Oh great – Grant is worried about the housing speculation he started because it might destroy the NZ economy – not because renters are suffering? 

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Ummmm. This doesn’t read well does it…

The Finance Minister is worried about the risk that interest-only home loans pose to the country’s financial stability – and that’s just the half of it.

This month is crunch time for home-owners and investors who signed up for the Government’s mortgage deferral scheme in last year’s economic downturn.

In the six months after the first lockdown, more than 61,000 bank customers deferred all repayments on consumer loans totalling around $21 billion. The deferral scheme was extended another six months and gradually, property owners restarted payments – but by the start of the year, the banks were still exposed to $2.4b in mortgages on which the borrowers weren’t paying back the principal or the interest.

At the end of March the scheme ends, and borrowers will face a backlog of principal and interest payments that have been mounting up for 12 months, for some of them.

TDB Recommends NewzEngine.com

In addition, there’s about $74b-$80b owed on interest-only and revolving credit loans – and most of that is owed by property investors.

It is that mounting liability, and the threat it poses to the country’s financial stability, that is alarming Finance Minister Grant Robertson. He has asked the Reserve Bank to advise him on targeted initiatives to quell speculation or investor demand, such as implementing debt-to-income ratios and putting limits on interest-only mortgages for investors.

Last week’s annual Demographia report into house prices in major cities listed Auckland as one of the five least affordable cities in the world to buy a house; it would take 10 years for the average worker to earn the price of a house in the city.

…let’s look at this charts…

…right.

So Grant turns on the taps to the corporate banks to start an orgy of property speculation that has now priced home ownership beyond the reach of entire generations and Grant’s worried NOW because this venal greed risks crashing the entire economy.

Note – Grant’s concerned when his policy failure risks collapsing the economy NOT when it was crucifying renters, the homeless, beneficiaries and the working class.

Those 4000 kids living in motels will be so pleased Grant its thinking about stern action to stop those greedy property speculators from fucking the entire economy…while they stay in those motels of course.

The truth (like everything else in fucking NZ), is that the under regulated free market has been warped by the wealthy for their interests and all Labour attempt is bullshit tinkering on the sides rather than challenge the dominance of neoliberal theology.

We have allowed the commodification of houses to be a means to make wealth and people are chasing that with all the nuance of meth addicts in a P lab.

If Labour wanted actual solutions, these 3 would do it.

1 – FLOOD MARKET WITH MASS STATE HOUSING REBUILD: End the scum landlord subsidy of housing allowances end putting money into the pockets of unscrupulous motel owners by rapidly building 50 000 new state homes. Scum Landlords can do as they please because the level of desperation amongst renters gives them total power. Flooding the market with 50 000 new state houses would rob scum landlords of that desperation.

2 – STATE HOUSE FOR LIFE: Allow beneficiaries to stay in their state home for life so that they can create stable communities and that their desperation is never transported back to Landlords.

3 – DEPOSIT RESTRICTIONS: First time home buys should be required to have 10% deposit, but the more properties you own, the higher the deposit. The reason the speculators can out buy any first time home owner is because they can use their multiple properties to leverage more debt. If you are a property speculator, you need to turn up with a 70% deposit to counter the leverage multiple properties allows them.

If Labour want to actually solve the problem they have to regulate the market and re-set it so that speculation is punished while first home ownership and housing of the poor is championed.

For too long we have allowed the the rich to dictate the rules, if Labour’s kindness is to be meaningful, it needs to challenge that dynamic.

Sadly Labour are not looking for solutions, they are looking for the pretence of a solution to ease criticism from their Left.

Unfortunately for Grant and Jacinda, their trickle down theory to help speculators has set off a shock wave of debt greed that threatens to collapse the economy.

 

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44 COMMENTS

  1. Why should benefituries get the same state house for life . A house that is suitable for a family to grow up in is not the same house that a couple need once the family has moved on and at some stage there could be just one person.
    There needs to be a range of houses built to suit people’s need also there should be income tests at periods to ensure the family still warrent the states help.
    I predict that a combination of interest rate rises and the ending of the mortgage holiday will lead to a sell off for many who are over extended

    • Lets just ensure flexibility is built in to tenancy possibilities. Transferable tenancy–short and long term–by agreement between tenants might work–for education, work or holiday purposes. Tenancy for life would enable old style communities to emerge again like in Western Springs and Glen Innes. Grand kids could stay etc.

      An old prominent unionist friend of mine, a ’51 Waterfront Lockout leader and veteran, always thought state houses were more likely to foster militant unionism because once a worker holds a thumping great mortgage they are less likely to take strike action. And a number of other more interesting and pleasurable and useful things in life could be attended to rather than THE BANK.

