I may have it wrong but the govt issued bonds which the RBNZ printed up some money and bought, the govt then drops the proceeds of the bond issue into bank accounts all across NZ.
I am guessing you are retired so were not receiving the wages subsidies, resurgence support payments and the other renamed resurgence support payments.
I can't find anything on the total cost of the resurgence support payments but this was the wage subsidy cost after the first lockdown and does not include the wage subsidies from the second lockdown in August 2021.
https://www.rnz.co.nz/news/political...subsidy-scheme
Does anyone have any information on the total cost of these support packages?
https://www.treasury.govt.nz/publica...on-expenditure
I can't find anything with google but the treasury link might break down somewhere how the $61.6billion was spent, a good chunk would have been wages subsidies and various support payments.
If we said half $30billion or $6,000 for every man woman and child in NZ ($30bill/5 mill). That is a lot of moolah dropping into bank accounts. If that is not helicopter money I don't know what is.
Admittedly it offset the money people would have normally "earnt" by going to work and doing something productive.
The govt bonds are a debt that future generations will have to repay, although with Adrian on the case inflation should take care of it provided he can keep suppressing interest rates while inflation runs rampant. Too bad if you are an investor wanting a return on investment. It's a funny old world we live in thanks to central bank economists.
I am not even sure why the RBNZ is on-selling the bonds and inflicting large losses on the bonds to the nz taxpayer. If it is just funny money, use the delete key instead of adding zeros, it is just as easy.
https://www.rbnz.govt.nz/hub/domesti...vernment-bonds
I mean I must be missing something. The RBNZ prints up some money buys the govt bonds, raises interest rates and sells those bonds at a loss to I assume banks or pension funds or private institutions. The govt has guaranteed any losses on the bonds so somehow the taxpayer ends up paying for this. I am obviously not smart as I cannot understand why they are doing it this way. Maybe someone on here can enlighten me. Why can't they hold the bonds to maturity and then it is a money go round with the NZ govt.
I have a vague memory of an article posted on this thread about the massive losses being inflicted by the RBNZ's actions I will have to look back when I have some time.