web analytics

Polity: Armstrong on National on Labour

Written By: - Date published: 1:20 pm, April 7th, 2014 - 13 comments
Categories: dpf, john key, labour, national, same old national - Tags: , , , ,

polity_square_for_lynnRob Salmond at Polity generously allows us to repost his posts. Like this one on the latest set of bullshit from John Key on interest rates. 

I rate John Armstrong. He has a rare ability to cut through the BS, when he wants to, and really alert readers to the underlying plans of our political parties. Here is a good example from Saturday’s Herald column:

If voters swallow John Key’s line that a vote for Labour is a vote for higher interest rates, they will swallow anything the Prime Minister puts in front of them.

And if they do not, Key’s less-than-subtle scare campaign on interest rates suggests he will ram it down their throats.

Mortgage interest rates are perhaps the most sensitive of all hip-pocket issues. And they are going up during National’s watch…

Maybe [Key’s line] was a deliberate attempt to muddy the waters. For example, he absolved National of responsibility by arguing the small increases in the official cash rate simply illustrated the renewed strength of the economy under National.

Not only was Key claiming victory when interest rates went down, but also when they went up.

This was not Key’s finest hour.

This isn’t a new ploy from National or its supporters. “Mortgage rate rises under National: Good. Mortgage rate rises under Labour: Dreadful!”

I’ve seen DPF, for example, argue both that a recession is the perfect time to cut taxes because it stimulates the economy, and a recovery is also the perfect time to cut taxes to provide a dividend. It reminds me of that old chestnut, most recently applied to Don Brash: “The answer is tax cuts. What is the question again?”

13 comments on “Polity: Armstrong on National on Labour ”

  1. fender 1

    Oh yeah, and remember Standard and Poor’s will downgrade NZ’s credit rating if Labour govern…

    John Key: fucking liar.

    • Tracey 1.1

      nzd is very high too. am sure thats helping exporters to our largest export market, australia.

  2. Tracey 2

    meanwhile the commerce commission has been investigating possible dodgy currency trading…
    A Commerce Commission probe into currency market manipulation was sparked by an alleged cartel member seeking immunity from prosecution, the regulator says.

    The commission this morning confirmed its investigation into “possible manipulation of currency rates and possible influencing of benchmarks in foreign exchange markets”.

    The investigation followed an application for leniency under its policy to grant conditional immunity from prosecution to the first member of a cartel to come forward with evidence, it said.

    It declined to comment further, and would not say which banks were involved, explain the nature of its investigation, or how long it was expected to take.

    The commission action is one of several regulatory probes around the world after allegations emerged last year that senior currency traders had colluded to influence currency movements and rip off customers.

    Organisations likely to be affected are those that use banks to place significant foreign exchange orders on the spot market.

    in new york, the usual suspects are under investigation…

    • Tracey 2.1

      Calculated at 4pm London time, it is also known as the “London close”.

      As well as regulatory action, a class action has been filed in New York by clients of several major banks, claiming they were ripped off by a conspiracy to manipulate the forex market. At least two of the banks named in the lawsuit are also active in New Zealand.


      The suit claims traders using chat-room names such as “The Cartel,” “The Bandits’ Club,” and “The Mafia,” exchanged confidential customer order information and trading positions.

      Defendants are the Bank of America, Barclays, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley, RBS and UBS.

      Deutsche Bank and JP Morgan Chase are both registered banks in New Zealand, while UBS has a local subsidiary.

      The lawsuit claims the manipulation of the London close impacted the pricing of trillions of dollars’ worth of forex instruments, “inflicting severe financial harm on plaintiffs and members of the class”.

      Global Probe The lawsuit claims law enforcement and regulatory authorities around the world, including the United States, Europe, Asia, Australia, and New Zealand, are actively investigating.

      New Zealand’s four biggest banks – ASB, ANZ, Bank of New Zealand and Westpac – are all Australian-owned.

      A spokesperson for the Australian Competition and Consumer Commission said it would not comment on matters it “may or may not be investigating”.

      Swiss authorities have formally opened a foreign exchange-related investigation into several banks, which includes heavyweights JP Morgan Chase, Barclays and Citigroup.

      In Britain, Reuters reported that about 30 traders were known to have been placed on leave, suspended, or fired as a result of the inquiry.

      It is possible that the global crackdown has particular relevance to New Zealand.

      At a monetary policy briefing last month, Reserve Bank governor Graeme Wheeler pointed out that the New Zealand dollar was between the 7th and 10th most-traded currency internationally.

      Daily turnover was about NZ$100 billion, or roughly half of an entire year’s worth of gross domestic product.

      • Huginn 2.1.1

        Very interested to see what was going on, how long it’s been going on, and who knew about it. If it is related to the very high volumes traded in the Kiwi, then it’s been going on for a very long time and we should be asking why it’s taken the regulatory authorities so long to look into it.

        Here’s another link

        Financial Times,

        Hong Kong and New Zealand launch forex probes

        By Paul J Davies in Hong Kong

        Global investigations into foreign exchange markets widens as HK regulator asks banks to review their operations while NZ regulator launches probe

        Read the full article at: http://on.ft.com/1lkLEV4

        • Tracey

          This is of course the occupation our transparent and honest pm excelled

          • Huginn

            It’s the old problem with systemic failure – a flawed market and an ineffective regulator.

