web analytics

The reverse Midas touch: the gap with Australia

Written By: - Date published: 9:37 am, April 27th, 2012 - 19 comments
Categories: Economy - Tags: , ,

Remember when we elected that guy with all the financial experience because he would be able to guide us through the tough time better and close the gap with Australia? Oops.

The cumulative difference in GDP growth in Labour’s 36 quarters was 2.4%. The cumulative difference in GDP growth in National’s 13 quarters: 3.3%. The gap is widening four times faster under National.

19 comments on “The reverse Midas touch: the gap with Australia ”

  1. Hayden 1

    Financial experience: making money using other people’s money to buy and sell money.

    Good for everyone except those whose currency is being bought and sold, I suppose.

    • bbfloyd 1.1

      i’m still waiting to hear how much johnny sparkles made personally out of being involved with selling down his own countries currency while at trust bank….

      an attack which, by the way, caused an awful lot of pain and hardship here..

      • Gosman 1.1.1

        The NZ dollar was deemed to be overvalued and so it proved to be. How is that causing a lot of pain and hardship here?

        BTW I think you mean Bankers Trust and I’m pretty certain that he didn’t have anything to do with it. Perhaps if you have some hard evidence though it might help your case.

        • McFlock 1.1.1.1

          Gos, you really like to spread your bullshit over a wide area, don’t you.
               
          For someone who claims to know about being a banker, you sure seem oblivious to the effect an overvalued currency has on an export-based economy. 
           

          • Gosman 1.1.1.1.1

            Ummmmm… McClock you do realise what the whole Bankers Trust incident that bbfloyd is likely referring to was all about ?

            Because your whole comment about how currencies being overvalued are damaging to an economy kind of seems stupid when put into the context we are discussing here.

            • McFlock 1.1.1.1.1.1

              Oh, you weren’t talking about speculators profiting off NZ currency over-valuation in the mid-late 1980s?
               

              • Gosman

                No I don’t actually think you realise what the attack was all about. You seem to think that the attack caused the overvaluation when it was all about taking a position that it would fall by short selling the currency. In a sense the attack was beneficial to exporters as it contributed to the NZ dollar falling. If John Key was involved you should be thanking him for helping the NZ export industry. Just goes to show how lefties like you don’t understand markets very well at all.

                • McFlock

                  Yeah, that’s the sort of shit you like to spread – note the contraction from “a lot of pain here” to debating the minutae of effects on exporters only. 
                       
                  I said “export-based economy”, not “exporters”. I’m sure they loved it for three minutes, until their imported materials went through the roof.

                  • Gosman

                    I was tempted to respond but the fact that when I look at it you are now trying to argue that a lower exchange rate hurts importers and possibly the wider economy as well means I can’t be bothered. Congratulations you have discovered that changes in the value of goods and services has positives AND negatives. Most high school economics students get taught this in the first year.

                    • McFlock

                      Congratulations, gos.
                       
                      I have no difficulty admitting that you won the debate you imagined you were having.
                           
                      One day that will coincide with what everybody actually wrote. Keep at it!

      • muzza 1.1.2

        Key and Krieger worked together, the timelines cross…people will form their own conclusions!

        Key has given himself away on many occasions with his own words!

        • Gosman 1.1.2.1

          Mere speculation there muzza.

          BTW why is an overvalued exchange rate beneficial compared with a lower exchange rate?

          Care to explain that logic Einstein?

        • muzza 1.1.2.2

          Get stuck into Wiki Gosman, its what you do best, Im not wasting another second on this response!

          Notice I said nothing about high or low currency, as it relates to this conversation, only that there is ample room for “speculation”, as you call it about Keys involvement!

          “Care to explain that logic Einstein”

          — Read your post bro, that last question makes no sense what so ever, given what I wrote!

          Silly boy!

          • Gosman 1.1.2.2.1

            You seem to think there was something wrong with what Krieger did. All he did was bet that the NZ Dollar was overvalued. In this he was proved right and made a shed load of money off it. Why is this wrong and what difference would it make if John Key was involved?

            • mike e 1.1.2.2.1.1

              Gooseman you have said many times in the past that futures trading is insurance now your saying it is gambling.
              Enough of your bs rambling.

              • Gosman

                Wrong.

                Let me illustrate the differences between short selling, futures, and options with a example involving your opinion.

                Imagine if your opinion on this matter had a value, one that meant people were willing to trade it.

                Let us say for the sake of the argument that the current value of your opinion was ‘Worthwhile’. This could be quite possible as people might regard your opinion as being of some consequence.

                However I regard your opinion as being ‘Almost worthless’ (i.e. much,much less than the current value). I think it is is seriously over valued at this point in time because I don’t think you have a clue what you are thinking on this subject.

                I haven’t currently invested in your opinion because of my view that it is over valued. So how do I make money off my view?

