Monday, 5 March 2012

QUOTE OF THE DAY: The demerits of devaluation

Since Bernard Hickey et al persisting in promoting a healthy tonic of inflationism to “fix” every problem from the high NZ dollar to excessive lint in your laundry, here’s some common sense as a response:

What difference does it make to the importer of our goods that
the [NZ] dollar is now 5 percent cheaper, if domestic  inflation
has made the price the importer pays in dollars 5 percent
higher? The effect is nil.

                     - David Howden, ‘The Blessings of a Strong Currency

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5 comments:

Dirty Mind said...

Is Bernard Hickey, the new crowned king of the economics' illiterate cock-sucking society? I bet that he is. The guy is simply fucking dumb. Unbelievable!

Anonymous said...

Bernard Hickey is ok, but there are others that are well respected. .

I also listen to the guy from australia http://www.forecastfortomorrow.com he is very accurate it is scary. I try to put myself around others that know their shite, and have a good track record.

Andrei said...

Whoops - I thought I was at the Handmirror for a second there.

Activism, demo, you old lefty you

Peter Cresswell said...

Demos, Redgum songs ... I'm starting to think the same myself. :-)

But why let them have all the fun.

Anonymous said...

Ah yes interest.co - the site of Malthusian catastrophe.
I wonder if the Xmas present to its readership this year will be a suicide pill.