web analytics
The Standard
Advertising

The reverse Midas touch: the gap with Australia

Written By: - Date published: 9:37 am, April 27th, 2012 - 19 comments
Categories: Economy - Tags: , ,

Remember when we elected that guy with all the financial experience because he would be able to guide us through the tough time better and close the gap with Australia? Oops.

The cumulative difference in GDP growth in Labour’s 36 quarters was 2.4%. The cumulative difference in GDP growth in National’s 13 quarters: 3.3%. The gap is widening four times faster under National.

19 comments on “The reverse Midas touch: the gap with Australia”

  1. Hayden 1

    Financial experience: making money using other people’s money to buy and sell money.

    Good for everyone except those whose currency is being bought and sold, I suppose.

    • bbfloyd 1.1

      i’m still waiting to hear how much johnny sparkles made personally out of being involved with selling down his own countries currency while at trust bank….

      an attack which, by the way, caused an awful lot of pain and hardship here..

      • Gosman 1.1.1

        The NZ dollar was deemed to be overvalued and so it proved to be. How is that causing a lot of pain and hardship here?

        BTW I think you mean Bankers Trust and I’m pretty certain that he didn’t have anything to do with it. Perhaps if you have some hard evidence though it might help your case.

        • McFlock 1.1.1.1

          Gos, you really like to spread your bullshit over a wide area, don’t you.
               
          For someone who claims to know about being a banker, you sure seem oblivious to the effect an overvalued currency has on an export-based economy. 
           

          • Gosman 1.1.1.1.1

            Ummmmm… McClock you do realise what the whole Bankers Trust incident that bbfloyd is likely referring to was all about ?

            Because your whole comment about how currencies being overvalued are damaging to an economy kind of seems stupid when put into the context we are discussing here.

            • McFlock 1.1.1.1.1.1

              Oh, you weren’t talking about speculators profiting off NZ currency over-valuation in the mid-late 1980s?
               

              • Gosman

                No I don’t actually think you realise what the attack was all about. You seem to think that the attack caused the overvaluation when it was all about taking a position that it would fall by short selling the currency. In a sense the attack was beneficial to exporters as it contributed to the NZ dollar falling. If John Key was involved you should be thanking him for helping the NZ export industry. Just goes to show how lefties like you don’t understand markets very well at all.

                • McFlock

                  Yeah, that’s the sort of shit you like to spread – note the contraction from “a lot of pain here” to debating the minutae of effects on exporters only. 
                       
                  I said “export-based economy”, not “exporters”. I’m sure they loved it for three minutes, until their imported materials went through the roof.

                  • Gosman

                    I was tempted to respond but the fact that when I look at it you are now trying to argue that a lower exchange rate hurts importers and possibly the wider economy as well means I can’t be bothered. Congratulations you have discovered that changes in the value of goods and services has positives AND negatives. Most high school economics students get taught this in the first year.

                    • McFlock

                      Congratulations, gos.
                       
                      I have no difficulty admitting that you won the debate you imagined you were having.
                           
                      One day that will coincide with what everybody actually wrote. Keep at it!

      • muzza 1.1.2

        Key and Krieger worked together, the timelines cross…people will form their own conclusions!

        Key has given himself away on many occasions with his own words!

        • Gosman 1.1.2.1

          Mere speculation there muzza.

          BTW why is an overvalued exchange rate beneficial compared with a lower exchange rate?

          Care to explain that logic Einstein?

        • muzza 1.1.2.2

          Get stuck into Wiki Gosman, its what you do best, Im not wasting another second on this response!

          Notice I said nothing about high or low currency, as it relates to this conversation, only that there is ample room for “speculation”, as you call it about Keys involvement!

          “Care to explain that logic Einstein”

          — Read your post bro, that last question makes no sense what so ever, given what I wrote!

          Silly boy!

          • Gosman 1.1.2.2.1

            You seem to think there was something wrong with what Krieger did. All he did was bet that the NZ Dollar was overvalued. In this he was proved right and made a shed load of money off it. Why is this wrong and what difference would it make if John Key was involved?

            • mike e 1.1.2.2.1.1

              Gooseman you have said many times in the past that futures trading is insurance now your saying it is gambling.
              Enough of your bs rambling.

              • Gosman

                Wrong.

                Let me illustrate the differences between short selling, futures, and options with a example involving your opinion.

                Imagine if your opinion on this matter had a value, one that meant people were willing to trade it.

                Let us say for the sake of the argument that the current value of your opinion was ‘Worthwhile’. This could be quite possible as people might regard your opinion as being of some consequence.

                However I regard your opinion as being ‘Almost worthless’ (i.e. much,much less than the current value). I think it is is seriously over valued at this point in time because I don’t think you have a clue what you are thinking on this subject.

                I haven’t currently invested in your opinion because of my view that it is over valued. So how do I make money off my view?

                If I sell your opinion to people who regard it higher than I do at a price less than it is currently regarded as when I don’t own any of it then that is short selling.

                Say I sell it to for a value ‘Has a few flaws but generally okay’. The person buying might think they are getting a bargain but I continue to sell your opinion at a lower and lower value but still above where I think it is worth.

