The Two Nations: or, Why Won’t They Bail Me Out?

Written By: - Date published: 11:47 pm, January 11th, 2011 - 38 comments
Categories: capitalism, class war - Tags: ,

Of all the mysteries of the present financial crisis, the most baffling is why government agencies have gone to such lengths to protect the value of bad investments made by large institutions and multi-millionaires.

After all, under the rules of the capitalist game, owners of shares and bonds are supposed take a “haircut” if the investment goes bad. And it’s also an Economics 101 principle that if you give relief to the little people, that will have a more stimulating effect on the economy than if you bail out the wealthiest interests in society.

For instance, in the Scandinavian financial crisis of the early 1990s the Swedes made the shareholders take a haircut; and something similar has just happened in Iceland. The result is a short sharp shock and then everything gets back to normal.

But nearly everywhere else we’ve seen governments throwing money at the banks so as to preserve the value of their shares and bonds regardless of who they are owed to, while slashing social spending and, in America, forcing those who owe the mortgages into a new kind of slavery, even as the country slides into gloom and depression. And the politicians are doing so even when they were elected on the opposite platform, like the UK Liberal Democrats.
Perhaps the answer lies in an interview recorded nearly two years ago with US Representative Paul Kanjorski, in which Kanjorski explains that of course it would make more sense to bail out the little people and force the investors to face up to their bad investments and shoky pyramids; but the problem is that any attempt to do so would lead to a total run on the banks by investors.

One can think of all kinds of possibilities for a sensible, Swedish-style solution, such as a government-backed write-down in the value of both real estate and mortgages. Nearly everyone agrees that real estates and mortgages have been inflated by a financial bubble to levels far above their ‘real’ value, and are acting as a drag on the rest of the economy as a result. That is the most serious aspect of the present financial crisis. Nonetheless, it seems impossible get Humpty Dumpty off the wall.

Why is such a solution impossible? Perhaps, at the root of the political impasse, is the simple fact that the top 1% in the still-very-influential USA owns more than the bottom 90% . Much of the wealth of the top 1% is currently in inflated real estate values. And these are also the people who fund the political parties. Lastly, the anonymity of the modern market system means that the owners have no social ties with those who owe; it is a generalised condition of absentee landlordism.

And so America now resembles 1840s Europe, Britain or Ireland, in the sense of being:-

Two nations between whom there is no intercourse and no sympathy; who are as ignorant of each other’s habits, thoughts, and feelings, as if they were dwellers in different zones, or inhabitants of different planets. THE RICH AND THE POOR.

(Benjamin Disraeli, Sybil: or, the Two Nations, 1845)

Of course America herself has been two nations before [a conflict itself arising from the plantation owners, the capitalist elite of the day, trying to maintain the source of their privilege – Marty]. And so, under conditions that resemble the explosive, yet paralysing, economic tensions of the mid-nineteenth century, over absentee landlordism, capitalists and workers, and slave property, the two nations are locked in a struggle with no easy way out. To conclude on a touch of suitably Victorian melodrama, they are like Holmes and Moriarty clutching each other’s throats at the top of the Reichenbach Falls (download The Final Problem). How long till someone slips? How long till 1848? Or, let’s hope not, 1861?

ChrisH

38 comments on “The Two Nations: or, Why Won’t They Bail Me Out? ”

  1. Colonial Viper 1

    I think you’ve just invited all the Right Wingers and Neocons to come on and start spouting “hey we don’t think there should have been any corporate welfare, we don’t think the big banks should have been bailed out” etc etc

    (Although of course they do, anything which transfers public money into private hands is something that their wealthy business and political leaders will always support and which fits right in with the Right Wing ethos of envy and greed).

    At the end of the day the answers are relatively simple: basic banking should be reconstructed as a nonprofit community utility and investment banking completely firewalled off from the real economy.

    Further, all our money should cease to be issued as debt based private bank cash. Instead it should be issued as a debt free dollar by the Government.

  2. McFlock 2

    To be fair, a lot of RWNJs have been saying that the bailouts were a moral hazard, etc, so it’s further proof that truly free markets have never been tried. Whatever.

    The other big difference between the approach of bailing out the rich vs bailing out the poor is that more kids die if the former is followed rather than the latter. A quick lit review here (look under “longtitudinal studies”) suggests that Sweden had a neglible impact on infant mortality during it’s recession mentioned above, but Peru experience 17,000 more infant deaths a few years previously in its (admittedly apparently more severe) recession a few years previously.

    I saw on the news the other night an article about people using the emergency department at hospital more often now, instead of visiting their GP, with the cost as a major factor. That’s a classic example of poor access to primary healthcare having greater impact on the health system than just making it free – but that solution just doesn’t compute these bright and right shiney days.

  3. I know a couple who earn $150K each. He was sick recently (stomach bug) and went to A&E ( to save $50 seeing the doctor). He then complains about people ripping off the system and the government needing to tighten up benefits, ACC etc . Now just who is rorting here? They missed the irony of it all…and of course complained about the 3 hour wait….

    • ZeeBop 3.1

      Everyone on the left should get their head out of their behinds, they don’t need to wait for Labour to win the election and solve everything, not like Labour will anyway.

