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Black Monday wasn’t so bad, John Key is worse

Written By: - Date published: 8:51 am, August 31st, 2015 - 37 comments
Categories: China, Economy, john key, national - Tags: , , ,

Well, the fallout from the latest stock market ‘correction’, this time in China, is still reverberating. However it is becoming clear. Not much has changed from the weeks and months before. The major affected major stock markets outside China are largely back to where they were. The economies that became too dependent on Chinese imports of raw materials like Aussie, us, much of Africa and South America, and many other parts of the world are still down.

Quite simply the Chinese stockmarket is such a small proportion of the Chinese economy as a leader in the Economist pointed out in “Taking a tumble“, that it’s fall was a symptom of internal confidence rather than a shift in the economic base.

So is this the hour of China’s crisis? Highly unlikely. Though the economy faces grave problems, the financial tumult is misleading. China’s stockmarket has long been derided as a casino, and for good reason. The bourse is small relative to the economy, with a tradable value of a third of GDP, compared with more than 100% in developed economies. Stocks and economic fundamentals have little in common. When share prices nearly tripled in the year to June, they no more reflected a stunning improvement in China’s growth prospects than their collapse since then has foreshadowed a sudden deterioration.

Less than a fifth of China’s household wealth is invested in shares; their boom did little to boost consumption and their crash will do little to slow it. Punters borrowed lots of money to buy stocks in good times, to be sure, and some of that debt will default. But it amounts to just 1% of total banking assets, a potential hit that, although unpleasant, is hardly systemic.

The property market matters far more for China’s economy than equities do. Housing and land account for the vast majority of collateral in the financial system and play a much bigger role in spurring on growth. Yet the barrage of bearish headlines about share prices has obscured news of a property rebound. House prices have perked up nationwide for three straight months. Two months after the stockmarket first crashed, this upturn continues.

That isn’t to say that the exchange doesn’t reflect fundamental underlying changes in the Chinese economy, it is. But as a casino, it lags a lot on the real economy. It means that the usual rush of gamblers to a new market that went bull happened. People threw their savings into the pot, and then borrowed to throw more in. Then most failed to exit early enough. Emily Rauhala at the Washington Post has an eloquent description of the classic pattern in a farming village in China  (well worth reading).

For Nan, the taste of fast money has been hard to forget. His wife, Wang, wants him back in the fields, but he believes he can recover what he lost, maybe more. If he is angry, he won’t say so, fulsomely praising the local chief and the Communist Party as he compulsively checks for market news on his phone.

For me, it reminds me of the once-were-millionaires in Auckland in 1989 as they tried to get rid of assets to clear debt and avoid bankruptcy. I believe most of them also followed their ever hopeful religious beliefs and went on to supporting the Act party.

The change that has been happening in China over a number of years has been the slowing of growth, and in particular the frantic infrastructure growth that China initiated in 2008/9 as a response to the GFC. That was perfectly placed to take advantage of the lower commodity prices as the other major industrial consumers faltered, and then to take advantage of the rising markets in the west as the GFC effects diminished there.

But now the housing are built, the rail lines in, and the infrastructure is largely done. So much of the need for many of those commodity imports has diminished.

On the downside, there is little chance this [housing] rebound will translate into a big acceleration in building activity, because Chinese developers still have to work through a glut of unsold homes, the legacy of their building frenzy of recent years. But the stabilisation of prices reduces the risk of a property-market crash—an event that would be for China what a stockmarket crash would be in America or Japan.

However the external markets are full and the massive potential Chinese internal market isn’t sucking up the supply.

Investors are now trying to delve beyond iPhone shipments and gauge where China’s economy—and so the world’s—stands. In terms of global impact, a “hard landing” in China would now rival an American depression. Countries from Australia to Angola have grown richer from digging stuff out of the ground and shipping it to China. Industries from carmaking to luxury goods look to China for new business. It has been the most stable contributor to world economic growth. Will that continue?

Certainly, there are reasons to think it is in trouble. Exports are stumbling, bad loans rising and the industrial sector at its weakest since the depths of the global financial crisis. Never entirely credible, the government’s claims that the economy is chugging along at 7% now elicit derision.

At present, skeptics think that the real Chinese growth rate is in the order of 2-3%. Less than that of the US at 3.7%.

For the next few years, the bulk of the issue with the Chinese slowdown will be to do with the developing economies who have been supplying China with raw materials. Their exports and export prices on commodities have dropped and are unlikely to rise any time soon.

The Guardian has a useful simplified interactive graphic to demonstrate what likely effects on commodity suppliers is likely to be.

Guardian_china_import_drop_effects

Click to enter interactive page

Needless to say, because of the John Key government’s headlong pursuit of dairy and other agricultural/forestry commodity sales in the last 7 years, New Zealand is one of the countries most at risk of slowdowns in imports from China. However we have a double whammy because our next biggest trading partner is Australia, who are just about as badly exposed in a completely different area of minerals. It is unlikely that the kiwi economy will sidestep both issues.

John Key seems to prefer us to be a developing world commodity trader, without any significiant intellectual property in the bulk of our exports. Certainly in the last 7 years, his government has systematically removed almost all of the economic inducements to develop more advanced products for selling offshore, while at the same time using the power of the state to favour dairy. This leaves us at the mercy of not only of competitors entering the low bar of dairy farming, but also to downturns in particular markets like China.

Black Monday on the casino Chinese stock markets wasn’t a particular problem for New Zealand. Living with the consequences of  John Key’s short-term thinking government will be. Both us and our next biggest trading partner Australia are heavily exposed to falling Chinese imports and falling commodity prices. That is going to hurt even more than now over the coming years.

37 comments on “Black Monday wasn’t so bad, John Key is worse”

  1. Pat 1

    good broad summary..would add one observation however,although there is a complete disconnect between the SE and the economy in China, even more so than the west, the panic occured when the realisation of that fact hit home coupled with the actions ,or lack of ,of the Chinese gov not continuing to prop up the casino….though the countless billions of good money after bad was ultimately reinstated when they could see no bottom…..the phrase “kicking the can down the road” appears to travel.
    As Mr Williams is wont to say, watch this space.

  2. Draco T Bastard 2

    John Key seems to prefer us to be a developing world commodity trader, without any significiant intellectual property in the bulk of our exports.

    That seems to be a National Party characteristic. Commodities are cheap and easy to produce and thus don’t require huge amounts of investment in development. This translates into higher profits for the owners – until commodity prices drop due to everyone getting on the bandwagon as has happened over the last few years.

    Black Monday on the casino Chinese stock markets wasn’t a particular problem for New Zealand. Living with the consequences of John Key’s short-term thinking government will be.

    Again, that’s not specific to John Key but to the National Party in general and National Governments in particular. They do cheap and easy and then whinge when it no longer works. They simply don’t seem to have the intellectual capacity to think in the complex terms of an entire economy. IMO, it’s this lack in the intellectual abilities that draws the right-wing into supporting free-markets and specialisation. They like the idea of specialising an entire economy because they can understand it that way whereas they can’t understand it in it’s full complex glory.

  3. Detrie 3

    Good summary. The whole short term, commodity trader thinking is perhaps a natural strategy when we have an ex currency trader in charge too. Looking for short terms gains and manipulating of numbers is how this ‘game’ is played, at our expense.

