Sigh – the sleepy hobbits of muddle Nu Zilind are pretty easy to con aren’t they? National’s surplus was always a joke that would never happen, but in every single focus group, voters believed by overwhelming numbers that National were the best political party for the economy.
This despite all National doing is place all our cows in one paddock with dairy (now going bust), rebuilding from an earthquake (that economic stimulus is now coming to an end) and cheap immigration policies inflating property prices to create a false sense of wealth for the property class.
National peddle small business morality but really only help big business. Labour are better for the economy, National are great for monopolies but muddle Nu Zilind cling to Key’s vacant aspiration like a child to candy.
The global collapse in oil prices suggests that the level of poverty post the global finical collapse was being masked by cheap credit and bank bail outs, all National have achieved is a sugar high. The dismantling of adult education, draconian welfare reforms, grinding poverty and unaffordable housing has communities without the spare resource to survive another down turn. Grant Robertson and Andrew Little have their moment to build an alternative.
At some point New Zealanders will start demanding real solutions from political parties.
Surely?
If political corruption won’t change voters minds, simple self interest must right?
Rampaging lynch mobs — coming soon to an affluent suburb near you.
A question – The global collapse in oil prices suggests that the level of poverty post the global finical collapse was being masked by cheap credit and bank bail outs – how does movement in the price of oil suggest this – how are oil prices, cheap credit and bank bail outs related?
“…simple self interest…”
Not trying to be crass but the terrible events in Sydney came just at the right time for the Claytons Surplus. Just as the Canterbury earthquakes were gold for the plethora of excuses and reasons. Not suggesting that Mr Key would use those for simple self interest of course!
Its official, the “Rock Star” emperor has NO clothes, he’s nothing more than a butt naked conman!
6 years of the Key National government and every year they have posted a deficit. That’s EVERY year of their existence. Well except for the lie that we had a surplus for the benefit of the great unwashed voters to believe pre election.
A few sobering statistics: Net crown debt as of 30/04/14 was NZ$ 70,814 000 000 and rising, (Source National debt clock). It was $10 billion in 2008.
Overseas debt the private sector currently has NZ$ 208,618,683,398 and rising (source Interest.co.nz). No wonder the banks love National!
And we’ve had a credit downgrade too under these idiots.
When are the cheerleaders in the media going to stop the bullshit and ask serious questions of this government and their economic uselessness. Were it a left government they would be crucifying them and quite rightly so!
And we are now minus several key assets.
What a fucking joke!
“…ask serious questions of this government” ?
Farrar says, “The Government has limited control over revenue, short to changes to tax rates. But what they can control is spending.”
Before the election Bill English and the PM were quoted enough about the possibility of tax cuts to have the idea about that they were a possibility. Of course they didn’t say there would be cuts but the schmoozy crap references of course were enough to create an impression amongst the idiots who think English is an economic god. I wonder why Farrar didn’t say something really simple like, “The last tax cuts for the richest were a stupid bloody idea”?
Yes, instead of the Rock Star Economy we have the Emperor’s New Clothes Economy. Unfortunately it doesn’t sound as snappy as Rock star does it? We can safely assume that we won’t be hearing the term discussed in the MSM.
And we’ve had a credit downgrade too under these idiots.
They aren’t idiots. They know exactly what they are doing.
Net crown debt as of 30/04/14 was NZ$ 70,814 000 000 and rising, (Source National debt clock). It was $10 billion in 2008.
Where has that $60bn gone? It’s gone somewhere, into someone’s hands, whose? Is there an economist out there who can tell us? Some people are doing just dandy out of all of this – and it isn’t most of the public.
Somewhere close to 18bn has gone to rebuilding Chch. A large portion of the rest has gone in raising debt to fund maintaining social support and preventing the economy imploding during the GFC.
It’s also worth noting that at 35.9% of GDP (http://www.tradingeconomics.com/new-zealand/government-debt-to-gdp), NZ’s public debt is comparatively low post GFC, despite the Govt. using debt to maintain (and in fact increase) social support during the GFC.
