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

  • Joint statement on the New Zealand – Cook Islands Joint Ministerial Forum – 2024
    1.  New Zealand Deputy Prime Minister and Minister of Foreign Affairs Rt Hon Winston Peters; Minister of Health and Minister for Pacific Peoples Hon Dr Shane Reti; and Minister for Climate Change Hon Simon Watts hosted Cook Islands Minister of Foreign Affairs and Immigration Hon Tingika Elikana and Minister of Health Hon Vainetutai Rose Toki-Brown on 24 May ...
    BeehiveBy beehive.govt.nz
    6 hours ago
  • Middle East, Africa deployments extended
    The Government has approved two-year extensions for four New Zealand Defence Force deployments to the Middle East and Africa, Defence Minister Judith Collins and Foreign Minister Winston Peters announced today. “These deployments are long-standing New Zealand commitments, which reflect our ongoing interest in promoting peace and stability, and making active ...
    BeehiveBy beehive.govt.nz
    23 hours ago
  • Climate Change Commission Chair to retire
    The Climate Change Commission Chair, Dr Rod Carr, has confirmed his plans to retire at the end of his term later this year, Climate Change Minister Simon Watts says. “Prior to the election, Dr Carr advised me he would be retiring when his term concluded. Dr Rod Carr has led ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Inaugural Board of Integrity Sport & Recreation Commission announced
    Nine highly respected experts have been appointed to the inaugural board of the new Integrity Sport and Recreation Commission, Sport & Recreation Minister Chris Bishop says. “The Integrity Sport and Recreation Commission is a new independent Crown entity which was established under the Integrity Sport and Recreation Act last year, ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • A balanced Foreign Affairs budget
    Foreign Minister Winston Peters confirmed today that Vote Foreign Affairs in Budget 2024 will balance two crucial priorities of the Coalition Government.    While Budget 2024 reflects the constrained fiscal environment, the Government also recognises the critical role MFAT plays in keeping New Zealanders safe and prosperous.    “Consistent with ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • New social housing places to support families into homes
    New social housing funding in Budget 2024 will ensure the Government can continue supporting more families into warm, dry homes from July 2025, Housing Ministers Chris Bishop and Tama Potaka say. “Earlier this week I was proud to announce that Budget 2024 allocates $140 million to fund 1,500 new social ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • New Zealand’s minerals future
    Introduction Today, we are sharing a red-letter occasion. A Blackball event on hallowed ground. Today  we underscore the importance of our mineral estate. A reminder that our natural resource sector has much to offer.  Such a contribution will not come to pass without investment.  However, more than money is needed. ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government sets out vision for minerals future
    Increasing national and regional prosperity, providing the minerals needed for new technology and the clean energy transition, and doubling the value of minerals exports are the bold aims of the Government’s vision for the minerals sector. Resources Minister Shane Jones today launched a draft strategy for the minerals sector in ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government progresses Māori wards legislation
    The coalition Government’s legislation to restore the rights of communities to determine whether to introduce Māori wards has passed its first reading in Parliament, Local Government Minister Simeon Brown says. “Divisive changes introduced by the previous government denied local communities the ability to determine whether to establish Māori wards.” The ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • First RMA amendment Bill introduced to Parliament
    The coalition Government has today introduced legislation to slash the tangle of red and green tape throttling some of New Zealand’s key sectors, including farming, mining and other primary industries. RMA Reform Minister Chris Bishop says the Government is committed to  unlocking development and investment while ensuring the environment is ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government welcomes EPA decision
    The decision by Environmental Protection Authority (EPA) to approve the continued use of hydrogen cyanamide, known as Hi-Cane, has been welcomed by Environment Minister Penny Simmonds and Agriculture Minister Todd McClay.  “The EPA decision introduces appropriate environmental safeguards which will allow kiwifruit and other growers to use Hi-Cane responsibly,” Ms ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Speech to Employers and Manufacturers Association: Relief for today, hope for tomorrow
    Kia ora, Ngā mihi nui ki a koutou kātoa Tāmaki Herenga Waka, Tāmaki Herenga tangata Ngā mihi ki ngā mana whenua o tēnei rohe Ngāti Whātua ō Ōrākei me nga iwi kātoa kua tae mai. Mauriora. Greetings everyone. Thank you to the EMA for hosting this event. Let me acknowledge ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government invests in 1,500 more social homes
    The coalition Government is investing in social housing for New Zealanders who are most in need of a warm dry home, Housing Minister Chris Bishop says. Budget 2024 will allocate $140 million in new funding for 1,500 new social housing places to be provided by Community Housing Providers (CHPs), not ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • $24 million boost for Gumboot Friday
