So with the latest plunge in Dairy prices I’m guessing milk is off the rider for our Rock Star Economy then?

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economist

Dairy plunges again…

Sharp fall in dairy prices
There has been another sharp fall in prices at the latest Global Dairy Trade auction.
The average price dropped 5.9 percent to US$2,276 a tonne.
It is the eighth consecutive fall.
Whole milk powder fell 10.8 percent to US$2,054. It is a crucial product for New Zealand.
Skim milk powder prices fell 5.8 percent to US$1,875 a tonne.
Prices are now at six year lows and have fallen around 50 percent.

and Greece compounds with China

Nobody wants to call the world’s gathering economic woes a Kiwi crisis – yet.

After all, it was not so long ago we were the rock star economy, right? And if things pan out well the Budget could be Back in Black this year.

But even if they don’t amount to a perfect storm there are enough dark clouds on the horizon to raise concerns.

The most obvious is the Greek financial crisis playing out this week, which sliced 2 per cent off United States’ stocks and the same or more across Europe on Monday.

The prime minister on Tuesday issued a low-key warning that New Zealand was not immune to the turmoil, and that overseas markets were where the greatest risks lurked.

But John Key said the Christchurch rebuild, the Auckland housing market (who thought that was good news?) and the tourism sector were keeping the domestic economy buoyant.

…meaning our Rock Star Economy is looking more like Nickelback than Rolling Stones right now.

I love how Key was scrambling to claim NZ will be ok economically because of our rebuilding from a natural disaster and the property speculation in Auckland. That’s right folks, an earthquake and a dangerously over-heated market bubble are our saviours.

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Key has bent over backwards for farmers, he sold our assets to give them hundreds of millions for more dairy irrigation. That’s more more water, more climate change gases and more pollution destroying that water quality.

Key has put all our cows in one paddock and China have decided they don’t really want another paddock.

How on Earth do NZers think National are better managers of the economy??? When natural disasters and speculative bubbles are all we’ve got, serious questions need asking.

Sadly it won’t be until the property speculating middle class get burnt by the property bubble popping before they start asking those serious questions.

24 COMMENTS

  1. How on Earth do NZers think National are better managers of the economy?
    Indeed, this myth needs exploding. Needs to be a core opposition message.
    What happened to John Croesus, the financial wunderkind who was going to bring us untold wealth?
    Like the victims of Nigerian scammers who despite paying out large sums of money for no return insist that one day they’ll get their dosh, the NZ public continue to believe that “the natural party of business” actually has business nous.
    Either they don’t or if they do they’re not working in our interest.

    • National members all have business in what is currently booming… Real estate etc. Most of them own houses that they rent or stocks in power companies etc… New Zealand assets that they sold off… Mostly to themselves… Its these sort of things that drive the mid and lower class to the ground. While they all get rich…

  2. We’ve got planning going on for a irrigation dam in the region where I live. I bet they are still using top dairy price figures in their calculations for whether it is financially viable or not.

  3. there was never a rock star economy, thats a deliberate sound byte with no basis that the non thinking of the citizenry repeat,
    there is a type of illusion the nz economy is d oing well with the jobs in cc – whiuch is due to key borrowing 15 billion with the imf.
    thats has to be REPAID WITH INTEREST –
    the public debt went from $30 – $40 billion after labour tried to get it stable after muldoons work he did to indebt nz under the instructions of — surprise, the imf, the same organization greece is in debt too, any one see a pattern here?
    the nz public debt went vertical as soon as key was the pm to now being over 100 billion
    2008 the chart accelerates up, same time key voted pm

    http://www.johnpemberton.co.nz/html/government_debt.html

  4. To true Martyn.

    However, Key will give a nod to his propaganda machine, you know the Company, Hoskin Henry Ltd or is it Henry Hoskin Ltd, (with emphasis on the Limited, very limited ) to pump up the Rock Star Economy.