      The above article makes a brilliant point. That if there is no social connection between the in debted – lots of people on the left and right – and the holders of the debt then society becomes very mean.

      Everyone who has a mortgage can renegotiate that mortage! So what we need is to re-negotiate our largest debt and take that debt to local socially connected institutions, like local building and credit unions.

      So Labour should build a super fund that holds NZ mortgages for NZ by NZ and of NZ.
      But you can start by shifting your debts to local financial providers! Not Ozzie banks.
      And we will begin to stop the profits flowing out of NZ.

  4. Orangepeel 4

    “I think you’ve just invited all the Right Wingers and Neocons to come on and start spouting “hey we don’t think there should have been any corporate welfare, we don’t think the big banks should have been bailed out” etc etc”
    100% correct there.

    “Although of course they do, anything which…the Right Wing ethos of envy and greed”
    Hold on! What? How does that work? Who made the public money? Why would Right wingers (like me) be in favour of government interference with business? Isn’t that a contradiction?

    “At the end of the day the answers are relatively simple: basic banking should be reconstructed as a nonprofit community utility and investment banking completely firewalled off from the real economy”
    Even though it’s profit which has been the driving force to success more than anything…

    “Further, all our money should cease to be issued as debt based private bank cash”
    Agreed.

    “Instead it should be issued as a debt free dollar by the Government.”
    What? No! The government shouldn’t have all that money in the first place. FDR prolonged the Depression in America with HIS spending.

    • Zaphod Beeblebrox 4.1

      What, go back to the gold standard? Lack of liquidity is what help start the great depression in the first place.

    • Draco T Bastard 4.2

      Hold on! What? How does that work?

      By the normal capitalist method of transferring all the wealth to the few.

      Who made the public money?

      This question makes no sense whatsoever.

      Even though it’s profit which has been the driving force to success more than anything…

      Profit isn’t the driving force for most of humanity – only the psychopathic. In fact, it’s the profit motive that drives the psychopathic that causes the economy to collapse as it channels all the wealth into very few hands.

      The government shouldn’t have all that money in the first place.

      You totally mis-read what he said. Money is presently printed, with almost no limits, by the private banks (It’s how they make such massive profits). Now, what he actually said was that the printing of money should be done by the government alone and that it shouldn’t have interest on it and that the private banks shouldn’t print any money at all.

      • Orangepeel 4.2.1

        “By the normal capitalist method of transferring all the wealth to the few.”
        Capitalism has not transferring of wealth whatsoever; it is nothing but wealth being produced and spent (spent could be counted as EQUAL transfer if you will).

        “This question makes no sense whatsoever.”
        I was getting at how government can’t create wealth. Ever. It can only take from INDIVIDUALS who PRODUCED the wealth.

        “Profit isn’t the driving force for most of humanity”
        Economically it is. Are you seriously saying that most people aren’t out for their best self interest?

        “In fact, it’s the profit motive that drives the psychopathic that causes the economy to collapse as it channels all the wealth into very few hands.”
        No, it was relaxed fraud laws that allowed bankers to cheat people, and lead to the collapse. If there’s any channeling of wealth, that immediately destroys an argument calling it capitalism.

        • Draco T Bastard 4.2.1.1

          Capitalism has not transferring of wealth whatsoever;

          Capitalists don’t create wealth so the way that they get it is by transferring the wealth that is created from the people who create it.

          I was getting at how government can’t create wealth.

          Governments are the representative of the individuals in the society and are there to administer the societies wealth. Individuals, by themselves, cannot create wealth, they can only do so when they belong to a society as the society provides the resources and infrastructure that allows them to do so. The government printing the money is a recognition that the resources belong to the community.

          Economically it is. Are you seriously saying that most people aren’t out for their best self interest?

          Economically, most wealth comes from the environment. Most people just want something to do – as long as they have somewhere to live and enough to eat profit means nothing.

          No, it was relaxed fraud laws that allowed bankers to cheat people, and lead to the collapse.

          Sure, the laws were relaxed – at the behest of the bankers. Bankers always cheat, they’ve been doing so for 5 centuries (and probably longer but I’m not sure if they used a banking system in Roman times).

          If there’s any channeling of wealth, that immediately destroys an argument calling it capitalism.

          The heart of capitalism is a form of ownership that enforces channelling of the wealth to the few. That’s why the capitalists keep wanting to privatise (remove the wealth from the community) everything.

        • Benson 4.2.1.2

          “Are you seriously saying that most people aren’t out for their best self interest?”

          We shouldn’t be. I’m certainly not only out for my economic self interest, that would be rather selfish given that my gains would come at the expense of others. Profit should never be a priority.

          As for government only taking wealth from others, that’s actually precisely what capitalism does. It is the worker (or ‘individual’) who creates the wealth. He is alienated from that wealth when it is appropriated by the capitalist.
          CAPITALISM “can only take from INDIVIDUALS who PRODUCED the wealth.”

