Beefed up

**Sam I Am** · 6th July 2007, 21:56

Big Mac Index provides a rough guide to how far currencies are from fair value.

Not that i eat this SHIT but how Fucking expensive is a Big Mac in NZ !!!

**janno** · 6th July 2007, 22:06

Arggghhh!

Numbers!!!

Tables!!!

Brain melting!!!

Must . . . reach for . . . telly . . . remote . . .

**rwh** · 6th July 2007, 22:45

I don't follow that.

Is it trying to claim that we pay $5.89US for a big mac? Assuming $1NZ is 75cUS, that would make it $7.85NZ, which I'm pretty sure is wrong - a combo is less than that.

Following that (0.75) exchange rate would make an American big mac worth about $4.54NZ, which sounds much closer to the truth, from memory. Which surely means the exchange rate is about right?

Richard
(Not a financial expert)

**Sam I Am** · 6th July 2007, 22:57

Originally Posted by rwh

I don't follow that.

Is it trying to claim that we pay $5.89US for a big mac? Assuming $1NZ is 75cUS, that would make it $7.85NZ, which I'm pretty sure is wrong - a combo is less than that.

Following that (0.75) exchange rate would make an American big mac worth about $4.54NZ, which sounds much closer to the truth, from memory. Which surely means the exchange rate is about right?

Richard
(Not a financial expert)

well looks like the economist got it very wrong then !!

**Brian d marge** · 6th July 2007, 22:58

Not on the economist web site ,,( Iam in the shop now so its not handy ), but it was 4 dollars odd , and gave an over value of 11%

Question is overvalued against what ...I reckon the government is letting this run to pay the deficit account ...

Good ole big stick IMF tatics ,,,raise interest rates.....

and ya cant blame the Japs , ,,hey 8 % is a good return ,,,England 5.5 % Europe 6 odd % ...aussie 5? 6? % and NZ ...8 %

Right back to the muffler !

Stephen

**rwh** · 6th July 2007, 23:03

Actually, Google comes up with something interesting here. The clip shown by google of the NZ Herald article shows the $5.89 as in that image. The actual article says $3.59, which makes a lot more sense. I'd say there was a mistake, that has been fixed since Google spidered the page.

I also note that the Google links to Stuff are for stories that have been removed.

Richard

**canarlee** · 6th July 2007, 23:11

Originally Posted by Brian d'marge

,England 5.5 %
Stephen

fuck me where did you get that from??? 5.5%? in england? nah mate sorry you musta got that from a spoof site!!!

**Skunk** · 6th July 2007, 23:14

I think they are saying that is the price we should be paying if the exchange rate is correct.

Maybe?

Or something else?

**sAsLEX** · 6th July 2007, 23:16

I would say its cheap in NZ.

I have just been in the states,canada,france and now the UK and paid similar prices in the local currencies to what I would in NZ......

**Brian d marge** · 6th July 2007, 23:36

Originally Posted by canarlee

fuck me where did you get that from??? 5.5%? in england? nah mate sorry you musta got that from a spoof site!!!

bbc read it this morning

http://www.economist.com/markets/ind...ory_id=8649005

http://news.bbc.co.uk/1/hi/business/6272776.stm

gotta trust the BBC ,,,,, even if I dont trust that pigeon who just welded up me muffler !

the electricity here sucks balls ( poor welder blaming something!)

Stephen

**Sam I Am** · 6th July 2007, 23:45

Originally Posted by sAsLEX

I would say its cheap in NZ.

I have just been in the states,canada,france and now the UK and paid similar prices in the local currencies to what I would in NZ......

but you dont earn in ther local currency !!!

NZ dollar is getting way to strong and normal wages here are well low