                If I sell your opinion to people who regard it higher than I do at a price less than it is currently regarded as when I don’t own any of it then that is short selling.

                Say I sell it to for a value ‘Has a few flaws but generally okay’. The person buying might think they are getting a bargain but I continue to sell your opinion at a lower and lower value but still above where I think it is worth.

                Soon people might start to question the real value of your opinion and might start valuing it even lower and in fact regard it as ‘Almost worthless’. This is where I make my money.

                I will then purchase a bunch of your opinions at the lower value and pass them on to the people who wanted your opinion at the higher value. That is short selling.

                This is different from Futures which has to do with the value of your opinion in say 12 months time from now. Obviously if your opinion isn’t worth much now the value of it will be low in the future. I can insure against the chance of you getting some sense by buying or selling your future opinion now. This is the insurance I spoke of previously. I want to protect myself from the chance that your opinion has changed dramatically in this time

                An option is merely me buying the right to buy or sell your future opinion at a particular value. I don’t necessarily need your opinion in the future but if it is substantially different from the value that the option I bought it at then I might make something from it.

                Quite obviously the price of the future and option on your opinion is related to the current value. It is where the complexity comes into the equation especially for options.

  2. Stickler 2

    Where is your source for these figures?

    • bbfloyd 2.1

      where’s your chart to prove this one’s wrong sticky one?

      • Stickler 2.1.1

        I have none, but in the interests of academic rigour, I think a cited data source should be provided so the reader can verify the charts veracity for themselves. 