  4. Sans Cle 4

    Bill English and John Key would benefit from a sobering read of “Ship of Fools” by Fintan O’Toole, to identify the parallels of their economic (mis)management with that of Ireland. The saving grace for Ireland is their investment in educating people and strong firm level R&D (ups killing and intellectual capital), whereas we are so dependent on dairy.

  5. RedLogix 5

    A relative of mine is working in Macau at the moment. He reports that the relationship between Chinese and casinos is a thing to behold.

  6. les 6

    Chinas demand for commodities like coal and iron ore used for manufacturing will reflect demand from their customers.Therefore it is actually consumer confidence in those countries that import chinese manufacturers goods that will determine any downturn in the supply/demand equation.

    • lprent 6.1

      Not really.

      Most of the increases in iron ore, coal, and other commodities since 2008 were used for infrastructure and building – not manufacturing. That is your first misunderstanding.

      The problem is actually one of over supply from suppliers in most cases in a late response to demand.

      For instance since 2008, I think that NZ has massively increased its production of milk. But so have other countries. The demand for milk in China and elsewhere hasn’t grown as fast, and so the prices drop.

      Since 2009, the amount of iron ore exported out of aussie went up like a rocket, and they are still adding new plants like the new plant that Gina Reinhart which will increase aussie total ore production by something like 20% or more. The demand from China flattened out years ago, so the price went down.

      That is all imports for China’s internal changes.

      The actual exports from China have simply plateaued because growth in their markets has been satisfied. But they are as high as they have ever been. They just aren’t increasing as fast as many governments would like.

      • les 6.1.1

        You need to understand that prior to 2009 China was a net exporter of coal.They introduced new tariffs on imports in 2014.As for iron ore as the worlds biggest manufacturer/exporter its not so much demand that has reduced as the fact that supply has increased leading to price reductions.You sort of contradict yourself by acknowledging the increase in capacity but then say ‘ The demand from China flattened out years ago, so the price went down.’..

        • lprent 6.1.1.1

          Nope. You really should learn about supply, demand and price.

          The demand from China for iron ore pretty much peaked in 2013.

          *Dealing with geological idiot deep sigh* all coal is not alike. The bulk of China’s thermal coal came from internal and probably still does. However China started importing a lot of special coals off the international market over a decade ago – mostly for steel making. Some of that came from here, more from Aussie. Again, the demand peaked from China a few years ago. That is a large part of the reason why Solid Energy is having difficulties. They expected that high profit direct (and indirect) business with China to keep funding their supply expansion, and it didn’t.

          Milk powder, the same thing.

          Same in other countries for things like copper, manganese, cobalt, and a host of other materials. Fracking oil in the US. etc

          They all spent big on expending supply because the prices of such commodities was high making marginal extraction worth doing. But the demand growth slowed down, the supply projects kept running, and now we have falling prices on virtually every commodity material in the international market.

          Just look at the massive increases in international milk supply in the last 6 years, not only from here, but from the US (went from 10% of the market to 50% in WMP). Effectively the same thing happened in most commodity markets. Which why being a commodity supplier is such a risky business for a country to be in.

          If you look around

      • les 6.1.2

        ‘Most of the increases in iron ore, coal, and other commodities since 2008 were used for infrastructure and building – not manufacturing’….says who?Lets make it simple…have coal and iron ore prices crashed due to supply or demand?

        • lprent 6.1.2.1

          Supply by far, helped bit by the changes in the USD. Demand is definitely the 3rd factor. That is faltering, but hasn’t fallen as nearly as far as the prices. It also looks like in most areas it has hit steady state – at a lower price level with ample supply.

          http://www.economist.com/news/finance-and-economics/21661675-decade-bingeing-raw-materials-may-leave-even-longer-hangover-goodbye

          Pretty basic

          The real curse for producers is over-supply in almost all raw materials. Yet they continue to act as if they are blithely unaware of it. Capital is still pouring into holes in the ground, creating a hangover that may last at least a decade. Jeff Currie of Goldman Sachs, a bank, says past cycles suggest it can take up to 15 years to work through the over-investment. “The world has just flip-flopped,” he says.

          Analysts point out that not all commodities act the same way. Coal prices started falling in 2011; crude oil hung on until mid-2014; agricultural prices hinge on the weather. But a generalised whiff of fear about China’s economic prospects has re-emerged in recent weeks, partly caused by sliding stockmarkets and by the unexpected devaluation of the yuan this month. So far this year, almost all major commodities—energy, industrial metals and agriculture—have fallen in a 10-20% range, a fairly homogenous performance. What’s more, the supply glut is being fed by three common factors. Cost-cutting has led producers to think they can bear the pain of falling prices for longer. Heavy hitters, whether OPEC princes or global miners, still yearn to increase market share. And funding is still available.

          The cost cuts are part of a self-reinforcing downward spiral. Outside America, cheap currencies vis-à-vis the dollar have made domestic inputs, such as manpower, appear less pricey. Ironically, cheaper energy and steel help, too. In Australia, for example, Gina Rinehart, a mining tycoon, uses low costs to justify opening a $13 billion mine in the outback that is expected to produce 55m tonnes of iron ore a year—as much as America’s annual output.

          It isn’t like this is exactly unprecedented. It has a easily predicable cycle that is just long enough for optimistic idiots to ignore it.

          If these are daunting headwinds, they are not unusual. When prices fall far enough for long enough, output does eventually decline, as it started to do with nickel last year. In the meantime, big mining and oil firms will take over smaller ones and shut down their weakest assets. Then another decades-long cycle can start.

          You can find essentially the same information across any of the business magazines from about 3 years ago and up until today.

  7. Vaughan Little 7

    Chinese culture tragically has some really pathetic elements. I put their propensity to gambling and other short-term investment thinking down to the political culture. there are simply no property rights here. It’s doesn’t pay to build a durable, successful business because some apparatchik or his crosseyed whoring son will swoop in and grab it all off you, often getting the local police to beat the shit out of you in the process. and if you do want to build a business, you better be ready to send the local politicians the right amount of prostitutes, liquor and cash bribes. in perpetuity. it’s as childish and grotesque as a kindergarten sprung from the mind of h r giger.

    that kind of culture promotes the way of thinking that runs “how can I get as rich as possible as fast as possible from something that I can walk away from at the drop of a hat?”

    • Draco T Bastard 7.1

      “how can I get as rich as possible as fast as possible from something that I can walk away from at the drop of a hat?”

      That sounds remarkably like capitalism. Plenty of people in NZ start a business, get rich, and then walk away shutting down the business so that there’s no come back on them when it turns out that they didn’t do their job well.

      Dammit, I recall one a few months ago when a business was ruled against by the courts to pay one of their ex-employees several thousand dollars. The owner closed that business and opened another same day just so he wouldn’t have to pay out the sum. All perfectly legal.

  8. bearded git 8

    I don’t remember The Economist forecasting the GFC in 2008 so not sure if we can rely on its analysis that this is not the start of a whole new crash.

    • lprent 8.1

      I haven’t time to dig out links. But I will point you in the right direction. 🙂

      You will find that The Economist were moaning about the Greenspan prescription of easy money as being irresponsible for a long time earlier than that. After 1990 it allowed lousy financial practices to get embedded into the US finance system. There would have been few months that they didn’t point out it’s flaws.

      They were warning about the packaging of junk mortgages in the US as gilts at least back to 2003 – ie the subprime mortgages. For that matter they have been saying much the same about the over supply in unused housing and other property in China now.