  3. fambo 3

    No one seems to be focusing very much on the fact that New Zealand is among the top ten countries in the world for Chinese interest in property purchases, that that interest has leapt phenomenally in the past year or so, that 60 percent of purchases are by non-residents (interestingly, it’s normally reported as “40 percent are residents” which doesn’t sound quite as bad), and if my memory serves me correctly, they represent around 6 percent of the housing market now.

    The last point is quite interesting in itself, in that given the Chinese buyers are mostly interested in specific areas, then their percentage of purchases in these areas is likely to be around 10 percent or maybe more, which means they have a noticeable impact on house prices.

    Given that the number of Chinese with the money to buy property is only going to significantly and probably rapidly increase over the next few years, their impact on the market can only seriously increase. The implications for making home ownership even more unaffordable for New Zealand residents is pretty obvious.

    Quite simply, while non-residents are able to purchase residential property in New Zealand, New Zealanders will find themselves competing more and more with overseas buyers with a lot more money than them. Fine if you are wealthy already and see the value of your properties float up with the market, but a bummer for everyone else.

    For the record, I would feel concerned if it was Americans, Russians or Swiss, but I don’t think any other country in living history has come close to the capability of China to so influence house prices in New Zealand.

  4. saarbo 4

    “I rate John Armstrong”

    why do so many people suck up to this based national party dick head…reading Armstrong is normally like reading a national party political broadcast.

    • Saarbo 4.1

      “based”=”fucken biased”

    • Stuart Munro 4.2

      Yes, this was a defensive story – to cover his fundament in case the Herald decides to clean up its act. But even so it was full of far right spin:

      “Key’s recurring nightmare would be to wake up the day after the election having lost by a handful of votes,”

      He’ll be losing by a lot more than that

      “Labour’s profligate spending”

      No objective basis for this pejorative

      “given the Prime Minister’s political acumen”

      Let’s not take that as given – how about some evidence

      “when this Prime Minister is (rarely) misfiring”

      He does nothing but misfire

      “Labour’s strategy involves getting people to ignore the statistical evidence”

      By this he mean’s English’s ‘creative’ use of numbers – like the ‘progressive’ claim based on increased numbers on benefits.

      “Labour is thus appealing to more base instincts by getting people to ask themselves another, more direct question: do you believe you are getting your fair share?”

      Equity is a base instinct? Again an improper pejorative.

      “For the first time in a very long time, the New Zealand economy looks like it will enjoy solid and sustainable growth for some time.”

      This is a National claim – and as with all such claims – ‘pie in the sky’ or ‘jam tomorrow’ it should be treated with scepticism in the absence of evidence. In fact the outlook for NZ is soft: Tax receipts are down, the Oz economy is softening, and the US, having failed to reform post the sub-prime debacle remains a risk for the global economy. The heat in the NZ market relates to foreign housing purchases – and it doesn’t amount to much or the SOE selloff would have attracted much more interest. Large institutional investors know the kiwi is due to plummet – they’ll be avoiding NZ for a while – till after the election at least.

      “National’s continued high opinion poll ratings – are a reflection of the current optimism ”

      More to do with the MSM sunshine policy.

      So the Herald still has a fair way to go before it can pretend to the professional objectivity required of a credible newspaper.

