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@am*3 wrote:

The "really ?" is for - do you really think nobody in NZ is concerned about the amount of foreign interests in their holdings and the amount of their foreign debt.

 

What is worse a debt level in excess or 100% and a poor economy or a booming econo

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@icyfroth wrote:

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@am*3 wrote:

Icy -Sorry Am but I find no comfort in that.

Look at the trouble the US is in. Public services have been cut as seen in the debacle they had recently re their own debt-ceiling raising debacle. Cities like Detroit are in decay, others are in decline. States like California have been bankrupt.

 

 

Look at their debt %. 107% compared to Aust 33%

 

Australia isnt the US and never will be. Australia isn't Greece or Spain either... or the UK.. all of those countrie have devt levels far in excess of Australias.

 

 

 

New Zealands debt % is slighter higher (35%) than Australia's. -New Zealand's economy will prosper in 2014 as financial experts predict it will be a 'golden' year for the country... no doom and gloom, the country is ruined, our debt is too high there.

 

Really?

 

Why does that surprise you?  Or couldn't you accept that it is true?

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What?

 

The "really ?" is for - do you really think nobody in NZ is concerned about the amount of foreign interests in their holdings and the amount of their foreign debt.

 

 

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my with foreign investors?

 

Why should citizens, for example, in NZ. be concerend about their foreign investors & debt level when their economy is prosperous & 'golden'?

 

Well obviously some NZ Citizens are, Am:

 

This free investment by foreign capital has also been criticised. Groups like Campaign Against Foreign Control of Aotearoa (CAFCA) consider that New Zealand's economy is substantially overseas-owned, noting that direct ownership of New Zealand companies by foreign parties increased from $9.7 billion in 1989 to $83 billion in 2007 (an over 700% increase), while 41% of the New Zealand sharemarket valuation is now overseas-owned, compared to 19% in 1989. Around 7% of all New Zealand agriculturally productive land is also foreign-owned. CAFCA considers that the effect of such takeovers has generally been negative in terms of jobs and wages

 

 

As I tried to explain already..  debt isn't the only thing when you look at an economy. If GDP is high then the country is doing well, standards of living in that country will be high. If the level of debt is fairly low (33%) to GDP then why the panic?????

 

When does foreign investment cause a countries debt level to get higher and higher?

 

Because foreign-owned companies tend to bring in their own workers if the local wages are considered too high. This puts local people out of work who then are not only no longer paying taxes but are actually on taxpayer-funded welfare.

Because foreign-owned companies tend to take their profits back to their own country of origin or those of their shareholders.

 

So the less income the government has from it's own investment in utilities and services and from the taxes it collects, and the more it has to pay out in services, welfare and other community projects etc, the more it has to borrow.

 

 I know there's more to it than that but that's as simplified as I can make it for you.

 

I have to go BBL. 

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