web analytics

Away with the economic fairies

Written By: - Date published: 7:02 am, September 1st, 2015 - 40 comments
Categories: business, economy, john key, making shit up, spin - Tags: , , , , ,

John Key has been spinning so hard on the economy that he is now prepared to argue, with a straight face, that black is white:

John Key claims mood ‘reasonably positive’ as optimism hits six year low

Prime Minister John Key insists the mood of the business sector is “reasonably positive”, as confidence falls to the lowest level since the height of the global financial crisis.

Labour’s Grant Robertson said Key was painting a “dishonest picture” as there was no sensible reading which suggested the survey was positive. …

Here’s The Herald’s coverage:

BNZ grows worried about ‘near-recession’ as Key talks economy up

The Bank of New Zealand is increasingly concerned the economy is grinding to a halt following today’s confirmation in the ANZ Bank Business Outlook survey of slumping business confidence.

“As each day passes, the likelihood of our alternative scenario, of an economy stumbling to near-recession, increases,” said head of research Stephen Toplis in analysis released at much the same time as Prime Minister John Key was telling journalists it was important to “keep Chicken Licken at bay” and not talk the economy down.

However, Key’s comments were undermined when it became apparent he had either misread or been wrongly briefed on the results of the ANZ survey, which showed a net 29 percent of businesses were pessimistic about the outlook for the economy, the lowest level of business confidence in six years, when New Zealand was starting to recover from the global financial crisis. Key had claimed that sentiment was still in positive territory. …

So was Key “misread” or “wrongly briefed” as The Herald would have it, or was he just spinning (lying through his teeth) because he always gets away with it? Either way it’s unacceptable.


40 comments on “Away with the economic fairies ”

  1. Nick 1

    Lying through his teeth. The worst bit is, he doesn’t care that he is lying.

    • weka 1.1

      +1, worse still is that we have a media that lets him, and a population that appears not to notice or care or both.

      • RedLogix 1.1.1

        A form of mass self-delusion. Always ends in tears.

        • tinfoilhat

          @RL pretty much exactly what I was saying to myself during last years “moment of truth” fiasco at the Auckland Town Hall.

          I would expect that Key and English are fully aware of how grim the economy is looking, what would be encouraging is some actual action rather than trying to talk it up. Unfortunately that’s all we tend to get from National and Labour MoF’s and if we are to change that something new must be tried and from where I sit only the Green Party has a viable alternative economic plan.

          I’m also a supporter of Capital Gains Tax, Increased progressive taxation combined with a UBI, scrapping of working for families and means testing for Super – although I’m doubtful whether any party will run with those as they are all deemed to be politically toxic.

          • weston

            do u mean when you say fiasco tfh the self defeating tactics used by most of the bigger parties including labour to bring down a fledgling minor partywhich if it had flew could have been a very usefull and willing coallition partner ?A fledgling party which might have managed to encourage the youth vote which might have given some of that huge appathetic block of voters who currently want to not vote at all somewhere to place their trust ,the current goverment has all the room it wants to manuvere thanks to its spindoctors and a ready public appitite for lies Seems that you took a bite or two ?

    • esoteric pineapples 1.2

      A possible campaign song for National for the next election? – J J Cale’s “Lies” – https://www.youtube.com/watch?v=L_xbZMQCfqo

    • Raf 1.3

      Lying? But sane people only lie when they think they can fool people. You sure he isn’t simply insane?

      • RedLogix 1.3.1

        The people want to be fooled.

      • emergency mike 1.3.2

        A leading researcher of psychopathy observed that psychopaths would lie to him even when they they knew that he knew they were lying. He has posited that for them the concepts of truth and lying are a bit different than for the rest of us. It’s as if on a fundamental level they believe they can make the reality they want by lying it into existence. Black is white if they tell you it is. He even thinks that the defensive hurt and annoyance they express when their lies are challenged might even be partially genuine – you are attacking their desired reality by superimposing another one on top of it. How rude: you might need to be dealt with.

  2. Kevin 2

    Maybe his new BFF Richie told him everything was sweet and that was good enough for the Minister of the AB’s.

  3. dukeofurl 3

    “Prime Minister John Key insists the mood of the business sector is “reasonably positive”,

    Thats the thing you would say if you were “shorting the shares” on the sly

    I think we had it all wrong…. its Key who has his head up Hoskings arse!

