No investor is going to lend to an entity where the ownership of the assets are unsure,and no rating agency will provide a rating where ownership is unsure. Who owns the infrastructure,and who is responsible for the debt?
Who owns the debt? and the infrastructure?
The big funders already declined housing corp,which is why it is now being funded directly out of the government books,(funders have long memories and NZ has already seen default by an SOE).
All that free water is good for pastoral farmers though,at present with irrigation load down 100mw. https://niwa.co.nz/static/climate/smd_anom.png?1234
What rort,consumer are paying around the same as 2012,demand is little changed over the last decade,the only problem is they have not been repaying debt to sustain the tax offset in the dividend.
They have actually fucked up the legislation,as the infrastructure cannot be used as a security against a loan,there were significant issues raised against the model by S&P, (the other agencies awaiting legislation b4 producing a note hence watch only). ...
Now awaiting Generals January and February to arrive,as NH snow mass starts accumulating,Energy demand starts to increase and electricity tightness arrives. https://www.severe-weather.eu/global-weather/snow-extent-northern-hemisphere-highest-56-years-...
Housing corp has both a budget deficit ( 344 m at 1 july) an increased debt 9.8b 1 July,increasing again ( by 2.3 b in nov) as it now needs to borrow on the government account due to the lack of interest in the secondary bond market. https://www.nzx.com/...
Freight rates have been decreasing since March,they are now down to pre covid levels.A substantive portion of the imported inflation is from the depreciation of the NZ dollar,due to capital flight and the appreciation of the US$ as a safe haven,with higher...
The manufactured recession is a consequence of having to constrain inflation due to lowered interest rates,increased money supply,and keynsian fiscal stimulus that create asset bubbles,that implode leaving both debt,unemployed politicians,and distressed ...
Tech layoffs continue as reality returns to value,with google to reduce headcount by 10000,as losses accrue for both private wealth funds and esg investments. Michael Burry (the big short) had already said that the forthcoming downturn was to be sen in the...
There are a number of problems with the tech models in General,the distribution of funds (often at the expense of the shareholders and other taxpayers) The remuneration model that issues shares to upper and middle managers (often the founders) that in turn...
At least she didn't take Mahuta down there.
EA has brought out a consultancy paper ,for the management of winter 2023 tight generation periods. This is not because demand is behind installed generation capacity (demand is down and will be around 1500 gwh on 2021) it is by the changes in the ...
Swedish Riksbank raises policy rate by .75 points citing high inflation,(8.3) there are also expected increase into 2023,with unemployment increasing to 7.9 % from 7.4 at present. https://www.riksbank.se/en-gb/press-and-published/notices-and-press-releases...
It is apparent because the call from the RBNZ is for reduced consumer spending, not restricted profit margins Its called demand destruction,it removes profits by enforcing providers to reduce margins to retain sales.it works efficiently in highly informed...
The fed minutes last night said they showed a greater then even chance (likely) of recession,.The IIF models forecast recession,so it is an expected outcome from high inflation and the necessary mechanism to curb animal spirits,through the forced ...
One of the understood effects of the OCR tightening is the currency appreciation.There are 2 parts here the appreciation of the US$ as a reserve currency with large reservoirs for liquid assets such as cash,and the differential in the interest rates (with ...
Well it probably pays more then their previous job at the 7/11,
Japan which is one of the most technically advanced countries,looks to old school technology to sustain the colder weather,with reduced energy loads. Freeman Dyson suggested that for mid latitude climates the two greatest technological advances were, ...
Digital services are a major contributor, with NZ$682 million worth of exports to the US spread across computer services and software license exports NZ makes more from entrails alone (such as casings and tripe),it provides high paid employment for ...
The RBNZ in its forecasts also see house prices falling by 20% by March 2024 from the tightening cycle.This would remove around 180b$ of value from the housing estate. This would see values at around March 2021,With sustained mortgage and lending rates. ...
Still counted on the platforms as G10C ,and the move here also moved rates in Australia (at the short end). A 1% change in interest rates changes the government books by -1b as does a decrease in gdp of 1%. The RBNZ is forecasting a decrease in ...
G10C is for currency countries.where debt and currency are readily tradeable.(liquid) https://en.wikipedia.org/wiki/G10_currencies
The RBNZ is the only central bank in the G10C that gets inflation data in 3 month reporting,everyone else gets it monthly, and it still has the problem with all the dodgy bonds sitting on its balance sheet,and poor reporting from other government entities ...
The debt levels are a result of the trilemma of policies that unfolded, Lower interest rates,QE,and increased asset appreciation. As the sign of each changes,there are now higher interest rates,fewer dollars chasing assets,and asset depreciation ( housing,...
The debt blowout on the current account is now real,and payable as is the government borrowings of 219 billion (absolutes).20/21 ca was still on the credit card.
Its about living with you means,over the covid period we also had high returns on exports ( dairy and meat)which provided funding for health pharma,without blowing out debt so much. We are borrowing now to sustain government policy ( in a period of low ...
The policy's for covid (which were actually from the pandemic plan) were in 2020,2021,and were in place to enable vaccination rollouts. Since then with opening up,removal of most constraints,and removal of most funding the death toll increased . The budget...
The NZ current account has not been this bad since labour was last in charge,so there is form. https://www.interest.co.nz/sites/default/files/2022-09/currac1.png The covid policy was also used by other countries such as Taiwan,which does not have either a ...
Switzerland has a current account surplus,which lowers rates for borrowing. NZ has a double deficit with the current account and budget both in record deficit country,this which is persistent over time means we are always a price taker with interest rates,...
Recent Comments