ADRIAN ORR our NEW RBNZ GOVERNOR

[winner69]

Damien Grant gets stuck into our Adrian

Conclusion -

The reality is, we don’t, and it is time for some university somewhere to offer him a position. Somewhere. Anywhere.

Reserve Bank governor Adrian Orr’s continued tenure is intolerable, Damien Grant says
https://www.stuff.co.nz/politics/350...ien-grant-says

[Aaron]

Liam Dann explaining why deflation would be so terrible. Maybe it is like inflation a little bit is not so bad and it will create a wealth effect as people's money goes further as prices fall but too much leads to a downward spiral.

Liam explains the great danger of deflation is that everyone will starve to death as we all stop buying food while we wait for prices to fall further. What an idiot.

https://www.nzherald.co.nz/business/...NQ3ZGCEEOFIMQ/

Lucky for Liam we have Adrian in charge of inflation. The only thing going down in value on his watch is the purchasing power of a dollar. Sadly a lot of people trade time for dollars, not so sadly some people borrow dollars to buy assets. Maybe that is the real reason deflation is so bad, it gets harder to pay back loans and the negative effects of leverage can be huge much like the wealth increases we see under Adrian.

Maybe Liam's not an idiot, maybe he is just not honest.

Hopefully Adrian will be able to throw him a bone today.

[Aaron]

No deflation possible with immigration going crazy.

https://www.nzherald.co.nz/business/...O2ONKZH2ATM74/

122,300 departures Kiwis making up the majority of those leaving being more than replaced by 253,200 arrivals, citizens of India, the Philippines, China, and Fiji drove net migration gains in the February 2024 year, Stats NZ said.

Are successive govts actively trying to make NZ a third world country? **** on the young people and when they leave for greener pastures replace them with people whose own country is poorer than NZ. It is a plan, not a good one in my opinion but a plan none the less. Liam will be happy as we avoid population decline and deflation. Instead we have overcrowding and inflation of everything except wages, so much better than letting house prices fall and keeping wages higher. Why are young people leaving again????

[Aaron]

Heard Jarrod Kerr (kiwibank economist) on national radio this morning. So enraged I felt the need to post.

Snippets from the conversation that I recall. Jarrod said the RBNZ is hurting households with high rates. Perhaps he should have said "home owners" or "asset owners" or "landed gentry". The bottom half of society is not being affected by the interest rates, in fact if it brings inflation down they should be better off.

Jarrod thinks the RBNZ should get more creative how it measures inflation and should allow for some structural inflation (rates & insurance). In other words accept higher inflation.

What a di*k. I don't suppose he ever criticised the RBNZ when rates were too low for too long. Or when Adrian opened his dumb trap and suggested negative interest rates. Inflation is hurting the bottom half of the nation but economists don't understand this. They only want asset price inflation, it is all they have known for the last thirty years. Yield doesn't even matter anymore it has got so crazy.

In other good news the S&P500 down for a third day in a row so rates cuts not far away. Gold bugs should give thanks to the Chinese central bank and Chinese investors, if what I read is correct. Sounds like china might be moving away from bubblenomics to something more real but I doubt it.

I am waiting for an "economist" to suggest interest rates should be set by supply and demand. Although I am not sure what that would look like, I do know I don't like what is happening at the moment.

Thinking about it further a bit silly suggesting interest rates be set by supply and demand for capital as there will always be limitless demand for capital and in a fiat world there is always limitless supply especially when you have clowns like Adrian and Jerome.

[Aaron]

This guy popped up on youtube. The algorithms doing their job with confirmation bias or sending me down a rabbit hole.

Australia exactly the same as NZ housing is a ponzi that needs cheap money and lots of immigration. It is just that the numbers are starting to look crazy as they get more and more extreme.

https://www.youtube.com/watch?v=kjZTpUWAaYc

Still if you are invested in a ponzi scheme you definitely do not want it to stop and that could be why no politician or party is proposing any significant change.

[kiora]

Finally some signs of inflation relief?

"Oil Extends Slump Below $80 a Barrel After US Stockpiles Swell"

https://finance.yahoo.com/news/oil-e...234247967.html

[Aaron]

Lucky unemployment has been taken away as the RBNZs responsibility or we might already have the long awaited for rate cuts.

https://www.nzherald.co.nz/business/...KCNKD7HTMANKY/

Exacerbating wealth inequality helps no one in the long run.

https://www.zerohedge.com/markets/fe...alth-gap-chasm

Not a NZ example but we have the same sort of people in charge.

[peat]

Reddel launching at the RBNZ again

Listening to the press conference for the first time in a while just confirmed a sense of how inadequate the MPC, and its chair, are for the job they've been charged with. They didn't have a straight story to tell, and they were trying to backaway from the clear implication of numbers they'd chosen to publish. To which one could add yet another appearance saying nothing of substance from the deputy chief executive responsible for macroeconomics and monetary policy atthe Bank, or a Governor who chose to opine on productivity growth or the lack of it, suggesting that things were different (better) in Australia, even though recent productivity growth there has been just as weak as in New Zealand. Why are these people - having delivered us the inflationary mess in the first place- still in office? New Zealanders deserve better from officials - supposedly expert ones - delegated so much power. Apart from anything else they deserve real expertise and real accountability.

[winner69]

Reddel launching at the RBNZ again

Listening to the press conference for the first time in a while just confirmed a sense of how inadequate the MPC, and its chair, are for the job they've been charged with. They didn't have a straight story to tell, and they were trying to backaway from the clear implication of numbers they'd chosen to publish. To which one could add yet another appearance saying nothing of substance from the deputy chief executive responsible for macroeconomics and monetary policy atthe Bank, or a Governor who chose to opine on productivity growth or the lack of it, suggesting that things were different (better) in Australia, even though recent productivity growth there has been just as weak as in New Zealand. Why are these people - having delivered us the inflationary mess in the first place- still in office? New Zealanders deserve better from officials - supposedly expert ones - delegated so much power. Apart from anything else they deserve real expertise and real accountability.

He’s right as usual.

Next time I have a coffee with Michael I’ll tell a guy called Peat reads his stuff.