                Soon people might start to question the real value of your opinion and might start valuing it even lower and in fact regard it as ‘Almost worthless’. This is where I make my money.

                I will then purchase a bunch of your opinions at the lower value and pass them on to the people who wanted your opinion at the higher value. That is short selling.

                This is different from Futures which has to do with the value of your opinion in say 12 months time from now. Obviously if your opinion isn’t worth much now the value of it will be low in the future. I can insure against the chance of you getting some sense by buying or selling your future opinion now. This is the insurance I spoke of previously. I want to protect myself from the chance that your opinion has changed dramatically in this time

                An option is merely me buying the right to buy or sell your future opinion at a particular value. I don’t necessarily need your opinion in the future but if it is substantially different from the value that the option I bought it at then I might make something from it.

                Quite obviously the price of the future and option on your opinion is related to the current value. It is where the complexity comes into the equation especially for options.

  2. Stickler 2

    Where is your source for these figures?

    • bbfloyd 2.1

      where’s your chart to prove this one’s wrong sticky one?

      • Stickler 2.1.1

        I have none, but in the interests of academic rigour, I think a cited data source should be provided so the reader can verify the charts veracity for themselves. 

Important links

Recent Comments

Recent Posts

  • Recognizing Palestine: The European Parliament Votes
    Last week I wrote a blog drawing attention to Sweden’s formal recognition of the state of Palestine (the second Western state to do so after Iceland).  That move has created ripples throughout the international community. In recent months the parliaments… ...
    GreensBy Kennedy Graham MP
    2 days ago
  • Recognizing Palestine: The European Parliament Votes
    Last week I wrote a blog drawing attention to Sweden’s formal recognition of the state of Palestine (the second Western state to do so after Iceland).  That move has created ripples throughout the international community. In recent months the parliaments… ...
    GreensBy Kennedy Graham MP
    2 days ago
  • Recognizing Palestine: The European Parliament Votes
    Last week I wrote a blog drawing attention to Sweden’s formal recognition of the state of Palestine (the second Western state to do so after Iceland).  That move has created ripples throughout the international community. In recent months the parliaments… ...
    GreensBy Kennedy Graham MP
    2 days ago
  • Minister has work to do over Xmas
    Red flags raised in a multi-agency review into how Phillip Smith was able to flee the country highlight the inadequacies of those very same agencies not having red flags in place that would have notified them of his plans, says… ...
    2 days ago
  • Minister has work to do over Xmas
    Red flags raised in a multi-agency review into how Phillip Smith was able to flee the country highlight the inadequacies of those very same agencies not having red flags in place that would have notified them of his plans, says… ...
    2 days ago
  • Minister has work to do over Xmas
    Red flags raised in a multi-agency review into how Phillip Smith was able to flee the country highlight the inadequacies of those very same agencies not having red flags in place that would have notified them of his plans, says… ...
    2 days ago
  • Gerry Brownlee’s revolving airport door story
    A new report shows Gerry Brownlee is the latest Cabinet Minister to have contracted the infectious tell-porkies-until-you-are-caught disease, Labour’s Chief Whip Chris Hipkins says. “A Civil Aviation Report out today shows that despite being an extremely recognisable figure, Gerry Brownlee… ...
    2 days ago
  • Gerry Brownlee’s revolving airport door story
    A new report shows Gerry Brownlee is the latest Cabinet Minister to have contracted the infectious tell-porkies-until-you-are-caught disease, Labour’s Chief Whip Chris Hipkins says. “A Civil Aviation Report out today shows that despite being an extremely recognisable figure, Gerry Brownlee… ...
    2 days ago
  • Govt spend on transport out of step with reality
    The National Government is planning to allocate ever increasing amounts of taxpayer funding to build expensive new motorways despite record numbers of New Zealanders flocking to buses and trains, said the Green Party. The Government released its Government Policy Statement… ...
    GreensBy Julie Anne Genter MP
    3 days ago
  • Govt spend on transport out of step with reality
    The National Government is planning to allocate ever increasing amounts of taxpayer funding to build expensive new motorways despite record numbers of New Zealanders flocking to buses and trains, said the Green Party. The Government released its Government Policy Statement… ...
    GreensBy Julie Anne Genter MP
    3 days ago
  • Solar homes stymied by Govt inaction
    Government inaction is allowing the big power companies to discourage the nascent solar power sector, the Green Party said today. Green Party MP Gareth Hughes launched a petition today calling on the Government to empower the Electricity Authority to act… ...
    GreensBy Gareth Hughes MP
    3 days ago
  • Foreign buyers for iconic island must add value
    Labour will look very closely at any Overseas Investment Office application to purchase Pakatoa Island if it is not bought by a Kiwi, says Labour’s Land information Spokesperson Stuart Nash. “Pakatoa is an iconic island in the middle of Hauraki… ...
    3 days ago
  • Energy users need answers on Vector share plans
