web analytics
The Standard

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. 

Recent Comments

Recent Posts

  • Bullying contributes to Auckland being stripped of ICU training
    Complaints of bullying and harassment by supervisors which have contributed to Auckland’s critical care department losing its training accreditation are further evidence of the appalling culture at executive level, Labour’s Health spokesperson Annette King says. “The department had its accreditation… ...
    2 days ago
  • Broadband failure sucks up more cash
    The Commerce Committee has blocked an inquiry into the $300 million rural broadband initiative (RBI) despite mounting evidence it’s a massive policy failure and waste of money, says Labour’s ICT spokesperson Clare Curran. “The Government is about to spend an… ...
    3 days ago
  • TISA – Another secret trade deal you may never have heard of
      This post first appeared on The Daily Blog You’ve probably heard of the Trans-Pacific Partnership Agreement (TPPA) by now and the widespread concerns around it but what about the Trade in Services Agreement (TISA) also being currently negotiated by… ...
    GreensBy Gareth Hughes MP
    3 days ago
  • Health chickens coming home to roost as Dunedin loses right to train doctor...
    News today that Dunedin Hospital has lost orthopaedic training accreditation is a major blow and proves the Government’s prevarication is having devastating consequences, Labour’s Health spokesperson Annette King says. “Losing orthopaedic advanced training is serious. There is a knock on… ...
    4 days ago
  • $74,000 quarterly rise shows crisis out of control
    New figures out today showing Auckland house prices have spiked by a massive $74,000 in the past quarter is further evidence the city’s housing crisis has spiralled out of control, Labour’s “In spite of constant announcements and photo opportunities from… ...
    4 days ago
  • Democracy for Nauru now
    Murray McCully must send the strongest possible message to the Nauruan Government that New Zealand does not condone its actions given the disturbing developments there, Labour’s Foreign Affairs spokesperson David Shearer says. “Right now we are seeing Nauru stripped of… ...
    4 days ago
  • Recovery needs more than a rebrand
    Today’s announcement of new governance arrangements for Canterbury seems to be nothing more than a fresh coat of paint on the same old approach, says Labour’s Canterbury Earthquake Recovery spokesperson Ruth Dyson. “The Canterbury Recovery has been too slow, with… ...
    4 days ago
  • Copper decision a victory for status quo, not Kiwi households
    New Zealanders hoping for cheaper copper broadband will be disappointed by the Commerce Commission’s latest decision in the long running saga to determine the price of copper, Labour’s ICT spokesperson Clare Curran says. “In an apparent attempt to appease everyone,… ...
    4 days ago
  • It’s time for hard decisions in the Bay
     The Ruataniwha dam project is turning into a huge white elephant as the economics fail to stack up, says Labour’s Water spokesperson Meka Whaitiri.  “Ruataniwha simply doesn’t make economic sense when you look at other major irrigation schemes around the… ...
    4 days ago
  • More testing won’t lift student achievement
    Hekia Parata’s latest plan to subject school students to even more testing and assessment won’t do anything to lift the educational achievement of the kids who are struggling, Labour’s Education spokesperson Chris Hipkins says. “New Zealand school students are already… ...
    4 days ago
  • Bad week for NZ economy gets worse
    The bad news for the New Zealand economy got worse this morning with the 8th successive drop in dairy prices at this morning’s global dairy auction, again exposing the absence of any Plan B from the National Government, Labour’s Finance… ...
    4 days ago
  • System failing to protect women and children from family violence
    Last week we called for mandatory child safety investigations in domestic violence cases. This came after the coronial inquiry into the deaths of Bradley and Ellen Livingstone and the verdict in the trial of the west Auckland boys charged with… ...
    GreensBy Jan Logie MP
    5 days ago
  • Backers banking on social bonds cash?
    The Government is refusing to say what the $29 million it has set aside for its controversial social bonds programme is for, raising suspicions it is an upfront payment to the project backers, Labour’s Health spokesperson Annette King says. A… ...
    5 days ago
  • Plastic Free July
    Today is the start of Plastic Free July. Since its inception in Perth, Western Australia four years ago, more and more people and organisations from around the world have joined the call to refuse single use plastic products. Nearly all… ...
    GreensBy Denise Roche MP
    5 days ago
  • State house sell off Bill gives extraordinary powers
    The Government is about to give Ministers extraordinary powers to take direct personal control of selling state houses, exempting Ministers from normal legal requirements and leaving the sale process wide open for corruption, Labour's Housing spokesperson Phil Twyford says. The… ...
    5 days ago
  • Cash for charter schools, mould for state schools
    At a time when state schools are struggling in old, cold, mouldy buildings and can barely make ends meet, the National Government is shovelling cash at charter schools which aren’t even spending the funding on kids’ education, Labour’s Education spokesperson… ...
    5 days ago
  • New Zealand needs a wise response to climate change
    Today in Parliament I got to hear from a group of New Zealanders who are concerned for the future of our country. Called Wise Response, the group is a broad coalition of academics, engineers, lawyers, artists, sportspeople and others who… ...
