Forum Archive Index - March 2004

[robin benson <rob@hammerheadmedia.co.uk>]

On 11 Mar 2004, at 22:59, mixtrader wrote:

> George Soros and his kind of currency speculators/investors must be 
> over the
> moon.

They certainly will be looking. However, Cullen's approach may or may 
not be genuine. By betting against his strategy, you're calling his 
bluff. In turn, he's calling your bluff, if you're in forex and are 
bullish about the Kiwi.

> Personal opinion is that Cullen is totally out of his depth and has
> forgotten all of his swimming lessons.  He should be removed from 
> office on
> the basis that he has become delusional.  The last time that government
> played with exchange rates cost NZ about $700 over the period of a 
> week (mid
> 1984 on memory).  He should take his Keynesian interventionist 
> approach and
> put it in a very dark place.

The Bank of Japan and others are quite happy to engage in "Keynesian 
interventionist" approaches, although I concede there is a difference 
in scale ...

> His actions will only add yet a further burden
> to the cost of conducting business in NZ through an inevitable 
> increase in
> interest rates, a tightening of the money market, and a requirement for
> greater input from the state into the welfare system.
>
> He is a poor excuse for a PhD and "economist".

These things are rarely the product of one person's thought. Cullen and 
every other minister comes with a gaggle of advisors and ultimately 
answers to the PM and others before embarking on a strategy to do any 
damn thing.

Robin


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