Based on the low threshold of fear that it takes for business confidence to dry up in NZ – things like eclipses, women voting and Maori with PHDs would have to be banned for NZ Business to feel confident.
For the last decade, to avoid the horror of systemic financial market collapse in 2007/2008, $30Trillion has been printed and pumped into the global economy falsely creating the lowest inflation rates for 5000 years. That seems about as far removed from the concept of sound market fundamentals as The AM Show is from intellectual curiosity.
Both the economy and the environment need each other to survive in a complex society, but if both are now failing and pulling the other down, new paradigms have to be imagined and imagined soon.
…at some point the new Government are going to have to review their whole commitment to appeasing our corporate overlords with the Budget Responsibility Rules and start looking after the people when the shit hits the fan.
We have a global economy that has been fed $15Trillion in quantitive easing, $10Trillion in bonds and the lowest inflation rates for 5000 years. This market is so distorted now that the computer algorithms are mercilessly punishing human greed by forcing massive technical corrections.
Blame the computers all you like, but also acknowledge that the 10 years of distorted markets due to trillions spent on quantitive easing has created a perfect storm where the AI of the computers becomes ruthless with the greed of the humans.
All unemployment data from Statistics NZ should therefore be treated with caution. Unemployment is likely to be much higher than Statistics NZ figures indicate.
This blogger previously reported how Statistics NZ recently implemented a so-called “revision” which would materially affect how unemployment stats were counted and reported;
Apple collapsing almost 2.5% in extended trading post their uninspiring results at a time when the stock market is looking to burst is grim on the eve of Black Friday.
A prediction. On the basis of the sluggish Auckland rental market, the end of the Auckland property bubble could be sooner rather than later. (I’m picking October 2017, a month or two after the 2017 general election.) The ‘correction’ will come when enough people who have bought in Auckland for capital gain realise that they will have to sell soon, or risk the consequences.