David Thompson Posted:
So very, very true. It beggars belief that we consider ourselves to be a developed nation when so much of our economy is based on selling milk powder or logs. BTW, I own a Plinius amplifier (my second) that drives a set of Theophany speakers.
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David Thompson Posted:
A robust but sobering report. It concerns me that confidence is rising, yet sales and exports are down and "manufacturers and exporters are still lagging behind other sectors". Surely we should wait until we're earning more money before we start spending more?
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siemens Posted:
Yes true! The only thing that will never die in this world is the nature and its science behind it. Great post.
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Kieran Ormandy Posted:
Thanks for the question Steven, Germany has seen increases in manufacturing employment since 2009, and Switzerland has had stable manufacturing employment between 2006 – 2011, even in the face of ongoing Euro-zone issues. Korea has seen increases in manufacturing employment since 2008 and Israel experienced large increases since 1998, while being stable over the last 4 years. Singapore has had increases in manufacturing employment over the last two years. These countries all value their manufacturing sectors and work to protect them, this is reflected in the above numbers and their performance through the GFC. Note data around the above examples was sourced from OECD labour market stats.
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John Walley Posted:
Point one: you should have no doubt what our Association says publically represent the views of our members. Point two: we don’t knee jerk responses, if you trace back our comments around NZPower you will see them link all the way back to our research in 2004 and 2005. All that material is fully linked from our comments above. Point three: you will note our comments on major users, sadly the same advantage does not accrue to smaller industrial users. The perverse incentives of the LRMC approach in all this are well known. Point four: the NZMEA is not like any other Association in New Zealand we admit only manufacturers and exporters into membership, and our public expressions are the views of that restricted membership.
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OCR announcement draws criticism

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The Official Cash Rate announcement last week caused the New Zealand dollar to rise further, apparently to the surprise of Reserve Bank Governor Alan Bollard.  However with both Bollard and John Key expressing a view that exchange rate intervention would not be effective in turning around the direction of the dollar this result was inevitable.

Here are a couple of responses to the lack of action on the dollar:

 Bernard Hickey: NZ needs long term thinking not short term tactics for NZ$

"Bollard could intervene to push the currency lower and has done it before, but he sees it as a risky strategy and the last thing a bureaucrat wants to do is take financial risks, particularly when a successful risk would hurt voters and make it more difficult for John Key to achieve his own short term goal.

So we have a tactician and a bureaucrat running our economy for the short term to get reelected and to hit an inflation target.

Meanwhile, we collectively keep borrowing and selling assets to support a lifestyle we can't afford in the long run and allow our currency to rise to level that makes it impossible for any manufacturing exporter to invest for the long term.

We are choosing to live in the now instead of planning for the future." 

Nadine Chalmers-Ross: Advice for the Governor

"In market-speak, when a politician or a central banker makes comments like "the dollar is overvalued" or "the economic fundamentals don't support a currency at these levels" in an attempt to influence the dollar, it's called jaw-boning.

Or in common parlance, talking the dollar down.

If that's what Reserve Bank Governor Alan Bollard was trying to do with the comments he made about the damaging heights of the kiwi when announcing he was keeping interest rates on hold yesterday he, well, failed. Dismally."

tags: exchange rate, bernard hickey, nadine chalmers-ross


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