    GreensBy Russel Norman MP
    5 days ago
  • No alternative as waste scheme trashed
    Nick Smith must explain how he is going to prevent contamination of New Zealand’s ground and water with liquid and hazardous waste after scrapping the only monitoring scheme and offering no replacement, says Labour’s Environment Spokesperson Megan Woods. “From today,… ...
    5 days ago
  • Flawed system rates death traps as safe
    ACC Minister Nikki Kaye needs to come clean about what really lies behind the reclassification of 18 vehicles in her new motor vehicle registration system introduced today, Labour’s ACC spokesperson Sue Moroney says. "New Zealanders deserve the truth about the… ...
    5 days ago
  • Tiwai Smelter and 800 workers left in limbo
     Workers at Tiwai smelter and the people of Southland have once again been left in limbo over their future in the ongoing debacle over whether the plant stays open, says Labour’s Leader Andrew Little.  “It’s not good enough that after two years of… ...
    5 days ago
  • New twist in state house sell-off saga
    The Government has opened the door to buyers of state houses simply being landlords and not required to provide social services, Labour’s Housing spokesperson Phil Twyford says. The Prime Minister said at his post-Cabinet press conference buyers would not “have… ...
    5 days ago
  • Government fees will hit charities hard
    National’s decision to ignore the concerns of charities will see the voluntary sector face hundreds of thousands of dollars in new costs if the Policing (Cost Recovery) Amendment Bill passes, says Labour's Community and Voluntary Sector spokesperson Poto Williams. “National’s… ...
    6 days ago
  • Four out of ten for Simon’s Bridges
    The Transport Authority’s decision to fund only four of the 10 bridges promised in National’s shameless Northland by-election bribe is a huge embarrassment for Transport Minister Simon Bridges, Labour’s Transport spokesperson Phil Twyford says. “After one by-election poll showed they… ...
    6 days ago
  • Falling consents adding to Auckland housing woes
    Falling numbers of building consents being issued in Auckland will add to the city’s housing shortfall and fuel skyrocketing house prices, Labour’s Housing spokesperson Phil Twyford “The Productivity Commission found there was a shortfall of around 32,000 houses by the… ...
    6 days ago
  • So Mr English, do you have a plan?
    DIpping confidence about jobs, wages and shrinking exports are highlighting the lack of a plan from the government to diversify the economy and build sustainable growth, Grant Robertson  Labour’s Finance Spokesperson said. " Data released over the last week… ...
    6 days ago
  • Serious risks to tenants and assets in sell-off
    Overseas evidence shows there are serious risks around the Government's plan to sell off state houses to social housing providers, Opposition Leader Andrew Little says. “In the Netherlands – where community housing providers supply the majority of social housing –… ...
    6 days ago
  • Land of milk and money
    Kiwi families are paying over the top prices for their milk and someone is creaming off big profits, says Labour’s Consumer Affairs spokesperson David Shearer. “In 2011 the Government told us high New Zealand milk prices were a natural result… ...
    1 week ago
  • MoBIE largesse doesn’t stop with TVs and hair-straighteners
    The number of MoBIE staff earning more than $150,000 has risen 23 per cent in just a year, Labour’s Economic Development Spokesperson David Clark says. Documents obtained from the Ministry of Business, Innovation and Employment show there are now nearly… ...
    1 week ago
  • English wants to flog state houses to Aussies
    Bill English’s admission that he would sell hundreds of New Zealand’s state houses to the Australians is the latest lurch in the Government’s stumbling, half-baked housing policy, Labour’s housing spokesperson Phil Twyford says. “Bill English should face reality and admit his… ...
    1 week ago
  • Exports continue to fall as Government fails to diversify
    The Government quickly needs a plan to diversify our economy after new figures show that exports are continuing to fall due to the collapse in dairy exports, Labour's Finance Spokesperson Grant Robertson says. “Dairy exports fell 28 per cent compared… ...
    1 week ago
  • Government inaction leads to blurring of roles
    The Treasury wouldn’t have had to warn the Reserve Bank to stick to its core functions if the Government had taken prompt and substantial measures to rein in skyrocketing Auckland house prices, Labour’s Finance spokesperson Grant Robertson says. “The problems… ...
    1 week ago
  • Courthouse closures hitting regions
    The Government’s decision to shut down up to eight regional courthouses, some supposedly only temporarily for seismic reasons, looks unlikely to be reversed, Labour’s Justice spokesperson Jacinda Ardern says.“The move has hit these regions hard, but appears to be a… ...
    1 week ago
  • A Victory for Te Tiriti o Waitangi
    This week my partner, who has a number of professions, was doing an archaeological assessment for a District Council. He showed me the new rules around archaeologists which require them to demonstrate “sufficient skill and competency in relation to Māori… ...
    GreensBy Catherine Delahunty MP
    1 week ago
  • Tough bar set for Ruataniwha dam
     Today’s final decision by the Tukituki Catchment Board of Inquiry is good news for the river and the environment, says Labour’s Water spokesperson Meka Whaitiri. “Setting a strict level of dissolved nitrogen in the catchment’s waters will ensure that the… ...
