PM Key says very little Govt and RBNZ can do in face of currency wars, high $NZ; US and China need to sort it out

Helloooooo...the US consumer is dead....the funeral is taking place now!

So much for the export boom that promised 170ooo new jobs....up it goes in a puff of Bernanke smoke. Farming returns smashed down by exchange rate. Next to come will be higher rates and Bolly will be left naked as the tide goes out. Not a pretty sight.

The Kiwi could blast all the way to parity with the US toilet paper and the au to 1.5.

Pretty soon it will cheaper buying property in Hawaii than downtown in Noddy.

OK, forget the US consumer....and the next idea is?

regards

I'm amazed the US$ isnt even lower.  Its never been the NZ$ thats high.

Fat lotta use he is, then!

But neva mind - we do have our cycleway.

As a parasitic currency trader Key would know!

I want to know if these pricks that wheel and deal in our currency pay any tax

If they don't why should we as busnesses finialise our books and admit liability for paying tax

when every day they are eroding our incomes

So the PM is an impotent, lying (fomer??) fx gambler who is part of the system that has destroyed the worlds economies and consolidated the wealth, and to come even more reral assets, into the hands of the select few, then sits back and says there is nothing he can do about it.

Backed up by the Bolly who is also impotent, and seemingly knows less about ecomonics than someone is his position should do, and/or is also a massive lier.

Why do we tolerate this Sh*t

What would happen if the OCR was slashed to 1% and the the Govt passed law in ensure a 30% deposit on property purchase?? would this drop the dollar or is the US really that stuffed?

Just spoke to a freind went over to US for his work, now he is on the way back along with some others he knows of. He said that the local economy is Bug..ered, the retail  stores can not give stuff away and factories are closing down every day. B Obama will be a one term president.

Johns looking a touch old and tired in that photo Im sure the spin doctors wont be to happy about that.

New National Party slogan:  "We got nothing" 

"There is little the Goverment can do" ???

Really ?? There is a word "Currency control" perhaps he should read it up in the dictionary on what it means and learn a bit of International Financial economics instead of letting his Currency Trader induced brain talk first before thinking....

Tuesday 12th October 2010

New Zealand businesses will find it harder to fund their export operations with the cost of trade finance set to soar fivefold under the new capital ratios proposed by Basel III, according to credit reference agency Dun & Bradstreet.

Under the new requirements being considered to strengthen the global banking system in the wake of the financial crisis, traditional trade finance facilities will have their risk weighting increased from 20% to 100%. These facilities, which include letters of credit, account for around 30% of world trade, according to report.

Dun & Bradstreet said it expect banks that provide trade finance will either pass this increased cost on to their customers or divert funds to other more profitable activities, resulting in deteriorating trade finance conditions for companies, particularly among those exporting to emerging markets where letters of credit are the primary means of securing sales and payment.

New Zealand is seen to be particularly hard hit, with exporters selling a significant portion of their goods to emerging markets in the Asia-Pacific region. If the reforms are passed, firms are expected to take on more trade funding themselves, which is expected to increase counterparty risk on international deals.

“There is no doubt that Basel III reforms will address real systemic weaknesses that emerged in the global financial system,” said general manager John Scott.

“However, regulators need to be mindful of the implication at the firm level and ensure that unintended consequence don’t emerge that could further do harm to the economy.”

The research firm said finance facilities have not historically been high risk instruments as they are supported by underlying transactions and identifiable goods, and is recommending that they be exempt from the Basel III capital requirements.

“A lack of trade finance contributed significantly to the sharp contraction in world trade during the financial crisis and we need to ensure we don’t create another set of circumstances that weaken the global trading environment,” Scott said.

Dun & Bradstreet said the reforms and their effects on slowing trade contributed to its subdued outlook for world growth, which expects the global economy to expand by 3% this year, and 2.7% in 2011.

slightly off topic, but the Hungarian govt in dealing with the big sludge spill over there has arrested the CEO of the company who did it, taken control of the company and seized it's assets.

http://www.guardian.co.uk/world/2010/oct/11/hungary-toxic-sludge-arrest

i guess some politicians are more prepared to act boldly than others......

Americans are driving inflation in commodities everywhere. 

Listen from 8.35

Key - nothing New Zealand can do about the currency wars - spoken like a good currency trader.

Currency volitility is good for some bad for others - like to pick the winners. 

John, Les - a different approach is needed !

 NZexorts are obviously at risk under the influence of worldwide situation. Among many other problems protectionism is a major problem and worse to come.

Why does the NZMEA not focus on developing more widgets for the national use ? Most all NZinfrastructure needs are imported. We are depending not only too much on imported widgets, but also foreign money/ investment/ company skill/ knowledge - to an extent that  even the national security is at risk.

The private sector should engage the government for more commitment/ efforts in order to award infrastructure orders to NZcompanies. Higher NZproduction is clearly a very important issue and of national interest.

Now is a brilliant chance to develop the relatively low profile manufacturing industry and secure full employment and develop skill and higher wages.

Les, do what ever is needed to make positive progress. Your (NZMEA) are constantly fighting the government, when you should communicate and engage the government.

Firstly, listening what most minsters say in parliament, I think they have the wrong perception what production means. I told you several times education is the key to change that, among politicians, but also among the public. Of course without a culture change it is very difficult to achieve progress.

Where lay the potential to increase quality manufacturing here in NZ and what are the many advantages for our economy are the key questions. Can you please answer these questions- thank you.

Please, read and understand this with many previous articles about the same issue.