      • That prominent ’51 leader wasn’t the dad of someone I know as Gerard (but the Trotter knows as Gerry) was it?.
        If so, he was a grand old guy. Diminutive in stature but fucking brilliant in nature. Really fucking amazing during some of those Cecil Road sessions.
        And then there’s Pat Kelly.
        They’re not around anymore, unfortunately. Both are missed. If they were, we probably could have avoided all that squabbling amongst the egos that comprise the Labour Party’s “Broad Church”.
        You’ve just reminded me though, NOT to party vote for my ‘beloved’ Labour Party – not that I’ve ever been into hero-worship. Even IF it means voting Green. Fuck both parties have loaded themselves up with a load of muppets haven’t they.
        But like I always say, and thunk: things have probably got to get worse before they get better.
        And I won’t be grieving for many of the casualties (extended family) when it turns to shit.

    • Yep well I’d agree in part. What’s the point of some geriatric old dodderer rattling around in a 4 bedroom abode when the kids, and likely the grandkids have tooken off for what they thunk was a better loif across the dutch. (Fools – but please, consider staying there when it all goes tits-up, except they won’t)

      However, IF there had been enough state housing options in that ‘community’ been built (and, in that space going forwid), most likely the geriatric old dodderer would be quite happy to ‘downsize’ (oooops!!! “rightsize”), so long as they could maintain the various community links they’d established over time.

      Sure the problem has been looming for a long time, BUT we’re also into a second term.
      The options no longer exist, and whilst they don’t, I’ll stick with their being able to live in a community they’ve ties with until they pop their clogs.

      And when I (at LEAST) see signs the Grunter – (and probably one or two others unfortunately) actually begin to grasp the extent of the problem – the right to hold that tenancy for loif remains. Cudda Shudda Wudda..

      I fear my gorgeous Labour Party is going to come to a sticky end, and it’ll have nobody else but its focus groups, and advisors, its MPs and other various hangers’ on to blame. The sooner the better really because if it carries on as-is, It’s going to have a fucking lot of explaining to do. I suppose they could console themselves knowing that it’s possible that ‘broad church’ set of gNatz fun lovers could fuck themselves up before they do.

      Given the changing demographics (age, ethnicity, and a number of other dynamics, including era) – it seems like it’s on a mission to destroy itself.
      ATM (that’s “at the moment”) they don’t even seem to know who and what their worst enemies are.

      But ….. Pffft – if that’s what it takes – so be it.

      Least worst options are no longer valid for the new demographic profiles, profilers and profilees, and nor should they be.
      But hey, I’ll try and reserve a cheeky little Chardonnay or a Whiskey with a bit of bite should the LP schedule the next post-erection shindig in the Rapa.
      I’ll take payment in what’s left of the political capital reserves that are being burned

        • Have you ever thought about volunteering for Dunning or Kruger’s next research project? Could be an OK earn. It might involve a bit of wanking, but you should be OK with that eh

  2. The economic model our government operates from mirrors many overseas and strangely Australia are having exactly the same problems as we are. I read this morning in Victoria that during the 2018/19 year 1 in 57 citizens was dealing with homelessness and it’s thought to be worse now despite record building going on. Affordability is terrible, not quite as bad as NZ, but abysmal and appalling are hard to differentiate.

    The point being the same independent Reserve Bank type atmosphere neo liberal game plan that Grant follows so studiously is sinking us. He just can’t see it.

    Can Labour actually hold their heads up at all with practically anything? Yes Covid but they simply had to respond. But whether it’s Pharmac, transport, climate change or their infuriating intransigence with housing, they just sit on their hands and watch the world burn before their eyes or even worse, the play the patronising tinker and pretend we’re doing something game.

    Voting Labour should not come down to being slightly less shit than National but in 2021, that’s exactly where we’re at.

    • ‘Voting Labour should not come down to being slightly less shit than National but in 2021, that’s exactly where we’re at.’

      That’s where we were at in 2017 and in 2020. All that happened was a bunch of incompetents and professional liars conned a large portion of the proles with meaningless slogans and smooth talk -basically bullshit dressed up as competence.

      So when it comes to actual performance in government, they are worse-than-useless. They are so worse-than-useless they are managing to completely destroy the long-term viability of NZ, maintaining the long-standing tradition of governments wrecking practically everything they touch.

      National, on the other hand, given the chance, would have destroyed the long-term viability somewhat faster, and created even greater social divisions than LINO.

      The ‘good’ news is, the whole neoliberal, money-lender-corporation-driven system is in the process of imploding.

      A month ago: Brent oil $56.35; US10YT 1.07%.

      Today: Brent oil $66.69; US10YT 1.54%.

