Open mike 21/08/2024

Written By: - Date published: 6:00 am, August 21st, 2024 - 90 comments
Categories: open mike - Tags:


Open mike is your post.

For announcements, general discussion, whatever you choose.

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

Step up to the mike …

90 comments on “Open mike 21/08/2024 ”

  1. SPC 1

    The C of C response to KO buying land at the market peak in 2021 is to stall housing development because of the economics.

    Holding land unused is making things worse, and development costs go up with the delay.

    https://www.stuff.co.nz/nz-news/350379972/kainga-ora-owned-land-near-wellingtons-basin-reserve-still-empty-despite

    One presumes they intend KO to sell at a loss and not build.

    In that regard one should note their not so secret plan to change the rules the OIO operates by – to allow foreign property companies to provide residential housing.

    • Ad 1.1

      KO will just invite development proposals.

      Market will take time to respond because Wellington real estate market has collapsed for 2024.

  2. bwaghorn 2

    With the standard ending as a site at the end of the month what happens to the millions of comments stored in the clouds some where?

    I'd like b Waghorn to be erased please sir ,thankyou.

    • weka 2.1

      hey b 🙂 It's not ending. It's going to be hosted on a new server, and the history will be preserved. Things still being worked out.

      • Dawn Trenberth 2.1.1

        That is good news Weka.

      • bwaghorn 2.1.2

        Oh OK, algood,

      • TootingPopularFront 2.1.3

        Great news, thanks Weka!

      • ianmac 2.1.4

        Good news Weka. A bit sad that Mr Prentice is to be leading the way no longer though.

        • Anne 2.1.4.1

          Yes. I shall miss his tirades. I was on the receiving end once but forgotten what for – no big deal. I love the way he always manages to get his well thought through opinions across. 😉

          Hope he will continue to contribute as a commenter from time to time.

      • Bearded Git 2.1.5

        Excellent news….even a stripped-down version would be good provided the interchange of views and (especially) information is retained.

      • Jilly Bee 2.1.6

        That's great news Weka – I thought I may have to go back to The Daily Blog and have had a look at it for the past couple of days. My reaction was simply 'yeah, nah'.

      • Mac1 2.1.7

        That is good news, weka. The Standard has been part of my daily life for fifteen years and I would miss it as I miss some of the contributors over the years (felix, pascal's bookie amongst many others). I suspect lprent is not one for fulsome praise but I would miss his incisive and always intelligent contributions so I hope like ianmac and Anne that he continues to contribute even more in these columns. My thanks to all who awhi this blog.

  3. SPC 3

    Banking …

    https://www.stuff.co.nz/home-property/350384266/could-commerce-commissions-banking-sector-recommendations-lower-your

    We need loan insurance to reduce the cost of business finance. We need equity for Kiwi Bank and money for infrastructure.

    1. Windfall profits taxation (28-33cents) – about $300M

    2. A 1% decline in the OCR and a 1% surcharge on mortgage loans.

    The result would be a lower value to the dollar (higher exports – tradeable inflation is low atm) and revenue of $3.4B pa.

    The big 4 banks make $6B a year. Ideally 5 banks make about a $B average profit.

    • Belladonna 3.1

      Any tax on mortgage loans imposed on banks, would be immediately passed on to customers (with a firm explanation that the rise is entirely due to the government tax)

      Adding an tax on mortgage loans in the current environment, is going to make any party unelectable.

      Not sure what you count as a 'windfall profit' but if it's only going to get 300M in taxation it's almost certainly not worth collecting.

      • SPC 3.1.1

        There is no increase in the amount paid by homeowners because a surcharge allows a lower OCR rate.

        Apart from the increased revenue collected by government (see the budget forecasts for the coming decades) it also increases returns to exporters (and thus tax paid by them).

        The Americans once had progressive tax on companies, so larger ones paid a higher rate. It's very easy to collect.

        • Belladonna 3.1.1.1

          If the surcharge reduces bank profits, you can absolutely guarantee this will result in increased charges to borrowers.

          • SPC 3.1.1.1.1

            Deliberately missing the point.

            If the OCR goes down by 1%, banks reduce their mortgage rate accordingly.

            So there is no change in the amount paid by the homeowner with a 1% surcharge if the two were applied at the same time.

            But the government gets the revenue it needs.

