Economic Leadership

19 comments on “Economic Leadership ”

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1. Paul 1

   15 May 2016 at 9:52 am

   The government is serving its corporate backers and voters who support it because of inflated house prices.
2. Draco T Bastard 2

   15 May 2016 at 10:12 am

   Again, the New Zealand Reserve Bank acts while the current government is in denial.

   The present government is seemingly bent on bankrupting the economy and then selling NZ and NZers to rich foreigners in a fire sale.
3. Colonial Viper 3

   15 May 2016 at 10:22 am

   The NZRB is part of the interlinking system of financialisation and central banking that enables infinite printing of currencies like the yen and USD, and is part of the problems faced by the bottom 95% of the world.
   • dukeofurl 3.1

     15 May 2016 at 10:41 am

     How can the ‘printing of money’ be a problem now when you have long said they have ‘created all money for lending’ anyway.
     • Pat 3.1.1

       15 May 2016 at 10:44 am

       “money” is only representative and is valued on confidence
   • Draco T Bastard 3.2

     15 May 2016 at 12:36 pm

     Central banks are the solution to the problem of the private banks creating money at every loan and charging interest on it thus making our financial system into a Ponzi scheme. They would do this by creating all the money and then the government spends it into the economy.

     The central bank would be the sole creator of money. Credit money and bank money would be gone. The money in you bank account would be reserve currency.
4. Incognito 4

   15 May 2016 at 12:16 pm

   I know that the RBNZ is meant to be independent from the Government and politicians but we’ve recently seen increased pressure from Bill English on Graeme Wheeler. I am pretty sure there’s more ‘influencing’ going on behind the scenes; the OIA will be useless though.

   Wearing my cynical hat I’d suggest that the Government will be trying to take credit [no pun] for things that work and divert blame to the RBNZ and Local Government (particularly Auckland) for things that don’t. It’s typical politics from this Government.

   Meanwhile the economy is splutteringhumming along and house prices are moving unidirectionally and we can all be ‘relaxed and comfortable’.
5. Richardrawshark 5

   15 May 2016 at 12:16 pm

   The only time you would see the RB saying stuff like this is when the Minister of finance is not operating under normal procedure, or doing what normally would be done.

   As long as Bill English allows immigration and housing and dairy to dominate the economy the higher our debt, the more he borrows the deeper in the poop we get.

   People are well over extended in Auckland-large mortgages.
   Farms are borrowing or chewing savings up
   New immigrants are buying up forcing house prices up or mortgaging same thing.

   It’s a false economy, walking on a tightrope, with no diversity.

   We’ll end up printing money by the bucket load with hyper inflation perhaps, or we’ll scrape through..god knows, risky futures not brighter.
   • Draco T Bastard 5.1

     15 May 2016 at 12:48 pm

     As long as Bill English allows immigration and housing and dairy to dominate the economy the higher our debt, the more he borrows the deeper in the poop we get.

     Bill English understands that money is created every time a loan is taken out. That the loan then gets spent into the economy keeping it going and that the rich, who manage to get all the interest from the loan, get richer while he impoverishes the 90% who don’t get any of the interest and the country itself.

     Bill English and National govern for the rich – they don’t give a shit about anybody else except insofar as that money can be taken from them.
   • Ad 5.2

     15 May 2016 at 3:02 pm

     +1
   • linda 5.3

     15 May 2016 at 8:57 pm

     thats what ive been thinking for a while they sacrificing savers in favor of speculators
     i think we must guard against any bailout for the speculators when it crashes the people who borrowed 9 to 20 times there incomes should not be allowed to pass there debts on to society i can already hear the squealing when the bust comes.
   • Nic the NZer 5.4

     16 May 2016 at 8:32 am

     “As long as Bill English allows immigration and housing and dairy to dominate the economy the higher our debt, the more he borrows the deeper in the poop we get.”

     This is quite missleading. The private and govt sectors appear on opposite sides of the balance sheet. This means when the govt spends income goes to the private sector and when the private sector spends income goes to the govt frequently (typically in the form of tax). Both forms of spending (private sector or govt) raise gdp however when the govt leaves it more up to the private sector to raise gdp then that is when private debt rises. In fact if the govt had deficit spent less then either gdp would have fallen or the private sector would be even more in debt (given its spending had increased by the same). The more deficit spending the govt does presently the easier it makes it for the private sector to repay debt or save income.
     • SARAH 5.4.1

       16 May 2016 at 12:34 pm

       Crikey, this sounds like Peter pays Paul who pays Peter who pays Paul etc. I wish I could understand this better as you may be onto something. In the meantime we all fail as standard of living (something not often spoken of in NZ these days) falls and falls and falls.
       • Nic the NZer 5.4.1.1

         16 May 2016 at 2:04 pm

         What i am discussing is called Sectoral Balances. Its not particularly difficult to understand i think. Yes spending circulates in the economy between sectors.
6. Jack Ramaka 6

   15 May 2016 at 12:51 pm

   I am interested to know where JK and the Natzis have spent the $120 Billion they have borrowed, surely if $2.5 Billion of that was spent on Aucklands rail network we in Auckland would all be better off ?
7. Jack Ramaka 7

   15 May 2016 at 12:51 pm

   I am interested to know where JK and the Natzis have spent the $120 Billion they have borrowed, surely if $2.5 Billion of that was spent on Aucklands rail network we in Auckland would all be better off ?
   • Ad 7.1

     15 May 2016 at 3:01 pm

     The rail network within the Auckland region has had more money spent on it in the last nine years than in the previous five decades. The PT stats for rail are skyrocketing.
     On the western line you need to be at the station by 7am sharp to get a seat in. For every full train going down the line, you get approximately 1.5km of full motorway. And they’re going faster than a car.
8. Stuart Munro 8

   16 May 2016 at 12:19 am

   When the Reserve Bank is leading economic reform it’s as if the grave diggers are pressing the health system to get it’s act together – indicates a massive failure further up the chain.

   170 000 jobs remember?

   none produced

   Economic growth remember?

   0.3% a year ex immigration & Christchurch, or about the margin of error.

   Budgets in surplus? No, $150 billion in debt.

   Bill English, shoot yourself. Any random person off the street can do a better job.
9. DH 9

   16 May 2016 at 9:31 am

   I’d take anything the RBNZ utters with a grain of salt. Their role in this context is to protect the banking system and that does not necessarily mean protect the economy.

   LVR was introduced to reduce the banks’ exposure to a fall in house prices. This new talk of loan restrictions is again a measure to protect the banks against a downturn in the economy. Note that neither were intended to prevent the economy from collapsing, the RBNZ are merely trying to make sure the banks survive such an event.

   I think there’s a need to start asking why banks should hold such a privileged position that the Govt constantly acts to prevent them from failing and in doing so guarantees their profits. A bank is just a business when it all comes down to it, and no other business gets propped up by the state.

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