ADRIAN ORR our NEW RBNZ GOVERNOR

[Aaron]

Not much comment on the US CPI 6% is better than 9%.

But isn't the Federal Reserve doing QE to bailout bank depositors? Won't this add to inflation?

Or will crashing financial markets offset this by reducing the wealth effect.

Prediction, QE is a given therefore expect continued high inflation.

The pain brought on by central bank largess won't be through falling asset prices it will be through inflation. Maybe it will be both in which case everybody hurts.

[Aaron]

Not a big fan of the NZ Initiative, they can't work out that GST is a regressive tax. Surprised they are criticising the RBNZ I would have assumed they would be fans of trickle down economics.

Maybe Adrian stuffed up so bad they had to say something. I wonder if they were sounding the alarm bells while house prices were shooting up? I would have thought they would be fans of inflation as well, as it is also a bit like a regressive tax. Maybe the current hit to asset prices is too much to bear.

Fortunately for Adrian they are a political organisation so lay all blame at the feet of Grant Robertson, which is not entirely unfair, except that Adrian is supposed to have a back bone and not kowtow to everything Grant Robertson wants.

https://www.msn.com/en-nz/news/other...df9e7cab&ei=11

According to the report due to the high turnover of staff under Adrian's rule they don't even have people qualified to do the job properly anymore. I guess the results speak for themselves.

NZ GDP negative. That is good news according to today's business herald. Interest rate cuts can't be too far away (f*cking idiots)

[Aaron]

BTFP Bank Term Funding Program. Unlimited money, thank goodness liquidity returns to financial markets no one needs to sell anything. Price discovery is once again beaten by a central bank.

[FTG]

Not a big fan of the NZ Initiative, they can't work out that GST is a regressive tax.

I think your wires might be crossed Aaron....

FACT CHECK: NZ Initiative Quote: "If a poor person and a rich person buy $11.50 worth of potatoes, $10 of it will be for the potatoes and $1.50 will be GST. The poor and rich person pay the same amount of tax. It’s a flat tax, but regressive as a portion of income.

Maybe Adrian stuffed up so bad they had to say something. I wonder if they were sounding the alarm bells while house prices were shooting up? I would have thought they would be fans of inflation as well, as it is also a bit like a regressive tax.

Just do a little more diligent research Aaron and you will be able to answer your own questions. But to help you, YES, the NZ Initiative have been sounding off multiple warnings over recent years. And by the way, they are certainly NOT 'fans of inflation'.

According to the report due to the high turnover of staff under Adrian's rule they don't even have people qualified to do the job properly anymore. I guess the results speak for themselves.

Agreed. Smoke & mirrors type PR/Comms from the RBNZ inevitably fails to fool the observant amongst us.

NZ GDP negative. That is good news according to today's business herald. Interest rate cuts can't be too far away (f*cking idiots)

Playing around with the OCR is just like using a very blunt (& totally hit & miss) instrument to do modern-day surgery. It won't fix the underlying cause and is likely to cause collateral damage. Remember, Price Inflation/Deflation experienced in an economy is ultimately and simply a reflection of what is really happening with underlying Monetary Inflation.

Distill that premise down further and the harsh reality is, that the ONLY truly effective way to control 'inflation' in an economy is to properly manage the amount of total money in the economy (M3, using US terminology), relative to population demographics. Controlling inflation in NZ to within a 1-3% target band (mid-point 2%) is the supposedly RBNZ's number one remit.

Sadly they have, and continue to, fail miserably.

[FTG]

Not a big fan of the NZ Initiative, they can't work out that GST is a regressive tax.

I think your wires might be crossed Aaron....

FACT CHECK: NZ Initiative Quote: "If a poor person and a rich person buy $11.50 worth of potatoes, $10 of it will be for the potatoes and $1.50 will be GST. The poor and rich person pay the same amount of tax. It’s a flat tax, but regressive as a portion of income.

Maybe Adrian stuffed up so bad they had to say something. I wonder if they were sounding the alarm bells while house prices were shooting up? I would have thought they would be fans of inflation as well, as it is also a bit like a regressive tax.

Just do a little more diligent research Aaron and you will be able to answer your own questions. But to help you, YES, the NZ Initiative have been sounding off multiple warnings over recent years. And by the way, they are certainly NOT 'fans of inflation'.