Also, there would have been no operating deficit at all prior to 2011 if the Labour Govt had maintained spending between 2005 and 2008 at 2004 levels, which would have virtually avoided the need for the big lift in debt. (There is an excellent article on that issue here …http://www.stuff.co.nz/business/opinion-analysis/9840884/New-Zealands-debt-legacy).
In short, we could have pegged debt by avoiding the largesse of 2005 through 2008, and/or by reducing the social safety net during the GFC. That we did not do the former is verging on criminal negligence. That we did not do the latter has preserved a great deal of social cohesion.
And paid for two unsustainable tax cuts, Nehemia. Wouldn’t want to leave that little fact out, would we?
As for the “largesse” of “2005 through 2008” – not sure what you’re referring to. Are to talking about Working for Families which helped reduced inequality? Are you referring to restoring expenditure on health and education that National had cut in the late 1990s (and which contributed to their downfall)?
So, with knowing what you’re rabbitting on about in terms of “largesse”, it can’t be criminal negligence.
Not unlike two tax cuts for which National had to borrow to finance. In effect, NZ Inc borrowed money from savers overseas to put into the pockets of high-paid, wealthy individuals in this country.
That kind of insanity can only be justified by true-believers of the party-in-power.
Both tax cuts were fiscally neutral Frank. That is simple mathematics. The largesse I’m referring to is Cullen’s failure to at least hold Gvt. spending as a % of GDP for the first time since 1990. A later post covers this.
Could you please enlighten me on how a tax cut, i.e. a reduction on revenue, can be fiscally neutral?
Ahh the Christchurch rebuild, the double edged sword, the excuse that Key clings to when his governments ineptitude managing the books only matches fools who couldn’t manage a piss up in a brewery
Were it not for the Christchurch rebuild, largely funded by insurance/EQC money and quite a few people taking a loss, National would have next to no growth as well. Then what??
There is an excellent analysis of the impact of the ChCh rebuild at http://www.anz.co.nz/resources/f/9/f9532440-0b61-40bb-9002-f158086142a8/ANZ-Debunking-the-Chch-Myth.pdf?MOD=AJPERES.
At it’s peak, the rebuild is adding about 2% to GDP growth. Note, this was the peak. So yes we have the debt and the growth, but not all of NZ’s growth has been from Canterbury.
Recessions are great opportunities to conduct large scale capital works. The encouraging thing to come out of the report is that the rest of the economy seems to be gaining enough strength to maintain sustained growth beyond the rebuild.
Due to the major NZ financial institutions being primarily Australian owned and governed by that countries robust prudential requirement’s Nz suffered little direct impact from the GFC . On the trading side our terms of trade were also little effected. In fact the major impact was self induced by the governments extension of deposit guarantees to high yielding finance companies – piggies in the trough?
Therefore could the brainwashed please come up with more substantive justifications for the poor fiscal discipline of the Key government.
1000% XRAY.
“At some point New Zealanders will start demanding real solutions from political parties.”
That is a very logical and reasonable assumption to make.
However we currently have enough of the population who are suffering from paralysis through lack of any kind of analysis.
They have their fingers in their ears and are going la la la la la .
I have lost count of the amount of people that I have spoken to that just recite the same old bullshit mantra that is regurgitated on Radio Live or 1ZB or Seven Sharp or Paul Henry every day / night.
Even though most of these people have adult children, ( all educated), who haven’t got a shit show in hell of ever owning a house under their own steam, or if possible, without being financially moribund for the rest of their lives.
They all think that “that’s just the way it is now”.
I ask them where they think their children may live if they want to raise a family. They just shrug their shoulders and shake their heads, or change the subject.
While we still have enough brainwashed people out there who are willing to say, “fuck you jack , I’m alright, to their children’s generation, then National will remain in power.
The Labour Party had plenty of policy on the table at the last election, that would have started to turn the neo -liberal super tanker around, and David Cunliffe talked about National’s Sugar Highs till he was blue in the face , but as Nelson Mandela said , “there are none so blind, as those who do not want to see”.
