Quote:
Originally Posted by mswhin63
Heard report could head to $1.10, but wait and see. Unfortunately interest rates could soar as a result. The danger of importing.
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Yes, it sounds like that's what will happen. Interest rates going up is a GOOD thing, not BAD, and the sooner we do it, the better off we will be later. If we delay, it will only make matters worse in the long run. So long as we start early, that rates remain affordable to the middle class, and the economy ($) and trade remain strong, will pull through handsomely.
The recession we should have had, but didn't (so that’s two now really), will manifest as inflation. If we tackle the issue now, raise the interest rates gradually (cut until we bleed) to remain buoyant - I'm certain of this now - then we will emerge with a currency that climbs during an inflatory period, much the same as physical precious metals.
Remember, we are the first country in the world which can afford to, and is physically able to, lift interest rates. NZ should follow shortly.
So while the major players 10 year ago are wondering what to do, we will be working on growth. And where does real wealth gravitate toward? To where the money is being spent.