for disaster.
A number of years ago we tried to avoid becoming Australia's dumping ground/ and contra cheap labour....didn't we..?
Look for the Banking interests to revive calls for the RBA to take a more active roll in N.Z. monetary policy....Bolly thought he'd put that to bed..tee hee.......I've been banging this drum for a while now and all I'm seeing is the Australian's strengthening their position as ours grows weaker..........yes it will be nukes by lunchtime served with a copy of Advance Australia Fair /Fare.....?
Boy oh Boy we are getting played here and if John Boy's not part of the big Picture...then he's a very short sighted thickmister.
The AUD is in a vertical climb to parity..... and beyond..? yes that's the thing isn't it ..you have to speculate beyond and what lies there in the deep blue sea.
Yes. And I thought by implication, a world with interest rates at zero must be embedding its commercial risk ~ the risk any lender has to concider aginst default~ in the current low rates . Meaning, he still sees significant deflation.ie: Real commercial interest rates are already negative.
And from the USA , scented billboards . No , not centred , scented . Stinky ones . ScentAir has produced two scented billboards in North Carolina . Passing motorists get a whiff of BBQ beef at the Bloom Supermarket's big beef promotion . The billboard depicts a fork inserted in a succulent piece of beef . Gas cannisters behind the billboard continuosly release the appropriate sizzling BBQ beef aroma . Another billboard for an ice cream company , emits waffle cone fragrance .
Imagine finance companies in NZ getting in on the act ! Any guesses as to what particular , or peculiar , aroma finance company billboards would emit ?
I reckon there is a market opening up in China for the export of stock effluent. Why are we wasting this valuable byproduct. Export it by the shipload. Some enterprising outfit ought to be onto this. Get round the dairy farms and suck up the goodness...then off down to the port to fill the tanks.
When will we wake up! when is a dollar not a dollar? Answer..When it was printed in North Korea..When is a Yuan not a Yuan,...Answer.. When it was printed in someones basement in China....The fact is.. in China Counterfieting is an art form, with the proviso...If it looks like a Yuan, and if it smells like a Yuan..then for all the purposes it is a Yuan.The rolls of paper never hit the Banks..So who knows?..it might even be necesary to the world economy now.
So a lot of paper is in circulation...the question is how much?..In who's interest is it to turn a blind eye to it...Either way someone is getting played for a Sucker.
On a 2 day trip to Greece , Chinese Premier Wen Jiabao has indicated a desire to purchase Greek government bonds . Greece needs to sell $US 150 billion , give or take , to keep everyone in their public service jobs , with extra generous superannuation and early retirement provisions .
Makes a change of pace , for someone to sell junk to the Chinese .
you have to say that on holiday GBH......it's obligatory in Greece.....
Hello welcome to Greece.....will you be buying Govt.bonds...or do we rough up your luggage.
γειά σου καλωσορίζετε στην Ελλάδα, θα αγοράζετε τα κρατικά ομόλογα.; ή εμείς τραχιοί επάνω οι αποσκευές σας.!
the signs are everywhere at the airport.
I can see Beijing is begining to enjoy the game of feeding the animals in the zoo. Toss a few crumbs to that fleabitten thing and watch the food fight as the others scramble for a share. Pretty soon Hu Flung Crumb will start rolling the titbits in Soy sauce.....wanna bit do we?....dance for your dinner then...there's a good wee Greek!
Hope-fully all the NZ government, banks and many private vaults are full of AU$ and cooper wire (Wolly) and NZstorages and tankers throughout the country are full of fuel. Last Friday I ordered an excavator to dig out for a 12’000 litre petrol tank and a big vault for the storage of AU$ and Swiss Gold. I also bought a shiny wheel- barrow from Mega, you know the big guy – probably a China import - to make payments for groceries, rates, taxes and 15% GST etc.
Life is changing – a lot more digging and shovelling everywhere – no holiday in Greece or Spain – busy !
Their is a father Christmas!! Its all getting a bit too surreal.Globalisation is ending as it must. During the last hours of it we see the big players buying up Arable land where they can,it must be the buying frenzy for Real assets, before the door shuts. New Zealand watch out.
They are looking more at a strategy for positioning in an ultimate game of bullrush......as I said on more than one occasion recently the Australians will be required to take a position prior to any major upheaval such as trade war or return to protectionism.
Any purchases made by the Americans and acceptable to Australia will signal to other interested parties ..........just where it's at.
Harvard have a habit of jumping in at the top. As good a sign as you can get,run.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aHou7iMlBMN8
Daniel Shore, Harvard’s chief financial officer, has enrolled in the econ 101 for dummies series of lectures!
Wolly just for you - tthis would be a massive collision.
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