      And, internationally, food prices are on the rise at a pace far exceeding the rate at which central banks devalue money.

      Forget the non-event tsunami off the coast. A financial tsunami is thundering up the beach.

      Needless to say, the corporate media are keeping silent about all the real issues, and are keeping the proles’ attention firmly focused on trivia.

  3. A few people here will acknowledge I have been ‘harping on’ about this for about 9 months. At some stage you have to pay the pied piper. The last month or so it has dawned on Grunter therefore his first action was to blame Beetroot; Beetroot promptly told him to fuck off and now Grant is panicking. It would appear Mike Cullen is now too sick to help so all he has left is a few millennial twerps in Treasury.

    Let’s see how this falls out

    • Whether its “Grunter” or Paora Goldsmith, they are the same. Only National have that nastier serve their rich mates streak that makes them that much worse.

      • Fair call on the first sentence however I don’t think Grunter has been particularly more ‘nice’ than previous finance ministers unless you are part of the landed class.

        Agree the net result would have been the same although National would have had to have moved a bit quicker because there would have been an almighty pile up from the left and feckless 4th estate if National had been in power over the last 15 months

        • Imagine paying rents on National’s minimum wage … and as for the NZH’s winter of paid for dis content whenever Labour is in government …

  4. Excellent 3 point plan. That would achieve progress within months by turning developers innards to water firstly–a market signal I believe it is called, and then by using modular methods, houses could be plonked from one end of the country to the other, including emergency housing over 2, 5, and 10 year plans.

    Those “scumlords” will never operate in numbers in NZ again!
    Yes there are other matters such as Living Wage, and taxation, but Martyn has nailed the big three.

  5. It’s pretty easy to solve the problem – serial investors are piggy backing on NZ’s use of housing to fund retirement. Those that have more than one property should have to provide a 50% deposit or equity, and those owning and controlling 10 properties or property assets (including the family home) over 50 million should be considered professional businesses and have to pay a 1% wealth tax each year.

    The Greens were completely out of touch when they thought 1 million was a lot of money for a wealth tax, when 33% of Kiwis have paid off their mortgages a lot of them will instantly be in that category and it’s now getting hard to find a house in cities less than that. The other 33% mortgage holders of property would fall into that category once they paid off their mortgages. In short it would encourage debt to linger on property not remove it! The answer is to aim the taxes at the top 0.01% who are invading NZ (and the world) and being under tax laws not fit for purpose any more for the super rich hoovering up the worlds assets at their whim.

    There should be special considerations for making sure that trusts and businesses holding property can not get around a 1% wealth tax on assets over $50million held here.

    80% of all rental property owners are estimated to have only 1 rental property. In addition NZ’s obsession with property is not as bad as many people think and has left us as one of the richest countries in terms of the amount of individual wealth people own here. https://en.wikipedia.org/wiki/List_of_countries_by_wealth_per_adult

    Making everyone poorer has never been the answer, nor having a poverty filled retirement which is where NZ is going as don’t think super is sustainable – given away to all and sundry who just arrived within 10 years and don’t have to work or pay any taxes to qualify.

    NZ has also allowed individuals to become resident in NZ with the idea to acquire large amounts of property and assets here or just do it because their families are rich and can afford to give them large amounts of deposits for property, aka Gary Lin. https://www.nzherald.co.nz/business/young-landlords-11-rentals-in-5-years/762NTZH6HTV2JMLVIZLU4NQ7G4/

    NZ has added 1 million more people in 1 decade, (and still going) without any provisions in place to pay for the social costs of that folly, aka superannuation, upgrades of health care and schools, justice, prisons, police, social welfare, roads, public transport, fresh water, wastewater, sewerage, carbon costs…

    When business say that foreign students and essential workers (chefs, labourers, retail ‘managers’) give the country money, they actually mean, they generally mean give private practises money, while the costs to the taxpayer to pay for the above remains unmeasured under neolbibereral quasi ‘accounting’.

    Only a wealth tax set at a high level will stop the Gary Lin types. AKA not everyone is buying large amounts of property with debt! The trick is to aim it at the 0.01% who can easily buy up most of NZ if they want to, under our ‘relaxed’ rules for high wealth individuals and corporations who are laughing all the way to the bank.

    Meanwhile the lefties are obsessed with thinking the problem is some teacher or doctor in NZ with a retirement plan…. nope!

    The righties can’t wait until they can control all the capital and property in NZ through their own ‘financial’ vehicles while creaming off the profits for themselves, providing a poor service and ripping the majority off!

    Grenfell here we come!