            • Belladonna 3.1.1.1.1.1

              Also deliberately missing the point. If the OCR goes down and the surcharge goes up, there is no change to mortgage rate – and borrowers both notice and complain (OCR has gone down, why is my mortgage still high?)

              Banks will absolutely inform them this is because of a government tax.

              If you think that people with mortgages aren't obsessively watching the Reserve Bank rate – you don't know many people with mortgages.

              • SPC

                They watch the rate, because it impacts on their mortgage cost.

                If a 1% mortgage surcharge allows a 1% OCR cut they pay no more but government gets the funds required to afford health funding and infrastructure. Its over $3B a year.

                • Belladonna

                  They watch the rate to make sure that their own mortgage rate goes down when the OCR goes down. If that's not happening, you bet your bottom dollar that they'll be asking questions of their bank.

                  It's just another tax.

                  As I said, an unelectable policy.

                  • SPC

                    You are a piece of work. Are you really incapable of comprehending that a mortgage surcharge would enable a lower OCR?

                    • Belladonna

                      Are you really incapable of comprehending that people with mortgages care about what they have to pay – not what % goes to the government in tax.

                      In your example, despite the OCR going down, the government takes all of that as tax, so their mortgage repayment remains the same.

                      Or do you have some other handwavium solution to propose?

                    • SPC

                      So you think homeowners do not care about a well-funded government?

                      You conflate (lie) a win win scenario – where at no extra mortgage cost to homeowners there was $3Bpa more in government funding – with handwavium.

                      Tell it to those whose children are in rundown school buildings, those who need access to primary health care and those facing rate increases because of lack of government support for infrastructure.

  4. SPC 4

    Businesses facing a problem with high temporary prices and or a rising cost to renewing their longer term supply contracts.

    One way to lower the cost of supply is investment in battery storage. Possibly taking spare solar power off business and homes for this purpose.

    As a dry year reserve to supplement the arrangements with Comalco and Methanex.

    https://www.stuff.co.nz/business/350385023/power-price-pinch-sees-indefinite-closure-two-mills-hundreds-jobs-could-go

    • Belladonna 4.1

      I doubt that any industrial complex can operate off battery storage.

      • Subliminal 4.1.1

        California runs fine on huge amounts of battery storage

      • SPC 4.1.2

        That is just nonsense. They cannot operate if they have no power, or cannot make a profit because of the cost of it in a dry year.

        The easiest way to reduce power cost is to reduce take off the grid by homes and business (their use of solar) and otherwise to take their solar power surplus onto the grid and store this such energy in a battery (for use in a dry year).

        There is no difficulty placing power onto the grid from a battery.

        • Belladonna 4.1.2.1

          I think you're misunderstanding the usage of battery farms – this is short term storage (e.g. from the heat of the day when solar is widely available, to the evening, when peak demand arises)
          They are not intended to be substitutes for hydro-electricity generation in a dry year.

          • SPC 4.1.2.1.1

            Why not? The role of battery storage is a developing one.

            https://en.wikipedia.org/wiki/Battery_storage_power_station

            • Belladonna 4.1.2.1.1.1

              Because battery duration is measured in hours – not months.

              • SPC

                There are two aspects to this.

                A business operating off hydro from the grid, then not able to afford the spot price in a dry year.

                In the dry year we have Comalco using less power, and Methanex supplying gas to the Huntly power station (if the price is right for both parties or otherwise coal) – which has a higher and higher cost as per 2050.

                There is the Onslow dam and battery storage to cope with the dry year otherwise. A battery can hold power for years. How many and how large to provide a useful level of storage for dry years is that issue.

                More businesses should look at being less dependent on the hydro supply, perhaps taking power from local solar and wind into a local battery system for their daily use.

                We know that in a continuity use system battery storage makes renewable power reliable and this lowers power cost.

                This is one way for a community to protect a local businesses (solar panels on homes and business roofs and wind farms).

                But the C of C has no plan to realise even this. It's lack of focus on solar generation and battery use is, given the South Australia success in this area is inexplicable.

  5. tc 5

    “I am happy to say categorically that I have found no other country that aligns more with my view of the future than New Zealand,” Thiel wrote.

    Not that we needed reminding who this coalition serves Peter.