Recent Comments

Recent Posts

  • Next steps for Christchurch Hospital campus redevelopment
    Canterbury DHB will be better placed to respond to future demand for services and continue to deliver high quality care, with the next stage of the campus redevelopment programme confirmed, Health Minister Andrew Little says. The Government has approved $154 million in funding for the construction of a third tower ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Five Power Defence Arrangements Defence Ministers’ Joint Statement
    The Defence Ministers from Australia, Malaysia, New Zealand, Singapore and United Kingdom reaffirmed their nations’ continued commitment to the Five Power Defence Arrangements (FPDA), and commended the achievements over the past 49 years as the FPDA moves towards its 50th Anniversary in 2021.  The Ministers recognised the FPDA’s significant role ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Jobs for Nature funding protects health of Hawke’s Bay waterways
    A joint Government and Hawke’s Bay Regional Council project will invest $4.2 million to protect local waterways, enhance biodiversity and employ local people, Environment Minister David Parker announced today.   Over two years, the Hāpara Takatū Jobs for Nature project will fence 195km of private land to exclude stock from vulnerable ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • New Year border exception for seasonal workers in the horticulture and wine industries
    2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week while in isolation From January ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government increases support for New Zealanders to work in seasonal jobs
    The Government is offering further financial support for unemployed New Zealanders to take on seasonal work. These new incentives include: Up to $200 per week for accommodation costs $1000 incentive payment for workers who complete jobs of six weeks or longer increasing wet weather payments when people can’t work to ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government receives Royal Commission of Inquiry report into the Terrorist Attack on Christchurch Mos...
    Minister for Internal Affairs Jan Tinetti has today received the Royal Commission of Inquiry report into the Terrorist Attack on Christchurch Mosques, and will table it in Parliament on Tuesday December 8. “I know this will have been a challenging process for whānau, survivors and witnesses of the terrorist attack ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New Zealand Government to declare a climate emergency
    The Government will declare a climate emergency next week, Climate Change Minister James Shaw said today.                                       “We are in the midst of a climate crisis that will impact on nearly every ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Call for urgent action on Pacific conservation
    A declaration on the urgency of the global biodiversity crisis and the need for immediate, transformative action in the Pacific was agreed at a pan-Pacific conference today. The 10th Pacific Islands Conference on Nature Conservation and Protected Areas is taking place this week across the Pacific.  Minister of Conservation Kiritapu ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Speech from the throne
    E aku hoa i te ara o te whai, Kia kotahi tā tātou takahi i te kō, ko tōku whiwhi kei tō koutou tautoko mai. Ko tāku ki a koutou, hei whakapiki manawa mōku. He horomata rangatira te mahi, e rite ai te whiwhinga a te ringatuku, me te ringakape ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Keynote address to Chartered Accountants Australia and New Zealand conference
    Speech to the CAANZ conference - November 19, 2020 Thank you, Greg, (Greg Haddon, MC) for the welcome. I’d like to acknowledge John Cuthbertson from CAANZ, the Commissioner of Inland Revenue Naomi Ferguson, former fellow MP and former Minister of Revenue, Peter Dunne, other guest speakers and CAANZ members. I ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Expert independent advisory group appointed to strengthen the future of Māori broadcasting
    A panel of seven experts are adding their support to help shape the future of Māori broadcasting, Minister for Māori Development Willie Jackson has announced today. “Today I will meet with some of the most experienced Māori broadcasters, commentators and practitioners in the field. They have practical insights on the ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government to review housing settings
    New Zealand’s stronger-than-expected economic performance has flowed through to housing demand, so the Government will review housing settings to improve access to the market, the Finance Minister Grant Robertson announced today. “Our focus is on improving access to the housing market for first home buyers and ensuring house price growth ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Crown accounts reflect Govt’s careful economic management
    The better-than-expected Crown accounts released today show the Government’s careful management of the COVID-19 health crisis was the right approach to support the economy. As expected, the Crown accounts for the year to June 2020 show the operating balance before gains and losses, or OBEGAL, was in deficit. However that ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Community launch marks next step in addressing racism in education
    The launch of Te Hurihanganui in Porirua today is another important milestone in the work needed to address racism in the education system and improve outcomes for Māori learners and their whānau, Associate Education Minister Kelvin Davis says. Budget 2019 included $42 million over three years to put Te Hurihanganui ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government to consider recommendations on DNA use in criminal investigations
    The Minister of Justice has received the Law Commission’s recommending changes to the law governing the way DNA is used in criminal investigations. The report, called The Use of DNA in Criminal Investigations – Te Whahamahi I te Ira Tangata I ngā Mātai Taihara, recommends new legislation to address how ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Speech to Wakatū Nelson regional hui on trade
    First, I want to express my thanks to Te Taumata for this hui and for all the fantastic work you are doing for Māori in the trade space. In the short time that you’ve been operating you’ve already contributed an enormous amount to the conversation, and developed impressive networks.  I ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Speech to Primary Industries Summit
    Thank you for the opportunity to speak to you today about the significant contribution the food and fibres sector makes to New Zealand and how this Government is supporting that effort. I’d like to start by acknowledging our co-Chairs, Terry Copeland and Mavis Mullins, my colleague, Agriculture Minister Damien O’Connor, ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Fast track referrals will speed up recovery and boost jobs and home building
    The Government is taking action to increase jobs, speed up the economic recovery and build houses by putting three more projects through its fast track approval process. “It’s great to see that the fast-track consenting process is working. Today we have referred a mix of potential projects that, if approved, ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Papakāinga provides critically needed homes in Hastings
    A papakāinga opened today by the Minister for Māori Development the Hon Willie Jackson will provide whānau with much needed affordable rental homes in Hastings. The four home papakāinga in Waiōhiki is the first project to be completed under the ‘Hastings Place Based’ initiative. This initiative is a Government, Hastings ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand ready to host APEC virtually
    Prime Minister Jacinda Ardern took over the leadership of APEC earlier today, when she joined leaders from the 21 APEC economies virtually for the forum’s final 2020 meeting. “We look forward to hosting a fully virtual APEC 2021 next year. While this isn’t an in-person meeting, it will be one ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Revival of Māori Horticulturists