      Forecasting something like a GFC wasn’t hard, there were many people pointing to it a decade or more earlier. The only thing that was strange was that it didn’t happen sooner and in smaller more manageable lumps. The reason for that was with a number of governments institutions, noticeably the central banks, trying too much for soft landings.

      But generally I’d suggest that you simply weren’t looking before the GFC for astute people pointing at the issues that caused the GFC. It was an unraveling of a structure based on some lousy economic precepts from the previous decade and a half.

      There are global and local economic risks in where China is at present. Most notably in the drop in imports impacting in the developing world (including us), overcapacity in those suppliers (look at those massive new iron ore plants in aussie), in the property market in China, and in paying off the rather large pile of debt that China used from 2009 onwards to finance their infrastructural build.

      However the stock market in China has bugger all to do with anything in the basic economics apart from the credibility of the Chinese government after rather stupidly trying to prop it up for a few days.

      • Draco T Bastard 8.1.1

        But generally I’d suggest that you simply weren’t looking before the GFC for astute people pointing at the issues that caused the GFC.

        Possibly but there were also rumours about the End of History, The Great Moderation and other prominent economists saying that all was fine and dandy – right up until the collapse of the global economy. At which point they all seemed to invent excuses as to why they didn’t see it coming.

        • lprent 8.1.1.1

          I’d agree with that. But it is a bit like why climatologists who are employed by oil or coal firms tend to have a ‘skeptical’ view on fossil carbon induced climate change. Except in this case the majority are employed by banks, financial, and consulting institutions of various forms.

          Their employers / customers aren’t that interested in shouting from the rooftops that there are financial clouds coming. If they take notice at all, they’d prefer that the suckers stay in the markets a lot longer than they do so that they can offload the iron pyrites versions of gilt financial instruments.

          In this case it’d be a long time between nasty downturns. The financial market population had turned over. Many of the larger institutions were left holding the hot potato because they’d forgotten how to be cautious…

    • Pat 8.2

      is not a new crash …it is simply the ongoing play out of the original as yet still unresolved crash….china through its massive infrastructure investment since the GFC has prevented the true impact of the GFC from occurring, but now has found that even they can no longer ignore the economic realities …the impact will be self perpetuating now as although the main cause was the pull back from infrastructure investment the economies which were supplying that will consequently have increasingly reduced capacity to purchase the products from the Chinese factories, even with the devalued renminbi…not a pretty picture.
      There may be one glimmer of hope however, and a much needed and timely one…there is an outside chance that a massive investment in low/zero carbon infrastructure worldwide may result as a concerted effort to return the world to growth as growth is the only plan our great leaders have…..all with helicopter money of course so a lot of back peddling will be required.

  9. infused 9

    I think this was just the warm-up act to be honest.

    • Draco T Bastard 9.1

      yep. In fact, I’m still looking at the GFC as the first warm up act. The economies of the world haven’t yet corrected enough of the psychedelic fuelled boost that they got in the early 2000s. We actually need the rich to become poor and the money that they have to be destroyed.

      • lprent 9.1.1

        That may still happen. I just don’t think that it is going to happen from the Shanghai market turning.

        If the property market turns in China, then could be more of an issue. But so far I think that it is squeaking through a narrow passage between excessive capacity, easy Yuan, and low interest rates.

  10. linda 10

    I remember one economist after the gfc. Said its only just began ra lity. Centrel bankers are still in emergency Mode debt is rocketing as income collapses around.
    the world.the only pillar left in new zealand is a speculative houseing market new zealand. Is house of cards and shakeing has started

  11. linda 11

    I remember one economist after the gfc. Said its only just began ra lity. Centrel bankers are still in emergency Mode debt is rocketing as income collapses around.
    the world.the only pillar left in new zealand is a speculative houseing market new zealand. Is house of cards and shakeing has started

  12. photonz 12

    Nearly $8b of$10.5b of our exports to China is NOT dairy.

    So the argument that we’ve put all our eggs in the dairy basket, is a misleading myth.

    And trade agreements like the TPP and Korea FTA will give us better market access to export higher value products, so that’s also a positive for those who complain we rely on exporting commodities too much.

    But don’t let that get in the way of doomsday predictions, month after month, year after year.

    • Draco T Bastard 12.1

      And trade agreements like the TPP and Korea FTA will give us better market access to export higher value products, so that’s also a positive for those who complain we rely on exporting commodities too much.

      1. Except for the fact that it actually won’t
      2. A country reliant upon trade is actually a really bad idea

      • photonz 12.1.1

        Yeah – much better to be self reliant and not trade like North Korea and Zimbabwe.

        If we didn’t trade, you wouldn’t be sitting there on your computer – you’d be in a cave.

        • Draco T Bastard 12.1.1.1

          If we didn’t trade, you wouldn’t be sitting there on your computer – you’d be in a cave.

          1. We would have our computers – they’d be made here, farming would make up 2% or less of the economy as it should do and our economy would be developing
          2. I didn’t say I was against trade, I said that no country should be reliant upon it
          3. The TPPA isn’t a trade agreement but a corporate takeover

    • lprent 12.2

      Bullshit. What my post said was that NZ under National had put almost all its eggs into exporting unprocessed or barely processed commodities, with dairy as the primary example. To be precise I said “dairy and other agricultural/forestry commodity sales”

      But I guess you missed that rather basic point in your headlong rush to be seen as an idiot.

      Whole unprocessed logs and meat constitute all except a small fraction of the rest of the exports to China. They barely make a profit. The idea of exporting in trade is to make a profit.

      Have you seen what the international profit margins and prices for both of those have been doing for many years? At least the dairy used to have a decent profit margin for a short time.

      I have no problem with actual free trade deals (I do with restraint of trade as in the TPP). I was pointing out that

      John Key seems to prefer us to be a developing world commodity trader, without any significiant intellectual property in the bulk of our exports. Certainly in the last 7 years, his government has systematically removed almost all of the economic inducements to develop more advanced products for selling offshore, while at the same time using the power of the state to favour dairy.

      Big words for you to understand….. But rather than rather foolishly inventing what you think that what I wrote, why don’t you try reading what I actually did write.

      • photonz 12.2.1

        lprent says”National had put almost all its eggs into exporting unprocessed or barely processed commodities, with dairy as the primary example. ”

        Wrong – National doesn’t export a thing. Private companies do.

        National doesn’t decide what to export. Private companies do.

        Even if National offered up hundreds of millions in corporate welfare, it would barely effect the main decisions on what companies export.

        The idea that they have overall control over what is exported is delusional.

        They can make it as easy as possible for everyone to do business, but they have very little control over what sectors private companies decide to invest in.

        That’s why Labour failed to transform NZ into a knowledge economy. Even hundreds of million in incentives and corporate welfare is nothing more than tinkering. And most well run businesses make decisions regardless of govt – not because of it.

        Otherwise their success or failure relies on the three year election cycle, annual budget cycle, or simply a policy change.

        And BTW, I was talking about the dairy myth in general – not specifically about your quote, though I do note you said the government is “using the power of the state to favour dairy.”

        Whereas in reality when you talk to dairy farmers it’s the high prices over past years is what has really driven them to invest, the govts position has had virtually no influence over those decisions.

        • lprent 12.2.1.1

          You really are a complete idiot.

          Labour spent 10s of millions on promoting knowledge based industries over a decade, mostly in providing opportunities to help with marketing. The result was a set of industries from programming to hitech manufacturing.

