The Stupid Economy Stupid
The inflation drop is driven by a failing economy, not a softening of the cost of living.
The optimism of a rate cut is frothy and high.
Watch for the unemployment numbers.
Watch for the insolvencies.
Watch for the spike in domestic violence.
Watch for the spike in drive by shootings over drug debts.
Watch for communities to be flooded with loan sharks operating money from Chinese shadow banking.
Watch for the mortgagee sales.
Watch for the Rents to go up while House values come down.
Watch for increasing council rates and insurance driven astronomically higher by climate change.
A US study has found insurance costs are set to rise 600-800% in coming years because of increased damage from storms and sea-level change caused by climate change.
Watch for the 600 000 who need food banks monthly and the 50 000 National will throw off welfare.
Watch for the 10% tariffs Trump/Vance will put up.
Watch for the Chinese economy that came in well under expectations…
China’s economy falters, raises pressure for more stimulus
…they were supposed to hit 5.1, they got 4.7.
For a Nation that prides itself on fudging the numbers, that is a frightening difference that spells economic hardship from our largest trading partner.
Will Luxon’s recent escalation of attacks on China from NATO spark trade retribution that could mask falling consumption?
Even if mortgage rates are cut, won’t they immediately jump again as geopolitical inflationary pressures kick off?
This time the light at the end of the tunnel is a train.
As night follows day National have claimed that their management of the economy has been the reason for the drop in inflation…what a bunch of lying dreamers.
Let’s not let the facts get in the way of a good story!
Midway through last year, way before the election campaign, Grant Robertson laid out his predictions for the most likely way that inflation
would track through 2024 and 2025.
He of course is bang on target.
The driving factors come largely from overseas and so for the Coalition of Chaos to claim any sort of kudos shows how desperate they are to paint themselves as being competent economic managers.
Nothing could be further from the truth.However to demonstrate even futher their incompetence they are rolling out large tax cuts for landlords and middle class and wealthy families.
Denying that that will be not be inflationary is delusional fantasy.
But hey …delusion is how they roll!!
God, please bring back Grant Robertson, Nicola Willis is a flea.
YES, Grant our PM Luxon returned from America with a brown tongue and the words USA tattooed on it.
Let’s face it their lack of alternatives to three waters, is going comeback and bite us big time. So busy worrying about the race element they basically told councils you are on your own. Gee that worked in the past.
Would things be any better under Labour who demonstrated in 6 years they were poor managers of the country.The inflation was made far worst than the covid impact by their actions .
yes they would, at least there wouldnt be record unemployment as National have demonstrated in just 10 months how they are poor managers of the country.
They give you a miniscule tax cut, axe thousands of people’s livelihoods then increase car Rego’s, prescriptions, public transport and underfunded G.P. practices, who are now forced to increase doctor visits, alongside making police redundant and responsible for a hire freeze on health staff within Te Whatu Ora.
Yep Trevor and you say it was Labour, you are so morally bankrupt.
Yes, Squeaky agree and we are now about to have a DAD ARMY.
Trevor you may need to do some historic economic analysis because the NZ economy tracked along very comfortably over Labour’s 6 year term. Compared to global peers NZ maintained stable, moderate growth, exceptionally low levels of unemployment and moderate (relative to other counties) levels of inflation.
Excluding house prices which saw an astonishing 30% increase in value.
Like Martyn, I predict a drawn out period of stagnation or further recessions for NZ due to the ongoing impact of high interest rates and the coalitions continuing reductions in government spending.
Before the end of this parliamentary term I predict National will be forced to print and spend in order to grow the economy just as any sensible Keynesian economist would advise.
Trevor based on everything we have seen so far the answer to your question would be yes. They are making the last lot look better by the day, which shows how awful they are.
Never mind, National have their trusted magic cure: more tax cuts. lower wages, increased unemployment, higher interest rates.
They know that poverty and desperation are the greatest motivators, so they give us more of it.
I have to laugh how every one says china is crashing .We have zero growth and they have 4.5% growth .If thats a crash I know which one I would rather have .This government has no Idea just ask all the businesses that are going to the wall .Ayear ago those same people were pleading for thousands of low paid or free labour and wanting to import 100k to exploit.Now those same people are throwing those imported people on the scrap heap at an alarming rate .Unemployment will reach 10% next year way past the optomists who say 5.5%.
…And they are ‘relaxed’ because they are going to bring in massive amounts of cheap contract slave labour from China to deal with all the infrastructure projects and reignite Bill English’s Belt and Road wet dream.
They think that they are going to get a ‘Temu’ bargain!!
The only bargain that was negotiated recently was when the Labour government signed up for the new Hyundai ferries during a downturn in the shipbuilding industry.
Of course ,’knee-jerk know nothing National’ blew that by cancelling the deal of the century. Oh they are soooooooo good with money!!…absolutely noooooobody is better!
If only Grant hadn’t allowed his feckless colleagues to piss away all those hundreds of millions of dollars on consultants!
A nice little myth you have got going there as National are finding out …
Remind us all again about the consultants that National has engaged already to assess the building of a road tunnel through a mountain in one of the worse earthquake zones in the world.
That’ll be money reeeeally well spent!!