          • Orangepeel 4.2.1.2.1

            “We shouldn’t be. I’m certainly not only out for my economic self interest, that would be rather selfish given that my gains would come at the expense of others. Profit should never be a priority.”
            The average person, no matter how good or bad they are, will hold the highest incentive when working for their own best interests; it’s human nature. Even if it wasn’t, there’s nothing stopping them from giving their wealth to whom they want. If profit isn’t the priority, then how do they expect to gain the wealth for their interest (IE helping the poor, donating to any foundation, etc)?

            “As for government only taking wealth from others, that’s actually precisely what capitalism does. It is the worker (or ‘individual’) who creates the wealth. He is alienated from that wealth when it is appropriated by the capitalist.”
            The Capitalist who refuses to give the worker his fair share is committing suicide in the competitive market: rival Capitalists know that they can persuade the workers to join them by offering a fair share of resources, working out for both the worker’s and the rival Capitalist’s self interest – they benefit each other.

            • mcflock 4.2.1.2.1.1

              Here’s an interesting slide – the emphasis is added by me:

              “We shouldn’t be. I’m certainly not only out for my economic self interest, that would be rather selfish given that my gains would come at the expense of others. Profit should never be a priority.”
              The average person, no matter how good or bad they are, will hold the highest incentive when working for their own best interests; it’s human nature. Even if it wasn’t, there’s nothing stopping them from giving their wealth to whom they want. If profit isn’t the priority, then how do they expect to gain the wealth for their interest (IE helping the poor, donating to any foundation, etc)?

              There’s a difference between keeping profits in mind and just leaving your morality at the office door. Profit “maximisation” versus “satisfycing” – i.e. rather than doing a cost-benefit analysis on recalling an unsafe product, remembering that you’re responsible if the product kills someone and recalling it as a matter of principle.

              As for your market analysis of the job market, you repeat the habit of forgetting that the power is weighted towards the capitalist, not the worker. Almost always there are fewer jobs than there are workers – and the capitalist is less likely to lose their home if they don’t have a receptionist for a few weeks, but the receptionist could well lose their home if they’re unemployed for a few weeks.

              • Orangepeel

                That’s fraud, and that’s dealt with people who dislike it paying voluntary taxation to the government for more regulation on fraud.
                Or it’s like a factory with poor health and safety. IF there is a business that dares to hold poor health and safety in the competitive market the consumers and/or the workers (who can also serve as consumers) will want to know about how safe their products are. If they aren’t safe, what’s stopping them from purchasing products from a safer company?
                The company with greater safety will attract more customers, make more profit, and force the other companies to buck up their standards if they want to compete.

                On the contrary, the competitive market creates a surplus of jobs for workers. The mixed economies who call themselves capitalist yet hold total government regulations have reduced the amount of jobs there could be.
                Actual free markets create a competitive market without the use of government regulations, and that in itself puts the worker almost as high up as the consumer.
                A Capitalist could NEVER afford to exploit his workers. Workers are the resource needed for corporate expansion, and to abuse them would mean they could simply work for a rival company.
                Now, normally there wouldn’t be the enough of a rival company to take in workers, but being in the position it’s in it would really be a whole lot of workers filling in better positions needed for the rival company to expand as well as a better position the workers want.
                ‘Capitalists’ have never been able to reach their position of holding power over its workers without government assistance.

                • Colonial Viper

                  On the contrary, the competitive market creates a surplus of jobs for workers. The mixed economies who call themselves capitalist yet hold total government regulations have reduced the amount of jobs there could be.

                  Meh, you do realise we’ve actually lived your Chicago School free market BS for decades now and have figured the game out for ourselves? The US has exported tens of millions of jobs away from its own citizens to bottom of the pay barrel nations, while diverting 80% of all the new income generated from using cheap foreign labour to the richest 1% of Americans.

                  If they aren’t safe, what’s stopping them from purchasing products from a safer company?

                  I dunno, maybe the fact that the same Chinese toy factory making the same unsafe lead painted toys might supply dozens of different branded US based companies in your local store, and a consumer is never ever going to know which brand is safe or unsafe – because they are actually all made by the same cut price factory in Shenzhen.

                  And in some cases the only way that a consumer is going to find out something is unsafe is to die from the product.

                  This has been the case with many blockbuster drugs in the last 10 years.

                  Bottom line – free market neoliberalism is BS.

                  ‘Capitalists’ have never been able to reach their position of holding power over its workers without government assistance.

                  Which in the US they have had for the last 35 continuous years. Probably the last real President the US had was Kennedy. He didn’t last long.

                  In fact the US Government doesn’t represent the people any more, it represents business and industry interests, and also the top 1% of people who own more financial wealth in the US than the bottom 95% put together.

                  It’s a plutocracy my friend and you are spieling the same plutocratic lines which have finally given the richest 1% of Americans a 23% share of the nations total income.

                  • Orangepeel

                    You’ve compared free market neo liberalism to China and the US. Your argument is invalid. NEITHER are free economies… especially not China. Two mixed economies trading with eachother should tell you there are problems.

                    • Colonial Viper

                      Oh I see. In that case, good on you for backing Chicago School free market neoliberalism, a capitalist system which exists nowhere in the world except in textbooks. Not a single country of any wealth runs a truly free market neoliberal economy as you define it. Why? Because it’s a total unworkable fiction.

