@McFlock
Put this here because it was OT in thread.
For example, I tend to suspect (I’m not sure, it just seems reasonable on the face of it) that supply of money has some input as to its value, for which some social credit type folks have suggested I’m basically following rogernomics, and we can print as much cash as we want (billions) with no impact on the exchange rate or inflation.
It’s not just creation money though – you have to include it’s destruction. The cycle should go:
Government >> economy >> government
The money’s return to government is actually it’s destruction. Under those conditions then inflation can be minimal.
As for the exchange value – that needs to be set by a formula (essentially imports/exports) rather than the wishful thinking of the speculators.
Spend available for provision of government services is the amount needed to provide those services – no more, no less.
This spending then gets spent into the private sector causing multiplier effect (usually around 3 times).
Overall tax @ 33% to have return to government balance.
It would be government spending, including the UBI, that provides the entire money supply for the economy to work. This:
1. Removes poverty
2. Eliminates the business cycle
3. and removes the need for infinite exponential growth on a finite world.
why?…because you claim a tax rate of 33% and a multiplier of 3 …that requires a zero savings and import rate
and we don’t need savings? would love to hear your explanation of how anyone is going to purchase anything that costs more than say a weeks “wages”( while eating and being housed)…and that also suggests all ownership will have be by the state for there will be no ability for private investment…and placing it in a bank (even at zero interest) still removes it from circulation and negatively impacts ME
but the best of all is how you propose to administer the inevitable demand for more. and the inflationary spiral that creates.?..even in a totally closed economy which while possible is extremely unlikely
It’s not Money in >> Money out and that’s it, nobodies got any money and nothing happened as you seem to think.
and we don’t need savings?
No we don’t. Savings aren’t needed to buy cars. It’s supposedly needed to make investments but it’s not needed for that either.
And, of course, people would still be able to put money aside to buy larger stuff.
but the best of all is how you propose to administer the inevitable demand for more.
And how did I propose to do that?
and the inflationary spiral that creates.?
There’s no inflationary spiral as the money is balanced. Unlike now where the money into the system isn’t balanced resulting in high house price inflation.
your understanding of the multiplier effect which you cited..
Possible. The multiplier effect won’t be the same in a Sovereign Money financial system as in the current system.
I’m thinking that it would be more of a measure of how many transactions money will go through before it’s fully returned/destroyed. I was making an assumption, based upon the present multiplier usually being ~3, that it would be about the same.
Thinking about it some more that assumption is most likely low which means that the overall tax rate would be lower. Would probably need a FTT.
“No we don’t. Savings aren’t needed to buy cars. It’s supposedly needed to make investments but it’s not needed for that either.”
Didn’t mention cars, but if you maintain savings are not needed (though you then contradict yourself by stating monies can be put aside for larger stuff….otherwise known as savings) one can only assume that either the government will lend or gift monies for large purchases or that money itself will cease to be.
“And how did I propose to do that?”
you haven’t ….and that is the point.You have ignored the increasing demand by a society that only has to bring political pressure to obtain more or the same for less, how does your model propose to deal with that? This speaks to the inflationary spiral that would be created.
If what you have outlined here is a genuine model then you should at least be up front and admit the only way it would have a chance of successfully operate (at least briefly) would mean the end of private ownership, a completely closed economy that is likely to become increasingly unsophistocated and a totalitarian state that is mandated by the majority with no protection for dissenters….think we’ve seen where that leads..
So basically, you’re borrowing against the government’s income next year, as opposed to the government’s income this year. And if the money back doesn’t meet the money you’d spent, it’s inflationary.
How is that different from the standard bonds the reserve bank lends to banks? I can see why “lending” it to central government for infrastructure development rather than just to inflate the banking sector, but what you describe still requires conventional, basic budgeting, not a currently untapped source of revenue.
So basically, you’re borrowing against the government’s income next year
Nope.
Government creates the money
Spends it into the economy
Taxes money back out of the economy (destroys money)
No borrowing at all.
The economy is a continuous cycle.
And if the money back doesn’t meet the money you’d spent, it’s inflationary.
Nope. Growing economy requires a growing volume of money. Of course, sovereign money can also be used to turn the economy into a Stable State Economy.
How is that different from the standard bonds the reserve bank lends to banks?
These would no longer exist. Banks would not be able to borrow from the RBNZ.
Also, the government borrowing from the private sector would also not exist.
but what you describe still requires conventional, basic budgeting, not a currently untapped source of revenue.
But you said that to maintain the overall level at zero change (to avoid inflation), the government had to “destroy” a dollar for every dollar it created.
The money only does any good if the government spends it, gives it to other people. Pays a UBI, pays road workers, whatever.
To get it back to destroy it, the government needs to levy a tax or gain profit from a transaction.
You’re plugging extra money into the economy this year, but you need to avoid creating inflation by taking back a matching amount of money in taxes.
Let’s say you have annual tax revenue of 100bil in a country with a gdp of 300bil. You want to buy everyone a UBIferrari, at an additional cost of 40bil, so you print the required cash. Next year you need to raise $140bil in taxes and destroy 40bil of it, and your gdp is 340bil, so you’ve got ~12% increase in gdp and cash supply while the invented cash is still in the economy.
So you’re still left with government expenditure cuts or tax increases to maintain the monetary balance.
You want to buy everyone a UBIferrari, at an additional cost of 40bil, so you print the required cash.
But the government doesn’t buy everyone a Ferrari now does it? Really, why would you come up with such a stupid example?
What it does is spend money to provide government services (Police, justice, etc). and the UBI. These people now have money which they want to spend. They spend it into the private sector.
As the money moves through the economy it’s taxed in various ways (returned to government). These taxes result in the money being destroyed.
So you’re still left with government expenditure cuts or tax increases to maintain the monetary balance.
Which bit about the government spending being balanced by taxes didn’t you understand?
And, no, you wouldn’t have to cut government services – ever. In fact, doing so would probably cause a recession because the money that the government is spending is the full and total supply of money for the economy.
I really can’t make it any simpler.
Government creates money
Government spends money into the economy via government services
Government taxes money back out of the economy destroying the money
It’s not necessarily to finance government spending but it is necessary to keep money circulating, other wise it goes stagnant and festers in speculative property prices.
If Graham Hart spent the amount of money McFlock suggests in what’s called the permanent money hypotheses Graham would explode in 20 secounds because of the heat generated from spending, so Graham simply can’t spend that amount of money, the role of taxation is to put it back into the hands of those who will spend.
It’s not necessarily to finance government spending but it is necessary to keep money circulating, other wise it goes stagnant and festers in speculative property prices.
Or stimulus from deficit spending, or even cutting corporate taxes can cause inflation, (at the risk of receiving a ban for mentioning Trumps name) Trumpism, there are so many ways to boost demand, my point is if MrFlock would try google first he wouldn’t come across as such an asshole
I chose an absurd example (actually “UBIferrari”) because the what is irrelevant to the discussion: it could be a UBI, earthquake repairs, or a moonbase.
The fact is that you’re still tying government expenditure to government income. In a particularly inefficient way. Because, like most economic theories, your model is to simplistic.
You want to spend money now in order to tax it back later. But rather than doing it with bonds (and addidng a “debt servicing” line item to the annual budget that’s a small proportion of what you actually borrowed), by flooding the economy in new money you necessitate getting it back as soon as possible. The end sum might be zero, but in my example you’ve still increased the money supply by 40bil until you’ve taxed it back. And artificial boom/bust cycle.
And how would you tax it back – monthly or quarterly variations in PAYE? How would that effect folks’ wallets? Or annually bounce the tax rate 15% up or down depending on what you want to build this year? you reckon that’s electorally sustainable? Again, for simply the same result: government expenditure that’s constrained by government income.
You want to spend money now in order to tax it back later.
We’re not starting at zero. We already have the government taxing and spending.
But rather than doing it with bonds (and addidng a “debt servicing” line item to the annual budget that’s a small proportion of what you actually borrowed)
The government shouldn’t borrow money – ever. It has no need to as it can create money and not have interest charged on it. Just so long as it then destroys that money through taxation.
Why do people insist that the government has to pay interest on money?
The end sum might be zero, but in my example you’ve still increased the money supply by 40bil until you’ve taxed it back. And artificial boom/bust cycle.
And that is why your thinking fails. You think that the economy is static rather than a continuous flow.
Again, for simply the same result: government expenditure that’s constrained by government income.
Can you point me to where I said it would be otherwise?
What I said is that government spending through government services and the UBI should be the total money available to the economy. That this would stabilise the economy eliminating the ‘business cycle’ and poverty.
I don’t believe the economy is either static or a continuous flow.
I think there are lag times and elastic relationships throughout the economy, and my concern with your plan is that it causes a surge throughout the system, followed by a corresponding low pressure zone. And that causes more stress to individuals in the system, breaking some of them.
Whereas conventional tax/borrow and spend government policies don’t have that lag period where there’s a sudden boost in money supply on top of everything else.
and my concern with your plan is that it causes a surge throughout the system, followed by a corresponding low pressure zone
But it doesn’t and that thinking is that of a static model.
Whereas conventional tax/borrow and spend government policies don’t have that lag period where there’s a sudden boost in money supply on top of everything else.
The sudden boost in money supply that we’re seeing now is from the private banks creating huge amounts of money in lending for houses and offshore buyers of our housing.
Well, perhaps there is some niche economic definition of “static” – but I meant it in the conventional meaning of lacking in movement, action or change. Which is impossible in a system that has pressure waves, which by definition are change. But either way, simply saying that the model is “widget” doesn’t mean it’s wrong.
How does one create cash and avoid inflation in the period between when government pays the people and when it taxes that amount back off them?
The current boost in money supply is intentional policy by the reserve bank which is using a blunt tool to face a complex problem: a largely stagnant economy with one single sector that’s massively overinflated in price due to long term supply shortfalls.
That is a separate issue to whether your concept of printing (then destroying) money adds any advantage over the current conventions of managing government accounts.
How does one create cash and avoid inflation in the period between when government pays the people and when it taxes that amount back off them?
See, you’re thinking that one thing happens and then the next thing happens at a later time when both will be happening simultaneously. The former is static model thinking.
The current boost in money supply is intentional policy by the reserve bank which is using a blunt tool to face a complex problem:
Actually, it’s been the intentional policy of the government for the last ~30 years who legislated what the RBNZ was going to do, gave it the tools to do that and removed capital movement restrictions.
That is a separate issue to whether your concept of printing (then destroying) money adds any advantage over the current conventions of managing government accounts.
Actually, it gives advantage to the entire economy and not just the governments books:
1. By removing the private banks ability to create money it stabilises the economy from that direction. No more banks creating huge amounts and then panicking and stopping creating any thus throwing the country into recession/depression
2. They’ll be no need to borrow offshore to utilise our own resources as they’ll be plenty of money available
3. By ensuring that there is a constant influx of money into the system via the UBI ensures that there will always be a demand for businesses to supply
4. The UBI will ensure that everyone who wants to will be able to get a good education
5. The UBI will allow people to be entrepreneurial by ensuring that they don’t drop into poverty if their idea fails
6. The removal of interest bearing debt from government removes the need for continued growth
See, you’re thinking that one thing happens and then the next thing happens at a later time when both will be happening simultaneously. The former is static model thinking.