Dead right Grant, public paralysis and susceptibility to the propaganda is at the heart of the issue.
The ‘brainwashed’ are definitely found in the older bracket of society as u suggest here Grant, but why? Is it all the physical and emotional trauma they suffered as children, at home and at school, plus years of mindless tv that has led them to be so short-sighted and unsympathetic to their own children – or is it the blood pressure pills they are all put on by their doctors, that allows them to ‘forget’ their instinct to look after their ‘own’? A very callous group many of the ‘Golden Generation’ have become after their experiences of full employment, cheap housing, food and energy – hopefully, after we get rid of them, those awake to the Nat’s corruption will set up a country that writes a constitution based on Social Equality, which is what many people really want and need from their Govt.
You do remember that it was Labour that plugged NZ into recession before the gfc. If left governments are the answer just look at the shit Aussie is in because of their Labor government.
Dale – you do remember Labour posted nine consecutive surpluses, whilst paying down debt, whilst restoring funding to health, education, and other services that National had cut in the late 1990s?
Just checking.
Because parroting right wing lies in this forum will result in nothing but derision at your blatant cheek.
Well, that’s only one side. Yes Labour posted surpluses, but during some of the countries best terms of trade in a generation. It wasn’t overly difficult, and we didn’t have a global recession. My beef with Clark’s Labour Govt was it’s last 3 years. By 2008 the country was going into recession, interest rates were sky high, and the internal accounts were heading into deficit. Those are undeniable facts. They made some horrible decisions, and we’re still paying for them.
What were those “horrible decisions”?
Let’s start with the purchase of KiwiRail, Cullen’s ideological ‘burp’ that cost around $1b for a value of around $369m (and that was optimisic!). It’s hard to find a more incompetent waste of tax payers money.
Then we could consider the mismanagement that led to NZ being in recession as early as March 2008, before any other OECD nation, and before the full impacts of the GFC.
There’s more.
NZ Rail was re-purchased for $665 million, not “around $1b”. http://www.stuff.co.nz/403216/Govt-buys-back-rail-ferries-for-665m
Considering it was another essential infrastructure (along with Air NZ) that had been run into the ground by successive private owners, I suggest you direct your ire elsewhere, Nehemia. Private ownership hasn’t been too flash, has it?
I said KiwiRail “cost around $1b”, not that that was it’s purchase price. Actually I should have said $1.5b and climbing.
http://tvnz.co.nz/national-news/huge-kiwirail-costs-revealed-2508431
This was fiscal incompetence at a virtually unprecedented level.
And if, as you say, private owners had run it into the ground, why did we pay anything for it?????
…and why are people voting down your question? It’s a question for heavens sake!
Labour’s failure to curb Govt expenditure as a % of GDP.
From 1990 successive Labour and National Govt’s had managed Govt expenditure as a % of GDP down, but Cullen lost control from around 2005. Here’s the data…
http://ips.ac.nz/publications/files/99f91186d74.pdf
Erm mate…in the Christmas of 2007 to 2008 , ie: Jan to Feb…..I received 1 call on my cell phone from a client to do a ‘hobbyist’ job on someones house….
That if you recall….was the exact same time as the greedy bastard neo liberal thugs in America had caused the housing bubble over there.
It didn’t matter which side of the fence you were on….everyone was shitting their collective pants..and for thousands of tradies like me?…it meant the end of their businesses.
And as for this fuckwit John xKEYscore borrowing billions to justify a tax cut for the super rich and lie to us it was for public spending? ( And in Americas case to bail out those businesses too big to fail?)
I have never witnessed a more blatant case of neo liberal thug hypocrisy about bailing out the corporate giants at the expense of the poor in all my life.
Corporate bloody BLUDGERS , mate .
And the rest of us?
Just a fucking great big SHIT SANDWICH.
That’s what I and thousands of others think about your shitty neo liberal thug ideology.
Agree totally about Aussie. At the same time the way their media treated Gillard was a disgrace…totally over the top, disrespectful and verging on voyeuristic.
