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  1. #211
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    https://www.stuff.co.nz/life-style/h...rs-and-economy

    I don't think he got this right. The choice isn't between house buyers and the economy, it is between home owners and tenants or older asset owning generations versus younger generations wanting to get ahead.

    The economy does not want to see rate rises either as this will drive up the $NZ making exporters less competitive and a lot of businesses are carrying debt and enjoying cheap capital.

    The choice is now that not just asset prices are inflating but also consumer goods prices are rising, do you squeeze the tenant further with inflation or do you not back the asset owners/risk takers/job creators with loose monetary policy. Anyone buying a house on what has been described as an expensive market is taking a risk. Is it the NZRBs job to protect them or provide a sound stable currency. I know the NZRB is in their words "The Reserve Bank manages monetary policy to maintain price stability, promotes the maintenance of a sound and efficient financial system, and supplies New Zealand banknotes and coins." But central banks have been using monetary policy to protect risk takers from taking any losses at the expense of price stability and the maintenance of a sound efficient financial system.
    The wealth effect and trickle down economics are bulls*it yet that seems to be what is driving the RBNZ and central banks around the world.

    IMO it is wrong but it won't change any time soon 65% of NZ owns a house so they have no reason to get upset about this and we live in a democracy.

    Please note any reference to the NZRB was not the royal ballet but my mixed up acronym.

  2. #212
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    More of the same.

    https://www.stuff.co.nz/business/125...nt-projections

    Anyone in power expressing concern about house prices, is not being genuine.

  3. #213
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    Were independent central banks created to ensure price stability and a sound financial system because politicians could not be trusted with this.

    https://www.interest.co.nz/bonds/110...ent-bonds-some

    I guess if financial stability is rising debt then job well done. If 2% inflation provides stability 4% should provide twice as much stability. Is this why house prices are so stable? They have been averaging 7% for a long time and recently seem to have gone super stable. No wonder economics and banking is so difficult to understand for the average person.

    I see Adrian trying to talk down house prices as he doesn't have the balls to do the job he was entrusted with.

    https://www.newshub.co.nz/home/money...drian-orr.html

    Only FOMO keeping them up??? I would suggest monetary policy is driving the FOMO but what do I know.

  4. #214
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    “When looking at the future of our balance sheet, it should come as no surprise that climate change and sustainable finance is at the forefront of our minds,” she says.

    https://www.goodreturns.co.nz/articl...s-in-size.html

    How about you stop pushing prices up to create a "wealth effect" so people consume more, that might be a start if you are concerned about climate change. It also will align with the banks "stated" goal of "maintaining price stability".

    Is climate change even a part of the central bank role?

    Are these statements taken out of context or is Vanessa Rayner a f**king idiot.

  5. #215
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    Good points, Aaron. It seems that everything has to be seen through a climate change lens these days. A sound financial system doesn't need to be "justified" in that way.

  6. #216
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    Quote Originally Posted by macduffy View Post
    Good points, Aaron. It seems that everything has to be seen through a climate change lens these days. A sound financial system doesn't need to be "justified" in that way.
    I was thinking that monetary policy designed to push up prices to create the wealth effect so people will consume more runs counter to any real attempt to address climate change if it is man made. Any talk is just hot air unless you are looking to actually change the consumption led constant growth model that society is currently based on. Not that this is any of the RBNZ's concern as it is not part of its mandate.

    Our elected representatives should be making the hard calls and overhauling the mandate of the NZRB if it is not working for society.

    https://www.newsroom.co.nz/ideasroom...ing-as-science

    Unfortunately I can't access Don Brash's response as I am not a subscriber to this site.

  7. #217
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    Interest rates are the only tool reserve banks are given.
    After that's exhausted they hand a pile of money to the govt for free to spend on what they wish.

    Reserve banks need more tools such as variaable income tax rates (moved up when there's austerity, down for easing).

    Don is not right on much but a variable component to kiwisaver rates is an idea which is sound (combined with the fixed 4%). Tax and Kiwisaver both have better coverage than mortgages.
    Last edited by Panda-NZ-; 03-06-2021 at 07:13 PM.

  8. #218
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    Our Adrian obviously doesn’t really understand his role ....and has far too much spare time

    https://www.stuff.co.nz/business/125...000-on-rebrand
    . To say extreme valuations are “justified” is also to say that long-term market losses are “justified.” .

  9. #219
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    Quote Originally Posted by winner69 View Post
    Our Adrian obviously doesn’t really understand his role ....and has far too much spare time

    https://www.stuff.co.nz/business/125...000-on-rebrand
    I guess everything else is under control. Why not fiddle.

  10. #220
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    Quote Originally Posted by Aaron View Post
    I guess everything else is under control. Why not fiddle.
    Exactly! And it's only 100 Grand; plenty more where that came from.


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