ADRIAN ORR our NEW RBNZ GOVERNOR

[Aaron]

Why can't monetary easing go to the people a bit more directly?

It's a bit unjust when the entire nasdaq has doubled in one year (during a pandemic) while workers have wages declining in real terms

I don't think wages have been keeping up with asset price inflation for a couple of decades at least.

I wonder what is happening to house prices in Turkey.

https://www.reuters.com/markets/rate...ow-2021-11-30/

I did hear that despite Zimbabwe's hyper inflation, if you owned a house it wasn't nearly as bad as if you didn't.

[Aaron]

Thought I would do a quick google on Turkish house prices. This is all I came up with.

https://tradingeconomics.com/turkey/...ry%20of%202010.

Not even sure what the graph represents but it is a residential property prices. I am guessing that prices increased 100% between 2018 and August 2021.

All the other central bankers must be so jealous of Erdogan. He is a bit more brazen than our own RBNZ but he is playing from the same playbook. Adrian has managed to increase house prices without destroying the NZD though.

[Aaron]

This reminds me of a quote from the great poetry of Marshall Mathers

"...I am, whatever you say I am, if I wasn't, why would I say I am,

In the paper, the news everyday I am,

I don't know it's just the way I am..."

Quoting Eminem and a picture of Gordon Gecko. You don't drive a late model european car by any chance? Just trying to build a picture.
Gordon Gecko might be more appropriate. Despite Elon accusing an honest man of being a peadophile because he didn't wants Elon's submarine amongst other things. Elon at least adds value and creates things.

Not sure why I am attacking you today, mustn't have slept well, must get back to my slave wage job.

[TeslaGod]

Quoting Eminem and a picture of Gordon Gecko. You don't drive a late model european car by any chance? Just trying to build a picture.
Gordon Gecko might be more appropriate. Despite Elon accusing an honest man of being a peadophile because he didn't wants Elon's submarine amongst other things. Elon at least adds value and creates things.

Not sure why I am attacking you today, mustn't have slept well, must get back to my slave wage job.

I drive a Tesla.

[TeslaGod]

Quoting Eminem and a picture of Gordon Gecko. You don't drive a late model european car by any chance? Just trying to build a picture.
Gordon Gecko might be more appropriate. Despite Elon accusing an honest man of being a peadophile because he didn't wants Elon's submarine amongst other things. Elon at least adds value and creates things.

Not sure why I am attacking you today, mustn't have slept well, must get back to my slave wage job.

I drive a Tesla.

Elon tweets about going for number 2s

He's also the wealthiest human in history so he can do what he wants.

[TeslaGod]

Not sure why I am attacking you today, mustn't have slept well, must get back to my slave wage job.

Hope this helps.

2921661.jpg

[Aaron]

Hope this helps.

2921661.jpg

Many Thanks.

Herald headline today "Mortgage rates have shot up but deposit rates are still low. Are banks ripping savers off?"

https://www.nzherald.co.nz/business/...RTCCI5D6BDUZU/

The answer is in the middle of the article.

"On top of that banks are able to access very cheap funding through the Reserve Bank's funding for lending programme which offers banks the ability to borrow money at the official cash rate which is currently just 0.75 per cent."

If I could borrow at .75% I am pretty sure I could be financially successful. Even at the current crappy yields the property companies look amazing value if your borrowing rate is .75%.

Where did all the debt come from to drive up the housing market? Is inflation transitory?? House price inflation isn't, it normally averages 7-8% per annum but currently much more thanks to Adrian and the team.
Where are all the libertarians and capitalists up in arms as this central planning creates great injustices in society. Shouldn't they be proposing some sort of market driven alternative to sort it out.

Even worse where are the bleeding and "kind" hearted liberals up in arms at the massive wealth inequality being created through central planning and the loss of social mobility for the lower classes.

Nothing like pointlessly screaming into the digital ether to start the day.

[Aaron]

I drive a Tesla.

Of course. I was foolishly think late model european car.

[iamaskier]

Amazing study by the treasury, the lead advisor to the govt on economic and financial policy.

House price growth decreases inequality overall. This is due to 64% of people owning houses and for most people that is their largest asset so when house prices rise they decrease the gap between the very rich and the home owners.

And here is me thinking Labour had forgotten their roots when all along they are just trying to get back to that good old NZ egalitarian ideal by boosting house prices with the help of the RBNZ.

https://www.interest.co.nz/public-po...ns-gap-between

To be honest, I'm kind of surprised at the reception this analysis got so maybe I'm missed something? Yea "overall" inequality may decrease because the gap within the 'haves' reduces - offsetting the widening gap between the haves and have nots.

When we think of government policy w.r.t. inequality though, surely what we're referencing/ meaning is the gap between the haves and have-nots? Child hunger, crappy/ transitional housing, not going to school etc... All the stuff that hinders individuals from breaking out of the cycle and getting ahead.

The analysis pretty clearly pointed out that that gaps was worsening despite being masked by the headline figure - so pretty damning really, especially given the (claimed) aspirations of the current govt...

[Aaron]

To be honest, I'm kind of surprised at the reception this analysis got so maybe I'm missed something? Yea "overall" inequality may decrease because the gap within the 'haves' reduces - offsetting the widening gap between the haves and have nots.

When we think of government policy w.r.t. inequality though, surely what we're referencing/ meaning is the gap between the haves and have-nots? Child hunger, crappy/ transitional housing, not going to school etc... All the stuff that hinders individuals from breaking out of the cycle and getting ahead.

The analysis pretty clearly pointed out that that gaps was worsening despite being masked by the headline figure - so pretty damning really, especially given the (claimed) aspirations of the current govt...

It is a scary insight to how the haves are thinking about things, I can't see much difference between Jacinda Ardern and John Key.