ADRIAN ORR our NEW RBNZ GOVERNOR

[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.