Dr Bollard's interest rate hikes haven't worked. What to do? Suddenly, after thinking he only had one tool at his disposal, he remembers that he can also pretend to be a currency speculator. So he drops $300 million from his $3.5 billion kitty.
He's only got a pair of fours, but a great poker face. You gotta ask yourself. Do ya think he's feeling lucky? Well, do ya, punk?
He's only got a pair of fours, but a great poker face. You gotta ask yourself. Do ya think he's feeling lucky? Well, do ya, punk?
There are tumbleweeds blowing through the ideas corridor in wellington right now. Bollard has just set himself up for the mother of all kickings from currency speculators all over the world. This is like Britain in the 70,s. Whats next? Devaluation?
ReplyDeletelets make another George Soros.
Maybe it was a warning shot?
ReplyDeleteWhat bothers me the most is that John Key apparently thought it was an OK idea, but Bill English did not. However, both acknowledge it is a huge gamble and speculators can kick the RBs backside anyday.
I think john key is showing great sense and honour through this. He understands the precarious position we are in and is avoiding the temptation to make political capital from it. Full marks to john key again. I think we are seeing a completely new animal with this one. How many senior politicos over the years would have been into this feet first? Pretty much all of them.
ReplyDeleteOf course he's showing sense and honour- he's a currency trader. You've been too long exposed to Labour politicians.
ReplyDeleteI sold out (cashed up) the portfolio and put the funds on six month term deposit today. As per an earlier comment at DPF, this past two days has moved us from interesting times to extremely risky times. The most dangerous economic factor we face is a flakey and desperate government whose actions are entirely unpredictable except for the fact that economic disaster (a crash, hard landing - call it what you want) will be seen as an appropriate price for the nation to pay for the return of Labour for a fourth term.
Hold onto your seats, folks.
PS in the latest piece of cukooland fantasy Bollard today has warned the dairy industry it's good fortune is damaging because it is inflationary. (by $2 bil) So tell me how Cullen's extra $20 bil for no tangible result (ie no new goods or services) is not inflationary? At least the cow cockies have got a few pounds of butter to show for their efforts.
Adolf.
ReplyDeleteNot only have I sold up but it's not even in the country.
My thinking is that owning taking work NZ income is enough exposure to an economoy of over-consuming meataxes like the tool 'coffee baron' I saw on TV1 news tonight.
The latest rumours are that Bollard has a 10 billion dollar kitty. Either he's a better poker player than I thought (and all luck to him) or Cullen left his pin number around for his Cullen Fund card.
ReplyDelete