    Thousands more young New Zealanders will have better access to mental health services as the Government delivers on its commitment to fund the Gumboot Friday initiative, says Deputy Prime Minister Winston Peters and Mental Health Minister Matt Doocey.  “Budget 2024 will provide $24 million over four years to contract the ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Residential Tenancies Amendment Bill passes first reading
    The Coalition Government’s Residential Tenancies Amendment Bill, which will improve tenancy laws and help increase the supply of rental properties, has passed its first reading in Parliament says Housing Minister Chris Bishop. “The Bill proposes much-needed changes to the Residential Tenancies Act 1986 that will remove barriers to increasing private ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Montecassino Commemorative Address, Cassino War Cemetery
    Standing here in Cassino War Cemetery, among the graves looking up at the beautiful Abbey of Montecassino, it is hard to imagine the utter devastation left behind by the battles which ended here in May 1944. Hundreds of thousands of shells and bombs of every description left nothing but piled ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • First Reading – Repeal of Section 7AA of the Oranga Tamariki Act 1989
    I present a legislative statement on the Oranga Tamariki (Repeal of Section 7AA) Amendment Bill Mr. Speaker, I move that the Oranga Tamariki (Repeal of Section 7AA) Amendment Bill be now read a first time. I nominate the Social Services and Community Committee to consider the Bill. Thank you, Mr. ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • First reading of 7AA’s repeal: progress for children
    The Bill to repeal Section 7AA of the Oranga Tamariki Act has had its first reading in Parliament today. The Bill reaffirms the Coalition Government’s commitment to the care and safety of children in care, says Minister for Children Karen Chhour.  “When I became the Minister for Children, I made ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • China Business Summit 2024
    Kia ora koutou, good morning, and zao shang hao. Thank you Fran for the opportunity to speak at the 2024 China Business Summit – it’s great to be here today. I’d also like to acknowledge: Simon Bridges - CEO of the Auckland Chamber of Commerce. His Excellency Ambassador - Wang ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Assisted depatures from New Caledonia
    Foreign Minister Winston Peters has confirmed a New Zealand Government plane will head to New Caledonia in the next hour in the first in a series of proposed flights to begin bringing New Zealanders home.    “New Zealanders in New Caledonia have faced a challenging few days - and bringing ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Assisted departures from New Caledonia
    Foreign Minister Winston Peters has confirmed a New Zealand Government plane will head to New Caledonia in the next hour in the first in a series of proposed flights to begin bringing New Zealanders home.  “New Zealanders in New Caledonia have faced a challenging few days - and bringing them ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government to rollout roadside drug testing
    The Coalition Government will introduce legislation this year that will enable roadside drug testing as part of our commitment to improve road safety and restore law and order, Transport Minister Simeon Brown says.  “Alcohol and drugs are the number one contributing factor in fatal road crashes in New Zealand. In ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Minister responds to review of Kāinga Ora
    The Government has announced a series of immediate actions in response to the independent review of Kāinga Ora – Homes and Communities, Housing Minister Chris Bishop says. “Kāinga Ora is a large and important Crown entity, with assets of $45 billion and over $2.5 billion of expenditure each year. It ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Pseudoephedrine back on shelves
    Associate Health Minister David Seymour is pleased that Pseudoephedrine can now be purchased by the general public to protect them from winter illness, after the coalition government worked swiftly to change the law and oversaw a fast approval process by Medsafe. “Pharmacies are now putting the medicines back on their ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New Zealand-China Business Summit
    Tēnā koutou katoa. Da jia hao.  Good morning everyone.   Prime Minister Luxon, your excellency, a great friend of New Zealand and my friend Ambassador Wang, Mayor of what he tells me is the best city in New Zealand, Wayne Brown, the highly respected Fran O’Sullivan, Champion of the Auckland business ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New measures to protect powerlines from trees
    Energy Minister Simeon Brown has announced that the Government will make it easier for lines firms to take action to remove vegetation from obstructing local powerlines. The change will ensure greater security of electricity supply in local communities, particularly during severe weather events.  “Trees or parts of trees falling on ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Wairarapa Moana ki Pouakani win top Māori dairy farming award