  4. gsays 4

    the worrying aspect is that the leaders response to the survey is firmly rooted in his background as a currency speculator.

    its all about perception, so just keep talking it up and keep up the facade.

    back in 2007/2008 the financial derivative products were still being talked up, sold and rated as safe by the ratings agencies. until it it all turned to custard.

    its just like south parks officer barbrady “move on, theres nothing to see here”

    • JanM 4.1

      Even more worrying is that there is no-one in the MSM really outing him – there’s no sign of the above graph which would clearly demonstrate the BS in either The Herald or Stuff

  5. Glenn 5

    And Taranaki that is rabidly National is a great example of “reasonably positive”.


    Taranaki is at the bottom of the economic heap according to new data released this month.

    ANZ Bank’s August regional trends report states that the region recorded the lowest level of economic activity in the country for the second quarter running….
    According to Statistics New Zealand, unemployment in Taranaki sat at 7.3 per cent at the end of June, one of the worst rates in New Zealand. The ANZ report also stated Taranaki had the largest fall in terms of job growth across the country.
    The report points to the joint economic misfortunes of the oil and dairy industries as the key reasons to why Taranaki’s economy has gone into “stall mode.”

  6. ianmac 6

    Mr Key is able to spin the opposite of that which is true because he knows that the ordinary voter will just hear “reasonably positive” and get on with the daily living. Cynical politics I suppose.

  7. ianmac 7

    From “Peter Lyons: Nothing but spin coming from our Government.”
    Peter collects all the Government spinning together for those who are blind.
    When the boom in world dairy prices was at its peak this sector was of crucial importance to our economy. Nowadays our political leaders are eager to downplay the importance of dairying to our economy. Mr English said recently we need to be aware that dairying is only 20 per cent of our exports.

    World dairy prices have plummeted and the Chinese economy has the wobbles but any mention of the ” R” word is ugly self defeating pessimism. We don’t mention recessions these days. Slowdowns are far more benign.

    Peter sounds peeved for some reason.

  8. Tracey 8

    But…but… but what IS the alternative…


  9. JanMeyer 9

    Leaving aside what is undoubtedly spin from the PM (surprsied you are suprised!), this survey will inevitably always have to record from time to time the collective view that the economy will not continue to “improve”, unless you are suggesting that there is a Labour led universe where the economy will keep on growing and “improving” at the same or better rate and the graph can always shape upwards? What policy settings could create this utopian world? And given “progressive” sentiments that reject the whole notion of permanent economic “growth” how would these policies fit with coalition scenarios on the left of NZ politics?

    • JanM 9.1

      But, JanMeyer, it’s not the economy that’s the point; it IS the spin. And I don’t think anyone’s surprised at him so much as the great unwashed that swallow this BS

  10. linda 10

    Does key know what truth looks like. ??? Or. For torries is this the way they beleave the world is
    And. Dont. Dare brake the glass. Floor

  11. infused 11

    The confidence surveys a load of shit. It doesn’t reflect economic reality at all.

    All it does is scare a lot of smaller businesses to not spend. That’s why I refuse to take part in it any more.

    • Colonial Viper 11.1

      Debtor applications for bankruptcy up 24% this year compared to last.

    • The Chairman 11.2

      The fact negative communications can talk the economy down, merely shows how fickle this house of cards is.

    • photonz 11.3

      In some ways it’s a more important indicator than the actual economy.

      Because it’s confidence that dictates future planning on whether companies will be taking on more staff, expanding production, buying more plant, and increasing spending with their suppliers of goods and services etc.

      Companies can have a good year, but if they’re not confident next year will be as good then they won’t be so likely to increase spending.

      • Draco T Bastard 11.3.1

        Which, at the base of it, explains why capitalism simply doesn’t work. Relying on the confidence of a bunch of egotistical maniacs ability to make a profit while they screw down the workers obviously isn’t going to bring about the best result.

  12. Blue 12

    This is classic Key. Every time he gets caught with his pants down he just insists that his pants were up and his belt was buckled and anyone who saw different was mistaken. The media duly reports that the PM’s pants may have been a bit low-riding but they were definitely never down, despite some crazy left-wing conspiracy theorists insisting they saw his arse. The public defend their poor, put-upon PM and heartily approve of the nice pair of pants he’s wearing.

    Works like a charm every single time.

  13. Mike the Savage One 13

    A PM same as Finance Minister will of course do all to not talk the economy down further than it may already be, there is no surprise in that.

    What I am starting to fear is that we are indeed at a rather high risk to head into a global recession, as China has reached its growth limits, for time being at least.

    As it is now the world’s second largest economy, this will impact on most other economies, certainly also New Zealand. And look at Brazil, South Africa, Russia and many other places, including for instance Malaysia, the picture is getting grim.