    2 weeks ago
  • Minister for Women and National missing the mark – part two
    The Minister for Women was in front of the select committee yesterday answering questions about her plans for women. Some useful context is that we used to have a Pay and Employment Equity Unit within the then Department of Labour… ...
    GreensBy Jan Logie MP
    2 weeks ago
  • Lavish penthouse spend confirms culture of extravagance
    At the same time thousands of New Zealanders are being locked out of the property market, the Government is spending up on a lavish New York penthouse for its diplomats, Labour’s Foreign Affairs spokesperson David Shearer says. News that taxpayers… ...
    2 weeks ago
  • Māori Television exodus cause for concern
    The shock departure of yet another leading journalist from the Native Affairs team raises further concern the Board and Chief Executive are dissatisfied with the team’s editorial content, says Labour’s Māori Development spokesperson Nanaia Mahuta. “Annabelle Lee is an experienced… ...
    2 weeks ago
  • Million-plus car owners to pay too much ACC
    More than a million car owners will pay higher ACC motor vehicle registration than necessary from July, Labour’s ACC spokesperson Sue Moroney says. “During a select committee hearing this morning it was revealed that car owners would have been charged… ...
    2 weeks ago
  • Bill will restore democracy to local councils
    A new Labour Member’s Bill will restore democracy to local authorities and stop amalgamations being forced on councils. Napier MP Stuart Nash’s Local Government Act 2002 (Greater Local Democracy) Bill will be debated by Parliament after being pulled from the… ...
    2 weeks ago
  • Minister for Women again misses the mark – part one
    Yesterday I asked the Minister for Women about the government’s poor performance on it’s own target of appointing women to 45% of state board positions. I challenged why she’d put out a media release celebrating progress this year when the… ...
    GreensBy Jan Logie MP
    2 weeks ago
  • Banks enter Dragon’s Den in pitch for Government’s mental health experi...
    Overseas banks and their preferred providers were asked to pitch their ideas for bankrolling the Government’s social bonds scheme to a Dragon’s Den-style panel, Labour’s Health spokesperson Annette King says. Dragon’s Den was a reality television series where prospective ‘entrepreneurs’… ...
    2 weeks ago
  • Global Mode bullying won’t stop people accessing content
    It’s disappointing that strong-arm tactics from powerful media companies have meant Global Mode will not get its day in court. Today a settlement was reached terminating the Global Mode service, developed in New Zealand by ByPass Network Services and used… ...
    GreensBy Gareth Hughes MP
    2 weeks ago
  • More questions – why was the Former National Party President involved wit...
    Today in Parliament Murray  McCully said the reason Michelle Boag was involved in 2011 in the Saudi farm scandal was in her capacity as a member of the New Zealand Middle East Business Council. The problem with that answer is… ...
    2 weeks ago
  • Minister must explain Maori TV interference
    Te Ururoa Flavell must explain why he told Maori TV staff all complaints about the CEO must come to him – months before he became the Minister responsible for the broadcaster, Labour’s Broadcasting Spokesperson Clare Curran says. “Sources have told… ...
    2 weeks ago
  • KiwiSaver takes a hammering after the end of kick-start
    National seems hell bent on destroying New Zealand’s saving culture given today’s news that there has been a drop in new enrolments for KiwiSaver, says Labour’s Finance spokesperson Grant Robertson.  “New enrolments for the ANZ Investments KiwiSaver scheme have plunged… ...
    2 weeks ago
  • Straight answers needed on CYF role
    The Government needs to explain the role that Child, Youth and Family plays in cases where there is evidence that family violence was flagged as a concern, Labour’s Children’s spokesperson Jacinda Arden says. “The fact that CYF is refusing to… ...
    2 weeks ago
  • Prime Minister confuses his political interests with NZ’s interest
    The Prime Minister’s statement in Parliament yesterday that a Minister who paid a facilitation payment to unlock a free trade agreement would retain his confidence is an abhorrent development in the Saudi sheep scandal, Opposition leader Andrew Little says.  ...
    2 weeks ago
  • #raisethequota
    Last Saturday was World Refugee Day. I was privileged to spend most of my day with the amazing refugee communities in Auckland. Their stories have been inspiring and reflect the ‘can-do’ Kiwi spirit, even though they come from all different… ...
    GreensBy Denise Roche MP
    2 weeks ago
  • Dairy conversions causing more pollution than ever, report shows
    The Parliamentary Commissioner for the Environment (PCE) released two reports on freshwater quality and management last Friday. The water quality report shows that dairy conversions are hurting water quality and says that despite great efforts with fencing and planting, large… ...
    GreensBy Catherine Delahunty MP
    2 weeks ago
  • Employers want urgent action on health and safety
    Moves by National to water down health and safety reforms have been slammed by employers – the very group the Government claims is pushing for change, says Labour’s spokesperson for Labour Relations Iain Lees-Galloway. “The Employers and Manufacturers’ Association has… ...
    2 weeks ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere