Sunday, April 27, 2014

“No Parking”–Don't Trade Forex with David

David Parker – Labour’s finance spokesman echoes numerous commentators who 30 years on from when the NZ dollar was floated, still can’t understand that exchange rate movements cut both ways. Yesterday he gave us this wonder…..

Parker criticised the strength of the New Zealand dollar, saying the International Monetary Fund thought it was overvalued by 5-15 per cent.

If it were 15 per cent too high, that would mean exporters were losing $9 billion a year, he said.

"Imagine how many more people they could employ in well paid jobs if they were earning $9 billion per annum more from our exports.

Imagine how many people would be impoverished if importers had to pay $9 billion more for goods and services for imports. 15% extra on  petrol, healthcare products, clothes and on and on.

It’s called a zero sum game. There are still no such free lunches Mr Parker, even with the latest upgrade.

Do try to get with the programme.

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