    But while power gives people a psychological boost, like our dear Mr Key, it also does lead to losing touch, the more so the longer one holds ultimate power.

    It is time for John Key to prepare his bunker, for the hard times, that will inevitably come, and lead to many losing faith in him, perhaps trying to hunt him down for what he has done to a sold out nation.

Recent Comments

Recent Posts

  • NZ announces a third P-3 deployment in support of UN sanctions
    The Government has deployed a Royal New Zealand Air Force P-3K2 Orion (P-3) maritime patrol aircraft to support the implementation of United Nations Security Council (UNSC) resolutions imposing sanctions against North Korea, announced Minister of Foreign Affairs Winston Peters and Minister of Defence Ron Mark. “New Zealand has long supported ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Pacific trade and development agreement a reality
    Pacific regional trade and development agreement PACER Plus will enter into force in 60 days now that the required eight countries have ratified it. Trade and Export Growth Minister David Parker welcomed the announcement that the Cook Islands is the eighth nation to ratify this landmark agreement. “The agreement represents ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Securing a pipeline of teachers
    The Government is changing its approach to teacher recruitment as COVID-19 travel restrictions continue, by boosting a range of initiatives to get more Kiwis into teaching. “When we came into Government, we were faced with a teacher supply crisis,” Education Minister Chris Hipkins said. “Over the past three years, we ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Border exceptions for a small number of international students with visas
    The Government has established a new category that will allow 250 international PhD and postgraduate students to enter New Zealand and continue their studies, in the latest set of border exceptions. “The health, safety and wellbeing of people in New Zealand remains the Government’s top priority. Tight border restrictions remain ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • First COVID-19 vaccine purchase agreement signed
    The Government has signed an agreement to purchase 1.5 million COVID-19 vaccines – enough for 750,000 people – from Pfizer and BioNTech, subject to the vaccine successfully completing all clinical trials and passing regulatory approvals in New Zealand, say Research, Science and Innovation Minister Megan Woods and Health Minister Chris Hipkins. ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • International statement – End-to-end encryption and public safety
    We, the undersigned, support strong encryption, which plays a crucial role in protecting personal data, privacy, intellectual property, trade secrets and cyber security.  It also serves a vital purpose in repressive states to protect journalists, human rights defenders and other vulnerable people, as stated in the 2017 resolution of the ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Ministry of Defence Biodefence Assessment released
    The Ministry of Defence has today released a Defence Assessment examining Defence’s role across the spectrum of biological hazards and threats facing New Zealand. Biodefence: Preparing for a New Era of Biological Hazards and Threats looks at how the NZDF supports other agencies’ biodefence activities, and considers the context of ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Approaches to Economic Challenges: Confronting Planetary Emergencies: OECD 9 October 2020
    New Approaches to Economic Challenges: Confronting Planetary Emergencies: OECD 9 October 2020 Hon David Parker’s response following Thomas Piketty and Esther Duflo. Good morning, good afternoon, and good evening, wherever in the world you might be. I first acknowledge the excellent thought provoking speeches of Thomas Piketty and Esther ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Kaipara Moana restoration takes next step
    A Memorandum of Understanding has been signed today at Waihāua Marae between the Crown, local iwi and councils to protect, restore and enhance the mauri of Kaipara Moana in Northland. Environment Minister David Parker signed the document on behalf of the Crown along with representatives from Ngā Maunga Whakahī, Ngāti ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Zealand and Uruguay unite on reducing livestock production emissions
    Agriculture Minister Damien O’Connor and Uruguayan Minister of Livestock, Agriculture and Fisheries Carlos María Uriarte have welcomed the launch of a three-year project that will underpin sustainable livestock production in Uruguay, Argentina, and Costa Rica.  The project called ‘Innovation for pasture management’ is led by Uruguay’s National Institute of Agricultural ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • 3100 jobs created through marae upgrades
    Hundreds of marae throughout the country will be upgraded through investments from the Provincial Growth Fund’s refocused post COVID-19 funding to create jobs and put money into the pockets of local tradespeople and businesses, Regional Economic Development Minister Shane Jones and Māori Development Minister Nanaia Mahuta have announced. “A total ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Health volunteers recognised in annual awards
    Health Minister Chris Hipkins has announced 9 teams and 14 individuals are the recipients of this year’s Minister of Health Volunteer Awards.  “The health volunteer awards celebrate and recognise the thousands of dedicated health sector volunteers who give many hours of their time to help other New Zealanders,” Mr Hipkins ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Community COVID-19 Fund supports Pacific recovery
