A fact: America is borrowing $1 billion every six and a half hours.  That’s just one of the reasons why their credit rating has been downgraded for the first time in history.

While the doom and gloomers postulate that it is all bad news for us, the good news is that we are better off than most.

For years we have been running a current account deficit funded mainly by borrowing from overseas.

Now our position has improved a lot, because New Zealanders and businesses have been saving. The National-led government has made its fiscal position stronger to require less borrowing from overseas.

We are in a better position today as a country than three years ago.  It is a matter of maintaining this financial rigour and continuing to save to fund our economic growth.  The Government is set on doing just that.