  6. SPC 6

    Middle class folk meet W and I, wonder at the human cost to those less able to cope with the new C of C regime.

    https://www.rnz.co.nz/news/political/525742/benefit-cut-after-one-missed-appointment-former-public-servant-says

    • PsyclingLeft.Always 6.1

      Oh yea..just earlier read that . Its maybe a sad fact…that (many?) people have…either no, or little, idea of what goes on in the sad lives of the unlucky.

      another man, an accountant who missed an appointment he knew nothing about, received a week's warning that his benefit would be halved.

      He met his case manager at WINZ last week, within the five-day window before the cut was due to kick in.

      "He said that he'd already looked into it and that he's put me back on green and that my benefit won't be reduced."

      He said knowing his benefit would not be cut was a relief – but it caused unnecessary worry.

      "National will save millions of dollars but at the cost of, potentially, human lives. Whether it's directly from people no being able to afford food or indirectly from mental health issues."

      https://www.rnz.co.nz/news/political/525742/benefit-cut-after-one-missed-appointment-former-public-servant-says

      And as the ex Accountant alludes, there are other costs. The myopic/purblind shits of NACT1….never factor those in. Unfortunately some..will pay. Pain and suffering. It will cost..us dearly.

    • Kay 6.2

      I'm (almost) enjoying that all these people are suddenly experiencing the joys of W & I. Especially if they voted for one of the CoC, then zero sympathy.

      I saw it during covid, the poor things suddenly having to deal with the welfare system, whining to the media that they had 'no idea' benefits paid so little (even though they were getting a special increased rate and no relationship rules). I guess there was never any concern for the perilous conditions many of their fellow citizens have to endure beforehand. It's not as if a quick google would give them that info.

      I naively thought now that the middle class have been affected, they might develop some empathy. Yeah, right.

    • Jimmy 6.3

      This story is so full of holes I'm surprised they published it. It took two weeks to get appointment, but 8 weeks to reduce benefit to nil. If he had actually attended the appointment after first deduction to 80%, there would be no further deductions to nil. He will probably struggle to get another job with the attitude of ignoring two reminder texts to attend a meeting. Would he be able to turn up to a job interview? Now he's gone to the media he looks like an even bigger fool.

      • adam 6.3.1

        FFS Jimmy what jobs? This lot have tanked the economy.

        • Belladonna 6.3.1.1

          In which case, he'll have no problem turning up the the WINZ appointments – since he'll have nothing else to do.

          I also think that it's a poor example.

          The original one (where someone claims that he never received the message about the appointment, and subsequently was notified his payments would be cut), is a much better one.

          WINZ systems aren't perfect (no organization's ones are) and to have a benefit cut with no cross-checks seems to be a highly-risky strategy.

          • adam 6.3.1.1.1

            In which case, he'll have no problem turning up the the WINZ appointments – since he'll have nothing else to do.

            You are such a right wing troll.

            • Belladonna 6.3.1.1.1.1

              Ah, yes, your usual standard of insightful commentary.
              If you can't attack the comment – let's abuse the person.

              • adam

                And what great intellectual discussion is to be had when you troll people who are not working?

                So if the ad hominem fits…

      • lprent 6.3.2

        This story is so full of holes I'm surprised they published it.

        Just sounds to me like you know fuck-all about the way that WINZ and the MSD operate. It rings true to me. WINZ is more chaotic as anything I have ever seen. I include a pile of poorly run entrepreneurial businesses, charities, NGOs and the military experience in there.

        Anyone who has and is used to normal business operations would be unused to dealing with WINZ operations and the stupid limitations that various fuckwit Ministers, mostly National ones, have imposed on them over decades.

        I have only dealt with WINZ twice.

        Once back in the GFC in 2009 when I got dumped out of a contract job a month after starting because their pitch to the customer failed. I contacted them and applied for the dole after a couple of months of job hunting when the cash and food started to run low. They organised me to have to attend a session about how to write a CV two weeks later, and told me that I would be required to attend it before they'd look signing me up. FFS I have an MBA, my CV was spotless and I used to run courses on how to write CVs….

        My most recent brief experience of WINZ was this year after my redundancy/holiday pay ran out and before I hit 65 after a unexpected redundancy when the company shuttered itself after poor US sales. WINZ has updated itself a little. Now they will 'organise' everything without telling you. Or telling you poorly. Or telling you late. Not telling you at all seems all too likely too – especially if it is posted.

        I have had a phone call from WINZ, that I could see was from WINZ because I'd tagged it as WINZ from a previous call on my phone. Couldn't see anything on MyMSD, so went to the local WINZ/MSD office to get them to look it up. They didn't know anything about it. Whoever had called me hadn't logged it.