    The Minister for Pacific Peoples, Aupito William Sio says a total of 264 groups and individuals have successfully applied for the Pacific Aotearoa Community COVID-19 Recovery Fund, that will support Pacific communities drive their own COVID-19 recovery strategies, initiatives, and actions. “I am keen to see this Fund support Pacific ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Community benefits from Māori apprenticeships
    Up to 50 Māori apprentices in Wellington will receive paid training to build houses for their local communities, thanks to a $2.75 million investment from the Māori Trades and Training Fund, announced Employment Minister Willie Jackson today. “This funding will enable Ngāti Toa Rangatira Incorporated to provide its Ngā Kaimahi ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Training fund supports Māori jobseekers
    Rapidly growing sectors will benefit from a $990,000 Māori Trades and Training Fund investment which will see Wellington jobseekers supported into work, announced Employment Minister Willie Jackson today. “This funding will enable Sapphire Consultants Ltd. to help up to 45 Māori jobseekers into paid training initiatives over two years through ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Ruakura Inland Port development vital infrastructure for Waikato
    The Government is investing $40 million to develop an inland port at Ruakura which will become a freight super-hub and a future business, research and residential development for the Waikato, Urban Development and Transport Minister Phil Twyford, and Māori Development Minister Nanaia Mahuta announced today. The funding has been has ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Appointments made to Defence Expert Review Group
    Defence Minister Ron Mark announced today the establishment of an Expert Review Group to review a number of aspects of the New Zealand Defence Force’s (NZDF) structure, information management and record-keeping processes.  The Expert Review Group’s work arises out of the first recommendation from the Report of the Government’s Inquiry ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • No active community cases of COVID-19
    There are no active community cases of COVID-19 remaining in the country after the last people from the recent outbreak have recovered from the virus, Health Minister Chris Hipkins said today. “This is a big milestone. New Zealanders have once again through their collective actions squashed the virus. The systems ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Clean energy upgrade for more public buildings
    More public buildings will be supported by the Government to upgrade to run on clean energy, the Minister for Climate Change James Shaw announced today. Minister Shaw announced that Lincoln and Auckland universities will receive support through the Clean-Powered Public Service Fund to replace fossil fuel boilers. Southern, Taranaki, and ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Schools back donations scheme for the second year
    More schools have opted in to the donations scheme for 2021, compared to 2020 when the scheme was introduced. “The families of more than 447,000 students will be better off next year, with 94% of eligible schools and kura opting into the scheme,” Education Minister Chris Hipkins said. “This is ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Ruapehu cycle trails gets PGF boost
    The spectacular Mountains to Sea cycle trail in Ruapehu District will receive $4.6 million in funding from the Provincial Growth Fund for two additional trails, Regional Economic Development Minister Shane Jones announced today. “This is an exciting development for the local community, and one that will provide significant economic opportunities ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Update to air border order strengthens crew requirements
    Additional measures coming into effect on Monday will boost our defence against COVID-19 entering New Zealand through the air border, Health Minister Chris Hipkins said today. “As part of our precautionary approach and strategy of constant review, we’re tightening the requirements around international aircrew,” Chris Hipkins said. The COVID-19 Public ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • A true picture of Māori business activity
    A better picture of the contribution Māori businesses make to the economy will be possible with changes to the way information is collected about companies and trading enterprises. Māori Development Minister Nanaia Mahuta and Small Business Minister Stuart Nash have announced a new option for Māori enterprises who are part ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • PGF funding for Taranaki projects
    The South Taranaki museum, a New Plymouth distillery and a Pasifika building firm will benefit from a Government investment totalling more than $1 million, Regional Economic Development Minister Shane Jones says. The $1.05m in grants and loans from the Provincial Growth Fund (PGF) will help the recipients expand and create ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Fijian Language Week 2020 inspires courage and strength during COVID-19 pandemic
    The Minister for Pacific Peoples, Aupito William Sio says the theme for the 2020 Fijian Language Week reflects the strong belief by Fijians that their language and culture inspires courage and strength that is strongly needed in times of emergencies, or through a significant challenge like the global COVID-19 pandemic ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Trades training builds on iwi aspirations
    An investment of $2.025 million from the Māori Trades and Training Fund will support Māori to learn new skills while making a positive difference for their communities, announced Employment Minister Willie Jackson today. “K3 Development Limited Partnership will receive $2,025,000 for its Takitimu Tuanui apprenticeship programme, which will support the ...
    BeehiveBy beehive.govt.nz
    3 weeks ago