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Blast from the pass… but I recon there needs to be two tiers of interest rates. Rural (primarily industry) & other… got to give farmers a break and get Nz pumping again. The only way we can get ourselves out of the current funk is get export humming and a key bit to this is relieving debt for primary industry. Would also keep a handle on inflation as well?.. Orr needs to do something fast, as he is currently driving a bus into a wall at pace!
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Not RBNZ related but interesting that the exodus of Kiwis continues to increase. Aussie and the UK have always had higher wages, I wonder what is causing them to leave. Who is leaving, young, old, skilled, unskilled? Will they ever come back?
Not to worry though labour from India, the Phillipines and China replacing them, although this is slowing. Maybe NZ is already a third world country so is less appealing even for these guys. Although with Aussie following a similar path on immigration, NZ could be a back door into Aussie for our more recent arrivals. My Somali tax driver in Melbourne the other week was briefly a Kiwi years ago but moved to Aussie before they shut the door last time.
Our debts and deficits might be more appropriate for a third world country. I bet a lot of third world countries have low tax and small govt as well. Not a lot of wealthy western countries do though. Maybe the emigrants don't share our current govts vision for the country. I imagine there is a comfortable asset owning class happy to keep things as they are though.
https://businessdesk.co.nz/article/e...it-record-high
This is RBNZ related.
https://www.nzherald.co.nz/business/...OPAQIJVVQ63LA/
Not sure who was more stupid the desperate first home buyers jumping on the rapidly disappearing band wagon of home ownership or Adrian Orr and the MPC for creating the runaway housing inflation that forced people into doing things that in hindsight look rash and/or risky especially in light of current interest rates and warnings at the time.
One good thing is that they are probably mostly young people who are now trapped in NZ by their mortgage so they won't be able to flee without realising a loss of their deposit. I guess they could rent it out, with interest deductibility they might never pay tax in NZ again, if only Chris could also remove the ring fencing of residential rental losses.
Never mind a cut to interest rates can't be too far away. I suspect Adrian might be cut from the same cloth as Gideon Gono.