Oh, Dale: No!!!
Really???
I thought it was a bunch of inept speculators on Wall Street (and a few other dubious addresses) who over-estimated their smarts and under-estimated their blinding greed.
Shows how wrong you can be, eh?
PS the Brits blame Gordon Brown. Are there any other contenders for ‘The One who really caused the GFC’?
No one single person ’caused’ the GFC. Dale’s point was that NZ was sliding towards recession before the impact of the GFC, which is a simple fact of history.
Really? “Sliding backwards”?
That funny, ‘cos New Zealand had good growth periods; lowest unemployment outside of the former USSR; etc. Cullen posted nione surpluses as well as paying off debt.
The Nats have posted one deficit after another; exacerbated our debt by borrowing for tax cuts; and our sovereign debt has ballooned to over $60 billion?
And you have a cheek to bag the previous government by trying to rewrite history? *pfffft!*
Yeah, nah.
To put it simply, National gambled on the white gold staying at record levels and lost the bet. It was a long odds bet, but National spun it as a sure deal and the voters bought it at the time because it was peddled by the MSM National spin doctors. I have said before many times, National’s policies are boom and bust. They take credit for the boom period and blame the bust period on others (usually Labour). But what else do you expect from a government headed by a foreign exchange gambler? National stand for short term spectacular but unsustainable growth, and the political right’s underlying philosophy is that it must LOOK good to the sleepy hobbits. Perception is everything, reality is nothing. Tough luck New Zealanders! You believed the National Party b..s and you will now be punished by further reductions in spending on luxuries like education and health. You were warned but you ignored it. Serves you right you morons.
they gambled on a lot of nu zilanders stupidity, looks like a solid gamble
Strong and stable. Strong and stable. Strong and stable. Strong and stable. Strong and stable. Strong and stable. Strong and stable. Strong and stable. Strong and stable.
And so on…
You can Google it.
e-clectic says:
“strong & stable.” Goggle it,
Yes and see how the media parrots work that phase like it was their own philosophy they probably invented?
The Government are nothing but a shell without the media hyperbole.
on election night key said he borrowed 15 billion for the cc rebuild, its one of the dead bodies hes trying to hide, the eq stimulus is like how well you do when you buy things on a credit card, its temporary – it has to be paid back with interest
Like mushrooms, NZers must be growing at a rapid rate, considering the amount of time we are kept in the dark and fed continuous BS by Key, English and corrupt fellow Natsy crooks!
The fraudulent pre election surplus statements, amongst many others are evidence of this point!
Hardly surprising though that English should come out with this “no surplus” announcement now, three months after the election. It was to be expected. Most of us knew he was lying. But the stupid idiots who walk among us, were sucked in by their beloved fraud Key and voted accordingly, betraying their fellow Kiwis in doing so!
As for the “surplus”, has anyone else had this happen. The IRD just yesterday released my 4-figure rebate in part owing since 2013, and my accountant had to persist on digging to get it out of them.
I don’t have any faith in the 60 percent of New Zealand voters who voted for conservative parties seeing the light. They like to complain but have no intention of switching their vote. The results of the last election pretty much stated where they are at in their heads. Two years of New Zealand on the United Nations Security Council will advertise this to the rest of the world who are still under the illusion that New Zealand is a left of centre liberal nation.
If the ‘books’ are to balance (and please Mr English) then private debt has to be huge so the government doesn’t have to spend. One side of the ledger balancing the other.
You know – like you pay all the household bills and run the car and stuff while your sweetie saves all their dosh before doing a runner.
I suspect the rising cost of Auckland housing is no accident.
How about a huge reduction in private debt and a modest deficit for the government? Too much to ask?
(And if I’m muddling ‘deficit’ with ‘debt’ – pardon. I’m about as economically ignorant as Bill English.)
One is struck with the low profile of the”dear leader” following the latest revelations with respect to economic mismanagement. Could it be that foreseeing the oncoming deluge of brown stuff he has left his flunkies to weather the storm while he basks in the Hawaiian sunshine with his paymasters
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