The shock that the Left are facing as they suddenly appreciate that Adrian Orr has not in fact been creating money to loan to the Government at 0% interest to rebuild the desperately needed infrastructure and underfunded public services and welfare system with, but that it’s actually going to corporate banks to feed property speculation is still taking its time to sink in.
We were all so grateful to Jacinda for saving us from Covid, we just assumed this extra cash was for that.
The banks are laughing all the way to themselves.
Jacinda’s NeoKindness is aimed at making the speculative property class feel richer.
Labour are actually advocating trickle down by flooding the market with cheap money so banks lend out to more speculators who feel wealthy enough on paper to spend on economic activity that supposedly helps the little people.
It’s just so outrageous!
Once again, Labour are trying to use free market solutions to a market that is broken BECAUSE of neoliberalism.
We see house ownership as a means to make money, we don’t see it as a human right!
We need a multiple property tax, we need an inheritance Tax, we need a death duty tax, we need a land tax and we need a capital gains tax.
What do we get instead? We get a Labour Government creating money for speculators!
If Labour voters who don’t own property truly comprehended what is going on right now, they would explode with rage. Thankfully for Labour the media are so wedded to property speculation for advertising, there is never a critical word spoken.
We need a massive State House for life building programme to remove the desperation out of the housing market combined with more targeted taxes on the speculators.
Unfortunately we have NeoKindness instead.
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A meme that just keeps on giving
Yep, and it’ll probably take till 2023 for it to hit home sadly (as things stand – I live in hopey hopey changey changey stuff). I hope I’m around to watch because it’ll be quite therapeutic knowing that the 2020 election was the last dance I had with a neo-liberal Labour.
Least worst options are something elected dictatorships should have to deal with.
Yea/nah …. next
An interesting comment from a Stuff commenter, herewith recycled:
“Ban banks from lending to buy rentals. If you want to become a landlord, either have the cash in full or build a new property to add to the housing stock”
but but but ….. the “free meerkat”
My thoughts exactly !
It could be worse. We could have the central bank sending money directly to the heads of corporations so they can use it to buy their own shares and push up the share prices, as per the US financial model.
It could be worse. We could have central banks directly funding a pharmaceutical company that MP’s have financial interest in and will profit immensely off experimental jabs on poc, olds and vulnerable in NZ. Praise thee Lord we aren’t the USA!
It could be worse. We could have PHO’s who pressurise the vulnerable elderly to go into very lucrative care, owning shares in the nearby rest homes. I mean, we do have.
The RBNZ has the monopoly on ‘money creation’ therefore it’s not really a free market.
Those nearest to the newly printed money get to BENEFIT by both borrowing at near ZERO Percent and buying up assets (housing, equities) before inflation (due to said money creation) ticks up.
This is not Free Market Capitalism. Buy Bitcoin.
The Centillion effect
Yes, but spelt ‘Cantillon Effect’ just incase people want to look it up 🙂
Meanwhile those needing funded meds get told sit down shut up and put up .
Meanwhile those suffering under the mother of all budgets health welfare benefit system get told sit down shut up and put up.
Meanwhile the stuff that would make the nmost difference gets put in then too hard baskets.
Two ticks Green in 2023 fuck Labour not even going to get my seat vote next election fuck them.
https://www.rnz.co.nz/news/business/430938/first-home-buyers-hit-record-high-in-market-share-corelogic-report
Meanwhile they make a song and a dance only 24% of buyers are first home buyers .
It makes you wonder if 1) its all part of a neoliberal conspiracy to transfer yet more wealth to the elite 2) that they know not what they do, in the sense that economic theory is a bogus science, or 3) more graciously monetary policy is a ‘blunt tool’ or 4) put another way, intentions are good but actors simply have no control over unintended consequences (which will in order to correct these unintended consequences then need more questionable tools and levers, ad infinitum).
While personally sympathetic the NZRB Governor has distanced himself from the unintended consequences, acknowledging monetary policy as a blunt tool and calling on the government of the day to introduce fiscal and other measures. Will they take the necessary steps?
Or is it all one big f*uck up and the ideology of pure reason serves no purpose other than to confirm how out of touch and disengaged the human species really are? Voltaire’s bastards offer nothing but illusion.
Exactly. You make me want to write Voltaire’s Bastards in a form the the average person can understand.
I’m surprised someone like Dan Brown hasn’t already done so.
I think Jacinda or Labour didn’t for a moment see this coming. But it should have been at the forefront of their conscious thinking. Money sucked into high rents and mortgages equals financial stress, equals money not circulating through the economy, equals poverty, equals dysfunction. This is a worsening crisis, can’t you see?
There is no moving right along, no changing the subject, no nothing to see here. So what will it take Labour for it to wake up to the above simple facts?
No Winston being a big ol’ meanie now stopping them sorting this ,mess out!
Agree, all that money will end up offshore with the Aussie banks before too long.
Dumb ass political BS.
Anyone that genuinely wondered what Labour might be like without the “Winston and Shane handbrake” now has their answer.
Time to go Green people!
Lol
Green and Social Credit in 2023
The pure irony of our housing market is home owners on paper look rich but sell that house then what? You’ve got this get another of some form and they have just kept going up and up, a market of piranha real estate agents and investors.
Aside from get rich quick investors, that our government encourage, it’s a fools paradise otherwise.
When will a NZ govt grow some balls. Jacinta etc if you are listening, use your political capital to sell a different narrative that – done well – people will buy. The good people of NZ took the lockdown pain for the common good, now it’s time for many to take a hit to their over inflated property prices for the common good. And if they aren’t prepared to act in the common good I think they will find that before long social decay will force their hand for good or ill.
Makes perfect sense.
Jacinda could be totally transformational within 3 years and then bugger off and reap the rewards at the UN and win that Nobel Peace Prize.
But she is choosing to stay in power and become as reviled as John Key.
Totally weird.
Having people’s Rates Bill reflect the cost of fixing and running various NZ cities might bring the cost of housing/land down dramatically.
Wellington was talking about a 23% rates increase (pretty low) .. here in Christchurch we have 400km+ of underground piping that needs fixing, not to mention resurfacing many roads.
UP THE RATES, maybe land hoarding and vacant properties won’t be such a thing. Aren’t there twice as many homes vacant in Auckland (40,000?), than people on the Social Housing Wait List?
Sound like Labour want to fix New Zealand’s cities by taxing workers who can’t even afford to own RBNZ-Inflated-Property. Workers are already paying off their landlord’s mortgages. Guess they need to get a second job to fix their landlord’s cities too?
As for ‘councils being useless’ – a common conflation used against my above thinking .. I’d suggest landlords, especially older Local-Body-Electors (Boomers) take their greed grievances out on the person in the mirror.
Plus 1 to that the common good overrules selfish interests.
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