It seems to me that you’re trying to have it both ways: you said “As the money moves through the economy it’s taxed in various ways (returned to government). “. That means there’s a lag between when the money is distributed and when the same amount of money is finally returned via taxes. If there’s a lag then there’s a period of substantially increased money supply. If there’s no lag, then you’re not “creating” money, you’re simply transferring tax revenue into expenditure in exactly the same way it’s currently done.
Actually, it [“printing (then destroying) money”-mcf] gives advantage to the entire economy and not just the governments books:
1. By removing the private banks ability to create money it stabilises the economy from that direction. No more banks creating huge amounts and then panicking and stopping creating any thus throwing the country into recession/depression
Yes and no. It bypasses the fractional reserve system (which is merely a multiplier of the OCR tool, not an integral part), but that doesn’t mean that the banks will contribute any less to boom and bust speculative cycles.
2. They’ll be no need to borrow offshore to utilise our own resources as they’ll be plenty of money available
Borrowing, either directly or by simply printing cash and borrowing that off future taxpayers, is a sign of insufficient taxation right now.
3. By ensuring that there is a constant influx of money into the system via the UBI ensures that there will always be a demand for businesses to supply
That is a benefit of a UBI in particular, but yes does apply to other government expenditure if it’s done wisely. IMO most importantly the government expenditure needs to go into the regions so it can flow back into the urban centres then the corporates, rather than just swilling around a few key CBDs.
4. The UBI will ensure that everyone who wants to will be able to get a good education
Nah. That’s what the education system is for.
5. The UBI will allow people to be entrepreneurial by ensuring that they don’t drop into poverty if their idea fails
Fair enough, but this isn’t about the benefits of a UBI, it’s about how some UBI proponents intend to pay for it.
6. The removal of interest bearing debt from government removes the need for continued growth
but printing money simply substitutes interest payments for boosts to inflation. Growth is therefore still necessary.
That means there’s a lag between when the money is distributed and when the same amount of money is finally returned via taxes. If there’s a lag then there’s a period of substantially increased money supply.
Nope because the taxes would go up at the same time that spending goes up. If spending doesn’t go up then taxes don’t go up.
And we’re not starting at a zero point. We already have a monetary flow. There’d be a transition period when inflation may be a little higher than normal but I doubt if it would last long.
It bypasses the fractional reserve system (which is merely a multiplier of the OCR tool, not an integral part), but that doesn’t mean that the banks will contribute any less to boom and bust speculative cycles.
Yeah, actually, it does:
1. The banks will no longer be able to leverage minimal funds into massive loans. They’re strictly limited to what they have on deposit for on-lending and the people who so deposited it won’t be able to spend it either thus removing that piece of leveraging as well
2. If a few people lose their money from speculation so what? The constant flow of money from the government will ensure that loss with have minimal feed on effects. Mostly, the banks won’t suddenly stop creating money and throwing us all into recession as happened in the GFC
Borrowing, either directly or by simply printing cash and borrowing that off future taxpayers
Creating money which is then spent directly into the economy producing economic activity now is not borrowing.
Nah. That’s what the education system is for
People need to be able to afford to go and get that education and that’s what the UBI will do.
but printing money simply substitutes interest payments for boosts to inflation.
But creating money doesn’t automatically translate into inflation – as the vast printing of money around the world after the GFC proved.
Nope because the taxes would go up at the same time that spending goes up. If spending doesn’t go up then taxes don’t go up.
So how does that differ with what blinglish currently does every year?
And we’re not starting at a zero point. We already have a monetary flow. There’d be a transition period when inflation may be a little higher than normal but I doubt if it would last long.
Ok, so there will be inflation, now we’re just quibbling over how large and sustained it will be.
It bypasses the fractional reserve system (which is merely a multiplier of the OCR tool, not an integral part), but that doesn’t mean that the banks will contribute any less to boom and bust speculative cycles.
Yeah, actually, it does:
1. The banks will no longer be able to leverage minimal funds into massive loans. They’re strictly limited to what they have on deposit for on-lending and the people who so deposited it won’t be able to spend it either thus removing that piece of leveraging as well
2. If a few people lose their money from speculation so what? The constant flow of money from the government will ensure that loss with have minimal feed on effects. Mostly, the banks won’t suddenly stop creating money and throwing us all into recession as happened in the GFC
It wasn’t the creation of money that created the GFC, it was the outright frauds that were committed with that money, that then made the banks terrified of lending money to each other in order to settle daily debts and tallies. They created a pyramid of bad loan packages, then as soon as the music stopped playing all the bankers dropped those hot potatoes so they wouldn’t get caught with their pants down (abuse of allegorical language intentional 🙂 ).
Creating money which is then spent directly into the economy producing economic activity now is not borrowing.
It is if taxpayers have to make it up, even in the near-immediate future.
but printing money simply substitutes interest payments for boosts to inflation.
But creating money doesn’t automatically translate into inflation – as the vast printing of money around the world after the GFC proved.
Well, yes it does. That’s why they did it: boost GDP with the corresponding effect on inflation. Because they were at extreme risk of deflation and depression.
Maybe if we take a step back because interest rates set the rate at which you can borrow from the reserve bank but they are apart of the cost when settling transactions between different banks, and banks hang on to reserve in case the housing sector has a massive run on for cash, and they never pass on full rate cuts. But if you take interest away banks themselves still have guides to take on crises, and that’s just in case there’s a fiscal demand for cash.
So how does that differ with what blinglish currently does every year?
The current system actually borrows the money at interest. The government borrows from private banks which create the money at the time. The addition of interest means that it can never be fully paid back which means we have an expanding monetary base.
Never mind the fact that the private banks also create money when they make a loan to private individuals as well.
Sovereign Money gets rid of that. It has the continuous creation and destruction of money needed to keep the economy moving but it doesn’t have the interest component that forces growth. A stable state economy would work.
They created a pyramid of bad loan packages, then as soon as the music stopped playing all the bankers dropped those hot potatoes so they wouldn’t get caught with their pants down (abuse of allegorical language intentional 🙂 ).
The entire banking sector is a Ponzi Scheme – see above – which is why it fell over.
Well, yes it does. That’s why they did it: boost GDP with the corresponding effect on inflation. Because they were at extreme risk of deflation and depression.
No it doesn’t.
Yes, that is one of the reasons why they printed so much money but the inflation didn’t actually eventuate. The other reason, and probably the main one, that they printed so much was to prop up the banks. If the Ponzi Scheme that the private banks run collapsed the way it should have then, yes, we would have been in a depression.
Of course, the best thing that they could have done to prevent a depression is implement a UBI and let the banks collapse. Instead they gave it all to the banks which then kept it instead of loaning it out for productive activity.
A UBI would have prevented a recession, kept local businesses going and allowed the market to correct for the banks fraudulent activities.
The addition of interest means that it can never be fully paid back which means we have an expanding monetary base.
Bullshit. Of course it can be paid off, with interest.
And the “sovereign debt” equivalent of interest is the systemic costs of the inflation it creates, even temporarily.
Yes, that is one of the reasons why they printed so much money but the inflation didn’t actually eventuate.
or it did eventuate and without it the world would have gone into a deflationary spiral.
The other reason, and probably the main one, that they printed so much was to prop up the banks. If the Ponzi Scheme that the private banks run collapsed the way it should have then, yes, we would have been in a depression.
agreed.
Of course, the best thing that they could have done to prevent a depression is implement a UBI and let the banks collapse. Instead they gave it all to the banks which then kept it instead of loaning it out for productive activity.
Nah. The best thing they could have done was buy all the bad loans at crap market rates and renegotiate sustainable repayment terms for the borrowers, thereby starting one of the biggest state housing programmes in decades if not history.
Profit gouging (especially by multinationals, e.g. bank interest) is also destruction of money, if there’s a weak tax regime (or tax haven) and no reciprocal investment back into NZ
Similarly, GST & income tax is a highly regressive drag on the economy and devalues the work of the many, whereas the top few % rich in assets pay relatively no tax. In fact, because of the property bubble there are thousands of lucky/privileged/entitled Aucklanders whose net tax is probably less than zero.
On Planet Key, the wealthy pay no tax, and the poor get taxed on all income over $1
As I said in the rest of that sentence. Unfortunately, Aussie banks are destroying value by extracting billions from the NZ economy per year without commensurate spend back in to NZ
Yep, the dead-weight loss of profit. I’m quite aware of it but it not destroying the money. It can still be spent and it’s usually spent on assets thus driving asset price bubbles.
Same with privatisation, offset the blame, a whole bunch of people with their hands in the air singing ‘It wasn’t me’ til you get to the poor shmo on minimum wage at the bottom of the ladder ‘It’s all his fault!’.
More of this national government and there worshipers failing to take any responsibility for anything the have wreaked over the last 8 years of office.
Nothing to do with chronic lack of resourcing in Police and cutting mental health services so that Bill English can put some nice numbers in a fucking spreadsheet…
This is awful broadcasting. And this is what the Horrid want to do with the NZOA funding changes. They want to contest for public funding to produce this kind of crap.
Ha ha. I was lucky enough just now to watch the super big Moon-rise at about 68degrees from North in Blenheim. A lovely golden colour and just huge. Don’t think I will be around to see the next one.
I do hope you have at least another 18 years in you. The full moon will be even closer on 26 November 2034. And there’s a total solar eclipse directly over the South Island in 2028 to tide you over.
I've seen these days before and I can tell you it doesn't end well for the common folk. https://t.co/oFe1la0V6n— Harry Leslie Smith (@Harryslaststand) November 13, 2016
It is all very well cutting the backrooms of public agencies but it may compromise the frontlines. One of the frustrations of the Productivity Commission’s 2017 review of universities is that while it observed that their non-academic staff were increasing faster than their academic staff, it did not bother to ...
Buzz from the Beehive Two speeches delivered by Foreign Affairs Minister Winston Peters at Anzac Day ceremonies in Turkey are the only new posts on the government’s official website since the PM announced his Cabinet shake-up. In one of the speeches, Peters stated the obvious: we live in a troubled ...
1. Which of these would you not expect to read in The Waikato Invader?a. Luxon is here to do business, don’t you worry about thatb. Mr KPI expects results, and you better believe itc. This decisive man of action is getting me all hot and excitedd. Melissa Lee is how ...
…it has a restricted jurisdiction which must not be abused: it is not an inquisitionNOTE – this article was published before the High Court ruled that Karen Chhour does not have to appear before the Waitangi Tribunal Gary Judd writes – The High Court ...
Lindsay Mitchell writes – One of reasons Oranga Tamariki exists is to prevent child neglect. But could the organisation itself be guilty of the same?Oranga Tamariki’s statistics show a decrease in the number and age of children in care. “There are less children ...
David Farrar writes: Graeme Edgeler wrote in 2017: In the first five years after three strikes came into effect 5248 offenders received a ‘first strike’ (that is, a “stage-1 conviction” under the three strikes sentencing regime), and 68 offenders received a ‘second strike’. In the five years prior to ...
Bryce Edwards writes – Prime Minister Christopher Luxon has surprised everyone with his ruthlessness in sacking two of his ministers from their crucial portfolios. Removing ministers for poor performance after only five months in the job just doesn’t normally happen in politics. That’s refreshing and will be extremely ...
TL;DR: These are the six things that stood out to me in news and commentary on Aotearoa-NZ’s political economy in the two days to 6:06am on Thursday, April 25:Politics: PM Christopher Luxon has set up a dual standard for ministerial competence by demoting two National Cabinet ministers while leaving also-struggling ...
Hi,Today I mainly want to share some of your thoughts about the recent piece I wrote about success and failure, and the forces that seemingly guide our lives. But first, a quick bit of housekeeping: I am doing a Webworm popup in Los Angeles on Saturday May 11 at 2pm. ...
It is hard to see what Melissa Lee might have done to “save” the media. National went into the election with no public media policy and appears not to have developed one subsequently. Lee claimed that she had prepared a policy paper before the election but it had been decided ...
Open access notablesIce acceleration and rotation in the Greenland Ice Sheet interior in recent decades, Løkkegaard et al., Communications Earth & Environment:In the past two decades, mass loss from the Greenland ice sheet has accelerated, partly due to the speedup of glaciers. However, uncertainty in speed derived from satellite products ...
Buzz from the Beehive A statement from Children’s Minister Karen Chhour – yet to be posted on the Government’s official website – arrived in Point of Order’s email in-tray last night. It welcomes the High Court ruling on whether the Waitangi Tribunal can demand she appear before it. It does ...
Mr Bombastic:Ironically, the media the academic experts wanted is, in many ways, the media they got. In place of the tyrannical editors of yesteryear, advancing without fear or favour the interests of the ruling class; the New Zealand news media of today boasts a troop of enlightened journalists dedicated to ...
It's hard times try to make a livingYou wake up every morning in the unforgivingOut there somewhere in the cityThere's people living lives without mercy or pityI feel good, yeah I'm feeling fineI feel better then I have for the longest timeI think these pills have been good for meI ...
In 1974, the US Supreme Court issued its decision in United States v. Nixon, finding that the President was not a King, but was subject to the law and was required to turn over the evidence of his wrongdoing to the courts. It was a landmark decision for the rule ...
Every day now just seems to bring in more fresh meat for the grinder.In their relentlessly ideological drive to cut back on the “excessive bloat” (as they see it) of the previous Labour-led government, on the mountains of evidence accumulated in such a short period of time do not ...
This is a re-post from Yale Climate Connections by Megan Valére SosouMarket gardening site of the Itchèléré de Itagui agricultural cooperative in Dassa-Zoumè (Image credit: Megan Valère Sossou) For the residents of Dassa-Zoumè, a city in the West African country of Benin, choosing between drinking water and having enough ...
Buzz from the Beehive Melissa Lee – as may be discerned from the screenshot above – has not been demoted for doing something seriously wrong as Minister of ...
Morning in London Mother hugs beloved daughter outside the converted shoe factory in which she is living.Afternoon in London Travelling writer takes himself and his wrist down to A&E, just to be sure. Read more ...
Mike Grimshaw writes – The recent announcement of the University Advisory Group, chaired by Sir Peter Gluckman, makes very clear where the Government’s focus and priorities lie. The remit of the Advisory Group is that Group members will consider challenges and opportunities for improvement in the university sector including: ...
Eric Crampton writes – The Reserve Bank of New Zealand desperately wants to find reasons to have workstreams in climate change. It makes little sense. They’ve run another stress test on the banks looking to see if they could find a prudential regulation case. They couldn’t. They ...
Rob MacCullough writes – Pundits from the left and the right are arguing that National’s Fast Track Bill that is designed to speed up infrastructure decisions could end up becoming mired in a cesspool of corruption. Political commentator ...
Looking at the headlines this morning it’s hard to feel anything other than pessimistic about the future of humanity.Note that I’m not speaking about the future of mankind, but the survival of our humanity. The values that we believe in seem to be ebbing away, by the day.Perhaps every generation ...
Swabbing mixed breed baby chicks to test for avian influenzaUh oh. Bird flu – often deadly to humans – is not only being transmitted from infected birds to dairy cows, but is now travelling between dairy cows. As of last Friday, Bloomberg News reports, there were 32 American dairy herds ...
On February 14, 2023 we announced our Rebuttal Update Project. This included an ask for feedback about the added "At a glance" section in the updated basic rebuttal versions. This weekly blog post series highlights this new section of one of the updated basic rebuttal versions and serves as a ...
What is it with the mining industry? Its not enough for them to pillage the earth - they apparently can't even be bothered getting resource consent to do so: The proponent behind a major mine near the Clutha River had already been undertaking activity in the area without a ...
Photo # 1 I am a huge fan of Singapore’s approach to housing, as described here two years ago by copying and pasting from The ConversationWhat Singapore has that Australia does not is a public housing developer, the Housing Development Board, which puts new dwellings on public and reclaimed land, ...
Buzz from the Beehive Reactions to news of the government’s readiness to make urgent changes to “the resource management system” through a Bill to amend the Resource Management Act (RMA) suggest a balanced approach is being taken. The Taxpayers’ Union says the proposed changes don’t go far enough. Greenpeace says ...
I’m starting to wonder if Anna Burns-Francis might be the best political interviewer we’ve got. That might sound unlikely to you, it came as a bit of a surprise to me.Jack Tame can be excellent, but has some pretty average days. I like Rebecca Wright on Newshub, she asks good ...
Chris Trotter writes – Willie Jackson is said to be planning a “media summit” to discuss “the state of the media and how to protect Fourth Estate Journalism”. Not only does the Editor of The Daily Blog, Martyn Bradbury, think this is a good idea, but he has also ...
Graeme Edgeler writes – This morning [April 21], the Wellington High Court is hearing a judicial review brought by Hon. Karen Chhour, the Minister for Children, against a decision of the Waitangi Tribunal. This is unusual, judicial reviews are much more likely to brought against ministers, rather than ...
Both of Parliament’s watchdogs have now ripped into the Government’s Fast-track Approvals Bill. Photo: Lynn Grieveson / The KākāMy pick of the six newsey things to know from Aotearoa’s political economy and beyond on the morning of Tuesday, April 23 are:The Lead: The Auditor General,John Ryan, has joined the ...
This is a re-post from Yale Climate Connections by Sarah SpengemanPeople wait to board an electric bus in Pune, India. (Image credit: courtesy of ITDP) Public transportation riders in Pune, India, love the city’s new electric buses so much they will actually skip an older diesel bus that ...
The infrastructure industry yesterday issued a “hurry up” message to the Government, telling it to get cracking on developing a pipeline of infrastructure projects.The hiatus around the change of Government has seen some major projects cancelled and others delayed, and there is uncertainty about what will happen with the new ...
Hi,Over the weekend I revisited a podcast I really adore, Dead Eyes. It’s about a guy who got fired from Band of Brothers over two decades ago because Tom Hanks said he had “dead eyes”.If you don’t recall — 2001’s Band of Brothers was part of the emerging trend of ...
Buzz from the Beehive The 180 or so recipients of letters from the Government telling them how to submit infrastructure projects for “fast track” consideration includes some whose project applications previously have been rejected by the courts. News media were quick to feature these in their reports after RMA Reform Minister Chris ...
It would not be a desirable way to start your holiday by breaking your back, your head, or your wrist, but on our first hour in Singapore I gave it a try.We were chatting, last week, before we started a meeting of Hazel’s Enviro Trust, about the things that can ...
Calling all journalists, academics, planners, lawyers, political activists, environmentalists, and other members of the public who believe that the relationships between vested interests and politicians need to be scrutinised. We need to work together to make sure that the new Fast-Track Approvals Bill – currently being pushed through by the ...
Feel worried. Shane Jones and a couple of his Cabinet colleagues are about to be granted the power to override any and all objections to projects like dams, mines, roads etc even if: said projects will harm biodiversity, increase global warming and cause other environmental harms, and even if ...
Bryce Edwards writes- The ability of the private sector to quickly establish major new projects making use of the urban and natural environment is to be supercharged by the new National-led Government. Yesterday it introduced to Parliament one of its most significant reforms, the Fast Track Approvals Bill. ...
Michael Bassett writes – If you think there is a move afoot by the radical Maori fringe of New Zealand society to create a parallel system of government to the one that we elect at our triennial elections, you aren’t wrong. Over the last few days we have ...
Without a corresponding drop in interest rates, it’s doubtful any changes to the CCCFA will unleash a massive rush of home buyers. Photo: Lynn GrievesonTL;DR: The six things that stood out to me in Aotearoa’s political economy around housing, poverty and climate on Monday, April 22 included:The Government making a ...
Sunday was a lazy day. I started watching Jack Tame on Q&A, the interviews are usually good for something to write about. Saying the things that the politicians won’t, but are quite possibly thinking. Things that are true and need to be extracted from between the lines.As you might know ...
In our Weekly Roundup last week we covered news from Auckland Transport that the WX1 Western Express is going to get an upgrade next year with double decker electric buses. As part of the announcement, AT also said “Since we introduced the WX1 Western Express last November we have seen ...
TL;DR: The six key events to watch in Aotearoa-NZ’s political economy in the week to April 29 include:PM Christopher Luxon is scheduled to hold a post-Cabinet news conference at 4 pm today. Stats NZ releases its statutory report on Census 2023 tomorrow.Finance Minister Nicola Willis delivers a pre-Budget speech at ...
A listing of 29 news and opinion articles we found interesting and shared on social media during the past week: Sun, April 14, 2024 thru Sat, April 20, 2024. Story of the week Our story of the week hinges on these words from the abstract of a fresh academic ...
The ability of the private sector to quickly establish major new projects making use of the urban and natural environment is to be supercharged by the new National-led Government. Yesterday it introduced to Parliament one of its most significant reforms, the Fast Track Approvals Bill. The Government says this will ...
This is a column to say thank you. So many of have been in touch since Mum died to say so many kind and thoughtful things. You’re wonderful, all of you. You’ve asked how we’re doing, how Dad’s doing. A little more realisation each day, of the irretrievable finality of ...
Identifying the engine type in your car is crucial for various reasons, including maintenance, repairs, and performance upgrades. Knowing the specific engine model allows you to access detailed technical information, locate compatible parts, and make informed decisions about modifications. This comprehensive guide will provide you with a step-by-step approach to ...
Introduction: The allure of racing is undeniable. The thrill of speed, the roar of engines, and the exhilaration of competition all contribute to the allure of this adrenaline-driven sport. For those who yearn to experience the pinnacle of racing, becoming a race car driver is the ultimate dream. However, the ...
Introduction Automobiles have become ubiquitous in modern society, serving as a primary mode of transportation and a symbol of economic growth and personal mobility. With countless vehicles traversing roads and highways worldwide, it begs the question: how many cars are there in the world? Determining the precise number is a ...
Maintaining a safe and reliable vehicle requires regular inspections. Whether it’s a routine maintenance checkup or a safety inspection, knowing how long the process will take can help you plan your day accordingly. This article delves into the factors that influence the duration of a car inspection and provides an ...
Mazda Motor Corporation, commonly known as Mazda, is a Japanese multinational automaker headquartered in Fuchu, Aki District, Hiroshima Prefecture, Japan. The company was founded in 1920 as the Toyo Cork Kogyo Co., Ltd., and began producing vehicles in 1931. Mazda is primarily known for its production of passenger cars, but ...
Your car battery is an essential component that provides power to start your engine, operate your electrical systems, and store energy. Over time, batteries can weaken and lose their ability to hold a charge, which can lead to starting problems, power failures, and other issues. Replacing your battery before it ...
In most states, you cannot register a car without a valid driver’s license. However, there are a few exceptions to this rule. Exceptions to the RuleIf you are under 18 years old: In some states, you can register a car in your name even if you do not ...
Mazda, a Japanese automotive manufacturer with a rich history of innovation and engineering excellence, has emerged as a formidable player in the global car market. Known for its reputation of producing high-quality, fuel-efficient, and driver-oriented vehicles, Mazda has consistently garnered praise from industry experts and consumers alike. In this article, ...
Struts are an essential part of a car’s suspension system. They are responsible for supporting the weight of the car and damping the oscillations of the springs. Struts are typically made of steel or aluminum and are filled with hydraulic fluid. How Do Struts Work? Struts work by transferring the ...
Car registration is a mandatory process that all vehicle owners must complete annually. This process involves registering your car with the Department of Motor Vehicles (DMV) and paying an associated fee. The registration process ensures that your vehicle is properly licensed and insured, and helps law enforcement and other authorities ...
Zoom is a video conferencing service that allows you to share your screen, webcam, and audio with other participants. In addition to sharing your own audio, you can also share the audio from your computer with other participants. This can be useful for playing music, sharing presentations with audio, or ...
Building your own computer can be a rewarding and cost-effective way to get a high-performance machine tailored to your specific needs. However, it also requires careful planning and execution, and one of the most important factors to consider is the time it will take. The exact time it takes to ...
Sleep mode is a power-saving state that allows your computer to quickly resume operation without having to boot up from scratch. This can be useful if you need to step away from your computer for a short period of time but don’t want to shut it down completely. There are ...
Introduction Computer-Assisted Translation (CAT) has revolutionized the field of translation by harnessing the power of technology to assist human translators in their work. This innovative approach combines specialized software with human expertise to improve the efficiency, accuracy, and consistency of translations. In this comprehensive article, we will delve into the ...
In today’s digital age, mobile devices have become an indispensable part of our daily lives. Among the vast array of portable computing options available, iPads and tablet computers stand out as two prominent contenders. While both offer similar functionalities, there are subtle yet significant differences between these two devices. This ...
A computer is an electronic device that can be programmed to carry out a set of instructions. The basic components of a computer are the processor, memory, storage, input devices, and output devices. The Processor The processor, also known as the central processing unit (CPU), is the brain of the ...
Voice Memos is a convenient app on your iPhone that allows you to quickly record and store audio snippets. These recordings can be useful for a variety of purposes, such as taking notes, capturing ideas, or recording interviews. While you can listen to your voice memos on your iPhone, you ...
Laptop screens are essential for interacting with our devices and accessing information. However, when lines appear on the screen, it can be frustrating and disrupt productivity. Understanding the underlying causes of these lines is crucial for finding effective solutions. Types of Screen Lines Horizontal lines: Also known as scan ...
Right-clicking is a common and essential computer operation that allows users to access additional options and settings. While most desktop computers have dedicated right-click buttons on their mice, laptops often do not have these buttons due to space limitations. This article will provide a comprehensive guide on how to right-click ...
Powering up and shutting down your ASUS laptop is an essential task for any laptop user. Locating the power button can sometimes be a hassle, especially if you’re new to ASUS laptops. This article will provide a comprehensive guide on where to find the power button on different ASUS laptop ...
Dell laptops are renowned for their reliability, performance, and versatility. Whether you’re a student, a professional, or just someone who needs a reliable computing device, a Dell laptop can meet your needs. However, if you’re new to Dell laptops, you may be wondering how to get started. In this comprehensive ...
Te Pāti Māori are demanding the New Zealand Government support an international independent investigation into mass graves that have been uncovered at two hospitals on the Gaza strip, following weeks of assault by Israeli troops. Among the 392 bodies that have been recovered, are children and elderly civilians. Many of ...
Our two-tiered system for veterans’ support is out of step with our closest partners, and all parties in Parliament should work together to fix it, Labour veterans’ affairs spokesperson Greg O’Connor said. ...
Stripping two Ministers of their portfolios just six months into the job shows Christopher Luxon’s management style is lacking, Labour Leader Chris Hipkins said. ...
Tonight’s court decision to overturn the summons of the Children’s Minister has enabled the Crown to continue making decisions about Māori without evidence, says Te Pāti Māori spokesperson for Children, Mariameno Kapa-Kingi. “The judicial system has this evening told the nation that this government can do whatever they want when ...
It appears Nicola Willis is about to pull the rug out from under the feet of local communities still dealing with the aftermath of last year’s severe weather, and local councils relying on funding to build back from these disasters. ...
The Government is making short-sighted changes to the Resource Management Act (RMA) that will take away environmental protection in favour of short-term profits, Labour’s environment spokesperson Rachel Brooking said today. ...
Labour welcomes the release of the report into the North Island weather events and looks forward to working with the Government to ensure that New Zealand is as prepared as it can be for the next natural disaster. ...
The Labour Party has called for the New Zealand Government to recognise Palestine, as a material step towards progressing the two-State solution needed to achieve a lasting peace in the region. ...
Some of our country’s most important work, stopping the sexual exploitation of children and violent extremism could go along with staff on the frontline at ports and airports. ...
The Government’s Fast Track Approvals Bill will give projects such as new coal mines a ‘get out of jail free’ card to wreak havoc on the environment, Labour Leader Chris Hipkins said today. ...
The government's decision to reintroduce Three Strikes is a destructive and ineffective piece of law-making that will only exacerbate an inherently biased and racist criminal justice system, said Te Pāti Māori Justice Spokesperson, Tākuta Ferris, today. During the time Three Strikes was in place in Aotearoa, Māori and Pasifika received ...
Cuts to frontline hospital staff are not only a broken election promise, it shows the reckless tax cuts have well and truly hit the frontline of the health system, says Labour Health spokesperson Ayesha Verrall. ...
The Green Party has joined the call for public submissions on the fast-track legislation to be extended after the Ombudsman forced the Government to release the list of organisations invited to apply just hours before submissions close. ...
New Zealand’s good work at reducing climate emissions for three years in a row will be undone by the National government’s lack of ambition and scrapping programmes that were making a difference, Labour Party climate spokesperson Megan Woods said today. ...
More essential jobs could be on the chopping block, this time Ministry of Education staff on the school lunches team are set to find out whether they're in line to lose their jobs. ...
Te Pāti Māori is disgusted at the confirmation that hundreds are set to lose their jobs at Oranga Tamariki, and the disestablishment of the Treaty Response Unit. “This act of absolute carelessness and out of touch decision making is committing tamariki to state abuse.” Said Te Pāti Māori Oranga Tamariki ...
The Government is trying to bring in a law that will allow Ministers to cut corners and kill off native species, Labour environment spokesperson Rachel Brooking said. ...
Cancelling urgently needed new Cook Strait ferries and hiking the cost of public transport for many Kiwis so that National can announce the prospect of another tunnel for Wellington is not making good choices, Labour Transport Spokesperson Tangi Utikere said. ...
A laundry list of additional costs for Tāmaki Makarau Auckland shows the Minister for the city is not delivering for the people who live there, says Labour Auckland Issues spokesperson Shanan Halbert. ...
Te Pāti Māori co-leader Rawiri Waititi, and Mema Paremata mō Tāmaki-Makaurau, Takutai Tarsh Kemp, will travel to the Gold Coast to strengthen ties with Māori in Australia next week (15-21 April). The visit, in the lead-up to the 9th Australian National Kapa haka Festival, will be an opportunity for both ...
The Green Party has today launched a step-by-step guide to help New Zealanders make their voice heard on the Government’s democracy dodging and anti-environment fast track legislation. ...
The National Government’s proposed changes to the Residential Tenancies Act will mean tenants can be turfed from their homes by landlords with little notice, Labour housing spokesperson Kieran McAnulty said. ...
Green Party co-leader Marama Davidson is calling on all parties to support a common-sense change that’s great for the planet and great for consumers after her member’s bill was drawn from the ballot today. ...
A significant milestone has been reached in the fight to strike an anti-Pasifika and unfair law from the country’s books after Teanau Tuiono’s members’ bill passed its first reading. ...
New Zealand has today missed the opportunity to uphold the right to a clean, healthy, and sustainable environment, says James Shaw after his member’s bill was voted down in its first reading. ...
Today’s advice from the Climate Change Commission paints a sobering reality of the challenge we face in combating climate change, especially in light of recent Government policy announcements. ...
Minister for Disability Issues Penny Simmonds appears to have delayed a report back to Cabinet on the progress New Zealand is making against international obligations for disabled New Zealanders. ...
Ambassador Millar, Burgemeester, Vandepitte, Excellencies, military representatives, distinguished guests, ladies and gentlemen – good morning and welcome to this sacred Anzac Day dawn service. It is an honour to be here on behalf of the Government and people of New Zealand at Buttes New British Cemetery, Polygon Wood – a deeply ...
Distinguished guests - It is an honour to return once again to this site which, as the resting place for so many of our war-dead, has become a sacred place for generations of New Zealanders. Our presence here and at the other special spaces of Gallipoli is made ...
Mai ia tawhiti pamamao, te moana nui a Kiwa, kua tae whakaiti mai matou, ki to koutou papa whenua. No koutou te tapuwae, no matou te tapuwae, kua honoa pumautia. Ko nga toa kua hinga nei, o te Waipounamu, o te Ika a Maui, he okioki tahi me o ...
Paul Goldsmith will take on responsibility for the Media and Communications portfolio, while Louise Upston will pick up the Disability Issues portfolio, Prime Minister Christopher Luxon announced today. “Our Government is relentlessly focused on getting New Zealand back on track. As issues change in prominence, I plan to adjust Ministerial ...
Recreational catch limits will be reduced in areas of Fiordland and the Chatham Islands to help keep those fisheries healthy and sustainable, Oceans and Fisheries Minister Shane Jones says. The lower recreational daily catch limits for a range of finfish and shellfish species caught in the Fiordland Marine Area and ...
Energy Minister Simeon Brown has welcomed an important milestone in New Zealand’s hydrogen future, with the opening of the country’s first network of hydrogen refuelling stations in Wiri. “I want to congratulate the team at Hiringa Energy and its partners K one W one (K1W1), Mitsui & Co New Zealand ...
The coalition Government is delivering on its commitment to improve resource management laws and give greater certainty to consent applicants, with a Bill to amend the Resource Management Act (RMA) expected to be introduced to Parliament next month. RMA Reform Minister Chris Bishop has today outlined the first RMA Amendment ...
Overseas models for regulating the oil and gas sector, including their decommissioning regimes, are being carefully scrutinised as a potential template for New Zealand’s own sector, Resources Minister Shane Jones says. The Coalition Government is focused on rebuilding investor confidence in New Zealand’s energy sector as it looks to strengthen ...
Emergency Management and Recovery Minister Mark Mitchell has today released the Report of the Government Inquiry into the response to the North Island Severe Weather Events. “The report shows that New Zealand’s emergency management system is not fit-for-purpose and there are some significant gaps we need to address,” Mr Mitchell ...
Justice Minister Paul Goldsmith is today travelling to Europe where he’ll update the United Nations Human Rights Council on the Government’s work to restore law and order. “Attending the Universal Periodic Review in Geneva provides us with an opportunity to present New Zealand’s human rights progress, priorities, and challenges, while ...
Associate Agriculture Minister, Mark Patterson, formally reopened the world’s largest wool processing facility today in Awatoto, Napier, following a $50 million rebuild and refurbishment project. “The reopening of this facility will significantly lift the economic opportunities available to New Zealand’s wool sector, which already accounts for 20 per cent of ...
Hon Andrew Bayly, Minister for Small Business and Manufacturing At the Southland Otago Regional Engineering Collective (SOREC) Summit, 18 April, Dunedin Ngā mihi nui, Ko Andrew Bayly aho, Ko Whanganui aho Good Afternoon and thank you for inviting me to open your summit today. I am delighted ...
The Government is delivering on its commitment to bring back the Three Strikes legislation, Associate Justice Minister Nicole McKee announced today. “Our Government is committed to restoring law and order and enforcing appropriate consequences on criminals. We are making it clear that repeat serious violent or sexual offending is not ...
Foreign Minister Winston Peters has today announced four new diplomatic appointments for New Zealand’s overseas missions. “Our diplomats have a vital role in maintaining and protecting New Zealand’s interests around the world,” Mr Peters says. “I am pleased to announce the appointment of these senior diplomats from the ...
New Zealand is contributing NZ$7 million to support communities affected by severe food insecurity and other urgent humanitarian needs in Ethiopia and Somalia, Foreign Minister Rt Hon Winston Peters announced today. “Over 21 million people are in need of humanitarian assistance across Ethiopia, with a further 6.9 million people ...
Minister for Arts, Culture and Heritage Paul Goldsmith is congratulating Mataaho Collective for winning the Golden Lion for best participant in the main exhibition at the Venice Biennale. "Congratulations to the Mataaho Collective for winning one of the world's most prestigious art prizes at the Venice Biennale. “It is good ...
The Government is reforming financial services to improve access to home loans and other lending, and strengthen customer protections, Commerce and Consumer Affairs Minister Andrew Bayly and Housing Minister Chris Bishop announced today. “Our coalition Government is committed to rebuilding the economy and making life simpler by cutting red tape. We are ...
“China remains a strong commercial opportunity for Kiwi exporters as Chinese businesses and consumers continue to value our high-quality safe produce,” Trade and Agriculture Minister Todd McClay says. Mr McClay has returned to New Zealand following visits to Beijing, Harbin and Shanghai where he met ministers, governors and mayors and engaged in trade and agricultural events with the New ...
Prime Minister Christopher Luxon has completed a successful trip to Singapore, Thailand and the Philippines, deepening relationships and capitalising on opportunities. Mr Luxon was accompanied by a business delegation and says the choice of countries represents the priority the New Zealand Government places on South East Asia, and our relationships in ...
New Zealand is demonstrating its commitment to reducing global greenhouse emissions, and supporting clean energy transition in South East Asia, through a contribution of NZ$41 million (US$25 million) in climate finance to the Asian Development Bank (ADB)-led Energy Transition Mechanism (ETM). Prime Minister Christopher Luxon and Climate Change Minister Simon Watts announced ...
The Government is today releasing a list of organisations who received letters about the Fast-track applications process, says RMA Reform Minister Chris Bishop. “Recently Ministers and agencies have received a series of OIA requests for a list of organisations to whom I wrote with information on applying to have a ...
Attorney-General Judith Collins today announced the appointment of Wellington Barrister David Jonathan Boldt as a Judge of the High Court, and the Honourable Justice Matthew Palmer as a Judge of the Court of Appeal. Justice Boldt graduated with an LLB from Victoria University of Wellington in 1990, and also holds ...
Education Minister Erica Stanford will lead the New Zealand delegation at the 2024 International Summit on the Teaching Profession (ISTP) held in Singapore. The delegation includes representatives from the Post Primary Teachers’ Association (PPTA) Te Wehengarua and the New Zealand Educational Institute (NZEI) Te Riu Roa. The summit is co-hosted ...
A stopbank upgrade project in Tairawhiti partly funded by the Government has increased flood resilience for around 7000ha of residential and horticultural land so far, Regional Development Minister Shane Jones says. Mr Jones today attended a dawn service in Gisborne to mark the end of the first stage of the ...
Foreign Affairs Minister Winston Peters will represent the Government at Anzac Day commemorations on the Gallipoli Peninsula next week and engage with senior representatives of the Turkish government in Istanbul. “The Gallipoli campaign is a defining event in our history. It will be a privilege to share the occasion ...
Science, Innovation and Technology and Defence Minister Judith Collins will next week attend the OECD Science and Technology Ministerial conference in Paris and Anzac Day commemorations in Belgium. “Science, innovation and technology have a major role to play in rebuilding our economy and achieving better health, environmental and social outcomes ...
Prime Minister Christopher Luxon held a bilateral meeting today with the President of the Philippines, Ferdinand Marcos Jr. The Prime Minister was accompanied by MP Paulo Garcia, the first Filipino to be elected to a legislature outside the Philippines. During today’s meeting, Prime Minister Luxon and President Marcos Jr discussed opportunities to ...
The Government has announced that $20 million in funding will be made available to Westport to fund much needed flood protection around the town. This measure will significantly improve the resilience of the community, says Local Government Minister Simeon Brown. “The Westport community has already been allocated almost $3 million ...
The Government is proud to support the first ever Repco Supercars Championship event in Taupō as up to 70,000 motorsport fans attend the Taupō International Motorsport Park this weekend, says Economic Development Minister Melissa Lee. “Anticipation for the ITM Taupō Super400 is huge, with tickets and accommodation selling out weeks ...
Local Government Minister Simeon Brown has announced an increase to the Rates Rebate Scheme, putting money back into the pockets of low-income homeowners. “The coalition Government is committed to bringing down the cost of living for New Zealanders. That includes targeted support for those Kiwis who are doing things tough, such ...
The Coalition Government is investing in a project to boost survival rates of New Zealand mussels and grow the industry, Oceans and Fisheries Minister Shane Jones has announced. “This project seeks to increase the resilience of our mussels and significantly boost the sector’s productivity,” Mr Jones says. “The project - ...
Benefit figures released today underscore the importance of the Government’s plan to rebuild the economy and have 50,000 fewer people on Jobseeker Support, Social Development and Employment Minister Louise Upston says. “Benefit numbers are still significantly higher than when National was last in government, when there was about 70,000 fewer ...
The Government’s commitment to doubling New Zealand’s renewable energy capacity is backed by new data showing that clean energy has helped the country reach its lowest annual gross emissions since 1999, Climate Change Minister Simon Watts says. New Zealand’s latest Greenhouse Gas Inventory (1990-2022) published today, shows gross emissions fell ...
The Government is bringing the earthquake-prone building review forward, with work to start immediately, and extending the deadline for remediations by four years, Building and Construction Minister Chris Penk says. “Our Government is focused on rebuilding the economy. A key part of our plan is to cut red tape that ...
Prime Minister Christopher Luxon and his Thai counterpart, Prime Minister Srettha Thavisin, have today agreed that New Zealand and the Kingdom of Thailand will upgrade the bilateral relationship to a Strategic Partnership by 2026. “New Zealand and Thailand have a lot to offer each other. We have a strong mutual desire to build ...
RMA Reform Minister Chris Bishop and Transport Minister Simeon Brown have today announced the Coalition Government’s intention to extend port coastal permits for a further 20 years, providing port operators with certainty to continue their operations. “The introduction of the Resource Management Act in 1991 required ports to obtain coastal ...
Today’s announcement that inflation is down to 4 per cent is encouraging news for Kiwis, but there is more work to be done - underlining the importance of the Government’s plan to get the economy back on track, acting Finance Minister Chris Bishop says. “Inflation is now at 4 per ...
Refreshed health guidance released today will help parents and schools make informed decisions about whether their child needs to be in school, addressing one of the key issues affecting school attendance, says Associate Education Minister David Seymour. In recent years, consistently across all school terms, short-term illness or medical reasons ...
Oceans and Fisheries Minister Shane Jones is streamlining high-level oceans management while maintaining a focus on supporting the sector’s role in the export-led recovery of the economy. “I am working to realise the untapped potential of our fishing and aquaculture sector. To achieve that we need to be smarter with ...
I was initially resistant to the idea often suggested to me that the Government should deliver an arts strategy. The whole point of the arts and creativity is that people should do whatever the hell they want, unbound by the dictates of politicians in Wellington. Peter Jackson, Kiri Te Kanawa, Eleanor ...
Pacific Media Watch Palestine solidarity protesters today demonstrated at the Auckland headquarters of Television New Zealand, accusing the country’s major TV network of broadcasting “propaganda” backing Israel’s genocidal war on Gaza. About 50 protesters targeted the main entrance to the TVNZ building near Sky Tower and also picketed a side ...
Opinion by Lynley Hood. Forty years on from my 1985 Fulbright Grant, my disquiet over the war in Gaza evoked some troubling questions. The answer to my first question – What is the primary purpose of the Fulbright Programme? – was on the Fulbright NZ website. It says: US Senator, ...
The ministers responsible for green-lighting major projects need to be open about potential conflicts of interest, says Transparency International. ...
Source: The Conversation (Au and NZ) – By Anastasia Powell, Professor, Family and Sexual Violence, RMIT University It has been a particularly distressing start to the year. There is little that can ease the current grief of individuals, families and communities who have needlessly lost a loved one to men’s ...
Source: The Conversation (Au and NZ) – By Gregory Moore, Senior Research Associate, School of Ecosystem and Forest Sciences, The University of Melbourne Lichen, the first described example of symbiosis.AdeJ Artventure/Shutterstock Once known only to those studying biology, the word symbiosis is now widely used. Symbiosis is the intimate ...
Source: The Conversation (Au and NZ) – By Kim Hemsley, Head, Childhood Dementia Research Group, Flinders Health and Medical Research Institute, College of Medicine and Public Health, Flinders University Olena Ivanova/Shutterstock “Childhood” and “dementia” are two words we wish we didn’t have to use together. But sadly, around 1,400 ...
Source: The Conversation (Au and NZ) – By Peter Whiteford, Professor, Crawford School of Public Policy, Australian National University The government’s Economic Inclusion Advisory Committee has just published its second report. It was set up by Treasurer Jim Chalmers and Minister for Social Services Amanda Rishworth in 2022 to provide: ...
Source: The Conversation (Au and NZ) – By Adrian Beaumont, Election Analyst (Psephologist) at The Conversation; and Honorary Associate, School of Mathematics and Statistics, The University of Melbourne The Queensland state election will be held in October. A YouGov poll for The Courier Mail, conducted April 9–17 from a sample ...
Source: The Conversation (Au and NZ) – By Amin Naeni, PhD candidate at Alfred Deakin Institute for Citizenship and Globalisation, Deakin University There’s been much talk in recent months about what a possible second Donald Trump presidency in the United States could mean for Europe, Russia’s war in Ukraine, the ...
A brief round-up of submissions on the controversial proposed law. This is an excerpt from our weekly environmental newsletter Future Proof. Sign up here. Last week, submissions on the controversial Fast-track Approvals Bill closed just hours after the government released a list of stakeholder organisations who were sent letters advising how they could ...
A poem from Robin Peace’s new collection Detritus of Empire: feather / grass / rock. Cereal giving I see a woman’s hands, see her curious hands break a stalk as she walks through the tall prairie, the savannah, the steppe, wherever it was. See her idly bite the grass that ...
The only published and available best-selling indie book chart in New Zealand is the top 10 sales list recorded every week at Unity Books’ stores in High St, Auckland, and Willis St, Wellington.AUCKLAND1 Hemingway’s Goblet by Dermot Ross (Mary Egan Publishing, $38)A handsomely produced (debossed cover, lovely ...
The Commissioner's decision validates the longstanding efforts of the local community and ensures that Awataha Marae will be managed to serve the needs of the local community, particularly for hosting tangihanga. ...
Source: The Conversation (Au and NZ) – By Tristan Salles, Associate professor, University of Sydney Examples of Australian landscapes.Unsplash Seventy thousand years ago, the sea level was much lower than today. Australia, along with New Guinea and Tasmania, formed a connected landmass known as Sahul. Around this time – ...
Source: The Conversation (Au and NZ) – By Felicity Castagna, Lecturer, Creative Writing, Western Sydney University Day Day Market, ParramattaPhoto: Garry Trinh I live on the edge of Parramatta, Australia’s fastest-growing city, on the kind of old-fashioned suburban street that has 1950s fibros constructed in the post-war housing boom, ...
Source: The Conversation (Au and NZ) – By Michael Ryan, Teaching Fellow in Economics, University of Waikato GettyImagesfatido/Getty Images There is an ongoing global debate over whether the high inflation seen in the aftermath of the COVID-19 pandemic can be lowered without a recession. New Zealand is not ...
The ‘Wicked Game’ heartthrob is in his late 60s now. That didn’t stop him putting on a lively, goofy and very sparkly show. Apart from ‘Wicked Game’, which graces a sultry playlist of mine simply called 💋, my last sustained Chris Isaak listening session took place when I was about ...
Analysis - Two ministers were stripped of portfolios in a warning to Cabinet, drama broke out at the Waitangi Tribunal, and the gang patch ban bill ran into opposition. ...
Tara Ward makes an impassioned plea for some vital pop culture merch. In April 1999, I became obsessed with a new reality television show called Popstars. Every Tuesday night, five strangers transformed into music royalty before my very eyes as Joe, Keri, Carly, Erika and Megan were chosen to form ...
PNG Post-Courier In the early hours of ANZAC Day, aerial photographs captured an impressive gathering of Australians and Papua New Guineans at Isurava in the Northern (Oro) Province. The solemn dawn service yesterday was held at a site steeped in history, where some of the fiercest battles of World War ...
The PSA is shocked that Oranga Tamariki has used the cost cutting drive to downgrade its commitment to Te Ao Māori and remove many specialist Māori roles. ...
Source: The Conversation (Au and NZ) – By Ian Kemish, Adjunct Professor, School of Historical and Philosophical Inquiry, The University of Queensland There can be no more powerful symbol of the relationship between Australia and Papua New Guinea than the prime ministers of these neighbouring countries walking together on the ...
Source: The Conversation (Au and NZ) – By Sharon Robinson, Distinguished Professor and Deputy Director of ARC Securing Antarctica’s Environmental Future (SAEF), University of Wollongong, University of Wollongong Andrew Netherwood Over the last 25 years, the ozone hole which forming over Antarctica each spring has started to shrink. ...
Source: The Conversation (Au and NZ) – By Viktoria Kahui, Senior Lecturer in Environmental Economics, University of Otago Getty Images/Amy Toensing Biodiversity is declining at rates unprecedented in human history. This suggests the ways we currently use to manage our natural environment are failing. One emerging concept focuses on ...
Source: The Conversation (Au and NZ) – By Timothy Colin Bednall, Associate Professor in Management, Swinburne University of Technology marvent/Shutterstock Finding the best person to fill a position can be tough, from drafting a job ad to producing a shortlist of top interview candidates. Employers typically consider information from ...
Wondering where to host your next BYO? Whether its a small gathering or a massive party, we’ve got some recommendations. I was first introduced to the concept of BYOs at Dunedin’s India Gardens, a legendary but sadly defunct establishment, which purveyed enormous quantities of mango chicken to Aotearoa’s drunkest future ...
Source: The Conversation (Au and NZ) – By Julien Cooper, Honorary Lecturer, Department of History and Archaeology, Macquarie University Julien Cooper The hyper-arid desert of Eastern Sudan, the Atbai Desert, seems like an unlikely place to find evidence of ancient cattle herders. But in this dry environment, my new ...
The sector says it’s hopeful her replacement Paul Goldsmith will be able to throw it a lifeline, after six months with a minister deemed missing in action, writes Catherine McGregor in this excerpt from The Bulletin, The Spinoff’s morning news round-up. To receive The Bulletin in full each weekday, sign ...
The government can't just rely on axing public sector jobs and has to do more to cut spending, says the chief economist at a free market think tank. ...
Rock The Vote NZ, known for its advocacy for minor party unity and its role within the Freedoms NZ Coalition during the 2023 General Election, celebrates this merger as a strategic enhancement of its operational strength and outreach. ...
Nearly everyone has experienced the frustration of something you use breaking and being difficult or expensive to fix. Proposed legislation could change that. It’s been raining on and off all Sunday afternoon but people are lining up outside a building in a corner of Gribblehirst Park in Sandringham, Auckland. In ...
What does a forever relationship look like when you don’t believe in marriage? And how do you celebrate it? This essay is part of our Sunday Essay series, made possible thanks to the support of Creative New Zealand.I’m going to do it, right now. I’m going to say ...
The Prime Minister has committed to resuming direct flights to Thailand. But it’s not a promise he will be able to deliver on anytime soon. The post Prime Minister jumps the gun in Thailand appeared first on Newsroom. ...
It’s not that long ago Eliza McCartney was seriously wondering if the Paris Olympics would be her pole vaulting swansong. After years of being hounded by injury after injury, the Rio Olympics bronze medallist was still confident she would compete at her second Olympics in Paris in July, unless something ...
FICTION 1 Take Two by Danielle Hawkins (Allen & Unwin, $36.99) There’s commercial fiction, like this book, and then there’s quality fiction, quality writers, quality literature; the forthcoming Auckland Writers Festival is full of quality, and ReadingRoom has two tickets to give away to the following events: Paul Lynch (Dublin ...
Loading…(function(i,s,o,g,r,a,m){var ql=document.querySelectorAll('A[quiz],DIV[quiz],A[data-quiz],DIV[data-quiz]'); if(ql){if(ql.length){for(var k=0;k<ql.length;k++){ql[k].id='quiz-embed-'+k;ql[k].href="javascript:var i=document.getElementById('quiz-embed-"+k+"');try{qz.startQuiz(i)}catch(e){i.start=1;i.style.cursor='wait';i.style.opacity='0.5'};void(0);"}}};i['QP']=r;i[r]=i[r]||function(){(i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o),m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m)})(window,document,'script','https://take.quiz-maker.com/3012/CDN/quiz-embed-v1.js','qp'); Got a good quiz question?Send Newsroom your questions. The post Newsroom daily quiz, Friday 26 April appeared first on Newsroom. ...
You can’t have missed the Gallipoli story as the movies, documentaries, essays and books capture what it was like for New Zealand troops in their eight-month campaign on the Peninsula. But this Anzac Day the Auckland War Memorial Museum has published a book that sheds light on a little-known aspect of the ...
Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra In the free-for-all between the Australian government and Big Tech boss Elon Musk this week, the government had to be on a winner. Most people would have little sympathy with Musk’s vociferous opposition to ...
Asia Pacific Report Chief Mandla Mandela, a member of the National Assembly of South Africa and Nelson Mandela’s grandson, has joined the Freedom Flotilla in istanbul as the ships prepare to sail for Gaza, reports Kia Ora Gaza. Mandela is also the ambassador for the Global Campaign to Return to ...
Pacific Media Watch Journalists who report on environmental issues are encountering growing difficulties in many parts of the world, reports Reporters Without Borders. According to the tally kept by RSF, 200 journalists have been subjected to threats and physical violence, including murder, in the past 10 years because they were ...
Analysis by Dr Bryce Edwards, Democracy Project (https://democracyproject.nz)Political scientist, Dr Bryce Edwards. Prime Minister Christopher Luxon has surprised everyone with his ruthlessness in sacking two of his ministers from their crucial portfolios. Removing ministers for poor performance after only five months in the job just doesn’t normally happen in ...
Source: The Conversation (Au and NZ) – By John Hawkins, Senior Lecturer, Canberra School of Politics, Economics and Society, University of Canberra BagzhanSadvakassov/Upsplash, CC BY-SA Australia’s inflation rate has fallen for the fifth successive quarter, and it’s now less than half of what it was back in late 2022. ...
ACT's Rural Communities and Veterans spokesman Mark Cameron responds to cancellations and protests of ANZAC Day commemorations in Wellington. He says, "These pitiful attempts to detract from ANZAC Day are not at all indicative of the feelings of mainstream ...
Source: The Conversation (Au and NZ) – By Meighen McCrae, Associate Professor of Strategic & Defence Studies, Australian National University American and Australian stretcher bearers working together near the front line during the Battle of Hamel in 1918.Australian War Memorial While the AUKUS alliance is new, the Australian-American partnership ...
Pōneke based peace activists staged a silent protest at the ANZAC day service to highlight New Zealand’s complicity in war and genocide, and urge the government to take concrete steps to stop the genocide in Palestine. ...
Source: The Conversation (Au and NZ) – By Magdalena M.E. Bunbury, Postdoctoral Researcher, James Cook University Burial with a horse at the Rákóczifalva site, Hungary (8th century AD).Sándor Hegedűs, Hungarian National Museum, CC BY How do we understand past societies? For centuries, our main sources of information have been ...
Amanda Thompson doesn’t really do Anzac Day. But what she does do is remember the people she knew who had a lifetime to remember stuff they didn’t really want to, because of a war they didn’t ask for. And she does make Anzac biscuits.First published in 2021.All my ...
Source: The Conversation (Au and NZ) – By Kathryn Willis, Postdoctoral Researcher, CSIRO Xavier Boulenger/Shutterstock In the two decades to 2019, global plastic production doubled. By 2040, plastic manufacturing and processing could consume as much as 20% of global oil production and use up 15% of the annual carbon ...
With our collective remembrance, and steadfast belief in our common humanity, we strengthen our hope and resolve to do what we can to foster dialogue and understanding, and to heal divisions in our pursuit of peace. ...
Principal reasons for the opposition is the loss of the public’s democratic right to have “a fair say” and the vital need for a government free from corruption, said Casey Cravens of Dunedin, president of the New Zealand Federation of Freshwater ...
Never mind the scoreboard – in the 2000 Bledisloe Cup decider, the real trans-Tasman battle was won before kickoff.First published in 2016. The dawn of the new millennium was a dark time for the All Blacks. Their final game pre-Y2K was a 22-18 loss to South Africa in the ...
I’m on the wrong side of 40, I never pursued creative work and now my job is killing my soul. Help! Want Hera’s help? Email your problem to helpme@thespinoff.co.nzDear Hera,May I start with the least original conversation opener you’re likely to hear around the motu at the moment, particularly in Wellington: ...
“Never again - No AUKUS” was the message of the wreath laid at this morning’s national ANZAC Day commemorative service at Pukeahu National War Memorial Park this morning by the Stop AUKUS group. ...
@McFlock
Put this here because it was OT in thread.
It’s not just creation money though – you have to include it’s destruction. The cycle should go:
Government >> economy >> government
The money’s return to government is actually it’s destruction. Under those conditions then inflation can be minimal.
As for the exchange value – that needs to be set by a formula (essentially imports/exports) rather than the wishful thinking of the speculators.
How is money going back to the government destruction?
Because when it’s returned to the government it’s matched against previous spending.
Spend into the economy (+1)
Return to government (-1)
total = 0
The government should actually run at a slight deficit to match population growth and the easy way to do that is a UBI.
spend into the economy(+1)
return to government (-1)
tax rate 100%
spend available for provision 0
output 0
savings 0
confidence 0
exchange rate …..won’t matter as it won’t be wanted (or needed)
Completely wrong.
Spend available for provision of government services is the amount needed to provide those services – no more, no less.
This spending then gets spent into the private sector causing multiplier effect (usually around 3 times).
Overall tax @ 33% to have return to government balance.
It would be government spending, including the UBI, that provides the entire money supply for the economy to work. This:
1. Removes poverty
2. Eliminates the business cycle
3. and removes the need for infinite exponential growth on a finite world.
lol….so zero imports and zero savings …thats a realistic model…not
Why would there be zero imports/exports?
And we don’t need savings. In fact, savings seem to be a large part of the problem with our present financial system.
That said, there’s nothing stopping people from putting money in the bank. They just won’t get any interest on it.
why?…because you claim a tax rate of 33% and a multiplier of 3 …that requires a zero savings and import rate
and we don’t need savings? would love to hear your explanation of how anyone is going to purchase anything that costs more than say a weeks “wages”( while eating and being housed)…and that also suggests all ownership will have be by the state for there will be no ability for private investment…and placing it in a bank (even at zero interest) still removes it from circulation and negatively impacts ME
but the best of all is how you propose to administer the inevitable demand for more. and the inflationary spiral that creates.?..even in a totally closed economy which while possible is extremely unlikely
You said that when you claimed it was 100% tax rate. Now that you’re informed that it’s actually 33% you’re saying the same thing.
Your maths is wrong.
$1 is spent into the economy
This produces $1 of economic value
$0.33 is taxed back out from that $1
Leaving $0.67 in the economy which goes round again to be taxed again
Meanwhile, the government has spent more into the economy
You need to think of the economy as a constant flow.
Money in >> stuff happens >> Money out >> Money in
It’s not Money in >> Money out and that’s it, nobodies got any money and nothing happened as you seem to think.
No we don’t. Savings aren’t needed to buy cars. It’s supposedly needed to make investments but it’s not needed for that either.
And, of course, people would still be able to put money aside to buy larger stuff.
And how did I propose to do that?
There’s no inflationary spiral as the money is balanced. Unlike now where the money into the system isn’t balanced resulting in high house price inflation.
“You said that when you claimed it was 100% tax rate. Now that you’re informed that it’s actually 33% you’re saying the same thing.
Your maths is wrong.”
lol. nothing wrong with my basic arithmetic but does appear to be something wrong with your understanding of the multiplier effect which you cited..
.ME ratio= 1/ propensity to save, propensity to tax and propensity to import
so your example 3 = 1/ 0 + 0 .33 + 0 …. change any factor (imports or savings i.e.) and your multiplier will change.
will return to your other misconceptions when I have some time
Possible. The multiplier effect won’t be the same in a Sovereign Money financial system as in the current system.
I’m thinking that it would be more of a measure of how many transactions money will go through before it’s fully returned/destroyed. I was making an assumption, based upon the present multiplier usually being ~3, that it would be about the same.
Thinking about it some more that assumption is most likely low which means that the overall tax rate would be lower. Would probably need a FTT.
“No we don’t. Savings aren’t needed to buy cars. It’s supposedly needed to make investments but it’s not needed for that either.”
Didn’t mention cars, but if you maintain savings are not needed (though you then contradict yourself by stating monies can be put aside for larger stuff….otherwise known as savings) one can only assume that either the government will lend or gift monies for large purchases or that money itself will cease to be.
“And how did I propose to do that?”
you haven’t ….and that is the point.You have ignored the increasing demand by a society that only has to bring political pressure to obtain more or the same for less, how does your model propose to deal with that? This speaks to the inflationary spiral that would be created.
If what you have outlined here is a genuine model then you should at least be up front and admit the only way it would have a chance of successfully operate (at least briefly) would mean the end of private ownership, a completely closed economy that is likely to become increasingly unsophistocated and a totalitarian state that is mandated by the majority with no protection for dissenters….think we’ve seen where that leads..
So basically, you’re borrowing against the government’s income next year, as opposed to the government’s income this year. And if the money back doesn’t meet the money you’d spent, it’s inflationary.
How is that different from the standard bonds the reserve bank lends to banks? I can see why “lending” it to central government for infrastructure development rather than just to inflate the banking sector, but what you describe still requires conventional, basic budgeting, not a currently untapped source of revenue.
Nope.
Government creates the money
Spends it into the economy
Taxes money back out of the economy (destroys money)
No borrowing at all.
The economy is a continuous cycle.
Nope. Growing economy requires a growing volume of money. Of course, sovereign money can also be used to turn the economy into a Stable State Economy.
These would no longer exist. Banks would not be able to borrow from the RBNZ.
Also, the government borrowing from the private sector would also not exist.
I never called it income because it’s not income.
It’s the base driver of the economy.
But you said that to maintain the overall level at zero change (to avoid inflation), the government had to “destroy” a dollar for every dollar it created.
The money only does any good if the government spends it, gives it to other people. Pays a UBI, pays road workers, whatever.
To get it back to destroy it, the government needs to levy a tax or gain profit from a transaction.
You’re plugging extra money into the economy this year, but you need to avoid creating inflation by taking back a matching amount of money in taxes.
Let’s say you have annual tax revenue of 100bil in a country with a gdp of 300bil. You want to buy everyone a UBIferrari, at an additional cost of 40bil, so you print the required cash. Next year you need to raise $140bil in taxes and destroy 40bil of it, and your gdp is 340bil, so you’ve got ~12% increase in gdp and cash supply while the invented cash is still in the economy.
So you’re still left with government expenditure cuts or tax increases to maintain the monetary balance.
But the government doesn’t buy everyone a Ferrari now does it? Really, why would you come up with such a stupid example?
What it does is spend money to provide government services (Police, justice, etc). and the UBI. These people now have money which they want to spend. They spend it into the private sector.
As the money moves through the economy it’s taxed in various ways (returned to government). These taxes result in the money being destroyed.
Which bit about the government spending being balanced by taxes didn’t you understand?
And, no, you wouldn’t have to cut government services – ever. In fact, doing so would probably cause a recession because the money that the government is spending is the full and total supply of money for the economy.
I really can’t make it any simpler.
Government creates money
Government spends money into the economy via government services
Government taxes money back out of the economy destroying the money
It’s not necessarily to finance government spending but it is necessary to keep money circulating, other wise it goes stagnant and festers in speculative property prices.
If Graham Hart spent the amount of money McFlock suggests in what’s called the permanent money hypotheses Graham would explode in 20 secounds because of the heat generated from spending, so Graham simply can’t spend that amount of money, the role of taxation is to put it back into the hands of those who will spend.
Later curve: http://www.investopedia.com/terms/l/laffercurve.asp
Permanent money hypotheses: http://www.investopedia.com/terms/p/permanent-income-hypothesis.asp
Taxes?
Or stimulus from deficit spending, or even cutting corporate taxes can cause inflation, (at the risk of receiving a ban for mentioning Trumps name) Trumpism, there are so many ways to boost demand, my point is if MrFlock would try google first he wouldn’t come across as such an asshole
I chose an absurd example (actually “UBIferrari”) because the what is irrelevant to the discussion: it could be a UBI, earthquake repairs, or a moonbase.
The fact is that you’re still tying government expenditure to government income. In a particularly inefficient way. Because, like most economic theories, your model is to simplistic.
You want to spend money now in order to tax it back later. But rather than doing it with bonds (and addidng a “debt servicing” line item to the annual budget that’s a small proportion of what you actually borrowed), by flooding the economy in new money you necessitate getting it back as soon as possible. The end sum might be zero, but in my example you’ve still increased the money supply by 40bil until you’ve taxed it back. And artificial boom/bust cycle.
And how would you tax it back – monthly or quarterly variations in PAYE? How would that effect folks’ wallets? Or annually bounce the tax rate 15% up or down depending on what you want to build this year? you reckon that’s electorally sustainable? Again, for simply the same result: government expenditure that’s constrained by government income.
Read the theory again
We’re not starting at zero. We already have the government taxing and spending.
The government shouldn’t borrow money – ever. It has no need to as it can create money and not have interest charged on it. Just so long as it then destroys that money through taxation.
Why do people insist that the government has to pay interest on money?
And that is why your thinking fails. You think that the economy is static rather than a continuous flow.
Can you point me to where I said it would be otherwise?
What I said is that government spending through government services and the UBI should be the total money available to the economy. That this would stabilise the economy eliminating the ‘business cycle’ and poverty.
I don’t believe the economy is either static or a continuous flow.
I think there are lag times and elastic relationships throughout the economy, and my concern with your plan is that it causes a surge throughout the system, followed by a corresponding low pressure zone. And that causes more stress to individuals in the system, breaking some of them.
Whereas conventional tax/borrow and spend government policies don’t have that lag period where there’s a sudden boost in money supply on top of everything else.
But it doesn’t and that thinking is that of a static model.
The sudden boost in money supply that we’re seeing now is from the private banks creating huge amounts of money in lending for houses and offshore buyers of our housing.
Well, perhaps there is some niche economic definition of “static” – but I meant it in the conventional meaning of lacking in movement, action or change. Which is impossible in a system that has pressure waves, which by definition are change. But either way, simply saying that the model is “widget” doesn’t mean it’s wrong.
How does one create cash and avoid inflation in the period between when government pays the people and when it taxes that amount back off them?
The current boost in money supply is intentional policy by the reserve bank which is using a blunt tool to face a complex problem: a largely stagnant economy with one single sector that’s massively overinflated in price due to long term supply shortfalls.
That is a separate issue to whether your concept of printing (then destroying) money adds any advantage over the current conventions of managing government accounts.
Bruh. Economics is uncertain
See, you’re thinking that one thing happens and then the next thing happens at a later time when both will be happening simultaneously. The former is static model thinking.
Actually, it’s been the intentional policy of the government for the last ~30 years who legislated what the RBNZ was going to do, gave it the tools to do that and removed capital movement restrictions.
Actually, it gives advantage to the entire economy and not just the governments books:
1. By removing the private banks ability to create money it stabilises the economy from that direction. No more banks creating huge amounts and then panicking and stopping creating any thus throwing the country into recession/depression
2. They’ll be no need to borrow offshore to utilise our own resources as they’ll be plenty of money available
3. By ensuring that there is a constant influx of money into the system via the UBI ensures that there will always be a demand for businesses to supply
4. The UBI will ensure that everyone who wants to will be able to get a good education
5. The UBI will allow people to be entrepreneurial by ensuring that they don’t drop into poverty if their idea fails
6. The removal of interest bearing debt from government removes the need for continued growth
It seems to me that you’re trying to have it both ways: you said “As the money moves through the economy it’s taxed in various ways (returned to government). “. That means there’s a lag between when the money is distributed and when the same amount of money is finally returned via taxes. If there’s a lag then there’s a period of substantially increased money supply. If there’s no lag, then you’re not “creating” money, you’re simply transferring tax revenue into expenditure in exactly the same way it’s currently done.
Yes and no. It bypasses the fractional reserve system (which is merely a multiplier of the OCR tool, not an integral part), but that doesn’t mean that the banks will contribute any less to boom and bust speculative cycles.
Borrowing, either directly or by simply printing cash and borrowing that off future taxpayers, is a sign of insufficient taxation right now.
That is a benefit of a UBI in particular, but yes does apply to other government expenditure if it’s done wisely. IMO most importantly the government expenditure needs to go into the regions so it can flow back into the urban centres then the corporates, rather than just swilling around a few key CBDs.
Nah. That’s what the education system is for.
Fair enough, but this isn’t about the benefits of a UBI, it’s about how some UBI proponents intend to pay for it.
but printing money simply substitutes interest payments for boosts to inflation. Growth is therefore still necessary.
Nope because the taxes would go up at the same time that spending goes up. If spending doesn’t go up then taxes don’t go up.
And we’re not starting at a zero point. We already have a monetary flow. There’d be a transition period when inflation may be a little higher than normal but I doubt if it would last long.
Yeah, actually, it does:
1. The banks will no longer be able to leverage minimal funds into massive loans. They’re strictly limited to what they have on deposit for on-lending and the people who so deposited it won’t be able to spend it either thus removing that piece of leveraging as well
2. If a few people lose their money from speculation so what? The constant flow of money from the government will ensure that loss with have minimal feed on effects. Mostly, the banks won’t suddenly stop creating money and throwing us all into recession as happened in the GFC
Creating money which is then spent directly into the economy producing economic activity now is not borrowing.
People need to be able to afford to go and get that education and that’s what the UBI will do.
But creating money doesn’t automatically translate into inflation – as the vast printing of money around the world after the GFC proved.
So how does that differ with what blinglish currently does every year?
Ok, so there will be inflation, now we’re just quibbling over how large and sustained it will be.
It wasn’t the creation of money that created the GFC, it was the outright frauds that were committed with that money, that then made the banks terrified of lending money to each other in order to settle daily debts and tallies. They created a pyramid of bad loan packages, then as soon as the music stopped playing all the bankers dropped those hot potatoes so they wouldn’t get caught with their pants down (abuse of allegorical language intentional 🙂 ).
It is if taxpayers have to make it up, even in the near-immediate future.
Well, yes it does. That’s why they did it: boost GDP with the corresponding effect on inflation. Because they were at extreme risk of deflation and depression.
Maybe if we take a step back because interest rates set the rate at which you can borrow from the reserve bank but they are apart of the cost when settling transactions between different banks, and banks hang on to reserve in case the housing sector has a massive run on for cash, and they never pass on full rate cuts. But if you take interest away banks themselves still have guides to take on crises, and that’s just in case there’s a fiscal demand for cash.
The current system actually borrows the money at interest. The government borrows from private banks which create the money at the time. The addition of interest means that it can never be fully paid back which means we have an expanding monetary base.
Never mind the fact that the private banks also create money when they make a loan to private individuals as well.
Sovereign Money gets rid of that. It has the continuous creation and destruction of money needed to keep the economy moving but it doesn’t have the interest component that forces growth. A stable state economy would work.
The entire banking sector is a Ponzi Scheme – see above – which is why it fell over.
No it doesn’t.
Yes, that is one of the reasons why they printed so much money but the inflation didn’t actually eventuate. The other reason, and probably the main one, that they printed so much was to prop up the banks. If the Ponzi Scheme that the private banks run collapsed the way it should have then, yes, we would have been in a depression.
Of course, the best thing that they could have done to prevent a depression is implement a UBI and let the banks collapse. Instead they gave it all to the banks which then kept it instead of loaning it out for productive activity.
A UBI would have prevented a recession, kept local businesses going and allowed the market to correct for the banks fraudulent activities.
Bullshit. Of course it can be paid off, with interest.
And the “sovereign debt” equivalent of interest is the systemic costs of the inflation it creates, even temporarily.
or it did eventuate and without it the world would have gone into a deflationary spiral.
agreed.
Nah. The best thing they could have done was buy all the bad loans at crap market rates and renegotiate sustainable repayment terms for the borrowers, thereby starting one of the biggest state housing programmes in decades if not history.
Profit gouging (especially by multinationals, e.g. bank interest) is also destruction of money, if there’s a weak tax regime (or tax haven) and no reciprocal investment back into NZ
Similarly, GST & income tax is a highly regressive drag on the economy and devalues the work of the many, whereas the top few % rich in assets pay relatively no tax. In fact, because of the property bubble there are thousands of lucky/privileged/entitled Aucklanders whose net tax is probably less than zero.
On Planet Key, the wealthy pay no tax, and the poor get taxed on all income over $1
No it’s not. It may be effectively removed from circulation in the economy but it hasn’t been destroyed. It still exists and can be spent.
As I said in the rest of that sentence. Unfortunately, Aussie banks are destroying value by extracting billions from the NZ economy per year without commensurate spend back in to NZ
Yep, the dead-weight loss of profit. I’m quite aware of it but it not destroying the money. It can still be spent and it’s usually spent on assets thus driving asset price bubbles.
Monbiot has just written about Neoliberalism, the bastards behind the idea and how we are getting screwed and will always be screwed..
https://www.theguardian.com/commentisfree/2016/nov/14/neoliberalsim-donald-trump-george-monbiot
On Planet Key a severely unstable man is stopped by police after stalking a couple armed with a knife. They let him go to kill the very next day.
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11748624
On the same Planet Key a journalist has his home ransacked by police after highlighting government corruption.
More public service incompetence, the sooner we privatize everything, the better.
Blame the workers. First port of call when something goes wrong.
Same with privatisation, offset the blame, a whole bunch of people with their hands in the air singing ‘It wasn’t me’ til you get to the poor shmo on minimum wage at the bottom of the ladder ‘It’s all his fault!’.
He says after fight clubs and death have been found in privatised prisons – due to the lack of standards in the privatised prisons.
Predictable response, sad, but predictable…
More of this national government and there worshipers failing to take any responsibility for anything the have wreaked over the last 8 years of office.
Nothing to do with chronic lack of resourcing in Police and cutting mental health services so that Bill English can put some nice numbers in a fucking spreadsheet…
If you are brave enough, this is Watkins’ fluff piece on Key. No analysis of the situation, just a gentle combing of John Key’s hair.
http://www.stuff.co.nz/national/politics/86503566/a-warning-to-expect-the-worst
No thanks, can’t stand that prick. The MSM have been drooling over him for a decade. WTF is wrong with them.
Then, if you really want to be sick in your mouth, watch this pan and scan drivel to dramatic orchestral music from the Horrid.
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11748647
This is awful broadcasting. And this is what the Horrid want to do with the NZOA funding changes. They want to contest for public funding to produce this kind of crap.
Brave enough to tell the truth. Good on you Jeremy Corbyn.
http://www.independent.co.uk/news/uk/politics/donald-trump-lastest-news-jeremy-corbyn-grow-up-us-immigration-mexico-andrew-marr-a7414576.html
There’s no dedicated post today so put it here.
Noam Chomsky on Trump’s White House
http://www.truth-out.org/opinion/item/38360-trump-in-the-white-house-an-interview-with-noam-chomsky
Ha ha. I was lucky enough just now to watch the super big Moon-rise at about 68degrees from North in Blenheim. A lovely golden colour and just huge. Don’t think I will be around to see the next one.
This was my take on the super moon. It was last month though at moon-set facing east from the base of Mt Wellington where I live.
http://i.imgur.com/IlwdpNM.jpg
I’m calling it “night flight”.
cool photo. Too much cloud here.
It’s rubbish here tonight but I’ll get up early to have a look west again tomorrow am.
Nice one, weather in Auckland has been too crap for the last couple of days, I’ve seen nothing but grey
I do hope you have at least another 18 years in you. The full moon will be even closer on 26 November 2034. And there’s a total solar eclipse directly over the South Island in 2028 to tide you over.
Oh ianmac saw the same moon at the same time from the same place! Next one in November 2034.
We’ll both be around to see that one, yeah?
The picture header is in poor taste
Why?
This should be fun…..
The Harry Leslie Smith –
https://twitter.com/Harryslaststand/status/797843761757876224