The Right claims OCR cut proof their criminal management of economy is ‘working’ – what is the truth?
The Political Right are attempting to pretend that the recent OCR cut is apparently because they are doing such a good job with the economy.
I call utter bullshit on that!
The decision was total capitulation by Orr to political pressure to put some money back in the pockets of mortgage holders AND because the economy is in free fall!
Why the OCR cut is not necessarily something to celebrate
An official cash rate cut might be cause for celebration for under-pressure borrowers – but there is a reminder that it has been prompted by “extraordinary weakness” in the economy that may still be yet to fully hit.
Council of Trade Unions chief economist Craig Renney said he felt like he was “taking crazy pills” after the OCR announcement on Wednesday.
He said people celebrating the cut were not acknowledging the dire economic conditions that prompted the Reserve Bank to pull it forward by a full year.
The bank now expects unemployment to peak at 5.4%, representing an extra 10,000 out-of-work compared to its May forecast.
It expects the country to have been in recession through the middle two quarters of this year, and for gross domestic product to remain smaller for a year.
Renney said that was something that had not been recorded since the global financial crisis.
He said for inflation to meet the Reserve Bank’s forecast – it expects the annual rate to fall from 3.3% in the June quarter to 2.3% in the September quarter – consumption would have to be “absolutely smashed”.
“Long story short, it’s a hot mess … it feels a bit like celebrating you’ve saved a toe on one leg but you’ve lost the other leg.”
He said it was not evident where any future growth would come from, either.
“The only thing would be the dollar could fall so fast it could encourage export-led consumption but that’s a function of whether other countries are growing at the same time and the evidence from China and others is that that’s not happening.”
…that’s right, the economy is in terrible danger of meltdown with unemployment set to spike (I believe it will cross over 6%, well beyond the 5.4 predicted – if Key got 6% after pouring billions into the economy, this Government who are cutting will get far more), and because the NZ economy is nothing more than selling each other houses and basic bitch milk powder to China, we ain’t got jack shit to fall back on.
This Government are throwing 50 000 off welfare, throwing State Tenants onto the street, manufacturing a spending crisis in Public Health and slashing public services, all while borrowing $14billion for tax cuts we can’t afford while sparking a race war with Māori.
The Right will claim this is Economic providence, but for the vast majority who have gained a $12 a week tax cut, the cost of living crisis alongside rising unemployment and rising rentals are still crippling many.
Hilariously the current inflation bands are predicted to come down AS LONG AS there is no catastrophic weather event or geopolitical shocks for the rest of this year.
Good luck with that.
The public good vandalism this hard right, racist, climate denying, disabled abusing, beneficiary bashing Government have embarked upon isn’t an economic plan, it’s an act of right wing faith held together by hope and snot!
The truth is politicians lie & you’ve been living in a Neo-liberal wonderland for the last 40 years.
More like a neoliberal disaster area
Quick, put your rose tinted glasses back on, everything will be OK if you do. National love & care for you. Labour love & care for you. There, it’s all better, go back to sleep & dream of infinite growth. Sleep tight. There is no Left or Right, just the constant glow of the everlasting free market. Sweet dreams & may your portfolio grow exponentially.
The reality is they have cut the rate because the economy is tanking way faster than they thought it would .Willis spent two years bagging Orr and now is pleading with him to fix her monumental fuck ups .She is NZs version of Liz TRUSS .Well performing economies dont have supper low interest rates .All that will happen is house prices will go through the roof again which is what has fucked NZ for the last 30 years as we have lived a lie that the economy is booming because house prices are through the roof ,when the rest of the economy is dragging its knuckles through the mud .
The reality is they have cut the rate because the economy is tanking way faster than they thought it would .Willis spent two years bagging Orr and now is pleading with him to fix her monumental fuck ups .She is NZs version of Liz TRUSS .Well performing economies dont have supper low interest rates .All that will happen is house prices will go through the roof again which is what has fucked NZ for the last 30 years as we have lived a lie that the economy is booming because house prices are through the roof ,when the rest of the economy is dragging its knuckles through the mud .
Yes….Youv’e nailed every point Gordon…What a mess!!
National masters of the economy????…
Only a fool would think that!
Willis and Luxon are the classic clusterfuck combination…
In fact, as the Oxford dictionary adapts, and adds new words, and ‘clusterfuck’ enters mainstream speak, they will need to look no further for a definition than…..’Willis and Luxon Syndrome’ circa N.Z.2024.
‘Wonderful competent management of the economy by the Coalition Government.’
Unique interpretation of the facts Bob.
bobs a fucken idiot
Even idiots have a thinking brain Bob
‘s doesn’t he is so wedded to the trickle down theory he cant see the bullshit
that theory is.
The economy has not been brought down by National it was rooted when they took over.Now the healing has started by cutting out some of the dead wood and allowing the green shoots to grow. Done well the economy will grow without causing inflation.
Trevor that’s simply not true. They are taking infrastructure backwards, energy initiatives backwards, race relations backwards, and they f’ing borrowed money to do it. You are like one of those delusional trump supporters that believed his horseshit about jobs and debt. He didn’t bring the jobs back and increased the national debt to fund a tax cut for the rich. Ring any bells?
The economy has not been brought down by National it was rooted when they took over.Now the healing has started by cutting out some of the dead wood and allowing the green shoots to grow. Done well the economy will grow without causing inflation.
“the economy is in terrible danger of meltdown with unemployment set to spike (I believe it will cross over 6%, well beyond the 5.4 predicted”
That’s a call for a bigger, faster OCR cut, right?
“the NZ economy is nothing more than selling each other houses and basic bitch milk powder to China, we ain’t got jack shit to fall back on”
Does any political party have a plan to fix this long-term? Or the kick-the-can plan, just continue increasing the population and have the value of agricultural exports per capita fall further and the majority of the population get poorer.
I suspect (and I could be wrong), the Orr knows the US Fed will cut next month, and he doesn’t want to see the NZD soar (which will be very detrimental to exports). The NZ Central Bank is a follower, not a leader, and Orr simply pre-empted what he knew Powell was going to do next month to keep our currency stable relative the USD. We’ll see if I’m right in a few weeks.