        By then I'd developed a habit of watching MyMSD, just in case. That was after receiving a letter that turned up the day before the appointment dated 2 weeks earlier, and that had arrived on last possible delivery out of the 2 postal deliveries a week.

        In my month of getting job seeker, before getting on to super, they'd also informed me by letter on MyMSD, that I would be getting nett $178 per fortnight out of a nett ~$300 entitlement. That was because I would be paying off of a debt to MSD.

        First that I'd heard of any debt. MyMSD didn't show any debts. My guess it was the first payment that they'd made before I received that letter.

        I (mostly) trust them on the delivery of superannuation because it is hard to screwup a computer program without human access requirements. Plus I now have my Kiwisaver accessible.

        Because I don't trust the MSD or WINZ to do their processes properly or to communicate clearly, I have a large dollop of cash in the bank on a lower interest rate than I'd like. That is solely so that it can be accessed immediately. I also have a rather large untouched overdraft facility available that is backed by term deposits.

        Would he be able to turn up to a job interview?

        Almost certainly. Potential employers who are worth working for are always clear. They typically communicate digitally with ICS attachments to go into your calendar. Usually after talking to you on cellphones. They also text and email. I haven't had one for decades that used paper or the snail mail system.

        Perhaps you shouldn't write about things you clearly don't know about. You sound like a National party minister attempting to sound competent. You come across as a ignorant pretentious twat.

        • lprent 6.3.2.1

          I forgot the real job interview that I had to move because WINZ wanted me at an appointment on short notice. Turns out that you can't contact them to move it. I had to contact the company I was going to do a google meet with.

          In the month that I dealt with WINZ on jobseeker, they were bloody irritation. I was doing 2-3 job interviews a week and pushing out about 8-10 application a week. Yet WINZ appeared to think that they had first call on my time for $178 per fortnight.

          The irritating thing about it is that WINZ is as clearly understaffed and over micro-managed at the Ministry of Labour was back in 1992 when my then partner worked for them.

        • Jimmy 6.3.2.2

          Actually I have had dealings with Winz a couple of times this year in helping someone get an accommodation allowance. They asked for information that we duly provided, and I thought they were pretty good in phoning when they said they would. I guess if we had ignored their phone calls and not provided the information (or ignored texts like the bloke in the above example even when his benefit had reduced to 80%!), the accommodation allowance would not have been received. We wouldn't have run to the media complaining though as then you look like a fool.

          Regarding your situation:

          "I have a large dollop of cash in the bank on a lower interest rate than I'd like. That is solely so that it can be accessed immediately. I also have a rather large untouched overdraft facility available that is backed by term deposits."

          You may want to speak to someone regarding budgeting advice and the best way to structure your funds for your situation.

          • lprent 6.3.2.2.1

            You may want to speak to someone regarding budgeting advice and the best way to structure your funds for your situation.

            Idiot. Lets assume that you are aware of the current inflation rate is.

            It is structured exactly for my short-term requirements. Those are to make sure that there is money readily available around when it is required. Not only for MSD (or employers) not paying on time. But also for emergencies or things that need immediate resources. I had a heart attack 13 years ago and have a stent. My father is 85. Acts of god like having my car being drowned last year in the floods.

            Having a small % of my investment money sitting on 4.55% interest with immediate access rather than the 6.x% on term loans is just prudent. It can take a few days to untangle term loans and longer to pull money from investment accounts.

            Having a rolling credit facility that I don't need to use allows me or my partner to draw down copious money immediately if something serious happens. There is a price associated with it, but only if I exercise it.

            Having money that is on call means that we can cover the rolling credit within a short period.

            I guess that you just like sounding like you know what you're doing. But as I said – you invariably sound like a ignorant pretentious twat.

            • Jimmy 6.3.2.2.1.1

              Well that is very good to hear that you are not "a ignorant pretentious twat" as you put it, or an idiot, and you are good with financial planning and have obviously planned well for your future and retirement.

              However having said that, why would you even need to contact WINZ for job seeker benefit earlier this year if your financial planning is so successful? Surely you had planned for a rainy day or unexpected expense (or redundancy), and hopefully now that you are 65 and receiving super, that is not your only income.

              • lprent

                Surely you had planned for a rainy day or unexpected expense (or redundancy),

                Umm worth replying to that, if only to point out what to watch for when heading to super.

