It’s not how the Reserve Bank leadership melted down, it’s the why
Just consider the lies this Government have used to camouflage Reserve Bank meltdown…
- The Reserve Bank initially said Adrian Orr made a “personal decision” to resign as Reserve Bank Governor in March.
- Information that was later released, due to involvement by the Treasury and Ombudsman, showed there was more to it.
- Neil Quigley resigned as Reserve Bank chairman on Friday last week.
Cut the spin and stop trying to play 4D chess. It isn’t working.
This is a message the Reserve Bank and Finance Minister Nicola Willis need to hear.
People are tired and increasingly wary of the veracity of information they are bombarded with every day.
They need to know they can trust the institution responsible for ensuring the cost of living is kept at bay, their savings maintain their value, the interest they pay on their debt won’t fluctuate dramatically, and the banks and insurers they’re reliant on to protect their wealth won’t collapse.
…no one writes quite as sharply as a middle class private school Karen who is financially welded to the economic norms of the day.
To date the focus has all been on the how Orr left, not the why.
The how he left has tripped up Quigley as the focus drifts further and further away from the why.
Why did Orr resign?
Orr believed NZ’s economic sovereignty demanded the foreign banks pony up a larger capital requirement to ensure if the global economy hit a bad stretch, New Zealanders would be covered.
Orr believed that if things got bad enough, the foreign banks would fuck us over.
Here’s how I read it.
Orr had his budget amputated, apparently went off at Nicola, she used that as an opportunity to pressure him out, he did so and planned to resign at the Government’s Overseas Investment Summit for maximum damage, he was paid out an enormous amount with a huge non-disclosure agreement, Quigley trips up by describing the situation as personal rather than a full blown attack on Government policy and resigns, once gone Nicola has opened up a review to lower the capital requirements for Banks which is what they wanted in the first place.
We find out while this is happening that the PM has been contacting Quigley directly trying to pressure him into lowering the OCR before he was forced to fall on his own sword.
It’s not how the Reserve Bank leadership melted down, it’s the why!
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See the number in the background of this shot, it is the amount of months the prime minister has left in the job.
I am betting Hipkins will be rolled before Luxon
None of us here would really care. We, at least, have suitable replacements waiting in the wings.
Don’t you mean you are hoping Chippy gets rolled before Luxon, Trevor.
So the myth of Reserve Bank independence perishes at the same time as the myth of National economic literacy.
The time is ripe for meaningful reform.
If nothing else, this CoC govt. may have proved to EVERYONE, once and for all, that National’s grip on economic nous, is nil.
Rich people don’t have to budget as carefully as poor people do, to survive.
Luxury Luxon has proved beyond a shadow of a doubt, that he doesn’t understand the most basic economic concepts. Appointing Willis was a joke. Was there really no-one better qualified than her?
It’s a govt. he’s supposed to be running. Not a household and not a business. There are differences but they went right over his head.
The only down-side, that I can see, for him losing his job is that then we’ll have him AND key floating around pretending they know best. I hope they both go off into the sunset in Hawaii or Te Puke or somewhere and polish their kiwifruit.
It’s time to turn the clock back to a time before Roger Douglas destroyed our economy.
I have a different take on what occurred.
I think Quigley (Nationals patsy chair) was going to bow to Baldy and quietly surrender the independence of the RBNZ in an effort to please his paymasters.
But the board may have called his bluff and said “Fuck no! Either you go or we all resign enmasse”.
Imagine the absolute shit storm that would have unleashed on the markets and the government.
I think Luxon and Willis have entered the “find out” stage of their fucking about. Nepo Nicky No-clues was sounding awfully defensive on RNZ the other morning when asked about it. Claiming “oh I didn’t know, how could I have known?”
That’s your fucking job Nicky! And you attended most of the meetings you claimed you didn’t know about!
Was she too busy dreaming about a new blue pant suit or having a quick hand shandy while fantasizing about Thatcher?
Speaking of Quigley, how does he still have his job as Vice-Chancellor of Waikato?
If I offered any political party a favour, courtesy of my work, to support their re-election, I’d be out of a job the next day.
Anyone else enjoy that level of privilege?
The CPI. Inflation. Interest rates. Money supply. The cost of living. They’re all a bit abstract aren’t they? Operationalized how? Enacted how?
But abstract as they are, individually and collectively such constructs greatly impact on ordinary lives (notwithstanding business and commerce) through less than transparent mechanisms shared between Government, the Treasury, the Reserve Bank and Trading Banks. Its all bit beyond the pay scale of ordinary folk who are flat out trying to make a living. But it is really good to ask questions, to demand transparency … and I applaud those who do. Yet at the end of the day those in power, even Governments voted in under democratic principles, will do as they always do, run affairs in line with their ideological leanings.
Quite so.
Until they make life so intolerable that people decamp en masse, or subject them to rigorous remedial instruction on their duties to their nation and to their constituents, which seems to have been sorely neglected.
I’m right so you will be going back to the UK, Scotland or Ireland then.