                      Seriously. The US is a plutocracy and the top 1% of wealth holders own more assets than the bottom 95% put together.

                      And guess what, that top 1% don’t want truly free markets they want markets slanted towards them. For the last 35 years this has been their pet project and it has worked damn well. 80% of all new income generated in the US over the last 3 decades has gone to the top 1% of individuals.

  5. Orangepeel 5

    Not at all! Government interference has worked in the past (It worked GREAT in Nazi Germany) but for a better (and quicker) solution would have been LESS interference.

    • Bright Red 5.1

      Orangepeel – you’re American eh? Well, government ‘inteference’ built your freeways, and hospitals and schools, and keeps the streets safe, and makes sure the food you eat is safe, and makes sure that workers get a minimum standard of pay and working conditions, and gives you legal protections for your property and rights, and courts to unhold them in, and a currency you can use of agreed value, and has foiled how many terrorist plots?

      There is a country without a government. It’s called Somilia. Funny how you Randites aren’t flocking to live there.

      • Orangepeel 5.1.1

        “Orangepeel – you’re American eh”
        Half.
        “Well, government ‘inteference’ built your freeways, and hospitals and schools,”
        Taking the role of a business I see. How corporatist.
        “get a minimum standard of pay and working conditions”
        Minimum standard of pay has brought about nothing but inconvenience for not just the business, nor has it benefited the individual. My sister couldn’t get a job because no company could AFFORD to pay her the minimum wage.
        Along with abolition of the minimum wage should come abolition of taxes. That way, there’s competition of companies to gain employers to gain resources. If one company exploits it’s workers, another company can easily say “Hey! Rather than paying you $1 an hour. We’ll pay you 2! For half the work!” Now the workers will all leave the exploiting business for the higher pay job, benefiting all seeing as how the company sacrificed low wages for employees, which benefit them in the long run. Now all a company has to do to get employees if offer a higher wage which makes exploitation impossible in the free market.

        “gives you legal protections for your property and rights, and courts to unhold them in, and a currency you can use of agreed value, and has foiled how many terrorist plots?”
        Same thing achievable by VOLUNTARY taxation: if I want the government protection due to terrorism and crime, a demand for it is created. How do you satisfy your demand? Buy it like a product through voluntary taxation.
        “There is a country without a government. It’s called Somilia.”
        It’s called SOMALIA. And they don’t know about economics and have had corrupt leadership for years.

        • mcflock 5.1.1.1

          “It’s called SOMALIA. And they don’t know about economics and have had corrupt leadership for years”

          Oh, economics only works if you know all about it?

          I guess that your economic theories don’t apply to NZ, then, given that apparently the majority of the population are ignorant about economic matters.

          And Somalia has had weak leadership for years, preceded by a state of anarchy after the fall of the Soviet Union.

        • Zaphod Beeblebrox 5.1.1.2

          In Somalia no one takes an interest in the needs to the individual or the public good. The government is simply a means to channel wealth to certain individuals.

          Why would this be any different if we subcontracted such things to private corporations and business- Somalia (or Russia for that matter) are the perfect example of what would happen .

        • Draco T Bastard 5.1.1.3

          This is the type of society that you’re promoting.

        • Roger 5.1.1.4

          “If one company exploits it’s workers, another company can easily say “Hey! Rather than paying you $1 an hour. We’ll pay you 2! For half the work!” Now the workers will all leave the exploiting business for the higher pay job, benefiting all seeing as how the company sacrificed low wages for employees, which benefit them in the long run. Now all a company has to do to get employees if offer a higher wage which makes exploitation impossible in the free market.”

          1: Do you have any empirical evidence to suggest this actually happens in any country without a minimum wage? If so is it the exception rather than the norm?

          2: If the second company is paying the 4 times the wages for the work, what is there to stop the first company or another competitor that pays $1 for double the work undercutting the higher paying company on the price of the end product and taking all of their market share?

          3: If such low wages are allowed, where is the incentive to innovate and bring in new capital and technology to improve productivity and lift living standards for all?

          4: Wages paid ends up being money invested or spent. If there is no minimum wage and the market equilibrium is significantly lower (even $2 per hour) how is the business going to get enough turnover to meet its fixed costs? I do not want an answer that involves one group of people being exploited for the benefit of another group. If the business struggles what will it do? Sack people or reduce pay back to $1?

          You allegedly have something in common with the people of Somalia, a lack of knowledge about economics.

          • Descendant Of Smith 5.1.1.4.1

            If you take picking apples as an example the orchardists moan when New Zealanders jump the fence and go next door to the orchard paying a higher bin rate.

            With cellphones and texting word gets around very quickly these days if someone is paying a higher rate – or they leave when say the third pick starts to work on an orchard where they are just starting on the first pick – you can make more money on a first pick cause there are more apples on the tree and the easy ones haven’t already been taken off.

            Yep they say it just proves that New Zealanders are lazy and don’t want to work and we need overseas workers. No mention of the reason why they left that particular orchard – or the one that has no toilet facilities.

            Of course with the overseas workers they can’t leave the orchardist who has bought em here and they, the employer, can do things in the quiet weeks such as still pay them for 30 hours work even though they worked 15 and take it out of their later pay when they work longer hours.

