ADRIAN ORR our NEW RBNZ GOVERNOR

[Aaron]

Funny how media frame things.

"Chilling Warning"????

https://www.msn.com/en-nz/news/natio...080a8bbcb&ei=9

Labour and National govt have both been working towards this through immigration policy and monetary policy. Now that people are waking up to what is happening I don't know why it is chilling.

More a fait accompli turning NZ into a two class, third world society. Take a bow John, Bill, Jacinda and Chris. Chris Luxon's direction is clear he wants to speed things up so no change on that front.

I guess a special mention to Adrian Orr who really got things moving during his time at the RBNZ and he is not finished yet.

[Logen Ninefingers]

https://www.interest.co.nz/economy/1...-rule-scrapped

‘Powell stays hawkish’

‘The last big 'holiday season' event is the central banker conference at Jackson Hole.
With his eyes firmly on expected American inflation pressures, Federal Reserve Chair Jerome Powell, speaking at the symposium, emphasised the potential necessity for additional interest rate hikes in order to effectively manage the pressures they still see ahead. Despite currently waning inflation they (the US) still have "robust" consumer spending, and an expanding economy he said, and a healthy labour market. However, he did say they could hold rates steady at its next meeting in September.’

[Valuegrowth]

https://focustaiwan.tw/business/2023...de%20in%202023.

World's best central bankers

On the Global Finance 2023 report card, the other central bankers who earned a grade "A" are:Brazil's Roberto Campos Neto, Israel's Amir Yaron, Mauritius's Harvesh Kumar Seegolam,New Zealand's Adrian Orr, Paraguay's Jose Cantero Sienra, Peru's Julio Velarde and Uruguay's Diego Laba, according to the 2023 report.

At the top of the class, three central bankers -- India's Shri Shaktikanta Das, Switzerland's Thomas J. Jordan and Vietnam's Nguyen Thi Hong -- received an "A+" grade this year, the report showed.

According to Global Finance, 10 central bankers earned an "A-" grade in 2023. They are Colombia's Leonardo Villar, Dominican Republic's Hector Valdez Albizu, Iceland's Asgeir Jonsson, Indonesia's Perry Warjiyo, Mexico's Victoria Rodriguez Ceja, Morocco's Abdellatif Jouahri, Norway's Ida Wolden Bache, South Africa's Lesetja Kganyago, South Korea's Rhee Changyong and Sri Lanka's Nandalal Weerasinghe.

[JBmurc]

Funny how media frame things.

"Chilling Warning"????

https://www.msn.com/en-nz/news/natio...080a8bbcb&ei=9

Labour and National govt have both been working towards this through immigration policy and monetary policy. Now that people are waking up to what is happening I don't know why it is chilling.

More a fait accompli turning NZ into a two class, third world society. Take a bow John, Bill, Jacinda and Chris. Chris Luxon's direction is clear he wants to speed things up so no change on that front.

I guess a special mention to Adrian Orr who really got things moving during his time at the RBNZ and he is not finished yet.

Yes, it's much easier to control a country's direction if you force the populace towards hardship they spend more time working and keeping in line just to have basic shelter/food than standing up to GOVT agendas they don't agree with... and happy to keep in line if they get more perceived as free stuff(that's really just us TAX payers funds)...

[Aaron]

This guy is over the top but I wonder if NZ is following the same path. Confirmation bias from me.

https://www.zerohedge.com/personal-f...ofeudal-bubble

That all this wealth expansion is the result of unprecedented central bank intervention is left unsaid. As noted above, the role of the state and central bank is to maintain the status quo of the already-wealthy increasing their share of the national wealth and income, and loading more (very profitable) debt on the serfs.

I was also wondering if the NZX50 and other indexes are down year to date is there a point where a lot of boomers who are nearing retirement who are invested in index funds without much thought might see term deposits as a safer and more reliable alternative that could trigger an avalanche of selling on the worlds stock exchanges?

There is always talk about the exits being crowded when the music stops. Central Banks are probably ready with the punchbowl to keep the party going I suppose.

[Aaron]

Again I don't know if NZ is following the USA but suspect it is. Simple but interesting comparisons made by Bill Bonner.

Hope the link works.

https://www.bonnerprivateresearch.co..._content=share

By these measures, labor had nothing to celebrate – neither this year…nor almost any year since 1923. Real wages have not even begun to keep up with real costs.

What kind of economy is this…that presses a crown of inflation down on the working man’s head…and crucifies him on a cross of claptrap? What kind of government is it that leaves him poorer…year after year…and runs up a $33 trillion debt with his name as the guarantor?