                It was very unexpected to wind up being made redundant at the end of Jan. Bit annoying as well as we'd just finished paying almost every single debt off, including the tail of the mortgage in 2023. Just had a small overdraft and a credit line for emergencies. Also had a large inaccessible kiwisaver. If I needed it I could tap into

                Basically getting ready for super + kiwisaver and a probable change of pace in early June. Didn't want to mortgage the apartment again.

                With what was on-hand, 2 months notice paid out, and 6 weeks of holiday pay I had roughly 4 months of cash available. Had already booked a holiday in Feb. Pre-paid the 6 months of body corporate and rates, my partners outstanding tax, and the remaining debt, and then started cutting costs

                Which left about 3 months cash available which could be stretched. Some went on hotel bills and the holiday in Feb. Couldn't can that as it was organised with some US guests.

                I figured that I could either get a job within 5 months or I'd get early kiwisaver which was where all of the investment money was or I would last until super + kiwisaver got accessed at the start of June.

                I'm pretty picky about work usually. Especially now that I don't have a mortgage and an upcoming source of income from super and kiwisaver. I don't require much income, and super covers most of my running expenses.

                WFH was something that employers were wanting to not have past the pandemic. But I'm uninterested in long daily commuting unless employers were willing pay for it. I'm uninterested in doing managerial or team lead work. So I am only willing to do straight programming in engineering applications preferably for export.

                Turns out jobs I was interested in were mostly not available within my limits. I wasn't interested in working in Albany/Rosedale or East Tamaki because most of the interesting engineering work is there. But neither have effective public transport from where I live.

                Got turned down for the local jobs that I was interested in, and that .

                I usually get about 1 in 20 of the jobs I apply for simply because I have been old as a programmer for decades, and I make sure that HR and employers have many good reasons to reject me. It saves me from having to put up with jobs with lousy employers whilst getting a project finished. I wind up on projects that either have good employers or that they actually want completion on projects (typically after someone else has hit their limits).

                Could have easily gotten a off-target job to pay bills and probably would have if I'd actually needed to. But doing a pointless short-term job that cost me time and money to get to wasn't worth doing. I didn't need to once I got super and the large pile of kiwisaver.

                Plus I have a lot of re-education to do. It'd been nearly 15 years since I'd last had time to sit down and do some serious playing with code outside of work. That is a lot of time to coast on previous skill updating or what you pick up on in the projects you're working on.

                Pretty well did stretch it out. But had a few extra bills on the way as usually happens. Mostly physio for fixing and bike finger and knee injuries that I'd had in November. ACC paid most of it. But the weekly bills for the rest mounted up. Had a nasty large bill from cloudflare for some attacks on this site in March. Went from $25 per month to a month with over $600. Which is why this site now uses bunny.net for the CDN.

                Realised at the end of April that I could run short of money between my birthday on June 4th and the first full super payment on June 19th. It pays to look at when that fortnightly payment falls when looking forward to super. Also that it was really hard to extract kiwisaver early (don't count on that ever!), and it'd probably take a couple of weeks to get kiwisaver after my birthday.

                So I had roughly two-three weeks to cover. So at the start of May, I prepaid some bills and did a few other things to get enough resources to cover eating and freezing.

                Then applied for jobseeker as I was entitled to do, as much to see what would happen as anything else. While also organising a covering loan of a few thousand from family if I needed it.

                Jobseeker and WINZ was just as bad as I expected. But it did garner about a thousand. Used about a thousand from family loan. Then first super payment and kiwisaver dropped into my account so I paid the latter.

                So notice.. no additional debt after 5 months off work apart from about $1k. I didn't need any other money apart from the money paid out by my previous employer and didn't have to tap into any assets or resources apart from trying jobseeker. Had a holiday. Paid for additional medical treatment. Paid for an large unexpected bill.

                The big advantage about doing the stretch is that we're now set up with expenditures slightly above revenue from super + my partners business after a lot of cost-trimming – which we would have wanted to do anyway.

                The annual difference is roughly about $5000 per year – the body corporate + some rates. A large stash of ex-kiwisaver accessible and earning income so the excess is easily paid by revenues from investments if nothing else.

                We have everything we need after I brought a 2 bike rack and towbar for the car after I got kiwisaver, and paid for a few computer updates for both out systems. Just need to keep an eye out from a (??!!) updated second hand macbook for my apple obsessed partner.

