Forum Archive Index - September 2001

["Jeremy" <jeremy@electrosilk.net>]

> dollar are not quite on the mark as we even fell against the Aus dollar.
> But its good for the NZ economy anyway - boost for NZ exports
> and hence all soundly based NZ economic activity. Put the
> balance of payments on current a/c into surplus and enable us
> to pay off some debt.

The NZ dollar drops.  Less overseas dollars come in to pay for the same
commodities (all denominated in USD), or the same dollars come in to buy
more commodities .  Either way, all that happens is :

. NZ looses nett value by shipping more goods at a lower price.
. Primary producers get relatively rich.
. The whole country gets poorer in absolute terms.

This is not a recipe for improving NZ, it is a recipe for disaster.

If NZ got off its bum and started adding value and selling rather than being
bought at the whim of others at bargain basement prices then life would be
grand.

Jeremy



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