    Wairarapa Moana ki Pouakani were the top winners at this year’s Ahuwhenua Trophy awards recognising the best in Māori dairy farming. Māori Development Minister Tama Potaka announced the winners and congratulated runners-up, Whakatōhea Māori Trust Board, at an awards celebration also attended by Prime Minister Christopher Luxon and Finance Minister ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • DJ Fred Again – Assurance report received
    "On the 27th of March, I sought assurances from the Chief Executive, Department of Internal Affairs, that the Department’s correct processes and policies had been followed in regards to a passport application which received media attention,” says Minister of Internal Affairs Brooke van Velden.  “I raised my concerns after being ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • District Court Judges appointed
    Attorney-General Judith Collins has announced the appointment of three new District Court Judges, to replace Judges who have recently retired. Peter James Davey of Auckland has been appointed a District Court Judge with a jury jurisdiction to be based at Whangarei. Mr Davey initially started work as a law clerk/solicitor with ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Unions should put learning ahead of ideology
    Associate Education Minister David Seymour is calling on the Post Primary Teachers’ Association (PPTA) to put ideology to the side and focus on students’ learning, in reaction to the union holding paid teacher meetings across New Zealand about charter schools.     “The PPTA is disrupting schools up and down the ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Craig Stobo appointed as chair of FMA
    Commerce and Consumer Affairs Minister Andrew Bayly today announced the appointment of Craig Stobo as the new chair of the Financial Markets Authority (FMA). Mr Stobo takes over from Mark Todd, whose term expired at the end of April. Mr Stobo’s appointment is for a five-year term. “The FMA plays ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Budget 2024 invests in lifeguards and coastguard
    Surf Life Saving New Zealand and Coastguard New Zealand will continue to be able to keep people safe in, on, and around the water following a funding boost of $63.644 million over four years, Transport Minister Simeon Brown and Associate Transport Minister Matt Doocey say. “Heading to the beach for ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand and Tuvalu reaffirm close relationship
    New Zealand and Tuvalu have reaffirmed their close relationship, Foreign Affairs Minister Winston Peters says.  “New Zealand is committed to working with Tuvalu on a shared vision of resilience, prosperity and security, in close concert with Australia,” says Mr Peters, who last visited Tuvalu in 2019.  “It is my pleasure ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand calls for calm, constructive dialogue in New Caledonia
    New Zealand is gravely concerned about the situation in New Caledonia, Foreign Minister Winston Peters says.  “The escalating situation and violent protests in Nouméa are of serious concern across the Pacific Islands region,” Mr Peters says.  “The immediate priority must be for all sides to take steps to de-escalate the ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand welcomes Samoa Head of State
    Prime Minister Christopher Luxon met today with Samoa’s O le Ao o le Malo, Afioga Tuimalealiifano Vaaletoa Sualauvi II, who is making a State Visit to New Zealand. “His Highness and I reflected on our two countries’ extensive community links, with Samoan–New Zealanders contributing to all areas of our national ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Island Direct eligible for SuperGold Card funding
    Transport Minister Simeon Brown has announced that he has approved Waiheke Island ferry operator Island Direct to be eligible for SuperGold Card funding, paving the way for a commercial agreement to bring the operator into the scheme. “Island Direct started operating in November 2023, offering an additional option for people ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Further sanctions against Russia
    Foreign Minister Winston Peters today announced further sanctions on 28 individuals and 14 entities providing military and strategic support for Russia’s invasion of Ukraine.  “Russia is directly supported by its military-industrial complex in its illegal aggression against Ukraine, attacking its sovereignty and territorial integrity. New Zealand condemns all entities and ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • One year on from Loafers Lodge
    A year on from the tragedy at Loafers Lodge, the Government is working hard to improve building fire safety, Building and Construction Minister Chris Penk says. “I want to share my sincere condolences with the families and friends of the victims on the anniversary of the tragic fire at Loafers ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Pre-Budget speech to Auckland Business Chamber
    Ka nui te mihi kia koutou. Kia ora and good afternoon, everyone. Thank you so much for having me here in the lead up to my Government’s first Budget. Before I get started can I acknowledge: Simon Bridges – Auckland Business Chamber CEO. Steve Jurkovich – Kiwibank CEO. Kids born ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand and Vanuatu to deepen collaboration
    New Zealand and Vanuatu will enhance collaboration on issues of mutual interest, Foreign Minister Winston Peters says.    “It is important to return to Port Vila this week with a broad, high-level political delegation which demonstrates our deep commitment to New Zealand’s relationship with Vanuatu,” Mr Peters says.    “This ...
    BeehiveBy beehive.govt.nz
    1 week ago

Page generated in The Standard by Wordpress at 2024-05-25T04:32:01+00:00