          We went from having less than 100 million in exports from this sector in 1999 to having close to 2 billion in exports less than 15 years later. More importantly they kept growing through the GFC, and their average profit level is several times higher than the peak of whole milk powder.

          Meanwhile National gave massive subsidies to dairy farmers through things like irrigation schemes, destroying the planning processes and enabling vast amounts of pollution (eg Enviorment Canturbury), and did a massive amount of state marketing on behalf of dairy and agriculture. The total cost in the last 7 years is probably approaching a billion dollars.

          The nett effect is that we have vastly increased production capacity in agriculture generally, but especially in dairy. We also have demand and price levels that are about as low as they ever had been, and demand shows no signs of improving over the next few years. If it does, then because National pushed high cost growth like irrigation, then we will get undercut by lower cost producers elsewhere.

          That is why trading in barely processed commodities is idiotic. I guess that is why you approve it. It is what always happens.

  13. Hello 13

    That picture seems wrong by usings a double negative, a Fall of -%20 = %20 rise.
    A fall of %20 = a rise of -%20 …

    Errors like that make the research look dubious.

  14. photonz 14

    LPRent says “Whole unprocessed logs and meat constitute all except a small fraction of the rest of the exports to China. ”

    Utter nonsense.

    In the year to March 2015, we had
    – $10.7b of exports to China
    – $2.8b of dairy
    – $1.6b of logs and wood products
    – $1b of meat and offal

    That leaves $5.3 billion of other products. – $5.3 billion!!!!. That’s not a “small fraction” of $10.7b – its 50% of total exports.

    And that 50% includes wine, fruit, machinery, fish, wool, vegetables, metals and minerals, and services etc.

    • lprent 14.1

      You really are an idiot. Remove the barely processed commodities that match what I am saying are useless exports. ie fruit, fish, wool, vegetable, metals and minerals…

      Then see how much you have left. Or since I don’t think you can add, perhaps you should provide your reference so that others can add it up for you.

      BTW: most of the “machinery” we export to China is scrap.

      • photonz 14.1.1

        Sorry – you’d better ring up Statistics NZ and tell them they should have wine, fruit, machinery, fish, wool, vegetables, metals and minerals, and services, education etc all listed under “Whole unprocessed logs and meat”

        I’m glad I know now. Instead of asking for a bottle of wine at my local supermarket, now I’m going to ask for a bottle of ” Whole unprocessed logs and meat”

        LPRents says “BTW: most of the “machinery” we export to China is scrap.”

        Now you’re just making up more utter nonsense – scrap comes under metal exports – not machinery exports.

  15. TheDude 15

    Hi,
    I’m not a economy expert just regular dude and I had my fair share in the dot.com bubble and learned my lessons over the last twenty years.

    I’m not here to convince anyone here and not a foil hat nut. I read the blog of Martin Armstrong who is real economy guru and have seen the docu about his life (The Forecaster). And the best part is that he is not connected/embedded as all the others Goldman-Sucks and JPM’s are and only focusing on single share/market/region so he can say what he really thinks can happen in the next few years.

    Also check his personal history as he was imprisined on civil contempt by these market players including corrupt laywers/judges to get get control of his computer model so they can rig the market as they do since decades.

    It is the global government debt and confidence and not just China/Europe/USA and the short message is – everything is connected !

    http://www.armstrongeconomics.com/armstrong_economics_blog

    It’s you personal choice who do you believe and follow but I prefer someone who is really independent and payed a very high price personally and this makes him and his forecast even more trustworthy.

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    1 day ago
  • And God spake all these words, saying
    As the first week of Level Four lockdown unfolded, mounting questions grew as to just what was (and was not) allowed under its “rules”. Partly these were driven by some apparently contradictory messages from different authority figures and explanations carried in the media. Partly they reflected a somewhat sketchy legal basis ...
    PunditBy Andrew Geddis
    1 day ago
  • Life in Lock Down: Day 9
    . . April 3: Day 9 of living in lock-down… Another late-start to my work day. Everything is temporarily upended as clients are shuffled around so we can minimise our “bubble” by reducing the number of people we help. One of my colleagues has been removed from his clients; his ...
    Frankly SpeakingBy Frank Macskasy
    1 day ago
  • Death to our lockdown enemies!
    We must root out the traitors among us! ...
    Imperator FishBy Scott Yorke
    2 days ago
  • Climate Change: The benefits of electrification
    In order to meet our 2050 carbon target and do our bit to avoid making the Earth uninhabitable, New Zealand needs to decarbonise our economy, replacing fossil fuels with electricity in the energy, industrial and transport sectors. The good news is that it will mean cheaper power for all of ...
    No Right TurnBy Idiot/Savant
    2 days ago
  • Life in Lock Down: Day 8 (sanitised version)
    For those folk who find my other Lock-Down Diary versions too “negative” or otherwise unpalatable… Here’s a photo of a pretty flower, .   . Better? Tomorrow’s Sanitised Version: a cute animal video. . . . =fs= ...
    Frankly SpeakingBy Frank Macskasy
    2 days ago
  • Life in Lock Down: Day 8
    . . April 2: Day eight of living in lock-down… Today, my work day starts late. Our rosters and clients have been dramatically changed, lessening (theoretically) the number of people in our work “bubble”.  If just one of us catches covid19 the impact could be considerable as Grey Base Hospital ...
    Frankly SpeakingBy Frank Macskasy
    2 days ago
  • A note on apartments and bubbles
    As Aotearoa enters week two of lockdown, it’s clear we’re all still working out what our “bubbles” look like and how to stay in them to stop the spread of Covid-19. New to the government’s Covid-19 website is some good guidance for people living in apartment blocks. Recent decades have ...
    SciBlogsBy Siouxsie Wiles
    3 days ago
  • Getting in futures shape 
    “There are decades where nothing happens; and there are weeks where decades happen.” Lenin Don’t we all know that feeling now.

    Prospect Magazine alerted me to this particularly apt quote. It is a much more evocative quote than Hemingway’s “gradually then suddenly” which is also doing ...

