Wednesday, August 03, 2011

'But what is to be done.'

With those fateful words, Lenin (who knew exactly what was to be done) simply done it.

NZ Inc., as an exporting economy, is suffering an over-valued dollar, as the Swiss are likewise with their overvalued franc. For NZ, there is nothing to be done, John Key repeatedly asserting that it is what it is: good for imports, bad for exports.

Eminently practical people (as their neutral stance in WW2 shows), the Swiss National Bank said the currency is “massively overvalued at present” and that its strength “is threatening the development of the economy and increasing the downside risks to price stability in Switzerland.”

“The SNB will not tolerate a continual tightening of monetary conditions and is therefore taking measures against the strong Swiss franc."

They cut their key lending rate to zero.

But the Swiss were neutral, not neutered.

It is difficult to see a way forward for Maori in this climate. The cost of living is crippling whanau, wages remain moribund, and while companies such as Miraka Ltd. can look forward to at least paying back the loans, we are entering a period of massive global deleveraging.

Lenin (as tupapaku)

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Simon Lambert

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