    The rapid revival of Māori horticulture was unmistakeable at this year’s Ahuwhenua Trophy Awards, with 2020 marking the first time this iconic Māori farming event was dedicated to horticulture enterprises. Congratulating finalists at the Awards, Māori Development Minister Willie Jackson said growing large-scale māra kai is part of Māori DNA. ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Emergency benefit to help temporary visa holders
    From 1 December, people on temporary work, student or visitor visas who can’t return home and or support themselves may get an Emergency Benefit from the Ministry of Social Development, Social Development and Employment Minister Carmel Sepuloni announced today. Previously, temporary visa holders in hardship because of COVID-19 have had ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • School sustainability projects to help boost regional economies
    Forty one schools from the Far North to Southland will receive funding for projects that will reduce schools’ emissions and save them money, Education Minister Chris Hipkins announced today. This is the second round of the Sustainability Contestable Fund, and work will begin immediately. The first round announced in April ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Farmer-led projects to improve water health in Canterbury and Otago
    More than $6 million will be spent on helping farmers improve the health of rivers, wetlands, and habitat biodiversity in Canterbury and Otago, as well as improving long-term land management practices, says Agriculture Minister Damien O’Connor. Four farmer-led catchment group Jobs for Nature projects have between allocated between $176,000 and ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Tupu Aotearoa continues expansion to Pacific communities in Nelson, Marlborough, Tasman & Northl...
    Pacific communities in Nelson, Marlborough, Tasman and Northland will benefit from the expansion of the Tupu Aotearoa programme announced today by the Minister for Pacific Peoples, Aupito William Sio. The programme provides sustainable employment and education pathways and will be delivered in partnership with three providers in Northland and two ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New primary school and classrooms for 1,200 students in South Island
    Education Minister Chris Hipkins unveiled major school building projects across the South Island during a visit to Waimea College in Nelson today. It’s part of the Government’s latest investment of $164 million to build new classrooms and upgrade schools around the country. “Investments like this gives the construction industry certainty ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Minister of Māori Development pays tribute to Rudy Taylor
      Today the Minister of Māori Development, alongside other Government Ministers and MP’s said their final farewells to Nga Puhi Leader Rudy Taylor.  “Rudy dedicated his life to the betterment of Māori, and his strong approach was always from the ground up, grassroots, sincere and unfaltering”  “Over the past few ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Prime Minister to attend APEC Leaders’ Summit
    Prime Minister Jacinda Ardern will attend the annual APEC Economic Leaders’ Meeting and associated events virtually today and tomorrow. “In a world where we cannot travel due to COVID-19, continuing close collaboration with our regional partners is key to accelerating New Zealand’s economic recovery,” Jacinda Ardern said. “There is wide ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Speech to Infrastructure NZ Symposium
    Tena Koutou, Tena Koutou and thank you for inviting me to speak to you today. This is a critical time for New Zealand as we respond to the damage wreaked by the global COVID-19 pandemic. It is vital that investment in our economic recovery is well thought through, and makes ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Pike River 10 Year Anniversary Commemorative Service
    Tēnei te mihi ki a tātau katoa e huihui nei i tēnei rā Ki a koutou ngā whānau o te hunga kua riro i kōnei – he mihi aroha ki a koutou Ki te hapori whānui – tēnā koutou Ki ngā tāngata whenua – tēnā koutou Ki ngā mate, e ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Huge investment in new and upgraded classrooms to boost construction jobs
    Around 7,500 students are set to benefit from the Government’s latest investment of $164 million to build new classrooms and upgrade schools around the country. “The election delivered a clear mandate to accelerate our economic recovery and build back better. That’s why we are prioritising construction projects in schools so more ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Keeping Pike River Mine promises 10 years on
    Ten years after the Pike River Mine tragedy in which 29 men lost their lives while at work, a commemorative service at Parliament has honoured them and their legacy of ensuring all New Zealand workplaces are safe. Prime Minister Jacinda Ardern attended the event, along with representatives of the Pike ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Additional testing to strengthen border and increase safety of workers
    New testing measures are being put in place to increase the safety of border workers and further strengthen New Zealand’s barriers against COVID-19, COVID-19 Response Minister Chris Hipkins said today. “These strengthened rules – to apply to all international airports and ports – build on the mandatory testing orders we’ve ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • More public housing delivered in Auckland
    The Government’s investment in public housing is delivering more warm, dry homes with today’s official opening of 82 new apartments in New Lynn by the Housing Minister Megan Woods. The Thom Street development replaces 16 houses built in the 1940s, with brand new fit-for-purpose public housing that is in high ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Agreement advanced to purchase up to 5 million COVID-19 vaccines
    The Government has confirmed an in-principle agreement to purchase up to 5 million COVID-19 vaccines – enough for 5 million people – from Janssen Pharmaceutica, subject to the vaccine successfully completing clinical trials and passing regulatory approvals in New Zealand, says Research, Science and Innovation Minister Megan Woods. “This agreement ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Jobs for Nature funding will leave a conservation legacy for Waikanae awa
    Ninety-two jobs will be created to help environmental restoration in the Waikanae River catchment through $8.5 million of Jobs for Nature funding, Conservation Minister Kiritapu Allan announced today. “The new funding will give a four-year boost to the restoration of the Waikanae awa, and is specifically focussed on restoration through ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Dunedin Hospital project progresses to next stage
    As the new Dunedin Hospital project progresses, the Government is changing the oversight group to provide more technical input, ensure continued local representation, and to make sure lessons learnt from Dunedin benefit other health infrastructure projects around the country. Concept design approval and the release of a tender for early ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Jump in apprentice and trainee numbers
    The number of New Zealanders taking up apprenticeships has increased nearly 50 percent, and the number of female apprentices has more than doubled. This comes as a Government campaign to raise the profile of vocational education and training (VET) begins. Prime Minister Jacinda Ardern and Education Minister Chris Hipkins announced ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • ReBuilding Nations Symposium 2020 (Infrastructure NZ Conference opening session)
    Tena koutou katoa and thank you for the opportunity to be with you today. Can I acknowledge Ngarimu Blair, Ngati Whatua, and Mayor Phil Goff for the welcome. Before I start with my substantive comments, I do want to acknowledge the hard work it has taken by everyone to ensure ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Zealand's biosecurity champions honoured
    Biosecurity Minister Damien O’Connor has paid tribute to the winners of the 2020 New Zealand Biosecurity Awards. “These are the people and organisations who go above and beyond to protect Aotearoa from pests and disease to ensure our unique way of life is sustained for future generations,” Damien O’Connor says. ...
    BeehiveBy beehive.govt.nz
    2 weeks ago