            Would they do the same courtesy for the NZer’s – not on your nelly.

            And before anyway starts suggesting I’m opposed to overseas workers I’m not – there lots of good reasons why they should be used but for this post it illustrates a real life scenario where the employer doesn’t lift their pay rates to compete for workers – they increase the request for overseas workers and modify their paying practices to meet the requirements of 30 hours work per week.

            Back to bed now – only got up cause a dog was chasing our cat.

  6. Afewknowthetruth 6

    The writer is obviously detached from reality.

    ‘The result is a short sharp shock and then everything gets back to normal.’

    We are living in a post peak oil world. Nothing can ever ‘get back to normal’ because what people believe to be normal is actually a short-lived aberration in the grand scheme of things, brought about by abundant and cheap fossil fuels.

    Cheap and easy extraction of fossil fuels is no longer possible, and as the peak oil predicament worsens there will be less and less energy available to do anything (and what is available will be at a much higher price). The peak in global per capita energy was around 1979 and now we face a decline in total global energy.

    Orthodox economics is a set of fantasies and fabrications that have been foisted upon society by a gang of liars and thieves. The fundamaental flaws in othodox economics (failure to take account of energy, resources and environment, which all magically appear as required) have now been clearly exposed, and the complete collapse of present economic and socail arrangements is inevitable. It will occur fairly soon.

    The powers that be recognise this and are engaged in one final looting of the till exercise.

    It is increasingly clear that most people, rather than acknowledging and dealing with the realities of peak oil and environmental collapse, prefer to pretend there are no ‘elephants in the room that are gradually destroying the furniture’.

    Better living through denial?

    • M 6.1

      Afewknowthetruth

      ‘Orthodox economics is a set of fantasies and fabrications that have been foisted upon society by a gang of liars and thieves.’

      Chris Martenson’s Political Economy is an interesting post – I particularly liked the reply by blogger Travlin:

      Dr KrbyLuv

      You have raised an interesting issue and provided good examples. I think the essence of the answer is in this quote.

      There was a guy named von Clausewitz who said, ‘War is a continuation of politics by other means’. (I say) Politics is a continuation of economics by other means. — Michael Ruppert

      Economics as an academic discipline is fairly recent. Not much over 100 years old I think. To gain respectability economist have worked hard to divorce themselves from the political sphere and portray their work as an objective science. They largely ignore the shared assumptions and biases they build upon and the political influences these reflect.

      Modern economies are so complex that simplifications are required to explain anything. For example, economist are notorious for ignoring the human factors by assuming everyone acts rationally. When business school graduates enter the real world they quickly have to jettison much of the knowledge they paid a high price to acquire, if they want to survive.

      Over the past few decades economists have tried to be more “rigorous” by focusing on models based on complex math. In the process they increasing ignore reality as they admire the beauty of their elegant theories.

      It is now clear that most economist have misread past and current trends to such an extent that they have shown how bankrupt their profession is. Many of them have prostituted themselves by justifying the actions of the people who pay them well, and acting as cheerleaders to bring in more suckers. They provide a respectable front for the pirates. One thing they have done very well – they have thoroughly discredited themselves.

  7. jcuknz 7

    Orangepeel … Roosevelt prolonged the depression by listening to the right wingers rather than holding true to what he had done in his first term. For his seciond term he cut back on the stimulous packages that had made his first term so successful. That is economics 101 too.

    When this discussion takes place I think of all the small investors who in New Zealand have lost their life savings and have been left to survive on Nat Sup. Naturally it was bad advice and greed on their part for that extra one or two percent which led them astray but it was bad thinking and greed for a bit extra which caused the ‘big boys’ to fail too. Why do one get bailed out and not the others. The overall sums are not that different to my way of thinking.

    • ghostwhowalksnz 7.1

      And why were the accounting standards relaxed for finance companies in the nineties under national ?
      Its seems unbelievable now but they used to have stricter rules to protect the small investors, especially a requirement for 6 monthly audited accounts.
      But its the same old story for national , policy for sale.
      Labours hands are not too clean, thats why they are saying nothing but Dalziel fumbled with the ball for too long and was like other ministers captured by the ministry ( and financiers?)

      • Herodotus 7.1.1

        Cannot find the source (Take my word !!) but in the lat 80’s there was a paper prepared from Treasury/Finance ministry regarding stiffenng the requirements of Finance coys, this has hung within someones draw for 30 years with no action by any govt, that includes Lab, GWW. Until the door breaks no one is interested in pre empitive legislation it is all post an event.
        Look how long it took for NZ3910 to be changed supposedly protecting the subbie from an aggressive main contractor/developer. Tell that to all those owner operators who had their sole source of income (machinery) locked away as the receiver took control of the site. Many were owned so much from 3-6 months ago that they were “co-erced” into re negotiating their rates, otherwise owed payments would be further delayed.
        The only good thing (not to sure who or when) was when the govt of the day required regarding listed coy take overs that all shareholders were to receive the same offer, previosly to that major shareholders recieived more favourable terms than small mum/dad investors, then at 90% takeover ownership were forced to comply.
        NAnd Ghost as we have seen reporting compliance is nothing when what is reported (mis) is crap and there are no real deterrents available to the authority re Inter-party transactions that ALL finance coys seem to have been involove in, to the benefit of a select few owners.
        re your comment about Lab- I just dont think they cared, and by default they protected in a big way those extremely rich pricks. !!!!

