When banking commentator Bernard Hickey said it was not out of the question for the New Zealand dollar to match the greenback in the near future, you could hear the collective Prozac popping among exporters.
Surely Hickey is talking balderdash? But hey, it's okay, he went on to say jubilantly, because it's great news for anyone going overseas or buying consumer products.
What was he thinking?
There won't be a country if his dire prediction comes true. There could be no worse economic disaster in this country's history than if our dollar did match the US. All the talk of recession over the past year would be like a bad day at the races in comparison to what would happen in that situation.
It is difficult for the farming fraternity to hear comments such as these when the squeeze is going back on with the Kiwi climbing through the 76 cent mark.
As for Bollard's comments last night that the high dollar was not an impediment to future interest rate hikes, you could only squirm, knowing that will give overseas investors the confidence to keep investing and therefore push the dollar up further.
Just what we needed Mr Bollard...well done...
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2 comments:
Back in 1951 when we purchased our first,(made in the USA) tractor,I seem to recall that our NZ pound was worth $2 US dollars.
And thanks to Sid Holland and the watersiders we missed out on the Korean wool boom.
Certainly we are operating under different criteria these days.
Tired Farmer posting under anonymous again.
This is crazy! The US dollar is going to go down like crazy soon...
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