  6. Impose an 80% CGT on houses except the family home and bush or beach bach. That’ll eliminate the speculators at one go. I know that’s not part of the Neoliberal the ” Wonky Donkey’s ” how to do things play book. A Government has to act as a Government not a dog wagged by the tail of the banks and the speculator class. ” Adjusting Settings “: by Blaircinda our school prefect simply doesn’t do it!
    ” A goverment that refuses to control the market will be controlled by the market and its vested interests. The market is not a democratic institution. ” That’s why we do not have a representative democracy?
    Paying back the mortgage is so high now and an extra 1% increase in the interest rate and borrowers are in trouble not having enough disposable income to cope this has a depressing debt deflationary effect on the economy removing money spending from real needs and wants and investmemt.
    ” DEBT DEFLATION The financial stage following debt-leveraged asset-price inflation, which leaves a residue of debt once new lending stops and repayment time arrives. The term was coined in 1933 by Irving Fisher to explain how bankruptsies and the difficulty of repaying debts wiped out bank credit and hence the ability of economies to invest and hire new workers . Paying debt service diverts spending away fron consumer goods and new business investment. ” J is for JUNK economics A Guide to Reality in an Age of Deception ” by Michael Hudson
    We are so much in debt to Australian banks I wonder who really runs this country?!

    • It will also cause house prices to skyrocket genius.
      Landlords won’t see, but will rather sweat the shit out of their houses by letting them degrade.
      Where do you halfwits get your ideas from?
      The problem is a lack of housing/too many people.
      Labour refuses to do anything about migration so the only answer is to do something about the number of houses.
      Kiwibuild was a solution if Labour were competent. The other solution (more likely to work) is to make it super easy for developers to develop properties and increase the urban boundaries in places such as NZ.
      Not one single house will be built because of increased taxes. Rather they will drive investors away resulting in fewer houses.
      Once again, the general lack of intelligence is just shocking.

    • Jay 11 – There are so many problems with a CGT including the family home seem to be getting more palatial… and millions and millions of dollars parked in mansions for often absentee owners are taking up more and more building resources in NZ and best locations. https://www.stuff.co.nz/business/119699816/the-liquor-barons-who-have-mansions–and-underpaid-staff https://www.stuff.co.nz/national/114345558/what-happened-to-the-agreed-public-track-over-russian-billionaire-alexander-abramovs-land https://www.stuff.co.nz/life-style/home-property/65144858/the-hidden-mansions-of-billionaires-bay https://www.nzherald.co.nz/nz/a-22m-private-islands-luxury-home-trashed-by-squatters-while-owner-overseas/622IFJU627TJ6EZWQGSUYWDHPE/

      If the idea is to drive more affordable housing, making people park their wealth into family homes and baches (often with absentee owners) does not solve the rental crisis or affordable housing!

      We didn’t use to have a rental crisis 30 years ago… or even 20 years ago…. migration of 1 million people with buy 100% NZ residency/citizenship/overstayers, has removed a lot of rental housing while stagnating wages and lowering working conditions. People who arrive in NZ need somewhere to live but many leave surprisingly quickly after buying NZ assets (we notice the MIQ places many NZ ‘residents’ left days after coming to NZ and depriving others of a place) ….

      It is not surprising there is a rental shortage of housing and developers are targeting the above wealthy people to make speculative homes for – but they may not live or work here.

      Labours version of ‘social bonds’ aka Kiwbuild housing is Rogernomics trickle down 2020, (aka pay rich developers to build renters/first home buyers homes) with free state house land thrown in. Not exactly working after many years of flogging this dead horse.

      • Then include the family home, and the bach.

        Why excuse those assets? And explain why to those who will never own a house…

        • @ Ada, The problem with CGT is that the rich listers don’t have to pay income tax! Most rich list wealth is through corporations and using that structure to reduce their income taxes.

          More than 40% of millionaires paying tax rates lower than the lowest earners, Government data reveals
          https://www.stuff.co.nz/national/politics/300238241/more-than-40-of-millionaires-paying-tax-rates-lower-than-the-lowest-earners-government-data-reveals

          And 40% of NZ don’t pay tax at all, but are paid tax by everyone else.
          A table from Finance Minister Bill English’s office shows 663,000 households – or 40 per cent – receive more in tax credits and other benefits than they pay in tax. Thousands more are neutral contributors, or are close to it.

          https://www.stuff.co.nz/business/81429047/small-number-of-taxpayers-bear-the-brunt-of-new-zealand-tax-bill

          In Australia many of their largest corporations pay zero taxes. The NZ government does not even bother to measure it. NZ (government, media and lefties)) love giving billionaires a free ride for tax in NZ and concentrates on the tax affairs of some hard worker in middle NZ to target for additional taxes. Sarcasm.

          The latest ATO annual transparency report reveals one-third of large companies are paying zero tax.

