ADRIAN ORR our NEW RBNZ GOVERNOR

[FTG]

Negative 2% to 3% max because people won't deposit cash into retail bank's, you would be charged for depositing your salary/and savings into a bank account.

Following the decreasing trend line of the OCR over the last 40 years, this should happen sometime this decade or early 2030 depending on how the world economy play's out.

That's when they will replace the kiwi.

Word to the wise, you might want to start growing your asset base.

Time's running out.

Well, none of us really know, but I'm sure we can agree that only time will tell huh.

Re your negative 2-3% max figure, what I would respectfully suggest is that you may need to take a much broader view!

For us to go back into a sustained negative interest rate environment, some structural changes with the macro-economic situation will likely have occurred. If we then went through a period of "Bail-IN's" (Note: not bail outs) then unbelievably from today's viewpoint, but quite conceivably from a non-emotional perspective, we could then see interest rates FAR lower than negative 3%.

[Aaron]

Interesting read, pretty much a given that govt debts get written off at some stage and money supply permanently increased.

https://www.stuff.co.nz/business/opi...itative-easing

Debt is the way to go but it is hard to find an asset with any yield in todays environment.

I guess if I believed in the inflation scenario with no significant rises in interest rates buying property companies on margin would be the way to go long term. Supercharge my debt with the debt the property companies already have, plus margin debt. Even better drawdown on my revolving mortgage to add even more leverage.

Does anyone think that is a smart idea or reckless? If interest rates did rise my equity would be wiped out pretty quick as property companies have an inverse relationship to interest rates.

[dobby41]

Sounds a lot like Modern Monetary Theory.

[TeslaGod]

Debt is the way to go but it is hard to find an asset with any yield in todays environment.

I guess if I believed in the inflation scenario with no significant rises in interest rates buying property companies on margin would be the way to go long term. Supercharge my debt with the debt the property companies already have, plus margin debt. Even better drawdown on my revolving mortgage to add even more leverage.

Does anyone think that is a smart idea or reckless? If interest rates did rise my equity would be wiped out pretty quick as property companies have an inverse relationship to interest rates.

I retired in my mid 30s doing that (44 now)
.
Elon Musk doe's it, Warren Buffet, Donald trump and so do countless other Billionaire's.(I'm not a billionaire..yet)

It's how we (avoid ) paying tax on our ridiculous access to cash and liquidity.

Come on Aaron who do you think the Central Banks are protecting? You and your tax paying job! Please.

I might seem sarcastic but I am only passing on my own real world experience, take my posts as you will.

Lesson 2:

Our Central Bank is making it harder to do what we have achieved.. basically you need someone to pay taxes for doctors, Fireman, road's, your prime minister's lipstick etc.

You can't have everybody becoming rich pricks ,

I mean who would pay for it all?

[Aaron]

Interesting view, only an opinion piece though and more directed at productive businesses, rentiers who add little to the economy absolutely love low interest rates it is great for their business model.

https://www.interest.co.nz/opinion/1...more-harm-good

[TeslaGod]

If you have seen the Netflix series Squid game it is a very accurate series on money and life.

The game is rigged towards the wealthy

Learn those lessons as you climb towards achieving financial success..or as the graphic series show you will face the consequences.

[TeslaGod]

If you have seen the Netflix series Squid game it is a very accurate series on money and life.

The game is rigged towards the wealthy

Learn those lessons as you climb towards achieving financial success..or as the graphic series show you will face the consequences.

Office of Inspector General to review whether Fed officials' trading activity broke ethics rules or the law

Fed Vice Chair Richard Clarida, Dallas Fed President Robert Kaplan and Boston Fed President Eric Rosengren all traded just "Before" and during the Covid-19 pandemic


https://www.cnbc.com/2021/10/04/offi...ndroidappshare

Don't expect to much to come from this, the Fed has too much power...understanding yet?

What are you planning on doing about it?

Complain on the comments section of interest.co.nz?

Or learn how to benefit yourself.

[Aaron]

I thought that front running the fed was a common investment strategy. If the Fed is going to buy it, get in first. I guess the Fed officials could front run the Fed with much more certainty.

I read also that a large chunk of Jerome Powell's wealth is in equities so he lacks any motivation to let asset prices correct.

[winner69]

Since Orr started numbers of staff at RBNZ has increased 60% to over 400

[Aaron]

Since Orr started numbers of staff at RBNZ has increased 60% to over 400

Have you been reading the RBNZ annual report?
Where do you get information like that? I tried the annual report to verify the news and see since 2018 staff expenses have gone from $32mill to $54mill or 69%
What do they all do?

Obviously Adrian doing his best to drive inflation at a local level as well. Money well spent no doubt.