Nick Smith’s extraordinary claim that the housing crisis is not a crisis and is really only a challenge is less Orwellian doublespeak as it is double stupid.
Farrar has obviously rushed to Key’s side to whisper the latest polling that NZers are slowly waking to the reality that National have no interest in solving the property bubble and that locking generations and the poor out of home ownership might in fact be a bad thing, hence Nick Smith, the man who promised 500ha of crown land to build houses and only found 25ha, is telling us that it’s just a silly challenge and not a crisis.
The best part of this lie that I love is National’s constant claim that we are seeing the lowest interest rates ever and somehow they are responsible for this. We have the lowest interest rates ever because most central banks around the world went on a hundred billion dollar printing spree, it’s not because of National’s dynamic economic strategy.
Smith’s comments are to quell the middle class boomer speculators who are getting a bad conscience from all this untaxed capital gain. Telling NZ we have a housing challenge and not a crisis at a time of record prices is akin complaining about the choice of carpet while the house is on fire.
Gawks!… what does one say?
But really… is it that surprising ?
Gerry Brownlee and the Christchurch earthquake, wandering through an airport security door he shouldn’t have while defense minister…( and I’m being kind here- or forgetful )
Paula Bennett and the abuse of power in public disclosure of confidential data on two women… and all her other lunacies…
Judith Collins and Orivida… and dirty politics
Blinglish and his double dipping
Sam whats – his – name and Serco
Nick and his monopoly games with people dying in substandard state housing and the sell off and privatization of the same thereof..
McCully and his Saudi Arabian sheep farms and monetary giftings…
Key and his constant duplicity’s… hair pulling /common assaults, unilateral decisions to commit troops, dirty politics … look up Hackpad : Honest John … hopefully they’ve added to the over 130-40 documented shady dealings and goings on…
Look… this isn’t even starting on the dodgy acts of this govt… not even scratching the sides…
So for Nick Smith to come out with an idiot statement like this is par for the course.
Hi Katipo.
Do you think all of those ministers, like Key, were “misrepresented?
Maybe Aaron Gilmore was “misrepresented” when he made the infamous statement” don’t you know who I am” ?
same old claptrap from Smith blame someone else for your mistakes
Grammar, Martyn: less than; as much as.
‘The best part of this lie that I love is National’s constant claim that we are seeing the lowest interest rates ever and somehow they are responsible for this. We have the lowest interest rates ever because most central banks around the world went on a hundred billion dollar printing spree, it’s not because of National’s dynamic economic strategy.’
The reason for CTZIRP (close to zero interest rate policies), ZIRP and NIRP in the US, Europe and Japan etc. was that economic growth in ‘mature economies’ (those that had expended most of their resources) had stalled and sovereign debts had become unmanageable: lower interest rates = lower interest payments, allowing money-printing to continue a little longer. Also, there was the bizarre notion amongst economists and bankers (still prevalent) that economic growth could, in circumstances of rapidly declining resources, be stimulated by making borrowing easier. It can’t in resource-depleted mature economies, as is now obvious to anyone except an economists, central bankers and politicians.
By the way, the money-printing is now measured in trillions.
http://www.zerohedge.com/news/2016-05-02/debt-cause-not-cure-why-19-trillion-debt-problem
You are perfectly correct in identifying that everything National says and does is on the basis of pretexts, misrepresentations and outright lies. National’s policy is to fabricate and lie continuously whilst orchestrating looting, polluting and exploitation: it’s been that for decades and nothing has changed, or will change voluntarily, because National represents the interests of looters, polluters and opportunists. What is different under Key is the blatant disregard for the law.
There have been a succession of housing crises throughout New Zealand’s history -all of them triggered by mass immigration and the activities of central banks- and the current housing crisis will get a lot worse, now that NZ has been clearly identified as one of the last places to run to as the world turns to custard (as a consequence of the activities of corporations and banking cartels over the past century or so).
No matter how much land is released for housing (and all the other infrastructure needed to service the rapidly growing population) the crisis will never be solved because population increase is a major component of the problem, not the answer, and the higher the population, the worse the overall predicament NZ faces, until it all implodes in the fairly near future, as consequence of negative interest rates, out-of-control debt, overpopulation ,overconsumption, resource depletion and abrupt climate change (ice cover still ‘falling off the cliff’:
https://ads.nipr.ac.jp/vishop/vishop-extent.html ).
Yes, but don’t forget that it is essential for the Gnats to “time it right”. If the housing bubble pops too soon (i.e. before the next election) then they are in dire straits.
So if the over-inflating bubble looks like its heading for an “earlier-than-intended” POP then they will need to have a strategy in place to delay the POP until after the election. THAT is what the current posturing is all about.
It is a complex matter to explain “affordability”, and that is what Nick the Dick is trying to get away with. Most people do not have the time and do not bother anyway, to examine stuff in detail, to find the truth, hence he makes bold claims, which are really nonsense.
I recommend this piece from Morning Report today:
http://www.radionz.co.nz/national/programmes/morningreport/audio/201799237/massey-academic-rejects-nick-smith's-affordability-claims
Now it may be “more affordable” than before National got into government to “finance” a home on debt, that is by looking only at interest rates and mortgage repayments per month, but there is a greater picture one needs to look at.