Recent Comments

Recent Posts

  • New ACC Board members announced.
    The Minister for ACC is pleased to announce the appointment of three new members to join the Board of ACC on 1 February 2021. “All three bring diverse skills and experience to provide strong governance oversight to lead the direction of ACC” said Hon Carmel Sepuloni. Bella Takiari-Brame from Hamilton ...
    BeehiveBy beehive.govt.nz
    3 hours ago
  • Economic boost for Southland marae
    The Government is investing $9 million to upgrade a significant community facility in Invercargill, creating economic stimulus and jobs, Infrastructure Minister Grant Robertson and Te Tai Tonga MP Rino Tirikatene have announced.  The grant for Waihōpai Rūnaka Inc to make improvements to Murihiku Marae comes from the $3 billion set ...
    BeehiveBy beehive.govt.nz
    11 hours ago
  • Celebrating the Entry Into Force of the Treaty on the Prohibition of Nuclear Weapons
    [Opening comments, welcome and thank you to Auckland University etc] It is a great pleasure to be here this afternoon to celebrate such an historic occasion - the entry into force of the Treaty on the Prohibition of Nuclear Weapons. This is a moment many feared would never come, but ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Supporting disabled people to stay connected
    The Government is providing $3 million in one-off seed funding to help disabled people around New Zealand stay connected and access support in their communities, Minister for Disability Issues, Carmel Sepuloni announced today. The funding will allow disability service providers to develop digital and community-based solutions over the next two ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Voluntary saliva testing offered to quarantine workers from Monday
    Border workers in quarantine facilities will be offered voluntary daily COVID-19 saliva tests in addition to their regular weekly testing, COVID-19 Response Minister Chris Hipkins said today. This additional option will be rolled out at the Jet Park Quarantine facility in Auckland starting on Monday 25 January, and then to ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Next steps in firearms buy-back
    The next steps in the Government’s ambitious firearms reform programme to include a three-month buy-back have been announced by Police Minister Poto Williams today.  “The last buy-back and amnesty was unprecedented for New Zealand and was successful in collecting 60,297 firearms, modifying a further 5,630 firearms, and collecting 299,837 prohibited ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Jobs for Nature projects target iconic ecosystems
    Upscaling work already underway to restore two iconic ecosystems will deliver jobs and a lasting legacy, Conservation Minister Kiri Allan says.  “The Jobs for Nature programme provides $1.25 billion over four years to offer employment opportunities for people whose livelihoods have been impacted by the COVID-19 recession. “Two new projects ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New Public Housing Plan announced
    The Government has released its Public Housing Plan 2021-2024 which outlines the intention of where 8,000 additional public and transitional housing places announced in Budget 2020, will go. “The Government is committed to continuing its public house build programme at pace and scale. The extra 8,000 homes – 6000 public ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Prime Minister congratulates President Joe Biden on his inauguration
    Prime Minister Jacinda Ardern has congratulated President Joe Biden on his inauguration as the 46th President of the United States of America. “I look forward to building a close relationship with President Biden and working with him on issues that matter to both our countries,” Jacinda Ardern said. “New Zealand ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Jobs for Nature funding will create training and employment opportunities
    A major investment to tackle wilding pines in Mt Richmond will create jobs and help protect the area’s unique ecosystems, Biosecurity Minister Damien O’Connor says. The Mt Richmond Forest Park has unique ecosystems developed on mineral-rich geology, including taonga plant species found nowhere else in the country. “These special plant ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Pre-departure testing extended to all passengers to New Zealand
    To further protect New Zealand from COVID-19, the Government is extending pre-departure testing to all passengers to New Zealand except from Australia, Antarctica and most Pacific Islands, COVID-19 Response Minister Chris Hipkins said today. “The change will come into force for all flights arriving in New Zealand after 11:59pm (NZT) on Monday ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Bay Cadets learn skills to protect environment
    Bay Conservation Cadets launched with first intake Supported with $3.5 million grant Part of $1.245b Jobs for Nature programme to accelerate recover from Covid Cadets will learn skills to protect and enhance environment Environment Minister David Parker today welcomed the first intake of cadets at the launch of the Bay ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Cook Islanders to resume travel to New Zealand
    The Prime Minister of New Zealand Jacinda Ardern and the Prime Minister of the Cook Islands Mark Brown have announced passengers from the Cook Islands can resume quarantine-free travel into New Zealand from 21 January, enabling access to essential services such as health. “Following confirmation of the Cook Islands’ COVID ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Supporting communities and landowners to grow employment opportunities
    Jobs for Nature funding is being made available to conservation groups and landowners to employ staff and contractors in a move aimed at boosting local biodiversity-focused projects, Conservation Minister Kiritapu Allan has announced. It is estimated some 400-plus jobs will be created with employment opportunities in ecology, restoration, trapping, ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Border exception for some returning international tertiary students
    The Government has approved an exception class for 1000 international tertiary students, degree level and above, who began their study in New Zealand but were caught offshore when border restrictions began. The exception will allow students to return to New Zealand in stages from April 2021. “Our top priority continues ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Tiwai deal gives time for managed transition
    Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New member for APEC Business Advisory Council
    Prime Minister Jacinda Ardern has appointed Anna Curzon to the APEC Business Advisory Council (ABAC). The leader of each APEC economy appoints three private sector representatives to ABAC. ABAC provides advice to leaders annually on business priorities. “ABAC helps ensure that APEC’s work programme is informed by business community perspectives ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Govt’s careful economic management recognised
    The Government’s prudent fiscal management and strong policy programme in the face of the COVID-19 global pandemic have been acknowledged by the credit rating agency Fitch. Fitch has today affirmed New Zealand’s local currency rating at AA+ with a stable outlook and foreign currency rating at AA with a positive ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Additional actions to keep COVID-19 out of NZ
    The Government is putting in place a suite of additional actions to protect New Zealand from COVID-19, including new emerging variants, COVID-19 Response Minister Chris Hipkins said today. “Given the high rates of infection in many countries and evidence of the global spread of more transmissible variants, it’s clear that ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • 19 projects will clean up and protect waterways
    $36 million of Government funding alongside councils and others for 19 projects Investment will clean up and protect waterways and create local jobs Boots on the ground expected in Q2 of 2021 Funding part of the Jobs for Nature policy package A package of 19 projects will help clean up ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Zealand Government acknowledges 175th anniversary of Battle of Ruapekapeka
    The commemoration of the 175th anniversary of the Battle of Ruapekapeka represents an opportunity for all New Zealanders to reflect on the role these conflicts have had in creating our modern nation, says Associate Minister for Arts, Culture and Heritage Kiri Allan. “The Battle at Te Ruapekapeka Pā, which took ...
    BeehiveBy beehive.govt.nz
    3 weeks ago