  8. The Two Nations concept is more unhelpful than helpful. It confuses class with nation.
    All the evidence shows that the two national are two classes, but instead of arriving at this understanding, both classes are bound together in one nation by chauvinism.
    How is it that the working class majority sees itself as part of ‘one nation’? How is it that the tiny capitalist minority convinces the rest of us that we are “all in it together”? That is the question.

  9. randal 9

    these crims and sleazeballs who ran the ponzi schemes and ran off with all the money vote national.
    thats why the government wont do anything.
    the press is complicit too.
    they know who bought all those column inches.

  10. randal 10

    time to start calling a spade a spade and stop dressing all this criminal behaviour up in pseudo policy advice talk.
    ya hear me?

  11. Descendant Of Smith 11

    This is a perfect illustration of an Economist putting economic theory into practice:

    Start off at one place and end up somewhere totally unexpected and different having caused a whole lot of people plenty of grief in the meantime.

  12. johnm 12

    THE IRISH PEOPLE ARE STEADFASTLY WITH RIGHTEOUS OUTRAGE TRASHING THE DEAL TO BAIL OUT THE RICH WHOSE CASINO BETS WENT WRONG.
    May God Protect Global Bankers: Irish Leaders Castigated As Greatest Traitors Of All Time
    the names of Brian Cowen and Brian Lenihan are now being reviled as the villains who inflicted horrendous financial disaster upon the Irish people and forced the enslavement of future generations to a criminal cadre of International Banksters.

    The words ‘treason’, ‘traitors’, and ‘treachery’ are being increasingly used not only by ordinary citizens but also by certain politicians, economists, business leaders, and celebrities. ‘Economic treason’ was a term used by the leader of the Labour Party to describe Cowen and Lenihan’s blanket guarantee to the banks. And, incredibly, even the country’s ostensibly non-partisan police association, the GRA, accused the government of ‘treachery’ and denounced it as a ‘government of national sabotage’.
    Refer link:
    http://dailybail.com/home/may-god-protect-global-bankers-irish-leaders-castigated-as-g.html

    [lprent: My moderator instincts get aroused when I see very similar comments across two posts within minutes. I’d suggest you don’t try this as a generic practice because it draws my attention. It tends to annoy me when people start using the site as a dumping ground for cut’n’paste. ]

