Long grain or Jasmine?
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Why doesn't Labout just step in and set the interest rates payable on loans made
and deposits (it was good enough to lose the plot completely and shoot from
the hip blaming probably wrongly Landlords with appropriate Penalty taxes inflicted
- no commercial basis for removing selective Interest deductions etc)
for House prices while leaving the other major culprits untouched financially to
continue ripping all and sundry off in the Finance Sector thus enriching Greater
Australia's Financial Sector in the process .. :)
Are Faafoi, Robertson and comrades that stupid to not notice or scared to stir the nest
in case they get stung more badly than the NZ Public are likely to inflict
on them & Labour next year on the job so well done mostly blindly ? ;)
We know that between Govt and RBNZ most of their endeavours over the terms
they have been in have missed target, generally been misaimed, produced the
opposite of the desired effect delivering up more harm than good - in effect
a string of large Failed Passes .. even the man on the street is fast waking up
to this now .. as many are being hit hard in the pocket and are no better off out
of the hastily concocted Labour hatchet jobs and meddling :)
Each time the Govt & RB Finance bods have taken aim - the desired target has been seen
shortly thereafter disappearing into the distance, laughing and chuckling away untouched. ;)
The targets that have run away or been conveniently overlooked:
House Prices & Affordability
Inflation
Rental Accomodation
Rental Pricing levels (largely a result of Govt red tape)
Interest Margins - the Large banks
A lot of those targets heavily influenced by RBNZ policy.
Richard Prebble in herald today, concerned about the poor (which is laughable for an ACT party man) but Labour is not doing anything to curb the RBNZ excesses either.
https://www.nzherald.co.nz/business/...KZ3QQMEMP45DA/
To quote from the article "While the Reserve Bank procrastinates, the rich will get richer and the poor will get poorer." and that is from an ACT party supporter.
Another opinion piece about inequality between generations. To me vaccinating the oldies first made sense as they are the ones more likely to die from covid, but she does touch on the inequality being created in the housing market.
https://www.nzherald.co.nz/nz/a-capi...JHH6ADCG44QMA/
How badly does a reserve bank governor fail before they get the boot?
The Conversation: Inflation is raising prices and reducing real wages – what should be done to support NZ's low-income households?
https://www.nzherald.co.nz/business/...M2OUK6BP4VJ4A/
Sack Adrian Orr and explain to his replacement the objectives of the reserve bank, i.e.
The Bank’s main objectives are—
Economic objectives
(a)
the economic objectives of—
(i)
achieving and maintaining stability in the general level of prices over the medium term; and
(ii)
supporting maximum sustainable employment; and
Financial stability objective
(b)
the financial stability objective of protecting and promoting the stability of New Zealand’s financial system
Increasing the amount of overall debt does not promote stability in financial systems. I would guess the RBNZ's reluctance to do their job in the face of rising inflation and near full employment is to protect those with too much debt, which the RBNZ encouraged with its overly loose monetary policy and historically low interest rates. Their current policy protects the well off at the expense of the poor, by boosting asset prices and now the CPI as well.
I would not expect Adrian to care but I would expect a labour govt to do something, except that I don't see any difference between Jacinda and John Key they both have to pander to the boomers to stay in power.
Bernard Hickey probably says it better.
https://www.rnz.co.nz/national/progr...ly-column-ever
I hate to pile on with Jacinda being responsible for every cry baby on the front page of the paper but she and Labour and Greens have presided over the biggest transfer of wealth from current and future renters, to asset owners, in the history of New Zealand. The reserve bank was also complicit in this. If Bernard Hickey leads a political party at the next election maybe I will vote for them.
https://www.rnz.co.nz/national/progr...ers-and-losers
John Key would be proud.
And the losers out of all this will be hit hardest with the inflation tax currently being imposed on everyone.
A small insight into the thinking of a central banker.
https://nypost.com/2022/02/04/uk-cen...or-big-raises/
It would be interesting to know whether he showed the same concern while he was pumping up asset prices.