    We all read the news and no damn well that the Rocks are in the heads of Key and English.

    The world economy is not looking that flash and our debt will strangle NZ

  5. Rock star on the rocks more like. No problem according to Central Orifice of Infotainment (COI) aka his smugness Hoskins.

  6. This is the 3rd time of posting , after checking twice for the right answer ,my email was very scathing about JK.It said capcha error again.
    1+1 = two. JK is an arse lets see if happens again .

    • I think you can say pretty much what you want about John Key so long as it’s not praise – that might be offensive. 🙂

  7. It was so laughable to see Steven Joyce the “spin doctor” for shonKey say “we must not forget a lot of other industries are still doing good”

    So we are now awaiting the next crash of the “the whole lot of others”
    as this government stumbles through the forest of carnage now ahead.

  8. Today, a violent brawl in Auckland, a multiple stabbing in Wellington including a fatality, and an apparent murder suicide in Ashburton. And the untold story of the ongoing grind of thousands of kiwis, just like you and me, who have been shut out of the rockstar economy, and have lost a job and can’t get another one, or are battling mental illness, or coping with disability, and the limited income that goes with all of that. If you have ever tried to live on the dole you will know, it is simply not enough money. If you are renting it eats up your income. If you happen to own your home and have a mortgage. guess what? You can’t afford to maintain your “asset” and no matter where you live you can never afford to upgrade your whiteware or replace the shitty couch or get a decent bed because your mattress makes your back hurt.
    I’m not surprised that people are losing it. I am surprised that multitudes are showing superhuman restraint. How did we get like this? Can we come back? What will it take?

      • They did it really well once, but that was along time ago. It may work again certinly worth a crack.

      • yep it will take peoples direct action, including the aspirational types who probably need house prices to start dropping before they get it,

        this “rocks star’s” pool is overgrown, Ferrari repo’ed, groupies have hep C and the stash bag is long empty

      • Oh yes Chooky quite right – particularly in the late 18th century, when the French knew how to manage Madame Guillotine so well, to rid themselves of the nation’s filthy predatory parasites!

        And today, that same French revolutionary spirit works in their favour and will continue well into future generations. Their ancestors’ fight against oppression and inequality was not in vain. It’s who the French are and will always be 🙂

        That same strong spirit is so badly needed by more Kiwis.

        I’ve said this before and I will go on to say it while necessary. The streets are there for our taking! The streets people, the streets.

  9. The biggest threat is the Chinese economy going tits-up, which it will, like the NZ economy did under Muldoon.

    The USA will be fine as America is an industrial powerhouse. They’ll just find someone else to manufacture their electronics for cheap.

    As for us, not so sure as instead of industry our economic success seems to have be built more on speculation than anything else.

  10. Where would National be without their vested interest banking mates putting in subtle little lies about how good the economy is. Good for them maybe.

    And I read on RT that China has a deal with Russia on a giant dairy production scheme in both countries. Get the feeling silly old NZ is being slowly squeezed out of the picture? No wonder English is selling state houses with such desperation. He knows nothing else!

    • The proceeds from state house sales will address what exactly – a couple of months of borrowing. Smokescreen – just another wealth transfer.

      It’s as old as the hills, the customer drives up demand on his supplier stretching capacity but always with the promise of further demand and untold riches and then lo and behold the customer faces straitened times (apparently at random – but actually by design) and the supplier, overstretched and screwed has to sell out at firesale prices (to agents of the customer).

  11. Article title: “So with the latest plunge in Dairy prices I’m guessing milk is off the rider for our Rock Star Economy then?”

    Don’t you mean the RADAR?

  12. Well…..the $au is up to $1.14 NZ and growing….might be able to afford a trip home soon at this rate….

  13. john key has stopped talking about dairy no longer a winner john key doesn’t hang out with looser like farmers nobody is talking about the mega dairy farms in the united states with production costs that are lower than new Zealand’s, competitive advantage gone

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