Tuesday, July 31, 2007


If there's any doubt of the cleverness of our government, they've just been dispelled.

NZ has struggled for some months with an (allegedly) overvalued dollar and no effective tools to reduce the parity. Now they've found one:

Winston Peters has been sent around the world to spout his views on economics. Once the markets realise that not only does our present government contain an unreconstructed Muldoonist, but that any future Key administration will as well, we will see a dollar back in the 60c range faster than you can say "voodoo economics"!


xhile said...


Jez said...

But hey, if the markets believe that whatever government we get will do something to cut the exchange rate, then there'll be a mass dumping of NZ dollars, driving down the rate without the government actually doing something in reality.

(Of course, this assumes that the market thinks that the government *can* do something about it. But that's another, very long, comment