Trump’s worst geopolitical blunder vs NZ Economy with 7.5% inflation

Trump’s illegal war on Iran could become one of the worst geopolitical blunders of the modern era, and New Zealanders are going to feel it in the wallet.

This isn’t some distant conflict we can scroll past. It’s already feeding into inflation, interest rates and unemployment forecasts that will hit households here directly.

Middle East war risks return to Covid-era inflation peaks for NZ economy

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Whether it be a ceasefire or a failed ceasefire, the worst of the pain from the Middle East conflict is still to come.

As has become obvious, the hurt will come in two ways: Through general living costs even if oil starts flowing normally soon, and via a slowing economy that will hit businesses, consumption and employment.

The inside hints from the Government’s adviseratti are that Treasury’s tentative top inflation number could be as high as 7.5%. That compares to the 4.2% released by the Reserve Bank this week.

The Post

Trump’s illegal war on Iran could smash New Zealand’s economy

The unemployment forecast is now 6%, with what could be a 7.5% inflation rate all because Trump started an illegal war with Genocide drenched Israel against Iran.

If inflation hits 7.5%, that means the OCR must be raised dramatically.

Consider what happened last time.

COVID supply chain shut downs saw inflation at 7.3%.

The OCR before COVID was 2.25.

The Reserve Bank had to drive the OCR up to 5.5% to stop 7.3% inflation.

Our new Nordic Ice Queen Reserve Bank Governor with the steely gaze and glacial melt for blood can look down the barrel of the camera as many times as she likes to tell the market that she will “look through” this inflation spike – but how do you “look through” 7.5% inflation?

To match the rate last time during COVID to counter a 7.3% inflation rate, we would need to jump one full point for three consecutive rate rises this year alone.

Jumping from 2.25 to 5.25 this year will crush the economy and set it into a recession.

And let’s be clear, this insane illegal war adventure is only going to get worse.

Before COVID hit New Zealand, we had the luxury of seeing the damage it caused Italy.

Nothing forced our borders up quicker than watching corpse after corpse stacking up in Italy.

Likewise with the fuel crisis, it will impact Asian countries far more harshly and quicker than it impacts us because they will run out of fuel before we do.

That will give us a front row seat to what happens when a country runs dry and as we start seeing riots break out there, the sleepy hobbits of muddle NuZilind will suddenly realise that we are going to run dry next and that will spark immediate hoarding as the Government’s mirage of how many days fuel we have evaporates.

Every punch to your wallet leads back to Trump

Remember.

Every time you get punched in the wallet, it’s because of Trump!

He has led America into its worst geopolitical blunder since Vietnam and he can’t get out.

He has gotten away with this because of the lack of criticism from the West.

Let’s be clear. National, ACT and NZ First have enabled this.

They have refused point blank to criticise and challenge Trump, indeed they have sucked up to him!

Winston met with Rubio hours before Trump backed down on his promise to commit genocide against a 7,000-year-old civilisation.

Imagine if instead of grovelling to the yanks, Winston had admonished them and called on them to stand up to the values we have previously respected them for.

Winston would have been the last world leader America met before Trump called the strike off.

Winston would have been celebrated as a global statesman instead of a cowardly goon.

As you continue to feel that pain in your wallet.

As the unemployment rate jumps.

As inflation spikes.

As we see the impact and riots driven by this blockade erupt throughout Asia.

As the everyday becomes impossible, blame the politicians in this country who sucked up to Trump and enabled his arrogance by our silence.