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  • EV road user charges bill passes
    Transport Minister Simeon Brown has welcomed the passing of legislation to move light electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) into the road user charges system from 1 April.  “It was always intended that EVs and PHEVs would be exempt from road user charges until they reached two ...
    BeehiveBy beehive.govt.nz
    16 hours ago
  • Bill targets illegal, unregulated fishing in international waters
    New Zealand is strengthening its ability to combat illegal fishing outside its domestic waters and beef up regulation for its own commercial fishers in international waters through a Bill which had its first reading in Parliament today. The Fisheries (International Fishing and Other Matters) Amendment Bill 2023 sets out stronger ...
    BeehiveBy beehive.govt.nz
    17 hours ago
  • Reserve Bank appointments
    Economists Carl Hansen and Professor Prasanna Gai have been appointed to the Reserve Bank Monetary Policy Committee, Finance Minister Nicola Willis announced today. The Monetary Policy Committee (MPC) is the independent decision-making body that sets the Official Cash Rate which determines interest rates.  Carl Hansen, the executive director of Capital ...
    BeehiveBy beehive.govt.nz
    18 hours ago
  • Stronger protections for apartment owners
    Apartment owners and buyers will soon have greater protections as further changes to the law on unit titles come into effect, Housing Minister Chris Bishop says. “The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act had already introduced some changes in December 2022 and May 2023, and ...
    BeehiveBy beehive.govt.nz
    20 hours ago
  • Travel focused on traditional partners and Middle East
    Foreign Minister Winston Peters will travel to Egypt and Europe from this weekend.    “This travel will focus on a range of New Zealand’s traditional diplomatic and security partnerships while enabling broad engagement on the urgent situation in Gaza,” Mr Peters says.   Mr Peters will attend the NATO Foreign ...
    BeehiveBy beehive.govt.nz
    20 hours ago
  • Keep safe on our roads this Easter
    Transport Minister Simeon Brown is encouraging all road users to stay safe, plan their journeys ahead of time, and be patient with other drivers while travelling around this Easter long weekend. “Road safety is a responsibility we all share, and with increased traffic on our roads expected this Easter we ...
    BeehiveBy beehive.govt.nz
    23 hours ago
  • Cost of living support for over 1.4 million Kiwis
    About 1.4 million New Zealanders will receive cost of living relief through increased government assistance from April 1 909,000 pensioners get a boost to Superannuation, including 5000 veterans 371,000 working-age beneficiaries will get higher payments 45,000 students will see an increase in their allowance Over a quarter of New Zealanders ...
    BeehiveBy beehive.govt.nz
    23 hours ago
  • Tenancy reviews for social housing restart
    Ensuring social housing is being provided to those with the greatest needs is front of mind as the Government restarts social housing tenancy reviews, Associate Housing Minister Tama Potaka says. “Our relentless focus on building a strong economy is to ensure we can deliver better public services such as social ...
    BeehiveBy beehive.govt.nz
    24 hours ago
  • Kermadec Ocean Sanctuary plan halted
    The Kermadec Ocean Sanctuary will not go ahead, with Cabinet deciding to stop work on the proposed reserve and remove the Bill that would have established it from Parliament’s order paper. “The Kermadec Ocean Sanctuary Bill would have created a 620,000 sq km economic no-go zone,” Oceans and Fisheries Minister ...
    BeehiveBy beehive.govt.nz
    24 hours ago
  • Cutting all that dam red tape
    Dam safety regulations are being amended so that smaller dams won’t be subject to excessive compliance costs, Minister for Building and Construction Chris Penk says. “The coalition Government is focused on reducing costs and removing unnecessary red tape so we can get the economy back on track.  “Dam safety regulations ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Drought support extended to parts of North Island
    The coalition Government is expanding the medium-scale adverse event classification to parts of the North Island as dry weather conditions persist, Agriculture Minister Todd McClay announced today. “I have made the decision to expand the medium-scale adverse event classification already in place for parts of the South Island to also cover the ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Passage of major tax bill welcomed
    The passing of legislation giving effect to coalition Government tax commitments has been welcomed by Finance Minister Nicola Willis.  “The Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill will help place New Zealand on a more secure economic footing, improve outcomes for New Zealanders, and make our tax system ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Lifting economy through science, tertiary sectors
    Science, Innovation and Technology Minister Judith Collins and Tertiary Education and Skills Minister Penny Simmonds today announced plans to transform our science and university sectors to boost the economy. Two advisory groups, chaired by Professor Sir Peter Gluckman, will advise the Government on how these sectors can play a greater ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government announces Budget priorities
    The Budget will deliver urgently-needed tax relief to hard-working New Zealanders while putting the government’s finances back on a sustainable track, Finance Minister Nicola Willis says.  The Finance Minister made the comments at the release of the Budget Policy Statement setting out the Government’s Budget objectives. “The coalition Government intends ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government to consider accommodation solution
    The coalition Government will look at options to address a zoning issue that limits how much financial support Queenstown residents can get for accommodation. Cabinet has agreed on a response to the Petitions Committee, which had recommended the geographic information MSD uses to determine how much accommodation supplement can be ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government approves extension to Royal Commission of Inquiry into Abuse in Care
    Cabinet has agreed to a short extension to the final reporting timeframe for the Royal Commission into Abuse in Care from 28 March 2024 to 26 June 2024, Internal Affairs Minister Brooke van Velden says.                                         “The Royal Commission wrote to me on 16 February 2024, requesting that I consider an ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • $18m boost for Kiwis travelling to health treatment
    The coalition Government is delivering an $18 million boost to New Zealanders needing to travel for specialist health treatment, Health Minister Dr Shane Reti says.   “These changes are long overdue – the National Travel Assistance (NTA) scheme saw its last increase to mileage and accommodation rates way back in 2009.  ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • PM’s Prizes for Space to showcase sector’s talent
    The Government is recognising the innovative and rising talent in New Zealand’s growing space sector, with the Prime Minister and Space Minister Judith Collins announcing the new Prime Minister’s Prizes for Space today. “New Zealand has a growing reputation as a high-value partner for space missions and research. I am ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Concerns conveyed to China over cyber activity
    Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government.     “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity, attributed to groups sponsored by the Chinese Government, targeting democratic institutions in both New ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Independent Reviewers appointed for School Property Inquiry
    Independent Reviewers appointed for School Property Inquiry Education Minister Erica Stanford today announced the appointment of three independent reviewers to lead the Ministerial Inquiry into the Ministry of Education’s School Property Function.  The Inquiry will be led by former Minister of Foreign Affairs Murray McCully. “There is a clear need ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Brynderwyns open for Easter
