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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (62624)	4/23/2005 11:46:39 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 74559

<The price increases and foreign cash flowing in are both very real. If that is all that is happening it is nominal not real. A bit like when the Spanish took all that gold home from Mexico and got inflation.> No, it's real. Somebody who owns a sheep farm by the sea or somewhere nice subdivides their property, sells a section to overseas rich person who wants a nice base here. Said rich person hands over a pile of US$ [or yen or yuan or something] to the seller. Said seller says, "Yippee!" and phones the Lexus supplier overseas who ships another swanky new vehicle to them. Seller also buys a swanky new CDMA cyberphone, Made in Korea. Also books a ticket on Emirates nice new aircraft and flies for a holiday to Europe. Not much inflation flow on to NZ. Goes to local cafe and pays our daughter to serve Eggs Benedict, with salmon and spinach, with a flat white coffee. Instead of local prices dropping due to offshoring of production and Made in China filling the shops, locals get such jobs servicing those selling to the foreigners and servicing the foreigners. NZ economy churns along at 4% growth rate despite huge currency increase and resulting difficulties for exporters of agricultural products and other stuff. Mqurice