Forum Archive Index - March 2000

["hugh webber" <hugh.webber@clear.net.nz>]

I looked up one or two figures without wishing to put a lot of work in.
On Wednesday Teletext carried the item that the US deficit on current
account (the most comprehensive measure of trading overseas in goods
and services) had hit a record $US100 billion for the 4th quarter of 1999. 
Say $US400 biilion for a year and double to get to NZ S's = $NZ800 billion.
Divide by the US population of 250 million and you get a ratio of $3.2
billion
per million population.
NZ's current account deficit in the last March year (to 32/03/99) was $6.6
billion
compared to a population of nearly 4 million. A ratio of $1.65 billion per
million population.
i.e. the US problem is twice the size of the NZ one on a proportionate
basis.

Logical conclusion on the basis of the original posting? 
The US dollar will crash (probably true at some stage) and that therefore
everyone
in the USA should migrate to Britain and shunt all their share holdings
there now.

At that point the logic starts to look distinctly flawed......



----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
To remove yourself from this list, please us the form at
http://www.sharechat.co.nz/forum.html.