Originally Posted by
SBQ
The same ol' argument between gold vs fiat money. Keep dreaming. Replace it with what? Cryptocurrencies?? There's good reason why the 'gold standard' went off. If I recall correctly, NZ was one of the last countries to put it's currency to a free floating exchange rate system (early 1990s?) It's benefited the country far more than other countries that had nothing to offer. Would you go back to the time when in order to buy a car from overseas, you needed to have "overseas funds" ? My elders have told me times when a newly overseas imported car would sell more in NZ new because of the restriction in currency.
Anyways, no one knows when the next bear will come. Countless of critics every year are saying it will be this year or that year. No one is following up on those claims when the prove false year after year. As my finance prof told us in class, a bear person will eventually be right if he calls the bear every year for the next 10 or 15 years. Meaning, sooner or later he will guess it right and claim fame.
NZ's situation isn't that bad. I do believe we're able to borrow more as our debt per capita is nothing compared to the US or for the extreme matter.. Japan. I mean Japan has like a 160% debt to GDP ratio and look at their high quality of living. It just shows us that as nations, those that can borrow the most usually have a higher standard of living. Just like the person that borrows the more to buy the bigger house, new car, etc is going to enjoy a better living standard. I don't see a problem for NZ being able to service the debt. But I do see a problem if NZ goes on the path like Spain or Greece of irresponsible gov't fiscal policies. I'm optimistic. If you want to enjoy the scenery that NZ offers, and got the $ to move to NZ, then better expect to pay tax to enjoy it.