Yes an economic recession is coming – 5 things Labour must guarantee us now
It seems some in the mainstream media are realising that economic carnage is looming.
It is.
Most commentators didn’t understand the magnitude of Grant Robertson lifting the debt ceiling last week.
By taking Crown assets like the NZ Super Fund, and liabilities like the debt held by Kainga Ora, Grant has managed to leverage our debt ceiling up.
By simply allowing our debt ceiling to grow, Grant manages to continue Government spending without raising taxes while keeping the rainy day money at the ready.
And that is what most commentators are missing.
Robertson is one of the most cautious Minister’s of Finance Labour have ever had, who is always shooting left wing ideas to stop populist left economics from ever spooking Treasury.
His pact with the Wellington Bureaucracy is that he is the trusted pair of hands who won’t ever allow neoliberalism to be challenged beyond the most broad of measurements (the well being budget).
Grant looks like he’s loosening up the purse strings but has zero intention of spending that purse and this is what should be making everyone nervous.
Grant is prepping a higher debt ceiling because he is smart enough to see the looming dangers on the horizon.
Putin is just starting.
The recession in America and Europe is just beginning.
China is becoming more unstable by the passing week.
Geopolitical crisis + economic meltdown + catastrophic climate change = looming meltdown.
Grant is raising the debt ceiling not to spend more, he is raising it because he knows what’s coming next.
When a politicians as cautious as Grant is opening the cheque book, we should all be very concerned.
With the looming economic implosion upon us, we need clear guidelines.
1: No bank bail outs except for KiwiBank – Theses fucks led us here, fuck them a thousand times if it all goes belly up and they need bail outs! Rule one is no bank bail outs!
2: Help owner occupier first time home owners – Kiwibank should be prepared to step in and take any owner occupier first time home buyers off other banks to prevent mortgagee sales, but fuck the speculators. They should all be forced to sell.
3: Include tax debt, student debt and beneficiary debt to be written off if bankruptcy is required.
4: No corporate bail outs. NONE!
5: Continue to fund universal services that save people real money each week: Free Public Transport, free school breakfasts & lunch, 30% stakeholder role in smashing up Supermarket Duopoly to force down prices alongside GST off food and vegetables.
I swear to the little baby Jesus, I’m going to lose my shit if Grant starts bailing banks, speculators and corporations out while ordinary people suffer.
The Left need to be kinder to individuals and crueler to Corporations.
Not to put too fine a point on it…
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And all foreign workers need a foreign worker penalty rate loaded onto there starting/wage sufficient enough to pay for private medical insurance, time off and holiday pay. So about $2.50 during week days, $5 on Saturday and $7.50 on Sundays loaded onto the base rate.
No, this should be paid by their employer.
Bradbury left of this list the need for free medical care for every New Zealander and permanent resident. And free should include dental, and eyes and hearing.
‘5: Continue to fund universal services that save people real money each week: Free Public Transport, free school breakfasts & lunch, 30% stakeholder role in smashing up Supermarket Duopoly to force down prices alongside GST off food and vegetables. ‘
Duh
Maybe…
But I wouldn’t put any money on it.
The government is borrowing about $300 billion out to about 2030 so no mater what happens the economy will double. Once borrowing comes off the boil, then we can talk about how sustainable that spending was. I mean arguably National / Act needs and wants have to be tended to as much as the left if it’s to have broad based buying. They want there capital gains untaxed, fine, the left should have cost of livings loaded on to base wage/salary rates.
I think that Grant Robertson has had to be cautious and that the intention was for him to share the pie around and for him to become a popular Minister, and of course, for there to be more pie!
A mere two years into labour’s first term under Ardern, the coronavirus global pandemic struck, halting plans for any meaningful tax cuts for at least half a decade. Robertson and his team have had to work within tighter constraints than they otherwise would have needed to, resulting in a cautious approach to finance.
Borrowing against the Super Fund! HURRAH! What could possibly go wrong?