According to the report due to the high turnover of staff under Adrian's rule they don't even have people qualified to do the job properly anymore. I guess the results speak for themselves.

Agreed. Smoke & mirrors type PR/Comms from the RBNZ inevitably fails to fool the observant amongst us.

NZ GDP negative. That is good news according to today's business herald. Interest rate cuts can't be too far away (f*cking idiots)

As we know, playing around with the OCR is just like using a very blunt (& totally hit & miss) instrument. Price inflation is ultimately and simply a reflection of the monetary inflation in the economy.

Distill that premise down and the harsh reality is, that the ONLY truly effective way to control 'inflation' in an economy is to properly manage the amount of total money in the economy (M3, using US terminology), relative to population demographics. Controlling inflation in NZ to within a 1-3% target band (mid-point 2%) is the supposedly RBNZ's number one remit. They have, and continue to, fail miserably.

[FTG]

Not a big fan of the NZ Initiative, they can't work out that GST is a regressive tax.

I think your wires might be crossed Aaron....

FACT CHECK: NZ Initiative Quote: "If a poor person and a rich person buy $11.50 worth of potatoes, $10 of it will be for the potatoes and $1.50 will be GST. The poor and rich person pay the same amount of tax. It’s a flat tax, but regressive as a portion of income".

Maybe Adrian stuffed up so bad they had to say something. I wonder if they were sounding the alarm bells while house prices were shooting up? I would have thought they would be fans of inflation as well, as it is also a bit like a regressive tax.

Just do a little more diligent research Aaron and you will be able to answer your own questions. But to help you, YES, the NZ Initiative have been sounding off multiple warnings over recent years. And by the way, they are certainly NOT 'fans of inflation'.

According to the report due to the high turnover of staff under Adrian's rule they don't even have people qualified to do the job properly anymore. I guess the results speak for themselves.

Agreed. Smoke & mirrors type PR/Comms from the RBNZ inevitably fails to fool the observant amongst us.

NZ GDP negative. That is good news according to today's business herald. Interest rate cuts can't be too far away (f*cking idiots)

As we know, playing around with the OCR is just like using a very blunt (& totally hit & miss) instrument for modern-day surgery. Quite possibly not actually fixing the problem, plus likely causing collateral damage ('unintended consequences').

Price inflation is ultimately and simply a reflection of the monetary inflation occurring in the economy.

Distill that premise down and the harsh reality is, that the ONLY truly effective way to control 'inflation' in an economy is to properly manage the amount of total money in the economy (M3, using US terminology), relative to population demographics.

Controlling inflation in NZ to within a 1-3% target band (mid-point 2%) is the supposedly RBNZ's number one remit.

Sadly they have, and continue to, fail miserably.

[Aaron]

Cheers for the update FTG, good to be corrected where I am ignorant.

At least the NZ Initiative is looking at the big issues and not afraid to criticise where appropriate.

I guess the BTFP in the USA won't help them control inflation.

You mention GST is "regressive as a portion of income". So not a regressive tax but poor people pay a lot more as a proportion of their income. Not sure how that checks my facts that GST is effectively a regressive tax... but whatever.

[FTG]

I guess the BTFP in the USA won't help them control inflation.

Yip, a good guess Aaron.

Further token gesture tinkering and smoke & mirror work by the Poli's & bureaucrats (Fed) will only delay the arrival of the inevitable.

[ynot]

Cheers for the update FTG, good to be corrected where I am ignorant.

At least the NZ Initiative is looking at the big issues and not afraid to criticise where appropriate.

I guess the BTFP in the USA won't help them control inflation.

You mention GST is "regressive as a portion of income". So not a regressive tax but poor people pay a lot more as a proportion of their income. Not sure how that checks my facts that GST is effectively a regressive tax... but whatever.

GST in NZ is unfairly discriminatory against the low income earners. In my view it should never have applied to food. Yes I have heard the too hard to apply theory but I don't accept that. Australia manages it.

[Aaron]

Yip, a good guess Aaron.

Further token gesture tinkering and smoke & mirror work by the Poli's & bureaucrats (Fed) will only delay the arrival of the inevitable.

What is the inevitable? higher for longer inflation?

If that is the case then maybe inflation is planned as this is the only way out of the debt they have encouraged. Without defaults and without anyone having to sell their assets.