    SciBlogsBy Robert Hickson
    3 days ago
  • Maybe axing Clark would be unfair. But what about any of this is fair?
    Yesterday was the day the consequences of the lockdown suddenly got very real for many. Firms have been closing and laying people off since the outset of the quarantine but this has mostly been happening out of the public eye. The mass closure of a number of iconic New Zealand ...
    PunditBy Liam Hehir
    3 days ago
  • Might a ‘Coasean’ social contract mitigate overall societal harm from COVID-19?
    Brian Williamson1, Prof Nick Wilson2 (1Economic consultant, UK; 2University of Otago Wellington) In this blog, we outline how a win-win social contract could be forged to address the major dimensions of response to the COVID-19 pandemic when using a mitigation strategy: the particular need to protect older people from high ...
    SciBlogsBy Public Health Expert
    3 days ago
  • Returning To “Normalcy”.
    Resuming Normal Service: The Republican Party's nominee for in 1920, Warren Harding, promised the American people: “not heroics, but healing; not nostrums, but normalcy; not revolution, but restoration”. If she wishes to remain our prime minister, then Jacinda Ardern will offer New Zealanders the same.HOW EDUCATED AMERICA snickered when the ...
    3 days ago
  • New Zealand’s Government Must Save New Zealand’s Media.
    No Free Society Without A Free And Functioning News Media: If we are to surrender our civil rights to the broader cause of defeating Covid-19, then foreign corporations must, likewise, surrender their right to inflict immense economic and cultural harm on New Zealanders simply because it improves their bottom line.I’M ...
    3 days ago
  • Corona fevers and the madness of models
    by Daphna Whitmore A third of the world is under lockdown and a clear assessment of this measure to curb the spread of COVID-19 is urgently needed.  With any high-stakes decisions it has to be asked what are we dealing with here? Are the measures warranted? Will they achieve their ...
    RedlineBy Daphna
    3 days ago
  • Lockdown day 8
    I haven’t done a huge amount in the last few days. I’m reading The Poppy War and I’ve sort of poked at a couple of games – I started SOMA but I’m a wimp and I quit while in the first room after the brain scan. I might try it ...
    The little pakehaBy chrismiller
    3 days ago
  • Backstage and Theatre
    The swan politicians may be gliding on the water, occasionally snapping at one another. Meanwhile, as the Covid19 crisis illustrates, the officials are desperately paddling below providing the real locomotion. One of the most fatuous recent grandstanding comments (of about a week ago), adding to the public’s anxieties, was ...
    PunditBy Brian Easton
    3 days ago
  • Legal Beagle: Waiver, the singular Crown and the conduct of Crown legal business
    Much has been written about the importance of discretion in an emergency situation, and the concerns raised by the potential for it to be exercised arbitrarily. Given the quality of the discussion, there seemed little point in adding to it at any length. In particular, I point to the evidence ...
    3 days ago
  • Highlights from Bauer Media’s science-related reporting
    Today has felt surreal. I was all set to touch base online with my science communication students when a colleague shared the news that Bauer Media would be shutting down its publications immediately. The first link I saw implied it was Woman’s Weekly affected, and even that shocked me. But ...
    SciBlogsBy Sarah-Jane O'Connor
    3 days ago
  • Outsiders.
    Bogeymen, Real And Imagined: Is the number of psychopathic and sociopathic individuals in any given society truly as vanishingly small as we like to tell ourselves? Isn’t it more likely that the mass-shooters and serial-killers filling the headlines represent only the tip of a much, much larger iceberg of frightfulness? ...
    3 days ago
  • We have a right to know the rules we are expected to obey
    Outgoing Police Commissioner Mike Bush appeared before the Epidemic Response Committee today, who asked him for the rules police are using to enforce the lockdown. He refused:Police Commissioner Mike Bush has admitted the advice given to Kiwis about what they're able to do during the lockdown hasn't been clear enough. ...
    No Right TurnBy Idiot/Savant
    3 days ago
  • Life in Lock Down: Day 7 (sanitised version)
    For those folk who find my other Lock-Down Diary versions too “negative” or otherwise unpalatable… Here’s a photo of my cat, . . Better? Tomorrow’s Sanitised Version: a pretty flower. . . . =fs= ...
    Frankly SpeakingBy Frank Macskasy
    3 days ago
  • Life in Lock Down: Day 7
    . . April 1: Day seven of living in lock-down… This morning I had a brief chat with one of my neighbours, “D” (social distance between us, a good three or four metres). I learned he had resigned from his previous job and had been hired by another company – ...
    Frankly SpeakingBy Frank Macskasy
    3 days ago
  • RIP The Listener, New Zealand’s pioneering voice
    Funnily enough, my thought as I start this post is whether it will be well written enough. Or should that be well enough written? Because so much of what I know about good writing came from my two stints at The Listener, which this morning was shut down due to ...
    PunditBy Tim Watkin
    3 days ago
  • OK, Britney: stop sniping at National for doing its job
    With normal democratic procedures in abeyance, there were two ways to go. First, it was open for the government to dissolve itself and invite the National Party to join a ministry of national salvation. That would have lessened the democratic deficit of the times by having a team of rivals without ...
    PunditBy Liam Hehir
    4 days ago
  • Helpful tips for parents during lockdown
    Dr Kirsty Ross Children and young people can respond differently in times of distress. This also varies by age and developmental stage, with younger children having more magical and imaginative thinking, and older children having more awareness and knowledge of the issues our communities are facing (which brings up ...
    SciBlogsBy Guest Author
    4 days ago
  • Skeptical Science New Research for Week #13, 2020
    4 days ago
  • Hungary is now a dictatorship
    Hungary has been a virtual dictatorship for a decade now, as Prime Minister Viktor Orbán has gradually eroded its democracy. But now, its official, with the passage of an indefinite emergency law allowing rule by decree:Hungary’s parliament has passed a new set of coronavirus measures that includes jail terms for ...
    No Right TurnBy Idiot/Savant
    4 days ago
  • A new Ministry of Works
    While the economy is on pause under lockdown, the government is beginning to plan how to cope with the post-lockdown, post-tourism, post-export education world we will eventually find ourselves in. They're planning a lot of infrastructure spending as economic stimulus, and have asked for proposals which can start the moment ...
    No Right TurnBy Idiot/Savant
    4 days ago
  • Capture: Well spaced out
    It's my distraction,  setting up tiny scenes to photograph.  I've got stuck on the Babushka dolls for now.  Something about their bubble shape.  Something about their never changing, smiling features, suggesting persistent equanimity.  Can we get through everything that is being thrown at us and keep at least a tiny ...
