In a nation of the blind, a one eyed vacant optimist Prime Minister is God.
I wonder at how solid our supposed economic recovery actually is. We have seen the manner in which this government manipulates welfare numbers and beneficiaries and I wondered at how the recent clamour to point to a consumer led retail Christmas splurge was actually just home owners swooning over the latest property bubble charging like wounded bulls on credit cards pumped up by the bank based on that property bubble.
Latest credit card figures suggests that false sense of wealth may have been a larger contributing factor on that Christmas splurge than many cheerleaders of the so called recovery may wish to admit…
Credit card debt hits record high
Kiwis appear to be falling back into the bad credit card habits last seen before the global financial crisis, putting themselves at risk should another shock occur, an economist has warned.Figures put out by the Reserve Bank last week showed total credit card balances shot up to just under $6 billion last month – a record high for New Zealand.
…when interest rates rise, as the Chinese financial collapse looms and the Dow Jones loses all the fizz from that easy money, this Government’s total lack of vision other than to borrow money for tax cuts and corporate welfare…
…will start too look like the visionless nothing it always was. No wonder the Government are talking about flags, manufacturing Cunliffe as a liar and claiming Metiria is a hypocrite for shopping at the same jacket designer they do, they are desperate to avoid inequality at all costs.
Praying for another natural disaster to rebuild from isn’t much of an economic plan.
I have an idea. Let’s ask Dr Who to take us back to 2009 and NOT borrow the money to rebuild Christchurch or soften the impact of the GFC on the most vulnerable. Our overseas debt would be far less, and then that stat could stand alongside all of the others:
Inflation – 2008 Q3 Annual 5.1%, 2013 Q3 Annual 1.4%.
Mortgage Interest Rates – 10/08 9.6%, 10/13 5.8%
GDP Growth – 2008 Q4 (0.8%), 2013 Q2 2.7%
Current Account as % of GDP – 2008 (8.8%), 2013 (4.3%)
Household Debt as % of disposable income – 2008 151.9%, 2013 147.6%
The economy is in better shape now that in 2008 on a whole range of measures. Yes interest rates will wise, but only because of the economic growth we are experiencing, and not to anywhere near what they were under Labour. And as the Christchurch rebuild gathers pace, and we move beyond the GFC, the external deficit will fall too.
But then of course we could elect a Labour Greens Government…
I want some of what you’re on. The most vulnerable have paid for the GFC all over the world, and continue paying. I will ask Dr Who to land the tardis on your keyboard and knock some sense into it.
Everyone has paid for the GFC Ovicula. Everyone.
Or maybe, IV, National should not have proceeded with two tax cuts which reduced taxation revenue by around $2 billion a year (http://www.infonews.co.nz/news.cfm?id=89527), with a consequence that Key’s incompetance led to borrowing up to $380 million a week at one point (http://www.odt.co.nz/news/politics/84683/government-now-borrowing-450-million-a-week-claim).
Part of the reason we owe billions overseas is two unaffordable tax cuts. That was a move grossly irresponsible and if Labour had done it, you’d be screaming blue-murder at them for being “fiscally irresponsible”.
The money for those tax cuts was effectively paid for by overseas borrowings – savings from other nations bank accounts.
But because the Nats did it… going into debt is ok.
Oh now you’re claiming that the Nats are responsible for the economy coming out of recession? Does that mean they were also responsible for NZ going into recession? Or are you trying to have it only one way; the positive without the negative?
I don’t suppose the upturn in the global economy and China being our #1 trading partner (overtaking our American cuzzies) has anything to do with it?
Honestly, IV, you’re sounding more like a cog in National’s PR machine every day!
(You do realise that the public are reading this and taking note of your P.R. spin? That’s why I enjoy your posts so much. It’s a welcome opportunity to blow your propaganda bullshit out of the water.)
By the way, it’s “The Doctor”. His name isn’t “Dr Who”. FYI and yer welcome.
Nonsense. The tax cuts were across the board, and have contributed to turning the tide on the outflow of NZ’ers overseas that we saw under Labour.
Oh dear. IV, in case you thought we wouldn’t notice, you’re not comparing like-Quarters with like. You’re cherry picking the data, you naughty little Tory!!
LMAO!
So when did governments start controlling interest rates?
And when interest rates hit 7-8% in the next year or so, will you be taking responsibility for that as well, on behalf of your precious National Party?
Yeah, right. of course you will. Pathetic.
1. OK Frank, here’s a lesson in economics. The Government impacts on interest rates by running low internal deficits and other measures that assist price stability. Government policies have a direct impact on interest rates. When Labour was thrown out we had high interest rates and we were entering a recession. Incompetence at it’s finest.
2. The GDP and Inflation data is in the public domain Frank. 2008 is the last year of the failed Labour Government. 2013 was last year. No cherry picking there.
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