Currency


Right now there are some mighty upheavals and changes taking place in the world market places, all caused by currency movements. As always it the the big movers and shakers, that are making all the problems for the little minnows like us to contend with. This time the blame seems to be the American dollar, and everything connected to American Currency. Their various readjustments to put their house in order has caused the sudden rise in value of our currency, and as well the various other Countries that are linked to the $US dollar. We are a very small player in the International Scene, anything we do will not have the slightest effect, or correct the situation. Regardless our dollar is spiralling upwards for no special reason, it has now climbed to :- One $ US = *86.5 Kiwi. Not so very long ago it was worth only 45 cents, and at that rate it hurt. It also meant we purchased very little American, as we just couldn’t afford it. But it also meant that we hurt in other directions, as the value of many of our other International purchases are linked to the American dollar, such as gasoline, airline tickets. I was lucky once, when I saw our last devaluation coming. It wasn’t hard, as the blabber mouth politicians were signalling, what they were intending to do, loud and clear, to anyone who wanted to listen that they had decided to devalue our currency.

At the time we were intending to take an overseas holiday. I didn’t hesitate, I rushed out and bought up large, every American dollar I could lay my hands on. And as well, paid up front for every thing else. The result was a free holiday. Did I feel guilty? No even a little bit, I had already had my initial attempt at saving stolen from me by political manoeuvring. I stood by and watched my savings day by day being wiped out by inflation. This was immediately after the war when I had decided to do something constructive about my future. It was a very costly lesson and what happened made me a lot smarter. And from that point decided to make the most of any situation that presented itself, and exploit it if I could.

I should have been much more aware to what runaway inflation was all about. As a boy I saved postage stamps, and I remember looking at the German stamps overprinted with thousands of Deutsch Marks. This example was enough realise that this was a country where penny postage was no longer available, and their currency had run off the rails To post a letter, now cost an arm and a leg. This signal alone, had me making a trip to the library to read up on this inflation phenomena.

Many might not remember this, but in the late 60′, the American dollar was valued at only 80 cents, and this was most up setting to American tourists that their good American dollar was not on par with the Kiwi. But had they come some years earlier during the War, their dollar was four to the pound or only 50 cents. However back then it was marvellous just how far, a little money would go.

During this time I was a young serviceman travelling in America, with very little money as our meagre pay hadn’t caught up with us. The cheapest meal in town was, bacon and eggs only 25 cents. Needless to say, that’s what I ate for every meal, unless I could happen onto something like USO who looked after servicemen, then I could eat for free.

Do I want to forecast how this latest currency scenario is going to play out? I haven’t a clue as there are too many imponderables. I do think the US Dollar is wounded, and the Kiwi will settle and return to 80 cents. So we will wait and see.


No ShoutBacks yet. (Be the first to Shout this post)

Comments are closed.