When average home prices have risen enormously in places like Auckland, the lower interest and more “affordable” mortgage may make it a bit easier for those able to pay a deposit to “finance” their debt for a home, but over all the affordability is worse.
That is what counts, how many average annual incomes it takes to buy a home, which is about 9 annual incomes in Auckland, making it one of the most unaffordable patches for buying a home in the world.
Nick is great at pulling the wool over the average Kiwi’s head, as most Kiwis do not like to go into detail, and love a more casual and simplistic approach.
But this casual attitude always comes back to bite many people, as that is also partly the reason why we have so much debt, and live on borrowed money and time, and that leads to much higher interest rates when compared with those for other economies.
We are paying heaps more for homes, cars and so forth than others do in most developed countries, even the ones doing well economically. In Europe many countries and banks now have NEGATIVE interest, NOT so here in NZ, sleepy hobbiton land.
Just in case I forgot, here the Morning Report piece exposing Smith’s nonsensical claims:
http://www.radionz.co.nz/national/programmes/morningreport/audio/201799237/massey-academic-rejects-nick-smith's-affordability-claims
Nick Smith is sadly as left wing as they get in National when it comes to the environment. Barring maybe Amy Adams, the others would make even bigger fools of themselves quite happily to show their disdain for the environment. Paula Bennett, Anne Tolley, Judith Collins – heaven help us if any of these three get handed the environmental portfolio before the election.
As for housing, it will be “the day” when a National supporter admits that the market does not know best. It will be the day when they admit that bashing the R.M.A. land zoning provisions can only take you so far.
Nick Smith and Gerry Brownlee ordered the CCC to remove the Tonkin and Taylor report on coastal inundation in East Christchurch from the replacement district plan. The only reason for doing so was to allow the privileged householders in Parklands, Redcliffs, Sumner etc to hold the market value of their houses.
The really responsible response is to retreat from the hazard area and do so using the Dutch model of government support. But that would mean financing the CCC to be lead developer of large areas to the west of the city and the build of many state houses built with pepper potting.
Why not do it? Because it would act to burst the property bubble and so many National voters would lose their pension plan
Well said. Anytime this or any future government wants to build affordable housing they can. It may be step on some toes but like other public works the government could acquire land at rural prices (so fair compensation), rezone it and then build on it. Completely bypassing the over inflated existing house and section prices.
Some might not like this because of libertarian grounds but if the public need and political will is great enough then it can be done.
I heard Nick Smith wittering on about “no one owns the water” on Nine to Noon, RNZ, this morning. For a substance that no one “owns”, he was at pains to explain and justify why it was such an expensive commodity and why Councils were able to meter and charge home-owners for it.
As for the on-going housing crisis, of course National has no answer to this crisis. They are wedded to the free-market principle and as such can’t be seen to become too involved in a solution that must inevitably involve state intervention.
Until then, as another blogger, Frank pointed out; Deflect, deflect, deflect! It’s easier and cheaper to blame someone else.
Yes, so when someone is at pains to state that no one owns water, how does one have capacity to charge for it, as in councils?
One contradicts the other. Does this mean councils have been acting illegally?
It means they cannot mention the unmentionable….
Neo liberalism.
The trickle down theory ( piss all over you )
And that that piss all over you with no return for your tax dollar is due to having market shares in both offshore company’s and domestic company’s of which they and their mates have ample.
People were scared off the financial markets when all the finance companies collapsed, so are now investing in real estate. The lower interest rates are assisting them, and not helping those of us with small investments. It hax all happened before and will happen again. What goes down eventually goes up and until that happens house prices will remain high. The only surprise for me is how long the public are taking to wake up. I saw the same thing happen in the 1970s with farmers, then along came Roger Douglas who took away all their cosy subsidies and all hell let loose.
Shouldn’t that stamp across the face of Nick Smith read LIAR, SABOTEUR or some other noun much more appropriate than IDIOT? After all, he has made a rich living out of lying to the masses and sabotaging the future of New Zealanders, and in the short term has done very nicely for himself -not the characteristics of an idiot, but very much associated with liars, saboteurs and quislings etc.
I heard Nick Smith talking rubbish on NatRadio last week. He was expecting us to believe the crap. It reminded me of a rugby TMO telling me that what I saw and knew was not what I saw and knew but what he said happened. Like me seeing a guy drop the the ball yet the TMO still awarding a try.
The weird thing was the idiot in talking about the housing situation said a couple of times that the “scrum was being screwed.”
The idiot who’s dropped the ball trying to tell me what’s happening in the game?
If ‘noone owns the water’ – does that mean I don’t need to pay my water bill?
I grew up in a one income family in the 70’s/80’s & my parents had a mortgage, which was a bit of a struggle but we were well dressed & well fed. Ok we didn’t have the flashiest car etc., but we were a happy family. It pains me to think of the people today that are struggling to pay the bills, let alone to try & buy a house these days, back in the 70’s/80’s there was hardly anyone who rented a house & everyone had a mortgage buying a house to call their own. We are rapidly becoming tenant’s our own country the way things are going thanks to the way our country is being sold off to Key’s mates
Yep- similar story here as well.
The disease is neo liberal rorting .Not so long ago I called them neo liberal wretches.
And I still do.
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