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New Zealand States Currency Overvalued

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http://www.bloomberg.com/news/2014-09-25/rbnz-s-wheeler-says-kiwi-unsustainable-mentions-intervention.html

Reserve Bank of New Zealand Governor Graeme Wheeler signaled he’s prepared to sell the nation’s dollar to weaken it, saying the kiwi’s current level is unjustified and unsustainable. The currency tumbled.

“The bank would welcome a move towards a more sustainable exchange-rate level,” Wheeler said in an unscheduled statement today. “Unjustified and unsustainable are important considerations in assessing whether exchange-rate intervention is feasible.”

Everyone's currency is overvalued all are worth nothing.

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This global currency devaluation is nothing more of a theft from the poor.

Rich man with masisve assets end up staying rich.

Poor man with no assets or savings ends up with much less.,

Someone will eventually twig and there will be A LOT of trouble

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surely, selling the dollar will reduce supply locally and cause deflation????

or do they mean something else entirely.

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When I lived in NZ in the early 90s, IIRC it was around NZ$ 3.40 to GBP with the Aussie dollar at about $2.50. That felt about right. NZ doesn't have Australia's mineral wealth but is being treated by international markets as if it has - they have been at parity or close to for a while now.

The central bank is right - current Kiwi rate is utterly artificial and unjustified by any economic fundamentals.

Edited by montesquieu

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When I lived in NZ in the early 90s, IIRC it was around NZ$ 3.40 to GBP with the Aussie dollar at about $2.50. That felt about right. NZ doesn't have Australia's mineral wealth but is being treated by international markets as if it has - they have been at parity or close to for a while now.

The central bank is right - current Kiwi rate is utterly artificial and unjustified by any economic fundamentals.

what you don't see is that NZ is one of the few untouched paradises left if you are middling rich. Lots of chinese and asian middle class are looking to get there and buy property. I value the NZ dollar more than the shitty pound, as if TSHTF I'd rather be able to rent somewhere in NZland than somewhere in GBPland I have some saving there just for that reason - and so do lots of chinese and other asians, I know from direct experience.

I could see the GBP being wiped to zero. I can never see the NZD going the same way.

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When I lived in NZ in the early 90s, IIRC it was around NZ$ 3.40 to GBP with the Aussie dollar at about $2.50. That felt about right. NZ doesn't have Australia's mineral wealth but is being treated by international markets as if it has - they have been at parity or close to for a while now.

The central bank is right - current Kiwi rate is utterly artificial and unjustified by any economic fundamentals.

When I was in the antipodes in 2003, the NZ$ and AUS$ were 3$ and $2.50 to the £ respectively. Don't know if it felt right, but it felt good to spend there!

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what you don't see is that NZ is one of the few untouched paradises left if you are middling rich. Lots of chinese and asian middle class are looking to get there and buy property. I value the NZ dollar more than the shitty pound, as if TSHTF I'd rather be able to rent somewhere in NZland than somewhere in GBPland I have some saving there just for that reason - and so do lots of chinese and other asians, I know from direct experience.

I could see the GBP being wiped to zero. I can never see the NZD going the same way.

Theyve their own property bubble and restrictive planning laws. Paradise is lost as they've copied us.

Auckland has priced out its young natives.

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They imported our madness. Lots of them blame brits for coming over en-mass and ramping everything. I think they have tightened the immigration criteria now and made it much harder. Many will rant about how immigrant brits came and pushed house prices through the roof! its ok if you already owned but like young people here if you didnt you are screwed.

Lot of problems there now, it isnt the paradise I used to visit, aside from crazy house prices everything has to be imported a long way so costs more. We have Europe a truck drive away so actual day to day stuff here is a lot cheaper. You don't need a bankloan here to buy a pineapple, my NZ relatives were stunned when they seen the price of food here in relative terms. Cost of living there has increased massively and they don't have lidls to offset it.

It isnt the place it used to be which is a shame.

Oh lets not forget some right shady deals with Chinese investors buying up farms too.

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