          Many big corporations declared huge profits in 2017-18 but paid no tax whatsoever. These include Shell Energy ($200.5 million profit), Bluescope Steel ($60.6 million profit), Murdoch’s News Australia ($58.5 million), Food Investments Pty Ltd ($65.2 million profit), Lendlease Corp ($69.2 million), Pratt Holdings ($59.2 million) and Woodside Petroleum ($1.3 billion).

          https://independentaustralia.net/politics/politics-display/the-corporations-making-big-money-paying-no-tax-and-laughing-at-us,13419

          • That doesn’t explain why we don’t include the family home’s sale price increase as taxable income?

            • ADA when you earn 200.5 million profit but pay zero tax through a corporate structure, you can see that you need another ways to tax people making billions other than income tax! Wealth tax, stamp duty, transaction taxes etc.

            • The reason for not placing a CGT on home sales is to maintain labour mobility. People need a place to live, so if one paid a CGT every time one on moving to a new job few would do so. In fact if one moved home every decade, one would end up with an unpaid mortgage on the home when reaching retirement age (paying a third of the equity gain in tax with each sale and having to pay full market value for a replacement).

  7. Some of you will laugh at this…
    Oh, how we laughed, right?
    The reserve bankster is a money laundromat. It cleans up money stolen from our farmers. Or at least what’s left of it once Wellington and Auckland’s cadre of thieves have been at it. Aye Boys? Aye jonky? asb jonky? Shiny little jonky. You and your little friends. All shiny and sparkling and pretty and comfy.
    The problem arising is that there’s a great danger for those who’ve been wallowing in easy money for generations is that there will be a sudden tsunami of cash which will wash away the bullshit we’ve been fed and behold! A small, rich country with a scant few million suddenly has billions! ?
    Some of you might ask of robertson… ” Hang on a fuckin’ minute mate? How come there’s now shit tones of money when we’ve been struggling for fuckin’ years? My kids grew up in poverty!? I read that some fuckers have billions and billions and they have the fuckin’ gall to blame us poor working class bastards for not pulling ourselves up by the bootstraps we can’t fuckin’ afford!?”
    grant robertson’s a fall guy for the rich old scum who’re suddenly realizing that they’ve nowhere else to hide. They’re cranking up a financial cluster fuck in house prices to hide carefully camouflaged wealth. NOT to create prosperity. I’m truly surprised that many of you haven’t figured that out yet.

  8. And in todays property porn in the Herald;

    “Two rental homes in the South Auckland have sold under the hammer for $2.1 million – less than four months after the owner picked them up for $1.46 million”.

    “Three developers competed for the two properties at 19-21 Crown Crescent, in Otara, at Ray White’s auction on Wednesday.”

    Fantastic news for Otara renters knowing their suburb is now so unaffordable they may be cast out.

    Labour, are you fucking awake? Where do you think this is going to take us with families especially in the low socio economic zone unable to afford a room over their heads or the ability to get out of the rent trap?

    Labour you are not. Pathetic wastes of space you are ensuring the rich get richer and inequality grows ever more worse under your watch.

    You lot are a disgrace!

    • There is the tax payable on the CG, the increase in number of houses from 2 to 6-8 and the work building them and income tax off the work income.

  9. ‘DEPOSIT RESTRICTIONS: First time home buys should be required to have 10% deposit, but the more properties you own, the higher the deposit. The reason the speculators can out buy any first time home owner is because they can use their multiple properties to leverage more debt. If you are a property speculator, you need to turn up with a 70% deposit to counter the leverage multiple properties allows them.’
    Right problem, wrong answer. Banks should be prohibited from lending ANYTHING to property investors (other than would-be owner-occupiers) who want to buy existing houses. Let those landlords pay cash, and if they do manage to borrow from somewhere, deny them tax credits. Conversely, encourage banks to lend to property developers who want to build new homes and increase the national housing stock.

  10. It is much worse to be betrayed by someone you trusted than by someone you knew was a scumbag. I find it hard to defend Labour now. Why has Jacinda decided that making the rich much richer was her priority number 1?

    • ‘Why has Jacinda decided that making the rich much richer was her priority number 1?’

      Maybe because she is rich. She certainly is not a socialist. Nor does she have any concern about the environment. So what is left? Money and power.

    • Why? Because, popularity politics trumped making a informed decision on Aderns true Blairite roots.

