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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: KyrosL who wrote (23543)	10/5/2007 8:03:07 PM
From: Maurice Winn	Respond to of 217825

Kyros, sorry, I meant NZ's total debt, most of which is sitting in mortgages after a vast borrowing binge to revalue houses upwards since Y2K. The NZ government is awash in cash after huge lootings of tax. Since the government doesn't actually produce much of anything, a huge tax stream based on huge mortgage borrowings isn't much better than having the borrowings directly. But I admit to not checking the details and maybe it's not so much higher as I think. I'll ask Google. As you say, there's piles of data: rbnz.govt.nz Mqurice

To: KyrosL who wrote (23543)	10/5/2007 8:45:16 PM
From: Maurice Winn	Respond to of 217825

So maybe the USA is worse off than NZ because NZ government has huge amounts of tax sloshing in and could do tax cuts and cut interest rates etc whereas USA government isn't quite as flush and US$ interest rates have a lot less room for cutting than do NZ$ rates: <At current levels, the ratio of household debt to income (excluding student loans) is similar to those found in Australia, the UK and USA.> That explains why the US$ has been continuing down against NZ$ for years even though NZ is losing ground economically as droves of productive people flee to better paid places. But surely the US$ has fallen enough now against NZ$ after going from 39c to 76c. Mqurice