Stupid World

**mashman** · 3rd April 2014, 15:45

Originally Posted by husaberg

I answered the question i seen posed by you that why i quoted you.
irrelevant of what you may think about the hows and whys, it was devalued in one day by 20%.
Muldoon from memory was actually forced to do it..........

You didn't answer it if he didn't get the answers he wanted.

**bogan** · 3rd April 2014, 16:10

Irony in thread title intensifies!

**Oscar** · 3rd April 2014, 17:39

Originally Posted by husaberg

I answered the question i seen posed by you? That why i quoted you.
Irrelevant of what you may think about the hows and whys, it was devalued in one day by 20%.
Muldoon from memory was actually forced to do it..........

Oh yeah I know you answered and jolly interesting it was.
I was standing outside the Nat West dealing room when it was annouced.
Overnight rates hit three figures.

Muldoon got a visit from theIMF.

**Brian d marge** · 3rd April 2014, 18:39

Originally Posted by Oscar

Oh yeah I know you answered and jolly interesting it was.
I was standing outside the Nat West dealing room when it was annouced.
Overnight rates hit three figures.

Muldoon got a visit from theIMF.

The question is then posed ..
Do you know why and could it happen again

Stephen

Oh and where was donkey in all of this . . . The magical fee weeks he cant remember

Sent from my SC-01F using Tapatalk

**Ocean1** · 3rd April 2014, 19:05

Your tax dollar at work: http://www.stuff.co.nz/national/9900...vanced-country

**husaberg** · 4th April 2014, 17:26

Originally Posted by Brian d marge

The question is then posed ..
Do you know why and could it happen again

Stephen

Oh and where was donkey in all of this . . . The magical fee weeks he cant remember

Sent from my SC-01F using Tapatalk

He can still answer but (from while recollection the devaluation was done with Haste by muldoon after a threat to toss him out it was in the cartaker stage after the Nats lost the election but before Labour was sworn in.

1979-early 1980s

In June 1979 a “crawling peg” approach to exchange rate determination was established. Under this
system the New Zealand dollar was adjusted by small amounts (sometimes on a daily basis), with the aim
of offsetting inflation rate differentials between New Zealand and its main trading partners.
This caused a depreciation of New Zealand of around six percent per year between 1979 and the early
1980s.42 Between 1979 and 1983 the nominal exchange rate fell 23 percent, although it is important to
note that the presence of high inflation meant the real exchange rate was hardly affected.
In June 1982 the then-Government imposed a wage and price freeze, which pegged New Zealand’s dollar
on a trade-weighted basis. By the second half of 1984 (after a snap election had been called) a foreign
exchange crisis was created since demand for foreign exchange exceeded supply as exporters and
importers predicted the Government would be forced to substantially devalue the dollar.43 The Reserve
Bank had to try and meet the excess demand by drawing down its foreign exchange reserves, resulting in
the crisis. The exchange rate was devalued by 20 percent in July 1984 immediately following the election
and the formation of a new government.
1985

The New Zealand dollar was fully floated in March 1985 and since then the Reserve Bank has not directly
intervened in the foreign exchange markets.
Box 1: Reserve Bank intervention in the currency markets
Although the Reserve Bank of New Zealand (RBNZ) has not directly intervened in the currency markets
since the New Zealand dollar was floated in March 1985, it retains the right to do so. Section 16 of the
Reserve Bank Act 1989 gives the Bank the power to intervene in the event of a “severe market breakdown or
extreme market stress.”8
The RBNZ has given an example of disorderly conditions as:
“market paralysis that might arise after a major political or financial crisis or a natural disaster.”9

Under the Act, the Finance Minister can instruct the Bank to intervene in markets to influence the rate, or
even to fix it. The instruction must be in writing, given under the authority of an Order-in-Council, and be
notified in the Gazette. However, the Reserve Bank has noted that these provisions were originally included
in the Act when the floatation of the dollar had not been operating for long, and that such intervention could
compromise the Bank’s ability to pursue its sole objective of monetary policy: maintaining price stability.10

Consequently, if the Bank Governor were to believe a directive to intervene in the currency markets was
inconsistent with the price stability objective, he/she is able to not comply with the directive until the Finance
Minister has formally invoked an override of the price stability objective under section 12 of the Act.11

This existing intervention policy is under review. The Reserve Bank announced on 11 March 2004 that it had
provided advice to the Minister of Finance seeking greater capacity for the Bank to intervene in currency
markets as part of its available monetary policy implementation tools.12 The Bank has recommended to the
Minister that it have the capacity to intervene in the currency markets in situations other than when the
markets have become disorderly. For example, the Reserve Bank (as of 11 March 2004) believes the New
Zealand dollar is “exceptionally and unjustifiably high” and, consequently, that it should be able to use New
Zealand dollars to buy foreign exchange in a bid to put downward pressure on the exchange rate

http://www.parliament.nz/resource/0000000193

**Oscar** · 4th April 2014, 18:04

Originally Posted by Brian d marge

The question is then posed ..
Do you know why and could it happen again

Stephen

Oh and where was donkey in all of this . . . The magical fee weeks he cant remember

Sent from my SC-01F using Tapatalk

I was there.
Do yer own fuckin' research.

**Brian d marge** · 4th April 2014, 18:07

Originally Posted by Oscar

I was there.
Do yer own fuckin' research.

And ya still dont know? damn

put you and donkey in the same boat , magical 2 few week that "SLIPPED my mind "

Stephen

**Brian d marge** · 4th April 2014, 18:15

Snip; from thew above

By the second half of 1984 (after a snap election had been called) a foreign
exchange crisis was created since demand for foreign exchange exceeded supply as exporters and
importers predicted the Government would be forced to substantially devalue the dollar.43 The Reserve
Bank had to try and meet the excess demand by drawing down its foreign exchange reserves, resulting in
the crisis. The exchange rate was devalued by 20 percent in July 1984 immediately following the election
and the formation of a new government.
1985

That would be Mr Andy Krieger ( sp) and Donkey at work,but d'nkey cant remember ! One of the greatest attacks on the NZ dollar and you are, even in the same building ! and you cant remember ..... wheres my Tui

So The thieving baskets stole 20% of me wealth. Right that’s on me list ( the TV is getting cheaper as we speak!)

Stephen

**husaberg** · 4th April 2014, 18:29

Originally Posted by Brian d marge

Snip; from thew above

By the second half of 1984 (after a snap election had been called) a foreign
exchange crisis was created since demand for foreign exchange exceeded supply as exporters and
importers predicted the Government would be forced to substantially devalue the dollar.43 The Reserve
Bank had to try and meet the excess demand by drawing down its foreign exchange reserves, resulting in
the crisis. The exchange rate was devalued by 20 percent in July 1984 immediately following the election
and the formation of a new government.
1985

That would be Mr Andy Krieger ( sp) and Donkey at work,but d'nkey cant remember ! One of the greatest attacks on the NZ dollar and you are, even in the same building ! and you cant remember ..... wheres my Tui

So The thieving baskets stole 20% of me wealth. Right that’s on me list ( the TV is getting cheaper as we speak!)

Stephen

I wish i could find the video i guess its gone now.........