There must be more to the story. But what?

[Aaron]

If you ever wondered how the RBNZ could get things so wrong, here is a possible reason.

https://www.newsroom.co.nz/reserve-b...ing-of-experts

If the board of the bank overlooked a critique by its former chief economist, that would be its own separate failing.

Or it could just be a bit of revisionist history to make the bank seem a bit less absurd – and blocking monetary policy experts from serving on the Monetary Policy Committee is deeply absurd.

In any case, I can take comfort that I was far from the only one who was allegedly misled here.

At least the bank will not be blackballing experts in future appointments to the Monetary Policy Committee.

[Aaron]

Karen Silk from the RBNZ on "liquidity". Probably to tricky for me to understand. I assume liquidity means low interest rates and money printing to ensure there is no real price discovery.

https://www.rbnz.govt.nz/hub/news/20...three-meanings

The objective of the prudential liquidity policy is to strengthen financial stability by lowering the likelihood of liquidity problems affecting banks and improve their ability to manage such problems.

I assume this means we will print enough cash so that struggling borrowers can be put on life support so there are no forced sales and corrections to asset prices and that reckless lending will always be supported and encouraged.

There have been long-standing and well-publicised concerns about market liquidity in fixed income markets around the world in the years since the Global Financial Crisis (GFC).

There has been gross mismanagement in the price of capital (i.e. interest rates) by central banks and no one should be surprised if investors are reluctant to buy bonds at 5% while inflation is running at 6%. Also I think there is an understanding that the currency will be deflated away before asset prices are allowed to fall or wealthy people suffer a loss.

[Aaron]

Don't normally agree with Richard Prebble but some confirmation bias got me reading his opinion this morning.

https://www.nzherald.co.nz/business/...NESWDOJM267XY/

The New Zealand economy is a pyramid scheme. The Treasury’s Pre-Election Economic and Fiscal Update (Prefu) says all that is keeping us out of a recession is increasing the population, at a rate expected to peak at close to 100,000 people a year.

In pyramid schemes, only the promoter wins and everyone else loses.

Auckland University economics professor Robert MacCulloch says “if total GDP is only growing at a bit over 1 per cent and the population is growing at 2 per cent, then GDP per capita must be declining (since GDP per capita equals total GDP over population size)”.

“In other words, from an individual perspective, we are entering a deep recession.”

As individuals, we are economically going backwards and so too is our quality of life.

Labour campaigned in 2017 to cut immigration by as much as 30,000 people a year.

We are now in a vicious cycle. The declining “wellness” leads to emigration that necessitates immigration which further reduces our “wellness”, causing more Kiwis to migrate.

Immigration has made New Zealand a more vibrant country, but mass immigration is lunacy and unnecessary.

Are any political parties talking about reducing immigration? I do not recall hearing anything from any of them about it.

[Logen Ninefingers]

Don't normally agree with Richard Prebble but some confirmation bias got me reading his opinion this morning.

https://www.nzherald.co.nz/business/...NESWDOJM267XY/

The New Zealand economy is a pyramid scheme. The Treasury’s Pre-Election Economic and Fiscal Update (Prefu) says all that is keeping us out of a recession is increasing the population, at a rate expected to peak at close to 100,000 people a year.

In pyramid schemes, only the promoter wins and everyone else loses.

Auckland University economics professor Robert MacCulloch says “if total GDP is only growing at a bit over 1 per cent and the population is growing at 2 per cent, then GDP per capita must be declining (since GDP per capita equals total GDP over population size)”.

“In other words, from an individual perspective, we are entering a deep recession.”

As individuals, we are economically going backwards and so too is our quality of life.

Labour campaigned in 2017 to cut immigration by as much as 30,000 people a year.

We are now in a vicious cycle. The declining “wellness” leads to emigration that necessitates immigration which further reduces our “wellness”, causing more Kiwis to migrate.

Immigration has made New Zealand a more vibrant country, but mass immigration is lunacy and unnecessary.

Are any political parties talking about reducing immigration? I do not recall hearing anything from any of them about it.

Well he's absolutely right, but unfortunately New Zealand has painted itself into a corner. We know that mass immigration is the only thing skewing our GDP figures so we can con ourselves into thinking we are going well. We know that mass immigration is the only thing keeping the idiotic property bubble inflated. Politicians probably wake up in a cold sweat at the prospect of a deep recession and a bursting property bubble. The fact that our creaking infrastructure can't cope with mass immigration is just something the populace will have to deal with. Clogged roads, clogged hospitals, clogged GP clinics, clogged schools....lunacy but deemed to be necessary.