                I now have complete freedom to idle if I feel like it, take a job if one shows up meeting my criteria, just start writing and selling things on net, just play with writing code that interests me fro open source, get involved in politics with time to do it, or (do something stupid) like try to boost my partners business. I can help out of other peoples projects if I choose to.

                Since I hate having holidays or idling, working on what interests me is the most likely.

                It is really kind of nice to have the choices. Which is what was intended fro this stage in my life.

                Apart from the unexpected redundancy, everything was pre-planned. Even that was a contingency. I just like doing things with the minimal use of resources. Like this site does.

                I'm one of those people who always has a lot of contingency planning going on in my head and always has pathways to what I want to do via multiple routes or multiple potential objectives that can be reached from my current path.

                • Jimmy

                  Well done for having the cash available for the 3/4 months cover (contingency fund for the unexpected). It always good to plan for if you can.

                  As I've said on here before, Kiwi Saver is one of the best things IMO, any government has done.

                  • lprent

                    Agreed. It was essentially what Rowling and Douglas were after in 1973

                    Douglas was an early and enthusiastic promoter of the government's plans for a compulsory contributory superannuation scheme that would supplement the old age pension. In 1972, while still in opposition, he introduced a private member's bill that provided for a form of compulsory superannuation. In Cabinet, Rowling, who was then Minister of Finance, and Douglas were largely responsible for a 1973 White Paper setting out the government's proposals for superannuation. As well as augmenting individual provision for retirement, the scheme was intended to be a source of capital for investment in the domestic economy.[13] The scheme became law in the form of the New Zealand Superannuation Act 1974.

                    Muldoon destroyed it for both political and fiscal reasons. It helped him win the 1975 election and in effect it allowed him to raid the funds of the existing pensions schemes when he introduced National Superannuation.

                • Muttonbird

                  I don't know how you do it, LP.

                  As the mainstay, curator, funder, and lead on this valuable site for so many years, spending that much time on an arrogant, blow-in troll without binning them.

                  yes

                  • lprent

                    I'm semi-retired these days. I have more of my own time because I'm not getting my contractor level hourly rates on a salary and the obligations of progress that go with it.

                    Besides I'm stuck on a problem in a new language working on a new editor right now and having to think up a whole new way to approach fixing the problem. Doing something mindless like replying to Jimmy about something I already thought about and solved helps.

                    It frees up the intuitive part of my brain to nibble at the edges of the problem looking for a innovative solution while my fingers are occupied with typing.

                    I usually only bin trolls if they can’t write coherently or get repetitive and I don’t have time to educate them. Jimmy does pretty well on the first two counts

                    • Muttonbird

                      Copy that. I'm still working and distracted. I would like to make more detailed and reasoned comments and even write some pieces but am unable because of work and family duties.

                      I've mentioned to moderators here this disadvantage ordinary, socially conscious, working people have when commenting on forums. Lefties should be better understood here but are sometimes moderatered against because of the brevity of their comments.

      • Obtrectator 6.3.3

        Did the appointment notification go to his spam folder? Happens all the time.

        • lprent 6.3.3.1

          My spam folder received a few of them there. I had to firmly tell gmail and thunderbird that WINZ, MSD, and the IRD were not spam.

  7. Ad 7

    Gee wouldn't it be great if New Zealand had an energy strategy, and the sovereignty to make it happen?

  8. PsyclingLeft.Always 8

    From the : Of course they would say that file…..

    ANZ boss says New Zealand can't afford to own banks

    As Its obvious, stupid…

    The head of ANZ says the big banks can't afford to be New Zealand owned and have to make profits to keep their overseas shareholders happy.

    She said they needed to provide reasonable a return to shareholders so they would continue to invest in New Zealand.

    It all sounds so reasonable. Hmm, right.

    https://www.rnz.co.nz/news/national/525743/anz-boss-says-new-zealand-can-t-afford-to-own-banks

    Have to say I am also not falling for Nicola icecream and movies Willis, and her blather about Kiwibank and Mum and Dad Investors

    Willis said she heard every week from Kiwis wanting to invest more in New Zealand.

    She would love to create a pathway that would allow Kiwi mums and dads via their KiwiSaver accounts to beef up Kiwibank.

    “That’s exciting to me.