Labour defending inflation under their reign.
https://www.msn.com/en-nz/news/natio...?ocid=msedgntp
Inflation has gone nuts but they blame "supply issues". Also jacinda uses the "well other countries are doing it too" argument. Sounds like if USA, Japan, UK wanted to jump off the harbour bridge labour would join them.
Am I just a fringe fruit cake. Milton Freidman said inflation is always and everywhere a monetary phenomenon. Has this been disproven?
https://www.rbnz.govt.nz/markets-and...-sheet-at-work
In response to COVID-19 we’ve introduced a range of initiatives to provide additional monetary stimulus and to support the smooth functioning of New Zealand’s financial markets. These initiatives have enlarged our balance sheet from its December 2019 (pre-COVID-19) level of $24.60bn to $89.18bn at the end of December 2021. During the month of December the size of our balance sheet increased by $1.41bn.
The RBNZ is responsible for managing inflation, its only tools are monetary, therefore you could deduce that monetary policy plays a large role in causing or reducing inflation.
If inflation is a problem (and the paragraph above might indicate where the inflation has come from) why is the RBNZ not doing anything about it.
They f**ked up by overreacting to covid but now seem reluctant to do anything to fix this.
I am guessing inflation will be easier to defend than a recession or slowing down of the economy prior to an election so the root cause gets ignored and incompetent people at the RBNZ get to keep their job.
To maintain "independence" I don't imagine parliament can sack the RBNZ governor. I wonder who can??
Inflation is getting close to a crisis according to this article.
https://www.msn.com/en-nz/news/natio...?ocid=msedgntp
Inflation is always and everywhere a monetary phenomenon.
What is the RBNZ doing about the problem they have created, along with other central banks around the globe.
Ray Dalio obviously expects inflation to continue and he expects central banks will keep devaluing their currencies.
https://www.linkedin.com/pulse/where...ity-ray-dalio/
I was hoping for a better buying opportunity before levering up.
Central Banks have to raise rates or they will face the guillotine. The peasants are usually pretty placid but every now and again they will revolt and revolt hard, usually when they can't afford to eat.
A lot of countries survive with high inflation, turkey, argentina, venezuela etc.
If you read the article and look at what is going on, inflation is preferable to increasing taxes and balancing budgets. People with assets will still be OK. It is the poor who get hit hardest. Printing money is more politically preferable to raising taxes. Printing money increases inflation.
I selfishly want stable money so that asset prices come down and I have a chance at social mobility. History has apparently shown that will not happen. I guess we need to see what happened in the past to invest for the future.
maybe the central banks pretending to fight inflation will set off a crash of the financial markets. At that point in time I borrow on the house to buy shares on margin in companies that already have debt. I then rely on central banks to inflate away the debt rather than stablise the money supply. Risky as it relies on the central banks continuing to be as weak and retarded as they have to date. No major interest rate rises, more money printing after an attempt to tighten, that would be my guess.
How does Adrian Orr keep his job.
https://www.msn.com/en-nz/news/natio...?ocid=msedgntp
Inflated assets, inflating prices no action being taken to ensure price stability.
If history is a guide the RBNZ may not be responsible for the protests in Wellington but they might be responsible for the feelings of anger and frustration that some parts of society are feeling.
I had assumed the govt would be constrained from being able to sack him to keep some sort of independence but like everything it is up to our elected officials and the queen.
90Removal of Governor from office
(1)
The Governor-General may, at any time for just cause, on the advice of the Minister given after consultation with the Attorney-General, remove the Governor from office.
(2)
The Minister may give the advice—
(a)
for a cause referred to in section 92(1)(c) or (f) only if the board has made a recommendation under section 91 that the Governor be removed from office:
(b)
for any other just cause whether or not the board has made a recommendation under section 91 that the Governor be removed from office.
91(c)failure to adequately perform or exercise the functions or powers that are delegated by the board;