  11. As Aussie rock legends Midnight Oil once sang… “the rich get richer, the poor get the picture”…
    The market needs a correction of at least 50% over the next 3 years and then a very long sustained flat period if future generations from non- privileged upbringings are to have any show of owning a home.
    Kiwi kids who are now young adults, from your average household , born, bred and schooled in N.Z have been well and truly hung out to dry. They don’t have a snowball’s chance in hell. A life of drudgery awaits them living from pay packet to pay packet.
    Screwed before they even got started.
    Somebody’s going to have top get bold and somebody’s going to have to take a hit. That’s the reality!!

    • @Grant, “Kiwi kids who are now young adults, from your average household , born, bred and schooled in N.Z have been well and truly hung out to dry. They don’t have a snowball’s chance in hell. A life of drudgery awaits them living from pay packet to pay packet.
      Screwed before they even got started.”

      Yep but that is because our workers have been screwed over for 30 years… and in many cases now the unions are supporting cheap labour for residency and NZ social welfare to non tax payers, aka superannuation to huge amounts of foreign pensioners retiring in NZ, giving ACC payouts to cash workers widows in China, instead of actually prosecuting and stopping those procuring illegal labour. How hard could it be in the above case, when there is a death to prosecute to prosecute and put those involved in jail/deport them?

      clearly the dead illegal worker was working on somebodies building site, with somebody in charge and bought into NZ in some way! Prosecute illegal labour – don’t encourage it with handouts!

      Everyone else is in fear of some death on their property with work safe etc, but apparently if you are using migrant illegal labour in construction it’s ok then, can’t see any prosecution or jail time for manslaughter allowing this type of labour to work in construction! https://www.nzherald.co.nz/nz/illegally-working-overstayer-dies-on-the-job-acc-payment-made-to-widow-in-china/OWADEJMGCUYM36WLF6YNKUA2SE/

      By that token if you get a free ride with illegal labour from government agencies, why would you actually employ local people and have to pay tax? Also why bother to get a work visa or renew it in the first place in NZ if you can just stay here working illegally?

      And where are the people staying and living, clearly a big advantage if you don’t pay tax to get ahead in NZ.

      AK this painting business using illegal labour managed to buy a house in NZ! Now they want to stay, because they feel entitled to do so and not entitled to obey any NZ laws. Sounds like the entire family including Grandma expects to stay.

      “Hao and her late husband did not have work visas, but they established a small but very successful home painting business enabling them to buy a mortgage-free home,” Delamere said.” https://www.nzherald.co.nz/nz/teenage-kiwi-fears-deportation-because-parents-are-overstayers/JV5ZNSD74TGTYTDNIIWVNBKYAA/

      While this child is able to pursue sports and live in a very affluent part of NZ based on his parents 18 years of overstaying, (with somehow his grandma also in NZ), they gain income from their illegal painting business and are able with the no doubt cash free savings purchase a mortgage free home.

      Meanwhile many other kids in NZ now face extreme poverty as their parents can’t make a living anymore from the trades and jobs being undercut in NZ by rampant illegal labour and housing. There are also housing shortages because foreign visitors coming to NZ, now refuse to leave for decades, and eventually it works, they get residency!

      All you do is have a mental breakdown or have a child and you’re in!

      • I think Sroubek owns a NZ house in Remuera apparently worth 2 million dollars reported quite a while ago (Yay, get our of free NZ prison and free NZ justice costs find your abode has doubled while you were locked up, NZ land of criminal opportunity, if if caught you get compassionate citizenship from our immigration MP!!!!) , Sroubek can no doubt use the profits from his ‘juice’ and drug smuggling business.

        He managed to get his Russian wife NZ citizenship as she worked in the “juice turned drug smuggling” business and his mother was in NZ as well….. apparently she managed to get off the charges. Now both former foreign visitors turned NZ residents are divorced I guess they need 2 houses to live in in NZ…. and there are the grandparents to think about – they need houses and support too if they can wangle NZ permanent residency too.

    • Sadly, young people in NZ (and the rest of the world) can look forward to ever-greater difficulty in obtaining energy and food and clothing. The great Ponzi scheme peaked between the years 2000 and 2010, corresponding with the peaking of conventional oil extraction and the end of stable climate. The great descent commenced around a decade ago.

      Bankers and economists have been trying to conceal the great descent via manipulation of interest rates and endless fiddling with publicly-announced measures of activity -and have been successful to some extent in fooling the masses for a while.

      Politician have been lying about the whole thing as a matter of principle, in order to get/keep their snouts in the public feeding trough, and the advertising agencies that come up with the political slogans have been focusing on presenting false hope, as per

      ‘A better brighter future’
      ‘Strong team, better economy, more jobs’
      ‘Let’s do this’
      ‘Let’s keep moving’

      and other complete bollocks, designed to fool the naive and the uninformed. None of the slogans has any connection with reality, which can easily be discovered via an hour or so of reading the appropriate websites on the Internet.

