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Roaring out of recession

Written By: - Date published: 6:07 pm, September 22nd, 2011 - 30 comments
Categories: economy, national - Tags: ,

So here we are then, “roaring out of recession”:

Economy stagnates, dollar dives

New Zealand’s economic growth slowed more than expected in the second quarter and the dollar dropped straight after the low number came out.

Gross domestic product (GDP) grew 0.1% in the three months ended June 30, according to Statistics New Zealand, hurt by a slowdown in the construction and mining sectors.

The New Zealand dollar shed some value in response , sinking to 79.91 US cents. It was 80.40 cents immediately before the release, having already lost two cents overnight.

TVNZ Business presenter Nadine Chalmers-Ross says the GDP number is a surprisingly weak figure.

“Most of the experts were picking this quarter to be weaker than what we saw in the first three months of the year but not this weak,” she said.

“Perhaps it’s a timely reminder that while we are recovering, it is still ongoing and not there yet”.

Perhaps its a timely reminder that in 2008 we backed the wrong horse.

30 comments on “Roaring out of recession ”

  1. Tangled up in blue 1

    Perhaps its a timely reminder that in 2008 we backed the wrong horse.

    Cue the “it’s not Nationals fault, it’s the earthquake!!” and “New Zealands actually doing good compared to America”.

    How long does our economy have to stall for before people start to realise that National’s economic mismanagement has failed New Zealand.

  2. randal 2

    the answer my friend is blowing in the wind.

  3. millsy 3

    I have maintained the position that for various people in positions of privilige ie employers, National Party supporters, Tea Party types, etc, the longer this recession, downturn, or whatever you would like to call it goes on, the better.

    A recession is a really good incentive to keep wages and conditions held down, or even reduced, and by concequence, a reduction of living standards. The Dom Post editorial has proudly admitted it a month ago.

    Not that workers saw the pay increases come thick and fast during the so called economic boom during the 1990’s-2000’s (In reality it had more to do with the loosening of credit since the 1970’s causing a burrowing frenzy. In effect, the last boom was on tick. Unlike the period from the 40’s to the 60’s where the ecomomy actually boomed because countries made and sold things). I remember the 5% in 05 campaign attracting some nastyness from the bosses unions.

  4. Peter nickle 4

    Vote Green, be in depression in 6 months.

  5. Afewknowthetruth 5

    It is well to note that all GDP is a fraud, all GDP figures are manipulated and the real situation is far worse than presented by the criminals in government or the clowns in the media.

    Chris Martenson’s Crash Course explains some of it.

    http://www.chrismartenson.com/crashcourse/chapter-16-fuzzy-numbers

  6. Draco T Bastard 6

    Perhaps its a timely reminder that in 2008 we backed the wrong horse.

    Well, it’s more like we were told it was a horse when, as a matter of fact, it was a weasel.

  7. Afewknowthetruth 7

    I see the fraud the US Federal Reserve tried to use to prop up the markets hasn’t worked too well.

    http://www.independent.co.uk/news/business/news/ftse-plunges-after-us-fed-loan-move-2359020.html

    Maybe Key/English will try a similar trick here even, though it failed in the US.

    Desperate times. Desperate men (and women).

    More rugby, that’s the answer.

  8. tc 8

    Not so much a recession but a new paradigm……forget boom bust cycles, this is it kids.
    Negligible growth, huge crown debts everywhere, scarcity of resources and a system predicated on endless cheap resources to fuel growth.
    Too much held by too few and a rising disquiet amongst those who have insufficient to sustain what they’re become accustomed to.

  9. Afewknowthetruth 9

    ‘Fortunately’ the first stage of the major worldwide jolt I warned about a few days ago came yesterday and oil prices have plunged, along with practically everything else, otherwise the 78c exchange rate would have put petrol back over $2.20 and we would hear another round of squealing from the clowns at the AA.

    I hear that milk prices are set to rise at the end of the year, along with insurance premiums. Indeed, practically everything is set to rise except wages, house prices and consumer confidence.

    Yes tc, the old paradigms are dead. 2008 marked the beginning of the end for present economic arrangements.

    Unfortunately, most people still haven’t noticed, and many are desperately trying to revive them via ‘blood transfusions’, ‘adrenaline’, ‘electric shocks’ etc.

    Nothing will stop the reversal of the Industrial Revolution which is underway.

    • Bored 9.1

      Nothing will stop the reversal….it will however play out as an yoyo of up and down, decline in production, prices etc, exascerbated boom and bust cycles, but as you say long term down. Oil prices will reflect this, prices at the pump will however generally not, only up OR unaffordable due to a lack of liquid cash in your pocket.

  10. Hilary 10

    There are enough resources to feed clothe house and employ everyone on the planet if everyone shares.
    Watch the prescient protestors occupying Wall Street. There is a global movement starting there that is saying No to the old ways.

    • AAMC 10.1

      And it’s very conveniently being ignored.

      But look, I found a good banker!

    • Draco T Bastard 10.2

      Actually, probably not to employ them which is what I mean when I say “excess population”. Increasing productivity within set limits (which is what we need to accept) must result in less work (deflation). Our present delusional system uses increasing productivity to produce more profits for the few and the only way that can happen is by selling the increased production to more people which is why the politicians/economists (the ones that wouldn’t know what an economy is if it bit them) keep increasing the population and telling us that it’s good when it isn’t.

      You see the RWNJs telling us the we need to live within our limits but their denial of Climate Change, Peak Oil and more equitable distribution put the lie to what they say as what they say is the opposite of what is true.

  11. James Stephenson 11

    So we backed the wrong horse and should have stuck with a Government that had us in recession before the rest of the world, and whose policy to deal with the crisis would have been to borrow for more “stimulus” spending?

    Like that stimulus stuff has really worked out for the US…and the UK…and…

    • AAMC 11.1

      It amazes me that you could watch this collapse since 2008 James, having had 30years of the economic ideology which your clowns endorse, and you still can’t bring yourself to question it.
      We should have questioned it in when it failed in Chile in the 70’s, but we’re different aren’t we, we can make it work. WASPS are cleverer.

      Blind faith, the enemy of reason. You’ve had years now learn, but religion prevents that doesn’t it!

  12. Sanctuary 12

    And the front page of the Herald today? Nothing but Ritchie mcCaw and the paper features a giant poster of this Zeus amongst us mortals inside. Oh and how about Mike Tindall and Zara Phillips?????

    Bread and Circuses, eh?

  13. hellonearthis 13

    Nationals new mantra.

    Keep Calm and Do Nothing.

  14. McFlock 14

    National news mantra: all is going well until Nov28.

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