    “I’m accountable to New Zealanders.

    https://www.stuff.co.nz/business/350384870/commerce-commission-report-nicola-willis-adamant-she-wants-action-banking-sector

    FFS, I do NOT believe you Nicola Willis ! And didnt we have that BS with the Electricity giveaway selldown? And what happened to those Mum and Dad shares?

  9. Chris 9

    https://www.nzherald.co.nz/business/what-new-zealand-can-tell-america-about-their-election-richard-prebble/HNNABLIFGRGHHIDDVJGTN66KZU/

    Even Republicans are standing up against Trump and his lunacy yet NZ's so-called respectable right are quite openly wanting a Trump presidency. Shows just how close we are to normalising Trumpesque ideas, the Treaty principles debacle and the associated attacks on all things Maori being the most obvious example.

  10. AB 10

    Some thoughts for Nicola Willis to ignore

    Many of us economists are bald. One reason for this is that for the last 40 years we've been tearing our hair out whenever politicians liken government finances to those of a household. Although Thatcher popularized this woeful analogy … Rachel Reeves' claims that "there's not a huge amount of money there" and (inverting Keynes) that "if we cannot afford it, we cannot do it" both appeal to it.

    You all know this analogy is wrong. For one thing, households can cut their spending without cutting their income but governments sometimes cannot do so because cuts in public spending depress economic activity and hence tax revenues. And for another, governments (in the UK if not euro zone) can print money, and so there is always "a huge amount of money there". The constraint on public spending is real resources – doctors, builders, management skill – not money.

    • Belladonna 10.1

      And for another, governments (in the UK if not euro zone) can print money, and so there is always "a huge amount of money there".

      And that's the attitude that fuels inflation.

      I doubt your economist can give a single real-life example of a country who printed excess money without triggering inflation.

      • Nic the NZer 10.1.1

        For NZ this was debunked in 1986 when the RBNZ stopped targeting the quantity of money. It was thoroughly discredited in the UK at the time when the Thatcher administration found their whole scale destruction of their economy attempting to quantity target the pound was wildly unpopular. The Fed in the US denied ever practicing quantity targeting.

        • Belladonna 10.1.1.1

          So your example of a nation that routinely prints excess money without triggering inflation is?

          • Nic the NZer 10.1.1.1.1

            The short answer is all of them. This is because your model for how money works doesnt apply to any real world economy.

            First up money as measured comes in several forms. These include reserve money (what the government and banks transact) and bank deposits (what the public transacts). Which of these are you proposing to be in excess?

            We can assume that is the reserve money your discussing here maybe, at least thats the quantity governments influence directly. Problem with that however is there is no fixed relationship between reserve money quantities and broad money quantities. In fact the RBNZ is ready to lend (create) as much reserve money as demanded for commercial banks to clear payments (those loans being made at the OCR of the day). This was the RBNZ 1986 change to give up targeting quantities (because targeting those quantities didn't constrain the quantity of money the public transacts in anyway).

            So its going to be difficult to find the example you seek as A) the quantity which is excessive is not determined anywhere.

            B) this quantity your asking about doesn't even constrain the broad money supply anyway (let alone inflation).

          • aj 10.1.1.1.2

            USA

          • KJT 10.1.1.1.3

            All of them. "Routinely prints excess money". That is how a National currency comes into being.

  11. Macro 11

    Well knock me over with a feather! Entitlement much..

    The new Ministry of Regulation is paying its staff an average salary of more than $150,000 and will eventually employ more than 90 people, new figures reveal.

    That is despite the coalition pledging to slash back-office spending across the public sector and attacking the former government for creating massive bureaucracies.

    The anti-red tape department is overseen by ACT leader David Seymour, who secured its creation during coalition negotiations last year.

    Figures obtained by the Green Party – and first reported by The Post – reveal a median salary at the agency of $154,500, well above the public service median of $84,800.

    https://www.rnz.co.nz/news/political/525769/new-ministry-paying-staff-average-salary-of-150k-despite-public-sector-job-cuts

    • Tony Veitch 11.1

      Just wondering – how many of the 90 high paying jobs are members of the Act party?

      It would be interesting to find out!

  12. Jimmy 12

    Jailed for 9 years and 9 months. This almost needs a disclaimer before reading it's so bad.

    (actually Stuff did put one)

    Child abuser who left toddler victim with ‘injuries worse than some fatalities we see’ jailed | Waikato Times (stuff.co.nz)