    4 days ago
  • Life in Lock Down: Day 6
    . . March 31: Day six of living in lock-down… This time I managed to sleep a little longer and the alarm woke me at the pre-set time: 6.55am. Then remembered I was working a later shift and could’ve slept in. Oh well, there are things to do at home. ...
    Frankly SpeakingBy Frank Macskasy
    4 days ago
  • March ’20 – NZ blogs sitemeter ranking
    Image credit: Diamond Harbour School Blogs I notice a few regulars no longer allow public access to the site counters. This may happen accidentally when the blog format is altered. If your blog is unexpectedly missing or ...
    4 days ago
  • Hard News: Poll Pot and the partisans
    Yesterday's Horizon poll showing support for a "Yes" vote in this year's cannabis referendum sliding into the majority for the first time in a year looked like good news for reformers – and it probably is. But the result warrants some scrutiny.The poll is the fifth in a series commissioned ...
    5 days ago
  • Why those bubbles are so important
    For almost a week now, every one of us who isn’t an essential worker has been confined to their bubble. We are allowed to go shopping for groceries, to visit the doctor, and to get a bit of exercise if we stay local. The reason we are doing this is ...
    SciBlogsBy Siouxsie Wiles
    5 days ago
  • A Government System That Works
    The Covid-19 saga will no doubt produce many twists and turns for us before it is finally brought to an end. But one thing it has shown us – and what comfort it should bring us – is that our country’s government is in good hands. I am not thinking ...
    Bryan GouldBy Bryan Gould
    5 days ago
  • Smashing down the barriers: Where are we at with COVID vaccines?
    In the absence of a vaccine or a cure for a deadly disease, staying home in your bubble is what you do, the concept is not new.  To the best of my knowledge last time we did this in NZ was for polio, in the years before a vaccine came ...
    SciBlogsBy Helen Petousis Harris
    5 days ago
  • National Network on Cuba (USA): “Cuban medical solidarity is a pillar of its society and is founde...
    The following statement was released on March 28 by the National Network on Cuba, a coalition of 40 groups, based in the United States. In recent weeks, Cuba has deployed hundreds of medical providers to over a dozen countries in Europe, Asia, as well as to their neighbors in Latin ...
    RedlineBy Admin
    5 days ago
  • Alarming decrease in calves increases fears for endangered Hector’s dolphin
    This has been a terrible summer for Hector’s dolphins. The first indication was very low numbers of dolphin sightings during late spring and early summer. The Otago University Marine Mammal Research Team has carried out routine dolphin surveys at Banks Peninsula for more than 30 years. In all that time, ...
    SciBlogsBy Otago Marine Science
    5 days ago
  • Time for Grant Robertson to reveal package #2?
    On March 17, Finance Minister Grant Robertson was quick out of the blocks with an economic rescue package to help businesses through the inevitable recession resulting from the coronavirus pandemic. Robertson had pulled together a scheme in short order that so far seems to have saved many jobs. In his ...
    PunditBy Tim Watkin
    5 days ago
  • Saving lives
    The purpose of the lockdown is to save lives, by reducing the spread of covid-19. We won't know if its really working for another week, but given the devastation that will result if it doesn't - 14,000 dead is the optimistic scenario - its definitely worth trying. But pausing the ...
    No Right TurnBy Idiot/Savant
    5 days ago
  • Life in Lock Down: Day 5
    . . March 30: Day five of living in lock-down… Woke up still in darkness. Alarm hadn’t gone off. Turn to radio clock; it’s a few minutes after 6am… I lie there in the dark, waiting to drift off to sleep… but it ain’t happening. Clock ticks over to 6.55 ...
    Frankly SpeakingBy Frank Macskasy
    5 days ago
  • Speaker: Les Gray: the man who told the truth
    The story of Les Gray, the public sector psychologist who told the truth about his use of cannabis and set off a storm, has a special place in the lore of cannabis reform in New Zealand.When Paul Shannon interviewed Gray for the 'Dope and Hope' issue of Planet magazine in ...
    6 days ago
  • Why now? Historical specificity and the perfect storm that has created trans identity politics
    by Phil Duncan For Marxists, a key concern about social trends is their context – not just their causes, but why they happen when they do.  Events and phenomena have causes, but they also are time or period-specific. While much of the left have capitulated recently to postmodernism, most notably ...
    RedlineBy Admin
    6 days ago
  • Time for a living wage for supermarket workers
    Since the lockdown began, we've all suddenly been reminded who the actually essential workers in our society are: not the people at the top who pay themselves the big bucks and rort the perks, but the people at the bottom they screw over and squeeze: cleaners, warehouse staff, truck drivers ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • Hard News: MUSIC: Lockdown Grooves
    Kia ora! As I've watched nearly all my remaining work vanish over the past couple of days, it has occured to me that one good way to keep me away from arguing with fools on Twitter all the time (in the knowledge that all we're really doing is processing our ...
    6 days ago
  • A place of greater safety?
    Aotearoa New Zealand has committed to trying to extirpate the virus that causes COVID-19 from its shores. To do that, as a society we’ve moved to “Level 4”. That means adapting to unprecedented restrictions on our personal freedoms, particularly to our rights to move freely and associate with friends and ...
    PunditBy Andrew Geddis
    6 days ago
  • The police and public trust
    When the Prime Minister declared a state of emergency last week, she handed the police powers to enforce it. And almost immediately, we started hearing about heavy-handed, arbitrary "enforcement" by police who (at best) cared more about order than law, or (more likely) had no idea what the rules were ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • Life in Lock Down: Day 4
    . . Lock Down: Day 4 – A photo essay with observations . March 29: Usual wake up routine as RNZ snaps on my radio-clock. Jim Mora’s voice slowly enters my conciousness; there’s talk of a second wave of covid19 taking hold in South Korea; the week in Parliament – ...
    Frankly SpeakingBy Frank Macskasy
    6 days ago
  • COVID-19 vs New Zealand
    Yesterday, New Zealand recorded its first Covid-19 related death on the West Coast. Unfortunately this is unlikely to be the only fatality, with the virus now being found in every region of the country.However despite the significant danger, people are still unfortunately breaching lockdown rules.There’s really only one main very ...
    6 days ago
  • 2020 SkS Weekly Climate Change & Global Warming Digest #13
    Story of the Week... Toon of the Week... Coming Soon on SkS... Climate Feedback Claim Review... SkS Week in Review... Poster of the Week... Story of the Week... ‘Misinformation kills’: The link between coronavirus conspiracies and climate denial   Grist / Rob Kim / Stringer / CSA Images  Scientific ...
