Thursday, October 22, 2009

Underselling NZ

As soon as the RB starts hiking the OCR, our humble dollar is going to climb even more.
Under the current set up we are pawns in a very expensive game.
Next year higher mortgages, screwed exporters and less tourists.
Does any one else care that the billions that Bill is borrowing is at 5.5%?
Because to me, at that rate, he is stoking the fire. Telling the world that we are the suckers who will cough up for high rates. He should tell the lenders that we will pay 2% otherwise they can invest their money in places like Dubai.
The world wants our security, lifestyle and food.
We should be charging them the premium.
Of course, I suppose that if we actually did something productive with the borrowed billions that would help.


Simon said...

Yeah but we will get cheap imports. You will start to see a lot of American product coming into NZ. Agricultural prices are going through the roof our exporters will be fine. Tourist will come from Asia that’s no problem. Bank rates move higher fine as well that means more people will put money on deposit rather than spec housing.

Strong dollar it’s all good. Strong dollar means higher living standards. Cheers Bill.

Anonymous said...

Thanks Bill , everything you say is correct and being an importer myself, I'm not complaining about the dollar.
My main concern is in interest rates as they have a much greater influence on the decisions I make. I don't want to go back to paying high rates because it kills business.So I am concerned when I see the government borrowing at 5.5% because it doesn't bode well for us in the medium to long term.