      The politicians apparently feel quite safe whatever they do or don’t do because they know that the vast majority of the populace just will NOT take the time to become informed about anything of significance. Voting is done on the basis of what the voter has always done, or whether the physical features of the candidate appeal, or whether the candidate can lie effectively in public.

      And the corporate media continue to play an important role in keeping the masses dumbed-down and consuming, even as the entire system comes to its inevitable demise.

      That inevitable demise is a consequence of politicians and economists ignoring all the fundamental factors that allowed the now rapidly-deteriorating economic-political arrangements to become established in the first place. The are required to ignore all the fundamentals by the system, which is controlled by ultra-wealthy ‘elites’ -sociopaths, manipulators, exploiters, and raiders and despoilers of the commons. And the Ponzi banking system, of course.

      None of this is new, and has been known since the 1960s, if not before. But it has been the widespread use of the Internet that has allowed widespread availability of the truth -that the vast majority do not want to hear. Indeed, the future looks so gruesome it is understandable people don’t want to know’.

      Thus, societies have divided into two major groups: those who stand some chance of getting through the bottleneck and those who stand virtually no chance of getting through the bottleneck.

      So appalling have official policies been over a period of five decades [since the key factors were identified] that there is a high probability the human species will cause its own extinction, along with the extinction of most other forms of life on this planet, in a re-enactment of the Permian Extinction Event, this time not caused by extreme volcanic activity but caused by the desequestering of carbon and its transfer into the atmosphere in the form of carbon dioxide.

      Only drastic action to bring down Industrial Civilisation would prevent that. And I see no indication of any drastic action to that effect. All the drastic action is geared to propping up [in the short term] unsustainable systems.

      Young people should be rioting in the streets. But they are not because they have no idea how much they have been lied to by politicians, economists and bureaucrats etc.. That realisation will probably come in a year or two. Five at the most.

      ‘The Global Financial End-Game’

      https://www.oftwominds.com/blogmar21/global-endgame3-21.html

  12. NZ seems to be encouraging foreign teens to come and study in NZ and work while they study. But it all seems to be going wrong – including for the foreign teenagers themselves. https://www.stuff.co.nz/auckland/124382819/missing-french-teen-eloi-rolland-friends-and-family-still-have-no-answers-a-year-on Time to clean up the teenage and youth foreign students coming to NZ, getting metal health issues etc. NZ should not allow foreign teenagers to come to NZ to study for their own wellbeing, (as well as the toll it takes on housing and social services like police, mental health etc). NZ private practises and business and organisations are crazy for foreign money, in any way they can get it.

    But a few years on there are many problems developing. AK there are now chinese/NZ children who travel between their country and NZ accompanied by foreign grandparents. The children get free NZ kindy, and everything free from NZ due to being registered as NZ citizens, but only the foreign family members in NZ on benefits live in NZ – the productive workers of the family live outside of NZ (China, Australia). The birth certificate lists a “NZ’ grandparent even though the children are no blood relation to the NZ grandparent or adopted by them! The extended family own many properties in NZ, have somehow got citizenship without any jobs and patchy tax history here, and now don’t work here, while somehow leveraging their citizenship status to get continual freebies for their young children.

    With all these benefits to be had, more and more foreign people are coming to NZ to obtain all the benefits that the NZ government gives away. They all need housing (and in general have money to get here/pay their immigration lawyers) but no real jobs or skills and if they do have jobs and skills, after gaining NZ citizenship they tend to leave NZ to get real money elsewhere while the grandparents/kids who piggy back on their visa, stay.

  13. The decisions on how all deposited money, and all QE money is spent are entirely the prerogative of bank managers. If you can borrow money to buy another house but not to start a business , thats all you can do. Whether you are a detested landlord or quite a decent reasonable person with a little deposit.
    With the risks of failure of the business far greater than another house the decision of the bank manager is a forgone conclusion.
    The only way this can be changed is by controlling the banks lending criteria, or setting up a people’s bank.
    Not so much to lend to first home buyers which without changing anything else will only accelerate house price inflation, but to direct at least some funds elsewhere.
    The changes needed are structural and at least as revolutionary as Rogernomics was but in the opposite direction.
    Inequality and suffering will get ever so much worse before this is forced on our government or any other among Western nations.
    D J S

  14. Update of march 5th comment:

    ‘The ‘good’ news is, the whole neoliberal, money-lender-corporation-driven system is in the process of imploding.

    A month ago: Brent oil $56.35; US10YT 1.07%.

    Today: Brent oil $66.69; US10YT 1.54%.

    And, internationally, food prices are on the rise at a pace far exceeding the rate at which central banks devalue money.

    Forget the non-event tsunami off the coast. A financial tsunami is thundering up the beach.