    7 days ago
  • Rāhui day 4
    The kids did surprisingly well today – meltdown count was about 3, and mostly fairly short ones. (And a fourth while I was writing.) Game-wise I had a go at Fell Seal: Arbiter’s Mark. It’s a fairly standard RPG with turn-based combat and what they call a “mature storyline” (it ...
    The little pakehaBy chrismiller
    1 week ago
  • Letter to a friend
    by Don Franks Hi David, Nice hearing from you, I’m glad to hear you’re getting by okay in these grim times. You asked how’s it going for us back here in New Zealand. You would have heard that the whole country is locked down and with breaks for exercise and ...
    RedlineBy Daphna
    1 week ago
  • Life in Lock Down: Day 3
    . . Lock Down: Day 3 – A photo essay with observations . March 28: First day of the first weekend in Lock Down. It feels like it’s been weeks since only Level 3 was declared last Tuesday, only four days ago. Woke up this morning to RNZ; coffee; toast, ...
    Frankly SpeakingBy Frank Macskasy
    1 week ago
  • 2020 SkS Weekly Climate Change & Global Warming News Roundup #13
    A chronological listing of news articles linked to on the Skeptical Science Facebook Page during the past week, i.e., Sun, Mar 22, 2020 through Sat, Mar 28, 2020 Articles Linked to on Facebook Sun, Mar 22, 2020 In Just 10 Years, Warming Has Increased the Odds of Disasters by Chelsea Harvey, ...
    1 week ago
  • Rāhui day 3
    I’m here in lockdown with my flatmate and her two girls (6 and 2) and it. is. a time. They’re usually really active so to start with the only boardgame in the house is the copy of Guess Who that the 6 year old got for her birthday. Flatmate commented ...
    The little pakehaBy chrismiller
    1 week ago
  • A test of civil society.
    The CV-19 (COVID) pandemic has seen the imposition of a government ordered national quarantine and the promulgation of a series of measures designed to spread the burden of pain and soften the economic blow on the most strategically important and most vulnerable sectors of society. The national narrative is framed ...
    KiwipoliticoBy Pablo
    1 week ago
  • Life in Lock Down: Day 2
    . . Lock Down: Day 2 – A photo essay with observations . March 27 – Day 2 of our Strange New World. The Park and Ride near my suburb, usually filled with hundreds of vehicles, had just… four; . . Another drive into Wellington City on a highway nearly ...
    Frankly SpeakingBy Frank Macskasy
    1 week ago
  • How Do You Feel? What Do You Think?
    Fortune's Children: Under extraordinary pressure, the leader of the Government and the leader of the Opposition will each show us what they are made of. Have they been blessed with intelligence, grace, wit, poise, toughness, empathy and humour – and in what measure? More importantly, to what extent have they ...
    1 week ago
  • Landlords are NOT an essential service
    If you’ve ever had the misfortune of having to rent a property on the open market in New Zealand, which is one of the most expensive in the entire world, you’ll likely be keenly aware of just how arrogant and entitled landlords and their real estate agents can be.Unfortunately for ...
    1 week ago
  • A “new Society” post-COVID19 will definitely emerge. The question is: on what path?
    Society-wise, aside from the specific morbidity shall we say of the medically-oriented aspects of this COVID-19 crisis, what is unfolding before the world is in more than one way an instructive study of humanity and reactions to a high intensity, high stress environment in real time. Friends, we are at ...
    exhALANtBy exhalantblog
    1 week ago
  • Raise the Bar: Everything you need to know about the wage subsidy
    Right now low waged and insecure workers are feeling the economic brunt of the looming #Covid19 Recession. In response legal advocate Toby Cooper* and hospitality and worker’s rights advocate Chloe Ann-King, are putting together a series of legal blogs about your employment rights: In this legal blog we outline some ...
    PosseBy chloeanneking
    1 week ago
  • The massacre of prisoners in Modelo jail, Bogota, March 21
    by Equipo Jurídico Pueblos and Gearóid Ó Loingsigh (25/03/2020) An escape plan in question On the night of March 21st and the early morning of the 22nd, the forces of the Colombian state stormed into the Modelo prison in Bogotá, murdering 23 prisoners and injuring 83, in response to the ...
    RedlineBy Admin
    1 week ago
  • We are not America
    When the government banned semi-automatic weapons in response to a terrorist atrocity, gun-nuts were outraged. Mired in toxic American gun culture, they thought owning weapons whose sole purpose was killing people was some sort of "constitutional right", a necessity for "defending themselves" against the government. Now, the Court of Appeal ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • When will we know the lockdown is working?
    Just before midnight on Wednesday March 25, Aotearoa New Zealand entered a countrywide alert level four lockdown. For at least the next four weeks, everyone who isn’t an essential worker is confined to their bubble. We are doing this to stop the explosive growth in people contracting and dying from ...
    SciBlogsBy Siouxsie Wiles
    1 week ago
  • Lock Down: Day 1
    . . Lock Down: Day 1 – A photo essay with observations . Day one of the Level 4 nationwide lock-down (or, DefCon 4 as I sometimes cheekily call it) started at 11.59PM on 25 March. For a moment, most of the nation held it’s collective breath. In that brief ...
    Frankly SpeakingBy Frank Macskasy
    1 week ago
  • A Compelling Recollection.
    Broad, Sunlit Uplands: How those words fired my young imagination! Or, perhaps, it is more accurate to say: how those words fused, in my young mind, with the image printed on every packet of Fielder’s Cornflour. Always fascinated by history, especially modern history, I cannot hear Churchill’s wonderfully evocative words, even ...
    1 week ago
  • The Warehouse – where everyone gets a virus
    . . 24 March 2020 9.46AM Number of covid19 cases in Aotearoa New Zealand: 102 . As of 11.59 on Thursday, most of New Zealand will go into “lock down”. People will be expected not to travel to work; not to socialise; and to stay home. I will not be ...
    Frankly SpeakingBy Frank Macskasy
    1 week ago
  • Aggressive action to address climate change could save the world $145 trillion
    This is a re-post from Yale Climate Connections A respected research group, Project Drawdown, finds that deploying solutions consistent with meeting the Paris climate targets would cost tens of trillions of dollars globally. But crucially, those outlays would also yield long-term savings many times larger than the up-front costs. The new 2020 Drawdown ...
    1 week ago
  • After the Pandemic
    It will pass. What happens next? Not immediately, but longer term. There are many opinions, fewer certainties. Will it “change everything!” as many confidently, and contradictorily predict? In this post I look at how foresight can help bound some of the uncertainties so you can more objectively consider the future. ...
    SciBlogsBy Robert Hickson
    1 week ago

