ADRIAN ORR our NEW RBNZ GOVERNOR

[ynot]

Labour has increased funding in Education whereas National spend years reducing the funding.

Too bad education is not what it used to be. Under labour a more apt label would be mind control.

[Aaron]

Labour has increased funding in Education whereas National spend years reducing the funding.

Labour did introduce a fees free first year at University, I assume it is still the case.

[ynot]

Sad it is selfish older people

No disrespect from me Aaron as you do make some good observations but you need to drop the mindset that the world owes you a living. How do you think most successful previous generations succeeded. I would suggest they rolled their sleeves up and did whatever it took.

[ynot]

On reflection, my precious comment is a touch simplistic and yes Aaron you and my children's generation are facing a serious headwind.
I have suggested to you previously your generation has been shafted, I agree. But dont let that stop you.

[Aaron]

No disrespect from me Aaron as you do make some good observations but you need to drop the mindset that the world owes you a living. How do you think most successful previous generations succeeded. I would suggest they rolled their sleeves up and did whatever it took.

Totally agree, moaning and doing nothing to improve your lot is not desirable. I would suggest they put more thought into who they vote for. I might have suggested they cut back spending and try to save a deposit as well but the actions of Adrian Orr make trying to save money for a deposit a futile endeavour.

I thought I was doing better narrowing it down to only 150,000 selfish old a*seholes. I imagine there are a lot of people old and young who vote labour or national because that is what they have always done.

It is only the people whoring themselves out to the highest bidder that drive the unfair policies. You can't really blame the politicians as they need to do whatever it takes to get into power.

[Aaron]

It is an erroneous understanding. The net positive stimulus was a small part to households, but the money was never paid by govt into people's bank accounts - it was paid to businesses. This allowed them to keep paying staff their normal rates in most cases, but the largest benefit was the ongoing subsidy to business profits. It was in no way shape or form "helicopter money" in the commonly understood way.

Maybe you are right. By my calculations a sole trader could get $12,916 in wages subsidies and $28,400 in various resurgence support payments. The resurgence support payments admittedly were to cover the businesses fixed costs such as rent and capital investment to keep them going. But the RBNZ created at least $53 billion nz dollars to purchase govt bonds, to keep interest rates down apparently but I imagine govt was issuing a lot of bonds at the time, having them pass through banks I imagine was an optics thing as at $53bill they could have just posted us all a cheque for $10,600 each ($53bill/5mill).

All that new money went into business and personal bank accounts. Some may have even indirectly landed in our accounts through company dividends that may not have happened without the new money. It is still stimulus.

https://www.rbnz.govt.nz/monetary-po...hase-programme

per the RBNZ

The aim of the programme was to lower borrowing costs to households and businesses by injecting money into the economy through the purchase of various government bonds.

When we bought assets, this increased their price and so reduced their yield. That meant the interest rate, in this case on government bonds, fell. This has the effect of ‘lowering the tide’ on other interest rates in the economy, particularly longer-term interest rates of two years or more. It also reduced the cost of borrowing for households and businesses.

Secondly, our asset purchases encouraged the sellers of the government bonds to use the money they received from us to buy other financial assets like company shares, bonds or new lending – helping to inject money into the economy.

So the new money suppressed interest rates on govt bonds and the govt used the money from the bonds to inject it straight into the economy through wages subsidies and RSP payments, banks and other institutions also had money to push up other asset prices. I am not convinced this is not helicopter money other than it not dropping from the sky it went straight into bank accounts across the nation. A shame russia and supply chain problems caused the bad inflation and cost of living crisis around the same time. Unfortunate timing I guess.


A bit of info on the Resurgence support payments.

Just under $23billion if I am correct and add up the totals of each payment.

https://www.ird.govt.nz/about-us/tax...ent-statistics

[Aaron]

Adrian trying to help Maori get ahead.

https://www.nzherald.co.nz/business/...3ZD4ZI3O5YR7I/

Here is an idea stop ****ting on poor people with your crazy monetary policies and constantly driving up asset prices.

Maori are disproportionately amongst the poorest in our nation and Adrian has done more to make life harder for them than anyone.

[Aaron]

I thought I posted something about record bank profits last year but can't find it. Looks like this year is even better for ASB.

https://www.msn.com/en-nz/news/natio...18bbd207e6a810

I wonder how much they made buying govt bonds off treasury and selling them to the RBNZ? and now buying them back again at a profit. Does anyone on here know how to analyse the bank financial statements to work this out? Would that information even be available as it might outrage a few taxpayers if they understood what was going on.

Nice to see a group of people benefiting from monetary policy. Although I haven't read any stories about bankers or bank shareholders struggling with the cost of living crisis.
Home owners doing OK as well according to ASB CEO Vittoria Shortt. Nice to hear, I always worry about the owners of assets and how they are coping in these difficult times. So much uncertainty as to when interest rates will drop again.

Crazy Adrian and his monetary policies helping out the people more like him while paying lip service to helping Maori and the poor.

Actions speak louder than words, but I guess if you don't support the wealthy there will be nothing to trickle down eh Adrian.

[Aaron]

In the interests of fair debate Josie Pagani thinks the RBNZ had a choice between inflation and economic collapse.

https://www.stuff.co.nz/opinion/1295...nomic-collapse

I don't know if the predicted 10% fall in house prices could be described as "economic collapse" but the argument for continuing with lower interest rates and moah money always seems to be because to not do it means the end of the world and this would be a persuasive argument if it were true.

[Aaron]

Funding For Lending (FLP) still ongoing. ASB will use it all but makes no money as they pass it on at I assume the rates the RBNZ give them.

https://www.interest.co.nz/banking/1...s-dollars-rbnz

To quote the article.

The Reserve Bank has come under criticism for keeping the FLP running for so long given it's now in an OCR tightening, or increasing cycle, and yet the FLP - a stimulatory tool - remains in place. Interest.co.nz asked Shortt if the FLP public money was actually needed by banks, or remains needed.

"To answer that question I would go back to do we think that we need to support customers with climate transition? Do we think that we need infrastructure in regions? And do we think we need to try and solve the supply of housing in New Zealand? And my answer to those three things is yes."

And ASB plans to tap into more FLP funding. It has access to $5.7 billion in total and expects to use it all.

More money for more houses to house more people consuming more stuff and building the infrastructure to support the extra people all while helping fight man made climate change. Easy money and forward progressive thinkers like Ms Shortt, where is all the negativity coming from in this day and age.

Maybe not battling inflation that hard but what the hell, better than economic collapse.