    Needless to say, the corporate media are keeping silent about all the real issues, and are keeping the proles’ attention firmly focused on trivia.’

    6th March

    Brent oil: $69.33. US10YT:1.56%

    and the Kiwi dollar is down: 71.5 cents US.

    Expect to pay subtantstially kore for fuel.

  15. Watch this and try not to throw anything at the screen. Its the King Leech, Gary Lin laughing at Grant Robertsons LVR restrictions and laughing at poor renters. He is making millions thanks to New phoney Labour. So unfair. https://youtu.be/PBicfyNsnfs

  16. Was it Robertson who cut the OCR and suspended the deposit requirement because he expected house prices to fall during the pandemic, or Orr?

  17. Something is clearly wrong in this country when 3 prisoners get $3million for jail housing while honest citizens can’t get a state house and NZ workers can’t get real wages to get ahead!

    Ambulance at the bottom of the cliff thinking, aka less and less interest and resources going to the of prevention of criminals in NZ (aka stopping foreign criminals getting into NZ and staying here, getting rid of Meth and drugs smugglers and violent gangs).

    We have Aussie terrorist and murderer of 51, Tarrant, who should have been sent back to Australia to serve his prison sentence!

    Then Hemi Te Poono, Dangerous Meth head. (At the age of 14 Hemi Te Poono was sent to live at the Mongrel Mob headquarters in Turangi, a decision that now seemed incomprehensible, his lawyer Mike Antunovic said) https://www.stuff.co.nz/national/crime/90828653/methamphetamineinduced-psychosis-behind-prison-assaults

    Senior Crips gang member Siuaki Lisiate – Tongan gang member and in prison for crimes from age 17….https://www.nzherald.co.nz/nz/convicted-murderer-and-crips-leader-stabbed-notorious-killer-graeme-burton-more-than-40-times/D6XPA5U3TOOOPOYZVCUPRNJRHE/

    With gangs increasing at 13% per year, and Meth and drugs becoming part of NZ life, so many new residents coming to NZ committing crimes… then there are the next generations. of criminals starting early….. something is clearly going wrong with how NZ is handling justice here!

    Could it be with private prisons and so many corporations making money out of crime and poverty, the government is out of touch with what needs to be done?

    Charities making millions of dollars, don’t have to pay taxes either..

    How some New Zealand business make billions and pay no tax
    https://www.stuff.co.nz/business/96742698/how-some-new-zealand-business-make-billions-and-pay-no-tax

  18. Something is clearly wrong in this country when 3 prisoners get $3million for jail housing while honest citizens can’t get a state house and NZ workers can’t get real wages to get ahead! https://www.nzherald.co.nz/nz/mosque-shooter-brenton-tarrant-and-two-dangerous-criminals-in-special-prison-within-a-prison/VASTF2OXBRS5SEF3H2ZALD6SKI/

    Ambulance at the bottom of the cliff thinking, aka less and less interest and resources going to the of prevention of criminals in NZ (aka stopping foreign criminals getting into NZ and staying here, getting rid of Meth and drugs smugglers and violent gangs).

    We have Aussie terrorist and murderer of 51, Tarrant, who should have been sent back to Australia to serve his prison sentence!

    Then Hemi Te Poono, Dangerous Meth head. (At the age of 14 Hemi Te Poono was sent to live at the Mongrel Mob headquarters in Turangi, a decision that now seemed incomprehensible, his lawyer Mike Antunovic said) https://www.stuff.co.nz/national/crime/90828653/methamphetamineinduced-psychosis-behind-prison-assaults

    Senior Crips gang member Siuaki Lisiate – Tongan gang member and in prison for crimes from age 17….https://www.nzherald.co.nz/nz/convicted-murderer-and-crips-leader-stabbed-notorious-killer-graeme-burton-more-than-40-times/D6XPA5U3TOOOPOYZVCUPRNJRHE/

    With gangs increasing at 13% per year, and Meth and drugs becoming part of NZ life, so many new residents coming to NZ committing crimes… then there are the next generations. of criminals starting early….. something is clearly going wrong with how NZ is handling justice here!

    Could it be with private prisons and so many corporations making money out of crime and poverty, the government is out of touch with what needs to be done?

    Charities making millions of dollars, don’t have to pay taxes either..

    How some New Zealand business make billions and pay no tax
    https://www.stuff.co.nz/business/96742698/how-some-new-zealand-business-make-billions-and-pay-no-tax

    The rise of Philanthrocapitalism, using ‘charities’ as cover for capitalist Initiatives https://www.theguardian.com/news/2018/may/24/the-trouble-with-charitable-billionaires-philanthrocapitalism

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