    State Highway 1 across the Brynderwyns will be open for Easter weekend, with work currently underway to ensure the resilience of this critical route being paused for Easter Weekend to allow holiday makers to travel north, Transport Minister Simeon Brown says. “Today I visited the Brynderwyn Hills construction site, where ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Speech to the Infrastructure Funding & Financing Conference
    Introduction Good morning to you all, and thanks for having me bright and early today. I am absolutely delighted to be the Minister for Infrastructure alongside the Minister of Housing and Resource Management Reform. I know the Prime Minister sees the three roles as closely connected and he wants me ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Parliamentary network breached by the PRC
    New Zealand stands with the United Kingdom in its condemnation of People’s Republic of China (PRC) state-backed malicious cyber activity impacting its Electoral Commission and targeting Members of the UK Parliament. “The use of cyber-enabled espionage operations to interfere with democratic institutions and processes anywhere is unacceptable,” Minister Responsible for ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • NZ to provide support for Solomon Islands election
    Foreign Minister Winston Peters and Defence Minister Judith Collins today announced New Zealand will provide logistics support for the upcoming Solomon Islands election. “We’re sending a team of New Zealand Defence Force personnel and two NH90 helicopters to provide logistics support for the election on 17 April, at the request ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • NZ-EU FTA gains Royal Assent for 1 May entry to force
    The European Union Free Trade Agreement Legislation Amendment Bill received Royal Assent today, completing the process for New Zealand’s ratification of its free trade agreement with the European Union.    “I am pleased to announce that today, in a small ceremony at the Beehive, New Zealand notified the European Union ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • COVID-19 inquiry attracts 11,000 submissions
    Public consultation on the terms of reference for the Royal Commission into COVID-19 Lessons has concluded, Internal Affairs Minister Hon Brooke van Velden says.  “I have been advised that there were over 11,000 submissions made through the Royal Commission’s online consultation portal.” Expanding the scope of the Royal Commission of ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Families to receive up to $75 a week help with ECE fees
    Hardworking families are set to benefit from a new credit to help them meet their early childcare education (ECE) costs, Finance Minister Nicola Willis says. From 1 July, parents and caregivers of young children will be supported to manage the rising cost of living with a partial reimbursement of their ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Unlocking a sustainable, low-emissions future
    A specialised Independent Technical Advisory Group (ITAG) tasked with preparing and publishing independent non-binding advice on the design of a "green" (sustainable finance) taxonomy rulebook is being established, Climate Change Minister Simon Watts says.  “Comprising experts and market participants, the ITAG's primary goal is to deliver comprehensive recommendations to the ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Chief of Army thanked for his service
    Defence Minister Judith Collins has thanked the Chief of Army, Major General John Boswell, DSD, for his service as he leaves the Army after 40 years. “I would like to thank Major General Boswell for his contribution to the Army and the wider New Zealand Defence Force, undertaking many different ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Minister to meet Australian counterparts and Manufacturing Industry Leaders
    25 March 2024 Minister to meet Australian counterparts and Manufacturing Industry Leaders Small Business, Manufacturing, Commerce and Consumer Affairs Minister Andrew Bayly will travel to Australia for a series of bi-lateral meetings and manufacturing visits. During the visit, Minister Bayly will meet with his Australian counterparts, Senator Tim Ayres, Ed ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government commits nearly $3 million for period products in schools
    Government commits almost $3 million for period products in schools The Coalition Government has committed $2.9 million to ensure intermediate and secondary schools continue providing period products to those who need them, Minister of Education Erica Stanford announced today. “This is an issue of dignity and ensuring young women don’t ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Speech – Making it easier to build.
    Good morning, it’s great to be here.   First, I would like to acknowledge the New Zealand Institute of Building Surveyors and thank you for the opportunity to be here this morning.  I would like to use this opportunity to outline the Government’s ambitious plan and what we hope to ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Pacific youth to shine from boost to Polyfest
    Minister for Pacific Peoples Dr Shane Reti has announced the Government’s commitment to the Auckland Secondary Schools Māori and Pacific Islands Cultural Festival, more commonly known as Polyfest. “The Ministry for Pacific Peoples is a longtime supporter of Polyfest and, as it celebrates 49 years in 2024, I’m proud to ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • 2024 Ngarimu VC and 28th (Māori) Battalion Memorial Scholarships announced
    ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Speech to Breast Cancer Foundation – Insights Conference
    Before moving onto the substance of today’s address, I want to recognise the very significant and ongoing contribution the Breast Cancer Foundation makes to support the lives of New Zealand women and their families living with breast cancer. I very much enjoy working with you. I also want to recognise ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Kiwi research soars to International Space Station
    New Zealand has notched up a first with the launch of University of Canterbury research to the International Space Station, Science, Innovation and Technology and Space Minister Judith Collins says. The hardware, developed by Dr Sarah Kessans, is designed to operate autonomously in orbit, allowing scientists on Earth to study ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Speech to the New Zealand Planning Institute
    Introduction Thank you for inviting me to speak with you today and I’m sorry I can’t be there in person. Yesterday I started in Wellington for Breakfast TV, spoke to a property conference in Auckland, and finished the day speaking to local government in Christchurch, so it would have been ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Support for Northland emergency response centre
    The Coalition Government is contributing more than $1 million to support the establishment of an emergency multi-agency coordination centre in Northland. Emergency Management and Recovery Minister Mark Mitchell announced the contribution today during a visit of the Whangārei site where the facility will be constructed.  “Northland has faced a number ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Celebrating 20 years of Whakaata Māori
    New Zealanders have enjoyed a broader range of voices telling the story of Aotearoa thanks to the creation of Whakaata Māori 20 years ago, says Māori Development Minister Tama Potaka. The minister spoke at a celebration marking the national indigenous media organisation’s 20th anniversary at their studio in Auckland on ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Some commercial fishery catch limits increased
    Commercial catch limits for some fisheries have been increased following a review showing stocks are healthy and abundant, Ocean and Fisheries Minister Shane Jones says. The changes, along with some other catch limit changes and management settings, begin coming into effect from 1 April 2024. "Regular biannual reviews of fish ...
    BeehiveBy beehive.govt.nz
    7 days ago

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