PM Key says he wants to hear from US policy makers how they'll fix US economy; Will tell Bernanke third round of QE will hurt NZ

PM Key says he wants to hear from US policy makers how they'll fix US economy; Will tell Bernanke third round of QE will hurt NZ

Prime Minister John Key would like to hear from US policy makers how they are looking to solve their country’s economic woes, and says he will remind the US Federal Reserve Chairman that a third round of quantitative easing (QE) will hurt the New Zealand economy.

Key is set to leave for the US tonight on a week-long trip that will include meetings with US President Barack Obama, Treasury Secretary Tim Geithner and Federal Reserve Chairman Ben Bernanke.

How the US tackled its economic woes was for them to decide, although their actions impacted on other countries.

“Obviously everyone’s concerned about the level of debt they have, about what their outlook is for their economy – I mean their unemployment rate’s kicked up to 9.2%,” Key told journalists at his weekly post-cabinet press conference in the Beehive.

“They’ve obviously got very high levels of debt, and not a lot of room to move in fiscal policy, or in monetary policy no room to move. So really it won’t be for us to lecture them, we will be just interested in what their outlook is,” he said.

Asked whether perhaps he would give US policy makers advice on how to run a ‘zero budget’, Key replied the Kiwi delegation was more likely to go in a listening mode than an advising mode.

As the head of Merrill Lynch's foreign exchange trading operations, Key was a member of the foreign exchange committee of the New York Federal Reserve from 1999 to 2001.

'We're really concerned about the high NZ$'

Meanwhile, asked how worried he was on the US government’s attempt to address its debt ceiling, Key said it would be interesting to get a first-hand account of what was happening in the US.

“I think it is a real concern actually when you’ve got Standard & Poor’s starting to say they too, along with Moody’s, may downgrade the United States," Key said.

“What it shows you is that countries cannot take a relaxed and casual perspective to the levels of debt that they have," he said.

That was why Key’s government had produced a ‘zero budget’ this year, with a net debt track that stayed under 30% of GDP and a surplus track of 2014/15.

In his meeting with Bernanke, Key said he would "certainly" point out that the rising NZ/US exchange rate was hurting New Zealand’s export sector, “and we have real concerns about the level of our current exchange rate”.

“But in the end I guess it’ll be our opportunity to get a sense of what he is thinking happens next," Key said.

"Last week he’s made a couple of comments which are slightly contradictory, so it’ll be interesting to see how that goes,” he said.

(Updates with comments on upcoming meeting with Bernanke.)

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12 Comments

... from one insider to another insider...whoppee...

Key, Barack Obama, Treasury Secretary Tim Geithner and Federal Reserve Chairman Ben Bernanke. all financial terrorists .... part of the elitist Club that you the plebian or slave are not part of !

Brilliant!

Updated with the PM saying the govt has real concerns about the level of the NZ$

Cheers

Alex

PM John Key and the rest of the rabble have no problem, its all part of the agenda...

Iceland has the right approach....

 Print print print...."John Key would like to hear from US policy makers how they are looking to solve their country’s economic woes"...harrrrrrrrhahahaha...US policy makers would like know as well....... Print print print.

With NZ's GDP less than the city of Barcelona  I am sure Bernanke will be all ears and modify his thinking accordingly after a meting with JK.

What makes us think Bernanke gives a rat's fanny to use current  terminology - as to what we think about anything.

God we are arrogant !

Haha what a joke, as if Bernanke cares in the slightest what Key says.
It's just another PR campaign for Key to try to pretend he is concerned about something, while doing nothing about it. While if he wanted to, he could and should do something about it, instead of knocking other parties that are thinking of ways of addressing the issue.
Time for this government to take some responsiblity for their lack of any action around this issue, which has consisted of not much other than browbeating the RBNZ into keeping interest rates way lower than they should be.

FYI updated with this background.

"As the head of Merrill Lynch's foreign exchange trading operations, Key was a member of the foreign exchange committee of the New York Federal Reserve from 1999 to 2001."

As stated above Key is a "insider"

Any one can front run markets with free money and make millions

Lets see Key trade a few futures contracts with his own coin starting with 10,000  and no insider knowledge....hahaha

yea right!  

And he still wants to go into a "free" trade agreement with the US, while they are doing very free trade things like printing money.

What a painfully ironic moment in history. The Americans are always good at lecturing others to "be responsible". Hah, have they themselves ever been responsible or faced their own obligations when they keep invading other countries? Have they themselves ever been responsible or faced their own obligations when they keep printing money, putting huge amount of pressure on people in other countries around the world to pay for the stupid amount of debts they have created? Hooligans. People see their hard-earned money evaporate. Do those polititians and inside traders ever care about? First Lehman Brothers, now United States. 

Nicely put except Id swap the word hooligan for physcopath...

Examine closely and the majority of them have physcopathic tendencies its reflected in the world around us, it is rather obvious when push comes to shove...

 

 

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