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Contact:
Foundation for Economic Growth,
P.O. Box 10-282,
Wellington, N.Z.
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The Foundation for Economic Growth is a group of like-minded individuals who have decided to act rather than accept New Zealand's continuing poor economic performance. The Foundation is not affiliated with any political party. Add Your Comments here.

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Most recent update: Jan 28th, 2015 - 10:50:20

Newsletters : Current Newsletters : 19 January 2015
Thought for the Day

Welcome to the New Year.

It starts with a bang - the Swiss Central Bank suddenly reverses course over-night. This is an indication of the amount of stress in the financial system at the moment.

However, the biggest story is the on-going saga of the US vs Russia - and China.

American efforts in the Ukraine and, with the assistance of the EU, bringing sanctions on Russia have had a major effect on Russia.

Russians have decided that normal commercial operations are not possible with their American and European partners. This has caused Putin to turn East and accelerate his move towards China where he signed up two huge Gas and Oil deals recently. Since the bureaucrats in Brussels are making things difficult to get the South Stream gas pipeline underway in Bulgaria, Putin has moved ahead with an agreement to build a pipeline to Turkey and leave it to the Turks to on-sell to Europe.

We can easily forget that Russia is the largest country in the world and has a population of around 300 million people. It also still has a large nuclear missile strike force and is not easy to push around.

Putin is also working on shifting off SWIFT and onto an alternative means of sending money to foreign countries. China in particular. China is already running its own credit card system like VISA and Mastercard and in combination with others in the BRICS group they are obviously setting up an alternative financial system to challenge the mighty US dollar.

It now looks as if the world is splitting into two major blocs. West and East. Russia and China seem determined to keep foreign relations on a friendly basis of non-interference with politics in other countries and establish free trade agreements without onerous conditions designed to obtain control over the other party.

Gold, unsurprisingly, continues to shift from West to East.

It would be interesting to examine the difference between New Zealand's free trade agreement with China and the proposed (but highly secret) agreement with the United States of America.

Preferably before signing our rights away.


Jan 19, 2015, 12:25