ADRIAN ORR our NEW RBNZ GOVERNOR

[Aaron]

Complicated world Aaron .that guy went on -

Economically, what really matters, in the long run, is Human Action, the kind Ludwig von Mises called “purposeful behavior.” We all make choices that reflect our backgrounds, experiences, and environments. These choices add up to form “the economy.” Adam Smith called it the Invisible Hand.

But these choices aren’t purely voluntary. We face external constraints, and not just from governments. As humans, we’re subject to time and space. Our choices reflect the era in which we live and the others who share it. This affects our choices and, thus, the kind of economy we collectively create. And it changes over time.

Some pretty big grenades being thrown in 2020. I wonder how much bigger the next ones will need to be.

https://tradingeconomics.com/new-zea...oney-supply-m1

https://fred.stlouisfed.org/series/M2SL

Financialization needs a real economy to live off, much like a derivative needs something real at the end of the day but I wonder if too much money and too low an interest rate is a good thing, if it does not produce additional goods or services. Just encouraging people to buy houses off each other at ever higher prices and levels of debt.

Heartening to read your post about the Whakatane mill. An example where overseas investment produces something of value for NZ and creates jobs and export earnings. Rather than just buying and owning existing assets.

[Aaron]

Even if John Mauldin considers central bank policy all noise and some damage.

Admittedly I do not appreciate what is happening, but the JCB stops yield curve control and says it will allow interest rates to rise. Can't see rates rising too far or the Japanese govt will be bankrupted by interest payments. I guess as the JCB has printed and owns 43% of the govt bonds there is room for more financial wizardry.

https://www.ft.com/content/40d9ea33-...e-716d8de03773

Fitch also downgrading US govt debt

https://www.zerohedge.com/economics/...ion-governance

Can't see rates rising much but it would seem to indicate at least for now that the trend in interest rates is up rather than down.

Not yet sold on the idea that central banks have little effect on what is happening in the world today.

[Logen Ninefingers]

If it can happen there, it can happen here....

https://www.smh.com.au/business/the-...02-p5dt63.html

Fitch cuts US government’s AAA credit rating in surprise move

By Christopher Rugaber
August 2, 2023 — 8.12am

'Fitch Ratings has downgraded the US credit rating, citing an expected increase in government debt over the next three years and a “steady deterioration in standards of governance” over the past two decades.

The rating was cut one notch to AA+ from AAA, the highest possible rating. The new rating is still well into investment grade.'

[winner69]

All signs are that Adrian and MPC should be doing what their mandate tells them they really should be doing and increase OCR this month but post-election they will eventually do so

Become politicised has he?

[Logen Ninefingers]

All signs are that Adrian and MPC should be doing what their mandate tells them they really should be doing and increase OCR this month but post-election they will eventually do so

Become politicised has he?

When wasn’t he?

[Aaron]

All signs are that Adrian and MPC should be doing what their mandate tells them they really should be doing and increase OCR this month but post-election they will eventually do so

Become politicised has he?

Possibly there is a lag effect with rate rises. He massively over reacted when dropping rates and printing money maybe he does not want to over react the other way.

Especially as rate rises bring asset prices down and Adrian has explained the "wealth effect" to us. Paul Conway did have to clarify that the wealth effect only applies to the already wealthy. He explained that wage earners should all accept being poorer to stop an inflation spiral. That way wealthy people can keep their tax free capital gains and everyone is happy.

Asset price inflation good CPI inflation bad according to the RBNZ.

https://www.nzherald.co.nz/business/...OBGH5ZQLUOOGU/

Although reading the article again we are all poorer because

“As Governor Adrian Orr puts it, the people of planet earth are poorer because of the pandemic and war. The recent floods in Auckland and the cyclone along the East Coast have also reduced wealth and prosperity in New Zealand.

I may have misunderstood I thought we were poorer because central banks printed heaps of money debasing what we get for our labour (after tax of course) and what we save and invest to give us purchasing power in the future when we need it. Also having the price of capital at near 0% did not help.

[winner69]

Hey Aaron ….Adrian has a lot fancy job titles working for him

Incredible


https://www.rbnz.govt.nz/-/media/pro...job-titles.pdf

[JBmurc]

Hey Aaron ….Adrian has a lot fancy job titles working for him

Incredible


https://www.rbnz.govt.nz/-/media/pro...job-titles.pdf

I was just about to post that LOL... the woke agenda in full flight ..look at some of these high paid jobs ... I'd love to sit around and just observe what they actually do ? when I use to work at sea on a fishing vessel we had "observers" for around 80% of the days I worked .. they would watch us 3 guys work and take down all the fish catch data /take photos etc

-Manager Strategic Initiatives - Te Ao Māori
-Senior Adviser - Te Ao Māori
-Kaiarahi Maori - Chief Maori Adviser
-Senior Adviser D&I and Wellbeing
-Senior Adviser, Engagement, DEI, and Te ao Māori x2
-Senior Adviser - Climate
-Strategic People Partner
-Senior Adviser Transformation

[Aaron]

Hey Aaron ….Adrian has a lot fancy job titles working for him

Incredible


https://www.rbnz.govt.nz/-/media/pro...job-titles.pdf

Come on Winner stop winding me up I get enough grief from the politics thread.

Read the annual report

https://www.rbnz.govt.nz/publication...al-report-2022

Page 50-52 will give you an idea about staffing
2018 2019 2020 2021 2022
255 275 349 411 454 Total staff at 30 June (full time equivalents [FTEs])

Of the 454 FTE staff only 286 earn over $100,000. Only $66,000,000 spent on wages. Surely no fat in the RBNZ budget. Adrian on $830,001 must be money well spent.

And they do such a sterling job as well. Never has one organisation in NZ done so much to enrich the already wealthy. If ACT are in govt and with Adrian at the RBNZ it will be a selfish a*rseholes wet dream come true.

As far as the job titles go, a lot of managers, directors, senior advisors, Team Leader etc. A lot of chiefs and I guess you only need one junior person to tap the keyboard to create more money.

[Logen Ninefingers]

Come on Winner stop winding me up I get enough grief from the politics thread.

Read the annual report

https://www.rbnz.govt.nz/publication...al-report-2022

Page 50-52 will give you an idea about staffing
2018 2019 2020 2021 2022
255 275 349 411 454 Total staff at 30 June (full time equivalents [FTEs])

Of the 454 FTE staff only 286 earn over $100,000. Only $66,000,000 spent on wages. Surely no fat in the RBNZ budget. Adrian on $830,001 must be money well spent.

And they do such a sterling job as well. Never has one organisation in NZ done so much to enrich the already wealthy. If ACT are in govt and with Adrian at the RBNZ it will be a selfish a*rseholes wet dream come true.

As far as the job titles go, a lot of managers, directors, senior advisors, Team Leader etc. A lot of chiefs and I guess you only need one junior person to tap the keyboard to create more money.

So RBNZ staff numbers have dramatically increased on Labours watch, yet you throw out barbs at ACT. Unreal.