    Energy Minister Simon Bridges needs to stop ducking for cover about whether or not the Government will support plans to nationalise and then privatise $2.1 billion of shares in the Auckland Electricity Consumer Trust, Labour's Energy spokesperson Stuart Nash says. “It… ...
    4 days ago
  • Turning up the heat on working conditions
    A “Jobs That Count” campaign has the full support of Labour, the party’s Labour Relations spokesperson Iain Lees-Galloway says. Organised by the Meat Workers Union, the campaign aims to put the spotlight on job insecurity in the meat processing industry. ...
    4 days ago
  • Failure to diversify puts prosperity at risk
    Beyond the news that a long-promised surplus is unlikely, further embarrassment is hidden in the fine print of the half year economic and fiscal update, Labour says. "National’s failure to rebalance the economy is further exposed in projections from its… ...
    4 days ago
  • Ombudsman probe targets Ministerial integrity
    John Key is on notice that the entrenched cynical and manipulative abuse of official information requests by his Government will no longer be tolerated, Labour’s Open Government spokesperson Clare Curran says. “The announcement by the Ombudsman of a wide-ranging review… ...
    5 days ago
  • Bill English’s face is redder than his books
    The Government owes New Zealanders an apology for failing to deliver the surplus it spent four years and two election campaigns promising, says Labour’s Finance spokesperson Grant Robertson. “Bill English’s face is redder than the Crown accounts. This is the… ...
    5 days ago
  • Is the Health Minister accountable to the public? He doesn’t seem to thin...
    Lately I’ve been involved in a sort of farcical standoff with the Health Minister, who seems to be under the illusion that I have no right to ask questions about conflicts involving Health Promotion Agency Board member Katherine Rich, and… ...
    GreensBy Kevin Hague MP
    5 days ago
  • Irresponsible tax cuts lead to seventh successive deficit
    National's borrowing to pay for cutting the top tax rate was irresponsible and will likely lead to a seventh successive deficit, the Green Party said today. Treasury have forecast a $572 million deficit this year in its Half Year Economic… ...
    GreensBy Russel Norman MP
    5 days ago
  • Minister closes down dissent on climate change
    Minister closes down dissent on climate change In a threatening letter to Maori leaders, Minister for Climate Change Tim Groser says he will be requiring future international delegations to toe the party line, Labour’s Climate Change spokesperson Megan Woods says.… ...
    5 days ago
  • Farewell at Phillipstown
    Last Wednesday, I attended the farewell for Tony Simpson, Principal of Phillipstown School. It was a very emotional event where many of us in the large crowd shed tears. Bagpipes and tiny tamariki performing kapahaka brought the house down and… ...
    GreensBy Catherine Delahunty MP
    6 days ago
  • The CIA Torture Report
    Earlier this week, the United States Select Committee on Intelligence released the Committee Study of the Central Intelligence Agency’s Detention and Interrogation Program.  The report, which was five years in the making, looked into the CIA’s interrogation techniques from 2001… ...
    GreensBy Kennedy Graham MP
    1 week ago
  • Haere Rā 2014
    We’ve almost reached the end of the Parliamentary year so I wanted to take a moment to reflect on some of my highlights of the term in this blog post. It’s been an absolutely hectic year juggling an election campaign… ...
    GreensBy Gareth Hughes MP
    1 week ago
  • A welfare system for the 21st Century
    Today Child Poverty Action Group released a background paper on ‘The complexities of ‘relationship’ in the welfare system and the consequences for children.‘ The report includes 16 recommendations to modernise our welfare system which is no longer fit for the… ...
    GreensBy Jan Logie MP
    1 week ago
  • NZ should formally recognise Palestine
    New Zealand should follow the lead of Sweden, and now recognise Palestine as a separate state On 30 October, Sweden’s new government formally recognised the state of Palestine, only the second Western country to do so, after Iceland. Down here… ...
    GreensBy Kennedy Graham MP
    1 week ago
  • James Shaw’s adjournment speech on behalf of the Green Party
    It is a great honour for me to speak on behalf of the Green Party in this adjournment debate. I thank my colleagues for the privilege. I became a MP only 12 weeks ago, a period of time that seems… ...
    GreensBy James Shaw MP
    1 week ago
  • Government can’t rely on geothermal to grow itself
    While Electricity Authority figures showing geothermal has risen from the fourth to the second highest source of power generation are a promising sign for a geothermal renaissance, there can be no cause for complacency, Labour’s Energy spokesperson Stuart Nash says.… ...
    1 week ago
  • Big bickies for bosses despite subpar performance
    While public service workers are experiencing Grinch-like wage increases state sector bosses have pocketed early Christmas presents in the form of whopper pay hikes, Labour’s State Services spokesperson Kris Faafoi says. “Unbelievably State Services Commissioner Iain Rennie got an additional… ...
    1 week ago
  • Consent should come before research grants for phosphate mining
      The Government’s decision to make a grant by Callaghan Innovation to Chatham Rock Phosphate is highly questionable, says Labour’s Science spokesperson David Cunliffe.  “The fact is that the company still has to get a marine consent to mine the Chatham… ...
    1 week ago
  • A Tale of Two Farms
    Pig farming has yet again been thrust into the public view with two programmes this week on Campbell Live highlighting the very different conditions for pigs on two very different farms. The first programme exposed the awful conditions on… ...
    GreensBy Mojo Mathers MP
    1 week ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere