Daily Review 28/01/2016

Written By: - Date published: 6:00 pm, January 28th, 2016 - 70 comments
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David Shearer fish

Daily review is also your post.

This provides Standardistas the opportunity to review events of the day.

The usual rules of good behaviour apply (see the Policy).

Don’t forget to be kind to each other …

70 comments on “Daily Review 28/01/2016 ”

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  1. sabine 1
    28 January 2016 at 6:25 pm

    interesting article about more doom and gloom in the money markets…but then as they say, what goes up must fall down like an apple at some stage or something like that, after all I am not an economist.

    http://www.businessinsider.com/ray-dalio-ft-opinion-long-term-debt-2016-1

    the comments are very interesting too.

    • Paul 1.1
      28 January 2016 at 6:31 pm

      There is a lot of evidence that the worlds’ economy is about to collapse.

      A China Bank Contagion Could Blow Up Global Markets
      http://www.cnbc.com/2016/01/26/chinese-bank-outlook-in-2016.html

      Zombie ships send maritime freight into worst crisis in living memory
      http://www.telegraph.co.uk/finance/12108453/Zombie-ships-send-maritime-freight-into-worst-crisis-in-living-memory.html

      So Yes, the Oil Crash Looks a Lot Like Subprime
      http://www.bloomberg.com/news/articles/2016-01-25/so-yes-the-oil-crash-looks-a-lot-like-subprime

      • Draco T Bastard 1.1.1
        29 January 2016 at 11:23 am

        There is a lot of evidence that the worlds’ economy is about to collapse.

        I know I’m being pedantic here but what’s about to collapse is the world’s financial system and it’s going to collapse because it’s become disconnected from the real economy, disconnected from reality.

    • alwyn 1.2
      28 January 2016 at 6:38 pm

      Be grateful we still have a bit of room to play with.
      We are at 2.5%. The US Fed is currently at 0.5%. If we need to we can still lower the rate a bit.
      There was an old saw about monetary policy. It was described as a rope. You could hold down economic activity, by pulling on it. You couldn’t expand the activity by pushing.
      Most of the QE that went on may have provided money to the banks. They didn’t loan it though.

      • Paul 1.2.1
        28 January 2016 at 6:46 pm

        If we operated at the level other countries work at, our currency would not be speculated on.

      • sabine 1.2.2
        28 January 2016 at 6:49 pm

        this is from one of the comments under the post. Not sure if you bothered to read, but anyways

        ponder this, and see how it applies to NZ

        Quote: “In our present system, if everyone took every dollar they had and used it to pay off debt, there would be no money left — because ALL the money came from debt. You can’t have wealth when your system is based on Debt”

        rock star economy – one hit wonder, and other assorted bullshit.

      • Muttonbird 1.2.3
        28 January 2016 at 8:05 pm

        Liam Dann gets it…

        Current predictions are for about 2.4 per cent GDP growth this year. That’s a pretty good number by global standards.

        But growth underpinned largely by immigration and Government spending isn’t really sustainable growth.

        Emergencies measures will give the flagging economy a boost, lower rates will drive the dollar down and boost export returns, but these aren’t transformative solutions that this Government once talked about.

        http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11581216

      • Pat 1.2.4
        28 January 2016 at 9:34 pm

        if negative interest rates and QE arnt working for europe what makes you think it’ll work for NZ?

        • alwyn 1.2.4.1
          28 January 2016 at 9:49 pm

          I don’t. That is certainly NOT what I was trying to say., and rereading my comment I don’t think it is what I said.

          The reducing of interest rates has some effect but you have nowhere to go once you get down to zero. Negative rates will never work, as long as you have currency. It isn’t very safe but you can always store some bank notes under your mattress.
          We still have a little bit of interest rate movement to play with if we need to. The US and Europe don’t.

          QE? I don’t think it can possibly work if the banks, who basically get the money, simply sit on it and don’t make loans. If they get lots of extra money and loan it out wildly we will get inflation. We haven’t had inflation after the supposed QE because there wasn’t any easing was there?

          • Pat 1.2.4.1.1
            28 January 2016 at 10:07 pm

            “Be grateful we still have a bit of room to play with.
            We are at 2.5%. The US Fed is currently at 0.5%. If we need to we can still lower the rate a bit.”

            what were you trying to say then?

            “Negative rates will never work, as long as you have currency”

            of course not, that is not what they are designed for.

            “We haven’t had inflation after the supposed QE because there wasn’t any easing was there?”

            there has been and continues tone plenty of easing….into a sharemarket bubble and safe(?) government bonds….not into the productive economy where it was supposed to go to create the demand and inflation.

            The banks know there is no safe course of action and are scared shitless…and so they should be

          • Draco T Bastard 1.2.4.1.2
            29 January 2016 at 11:34 am

            The reducing of interest rates has some effect but you have nowhere to go once you get down to zero.

            Interest rates should always be at zero. Interest rates actually damage our society and this has been known for thousands of years. The bludgers want to keep them though so that they can get income without having to work.

            QE? I don’t think it can possibly work if the banks, who basically get the money, simply sit on it and don’t make loans.

            And that would be why you don’t give it to the banks/rich.

      • Draco T Bastard 1.2.5
        29 January 2016 at 11:28 am

        Most of the QE that went on may have provided money to the banks. They didn’t loan it though.

        We already knew that. And loaning it out would have made things worse off. It needed to be given directly to the people. I like Steve Keen’s idea of given everyone an equal amount but ensure that it’s used to pay down debt first.

        There was an old saw about monetary policy. It was described as a rope. You could hold down economic activity, by pulling on it. You couldn’t expand the activity by pushing.

        And like many old saws it’s complete bollocks. Sounds good but conveys no information or wisdom at all.

        So, that would be just like all of the Right-wings slogans.

      • AmaKiwi 1.2.6
        29 January 2016 at 10:14 pm

        They DID lend it out, but to merchant bankers (speculators) and giant corporations.

        As usual, trickle down never happened.

    • Paul 3.1
      28 January 2016 at 6:53 pm

      Good.About time these neo-liberals learnt some discipline.

      ‘David Shearer to be censured over breaking Labour line on TPP’
      http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11581234

      • Mr Burns 3.1.1
        28 January 2016 at 7:10 pm

        If one of my underlings behaved like this the hounds would be called double quick. The rest would expect this. Otherwise they might think that I had gone soft.

        • Pat 3.1.1.1
          28 January 2016 at 9:32 pm

          excellent

        • AmaKiwi 3.1.1.2
          29 January 2016 at 10:20 pm

          David Cunliffe would have been drawn and quartered for much less.

          Come to think of it, he was. I can’t have confidence in a leader who puts some of his most talented people on the back benches and promotes inexperience to the front?

          • Colonial Viper 3.1.1.2.1
            29 January 2016 at 11:30 pm

            It’s a typical sign of a failing organisation to promote inexperience and incompetence, while punishing experience and competence.

      • Anne 3.1.2
        28 January 2016 at 9:05 pm

        Josie Pagani puts the boot into Labour and Little for the umpteenth time.

        https://www.tvnz.co.nz/one-news/new-zealand/the-signal-is-confusing-divisions-in-labour-over-opposition-to-tpp

        Why has this bitch woman not been ditched as a Labour Party member?

        • weka 3.1.2.1
          28 January 2016 at 9:23 pm

          If they ditched her they’d have to ditch CV (and other dissenters to boot) 😉

          • Anne 3.1.2.1.1
            28 January 2016 at 9:53 pm

            Josie Pagani is different. She has set herself up as a “progressive” Labour member and proceeds to undermine Labour in public forums on TV, radio and in the newspapers. I doubt she privately communicates with anyone in or close to the Labour hierarchy about her concerns. Rather, as a lover of the limelight, she spends her time publicly undermining Little through the MSM at every opportunity – just as she did with Cunliffe. She’s a charlatan.

            • weka 3.1.2.1.1.1
              28 January 2016 at 10:17 pm

              Do you know if Labour have ever thrown out a high profile member? The Greens did a couple of years ago, but I can’t remember what the process was.

              • Anne …
                28 January 2016 at 10:25 pm

                In the past there have been members expelled but usually following police prosecution for unlawful activities such as theft or fraud. The most well known was Taito Phillip Field. I think others who have earned the displeasure of the party have simply been frozen out of contention for any office holding position, and that is usually enough to see them drop out of the party.

          • Colonial Viper 3.1.2.1.2
            29 January 2016 at 12:03 am

            If they ditched her they’d have to ditch CV (and other dissenters to boot

            ???

            What have you observed which makes you think that Labour acts with any internal consistency???

        • Olwyn 3.1.2.2
          28 January 2016 at 9:31 pm

          What Pagani says is predictable, and that she is often asked to say something is equally predictable. You would think that by now she would be getting a bit short on inside information. This is the bit that concerned me, “… Labour sources told ONE News that half the caucus expressed reservations as MPs met in Wairarapa to thrash out their position.” These people are supposedly well paid professionals, and its about time they grew up and learned when to shut up.

          • Anne 3.1.2.2.1
            28 January 2016 at 10:01 pm

            Labour sources told ONE News that half the caucus expressed reservations as MPs met in Wairarapa to thrash out their position.

            I have a strong suspicion Olwyn that claim might be a misrepresentation – or an exaggerated version – of what they did say. I appreciate some of them were still a little unsure which way to go prior to the meeting, but the whole tenor of that TV1 clip told me it was an attempt to undermine Little and Labour – hence the reason they are happy to use Josie Pagani.

            • Olwyn 3.1.2.2.1.1
              28 January 2016 at 10:12 pm

              My point is that caucus numbers seem to have been leaked to them, whether they are true or not. Goff and Shearer came out against the party’s position – Goff with a concession to do so. OK. But what goes on in caucus should stay in caucus. We have had enough of this kind of crap over the past few years.

        • Paul 3.1.2.3
          28 January 2016 at 10:03 pm

          She is part of the Shearer clique.

        • millsy 3.1.2.4
          28 January 2016 at 10:30 pm

          She needs to realise that handing businesses veto rights over our lawmaking is NOT core left wing progressive principles. Quite the opposite infact.

          The progressive socialist left wing movement was formed because people got sick of working in unsafe dangerous factories and coal mines for long hours, little pay and no breaks. The TPPA is designed to drag health and safety, labour laws, etc down to the the lowest level.

    • Colonial Viper 3.2
      28 January 2016 at 8:09 pm

      “A discussion”? If Cunliffe had been the one to speak out, Little and Robertson would have ripped Cunliffe a new one in five seconds flat.

      • Paul 3.2.1
        28 January 2016 at 8:11 pm

        Let’s wait and see if Little how deals with this.

        • Colonial Viper 3.2.1.1
          28 January 2016 at 8:22 pm

          I hardly think we need to wait and see. It’s already highly predictable.

          All you need to know is that Little had almost no support in the Labour caucus during the leadership election; on the other hand, Shearer still has the support of the key MPs who originally pushed him into the leadership role as well as all the ‘free market imperial globalists’ in the Labour caucus.

      • Hami Shearlie 3.2.2
        28 January 2016 at 11:40 pm

        All this goes to show that the story that Cunliffe was the one causing division in the Party Caucus was a big fat lie!!

    • greywarshark 3.3
      28 January 2016 at 8:54 pm

      What was the point of Shearer’s waving fish around in Parliament?

      And who are the two brawny guys who fronted up on Daily Review on 11/9/15?

      Questions……….

      • maui 3.3.1
        28 January 2016 at 9:04 pm

        To resemble the neo-liberal stench still emanating from Labour’s caucus?

      • Sacha 3.3.2
        28 January 2016 at 9:10 pm

        to ensure he subsequently got more time for fishing.

        • greywarshark 3.3.2.1
          29 January 2016 at 3:14 pm

          Thanks you two I award you both chocolate fish, which on second thoughts will only get spoilt in transit so I’ll eat them myself and think of you.

          But seeing you are so up with it, what about my query about the Mr Nature guys showing off their abs? Who, what, why?

  4. Pasupial 4
    28 January 2016 at 7:03 pm

    I skipped over this bit when I saw Nash’s name, but on re-reading it does have some good points. Also admission by police of National Directive for activist intimidation leading up to TPPA signing!

    “During every single TPP rally, I can’t recall any instances where protesters have been violent or aggressive.

    “Unless the police know something we don’t, the protesters have the absolute right to voice their concerns, as we live in a democracy.”

    Mr Nash said he didn’t blame frontline police for the tactic.

    “They’re just following a directive from above, and it would be good to know why the police hierarchy feel this is a necessary step, and it would be good to know if they actually know if the protesters plan to engage in civil disobedience.”

    Police said the visit was part of a national directive to visit activists in the lead up to Friday’s protests.

    There have been scattered reports of anti-TPP activists in Auckland being called or otherwise tracked down by the police for questioning about their protest plans.

    http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11581217

    [I have been commenting about this over on Open Mike – for context:

    http://thestandard.org.nz/open-mike-28012016/#comment-1124924%5D

    • Anne 4.1
      28 January 2016 at 8:14 pm

      “They’re just following a directive from above, and it would be good to know why the police hierarchy feel this is a necessary step…

      Because the “national directive” comes from the PM’s Office? I expect so. It only needs a nod and a wink from the PM’s chief of staff and the police hierarchy know exactly what is expected of them.

    • Rosemary McDonald 4.2
      28 January 2016 at 8:15 pm

      We have been promised a family friendly gathering, and a noisy but peaceful stroll down Queen St.

      Placards and flags optional but desired.

      Bring sunhats and plenty of drinks.

      Let’s set a record.

    • Draco T Bastard 4.3
      29 January 2016 at 11:53 am

      And National takes us even closer to 1984.

  6. Muttonbird 6
    28 January 2016 at 8:18 pm

    Bugger me, it gets worse…

    Another $400,000 added to bill
    The Ministry of Education updated the cost of the Whangaruru school from $4.8 million to $5.2 million dollars this afternoon.
    It said the extra $400,000 was a payment it was obliged to make for the first quarter of this year, even though the school will not be open.
    The money will be paid to the owners of the school, Nga Parirau Matauranga Trust, and the Ministry said only a portion of it will be recoverable.

    http://www.radionz.co.nz/news/political/295135/charter-school-a-waste-of-public-money-ppta

    …I assume Farrar and the Taxpayers Union will be all over this tomorrow.

    • b waghorn 6.1
      28 January 2016 at 10:52 pm

      Dear Mr key I have a barely used bridge in London , as you are a very astute business man I would love to give you the first option of purchase on said bridge. At no extra cost I will let you pay me twice for this bridge.
      Yours b waghorn esq.

  7. Tautuhi 7
    29 January 2016 at 7:31 am

    Maybe Key has dangled a carrot in front of Shearers nose?