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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (51729)	5/25/2006 2:07:49 AM
From: Elroy Jetson	Read Replies (2) \| Respond to of 116555

The New Zealand Dollar is the currency of a nation with a population half the size of Los Angeles County, but with a far less robust economy. They were however, the set location for a series of recent Hobbit films. I would imagine this makes the NZ Dollar an interesting collectible, just as some might collect commemorative plates from the Franklin Mint. In terms of money, virtually all New Zealand banks are subsidiaries of Australian banks. When capital is brought into New Zealand, a small percentage can be absorbed by the local economy. The balance is sent to Australia or other locations by the Australian banking system. So let's look at the real economy. Australia has a surplus government budget. Just recently, total government cash on hand has exceeded the total amount of government debt outstanding - in essence there is no government debt in Australia. Compare this with the tragic state of affairs in the United States. Australia is a net energy exporter in oil, gas, coal, and uranium. Australia is a net exporter of agricultural and seafood products. Australia is an exporter of metals and computer software and heavy machinery. Australia's primary imports are computers and electronic consumer goods, primarily of Asian origin, motor vehicles, aircraft, and medicines. Australia is in a strong position and their currency will continue to reflect this. .