  • Further measures to support businesses
    The Government will be introducing legislation to make changes to the Companies Act to help companies facing insolvency due to COVID-19 to remain viable and keep New Zealanders in jobs. The temporary changes include: Giving directors of companies facing significant liquidity problems because of COVID-19 a ‘safe harbour’ from insolvency ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Govt’s COVID plan, economic strength recognised
    The Government’s plan to cushion the blow of COVID-19 by supporting incomes, jobs and businesses, and position the economy to recover has been backed by another international report. International credit rating agency Moody’s today reaffirmed its highest Aaa credit rating on New Zealand, saying the economy is expected to remain ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Funding certainty for sports through COVID-19
    National sports organisations have been given certainty of funding to ensure they can remain viable through the COVID-19 pandemic, Sport and Recreation Minister Grant Robertson announced today. “The global spread of COVID-19 has had a significant impact on sport and recreation in New Zealand, including the cancellation or postponement of ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Butchers now allowed to process pork
    Changes have been made to allow butchers to process pork, only for supply to supermarkets or other processors or retailers that are open, Agriculture Minister Damien O’Connor has announced. “We carefully weighed the risk of allowing butchers to open their shops for retail customers, but the risk of spreading COVID-19 ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Essential workers leave scheme established
    Essential workers who take leave from work to comply with public health guidance are being supported with a leave scheme to ensure they will continue to receive income, say the Minister of Workplace Relations and Safety Iain Lees-Galloway and Minister for Social Development, Carmel Sepuloni. A number of essential businesses ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Govt WhatsApp helps share COVID-19 information
    A Government WhatsApp channel has been launched to help make information more easily accessible and shareable in the fight against COVID-19. Govt.NZ, which is free to use on any mobile device, will carry information and news for the public, businesses, healthcare providers, not for profits and local government. It can ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Managed departure plan for stranded foreign nationals enables safe, orderly exit
    The Government has announced a plan to enable the safe, orderly exit of tens of thousands of stranded foreign nationals from New Zealand during the current COVID-19 Alert Level 4 restrictions, Deputy Prime Minister and Foreign Minister Winston Peters has said. “When we moved into lockdown a week ago, the ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government delivers COVID-19 support to GPs and Pharmacies
    Health Minister Dr David Clark says the Government is delivering on its commitment to support general practice doctors and nurses, and pharmacies on the front-line of our fight against COVID-19. "For us to overcome COVID-19, we need community health services such as general practice and community pharmacy to step up ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Susan Thomas the new Chief High Court Judge
    Justice Susan Thomas has been appointed Chief High Court Judge, Attorney-General David Parker announced today.  She replaces Justice Geoffrey Venning who has resigned from the position.   David Parker paid tribute to Justice Venning, who he said had stewarded the High Court very capably over the last five years.   “On behalf ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Business Finance Guarantee – applications open
    Businesses can start applying to their banks for loans under the Business Finance Guarantee Scheme set up to support the New Zealand economy during the COVID-19 pandemic. “We’re moving quickly to protect New Zealand businesses, jobs and the economy during this unprecedented global economic shock,” Finance Minister Grant Robertson said. ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Work starts on ways to fast-track consents to boost recovery from Covid-19 downturn
    Work is underway looking at measures to speed up consents for development and infrastructure projects during the recovery from COVID 19, to provide jobs and stimulate our economy.  Environment Minister David Parker said the COVID-19 pandemic is a serious global crisis that will have a wide ranging and lasting impact ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Advance payments to support contractors
    Advance payments will be made to transport construction industry contractors to retain the workforce and ensure it is ready to quickly gear up to build projects which will be vital to New Zealand’s COVID-19 economic recovery, Transport Minister Phil Twyford announced today. He said keeping the workforce required to build ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government seeks infrastructure projects
    The Government has tasked a group of industry leaders to seek out infrastructure projects that are ready to start as soon as the construction industry returns to normal to reduce the economic impact of the COVID-19 pandemic, Economic Development Minister Phil Twyford and Infrastructure Minister Shane Jones say. The Infrastructure ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Health system scaled up to prepare for COVID-19
    Work to scale up the health system in preparation for COVID-19 was today outlined by Health Minister David Clark, as he reported back to the new Epidemic Response Committee. “We are well placed to contain the spread of COVID-19. We have taken early and decisive action at our borders, and ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Essential media COVID-19 guidelines refined
    The Government is refining its COVID-19 essential business guidance to include the distribution of news publications for communities which are hard to reach. The Minister of Broadcasting, Communications and Digital Media, Kris Faafoi, said the move was in recognition of the importance for New Zealanders who might be harder to ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Supermarkets able to open on Easter Sunday
    The Government is ensuring supermarkets can open on Easter Sunday so we can buy groceries, but stay closed on Good Friday allowing workers to take a break. This provides a balanced approach and ensures we avoid large queues that two days closure may cause. “Supermarkets will be able to open ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New Zealand defence personnel conclude mission at Taji
    Following the successful conclusion of the Building Partner Capacity (BPC) mission at Taji, New Zealand defence personnel are returning to New Zealand from Iraq, in accordance with the Cabinet decision made in June 2019, Foreign Affairs Minister Winston Peters and Defence Minister Ron Mark announced today. “New Zealand is very ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • State of National Emergency extended
    The State of National Emergency to help stop the spread of COVID-19 has been extended for a further seven days, Minister of Civil Defence Peeni Henare said. The initial declaration on March 25 lasted seven days and can be extended as many times as necessary. “Since we went into isolation ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Strong Govt books support ‘go hard, go early’ response
    New Zealand’s ability to go hard and go early in the fight against COVID-19 has been underpinned by strong Government finances and the growing economy heading into this global pandemic, Finance Minister Grant Robertson says. The Treasury today released the Crown financial statements for the eight months to the end ...
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    6 days ago
  • Christchurch Hospital Hagley ICU to open to support COVID-19 response
    Health Minister Dr David Clark says 36 new intensive care beds at Christchurch Hospital’s new Hagley building are being fast tracked so they are available for treatment of COVID-19 patients.   The Ministry of Health is working with contractor CPB and Canterbury DHB to enable access to the hospital’s ICU, ...
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    6 days ago
  • Government supports Air NZ freight flights
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    7 days ago
  • Tariff concessions on COVID-19 related products
    New Zealand will temporarily remove tariffs on all medical and hygiene imports needed for the COVID-19 response. Trade and Export Growth Minister David Parker and Commerce and Consumer Affairs Minister Kris Faafoi said today that the New Zealand Customs Service will apply tariff concessions to all diagnostic reagents and testing ...
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    1 week ago
  • Clarification of modification to wage subsidy scheme
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    1 week ago
  • Face masks flowing to DHBs
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    1 week ago
  • COVID-19: Further steps to protect New Zealanders’ jobs
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    1 week ago
  • Tax relief for Mycoplasma Bovis farmers
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    1 week ago
  • $27 million for NGOs and community groups to continue providing essential services
    A $27 million dollar package, effective immediately, is being provided to social sector services and community groups to ensure they can continue to provide essential support to communities as we stay at home as a nation to stop the spread of COVID-19, Minister for Social Development Carmel Sepuloni announced. “At ...
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  • Statement on guilty plea of March 15 terrorist
    “The guilty plea today will provide some relief to the many people whose lives were shattered by what happened on March 15,” Prime Minister Jacinda Ardern said. “These guilty pleas and conviction bring accountability for what happened and also save the families who lost loved ones, those who were injured, ...
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    1 week ago
  • COVID-19 updates
    The Prime Minister is holding daily press conferences to update New Zealanders on the Government's response to COVID-19. Links to videos and transcripts of these updates below. These transcripts also include All of Government press conferences led by Director Ministry of Health's Director-General of Health Dr Ashley Bloomfield. 25 March: Live update from the Prime ...
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    1 week ago
  • Police numbers break through 10,000 mark
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    2 weeks ago
  • Urgent tax measures for economic recovery
    Urgent legislation has been passed to support the package of economic and social measures needed to recover from the impact of the coronavirus outbreak. “The COVID-19 Response (Taxation and Social Assistance Urgent Measures) Bill will cushion New Zealanders from the worst economic impacts of the COVID-19 outbreak,” said Revenue Minister ...
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    2 weeks ago
  • Further support for farmers and growers as drought persists
    From tomorrow, Government support for farmers and growers affected by drought will be expanded and extended across the country, with access to Rural Assistance Payments (RAPS) available throughout the North Island, parts of the South Island and the Chatham Islands, Social Development Minister Carmel Sepuloni announced. “These challenging conditions have ...
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    2 weeks ago
  • COVID-19: Temporary changes to Education Act
    Parliament has passed amendments to legislation that give the Secretary of Education stronger powers to act in the fight to limit the spread of COVID-19, Education Minister Chris Hipkins said today. “They are part of a suite of changes passed under the COVID-19 Response (Urgent Management Measures) Legislation Bill,” Chris ...
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  • Canada, Australia, Chile, Brunei and Myanmar join NZ and Singapore in committing to keeping supply a...
    Canada, Australia, Chile, Brunei and Myanmar have joined forces with New Zealand and Singapore by committing to keep supply chains open and remove any existing trade restrictive measures on essential goods, especially medical supplies, in the face of the Covid-19 crisis.  Trade and Export Growth Minister David Parker today welcomed ...
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    2 weeks ago
  • COVID-19: Rent increase freeze and more protection for tenants
    Immediate freeze on rent increases Tenancies will not be terminated during the lock-down period, unless the parties agree, or in limited circumstances Tenants who had previously given notice can stay in their if they need to stay in the tenancy during the lock-down period Tenants will still be able to ...
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    2 weeks ago
  • Working together to protect businesses and workers
    As New Zealand unites to lock-down in the fight against COVID-19, the Finance Minister is urging all businesses and workers to stay connected over the next four weeks. “We understand the extreme pressure many businesses are under right now. I know most business owners think of their workers as family ...
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    2 weeks ago
  • State of National Emergency declared to fight COVID-19
    A State of National Emergency has been declared across the country as the Government pulls out all the stops to curtail the spread of COVID-19. “Today we put in place our country’s second ever State of National Emergency as we fight a global pandemic, save New Zealanders’ lives and prevent ...
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    2 weeks ago
  • Prime Minister’s statement on State of National Emergency and Epidemic Notice
    Mr Speaker I wish to make a Ministerial Statement under Standing Order 347 in relation to the recent declaration of a State of National Emergency. Having considered the advice of the Director Civil Defence Emergency Management, the Minister of Civil Defence declared a State of National Emergency for the whole of ...
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    2 weeks ago
  • Deadline for domestic travel extended
    People needing to travel on domestic flights, trains and Cook Strait ferries to get home before the country moves into level 4 lock-down tomorrow night will be able to continue using the passenger services until midnight on Friday, Transport Minister Phil Twyford said today. Domestic passenger services, particularly ferries, have ...
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    2 weeks ago
  • Mortgage holiday and business finance support schemes to cushion COVID impacts
    The Government, retail banks and the Reserve Bank are today announcing a major financial support package for home owners and businesses affected by the economic impacts of COVID-19. The package will include a six month principal and interest payment holiday for mortgage holders and SME customers whose incomes have been ...
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    2 weeks ago