ADRIAN ORR our NEW RBNZ GOVERNOR

[Aaron]

I hate to pile on with Jacinda being responsible for every cry baby on the front page of the paper but she and Labour and Greens have presided over the biggest transfer of wealth from current and future renters, to asset owners, in the history of New Zealand. The reserve bank was also complicit in this. If Bernard Hickey leads a political party at the next election maybe I will vote for them.

https://www.rnz.co.nz/national/progr...ers-and-losers

John Key would be proud.

And the losers out of all this will be hit hardest with the inflation tax currently being imposed on everyone.

[Aaron]

A small insight into the thinking of a central banker.
https://nypost.com/2022/02/04/uk-cen...or-big-raises/

It would be interesting to know whether he showed the same concern while he was pumping up asset prices.

[Aaron]

Labour defending inflation under their reign.

https://www.msn.com/en-nz/news/natio...?ocid=msedgntp

Inflation has gone nuts but they blame "supply issues". Also jacinda uses the "well other countries are doing it too" argument. Sounds like if USA, Japan, UK wanted to jump off the harbour bridge labour would join them.

Am I just a fringe fruit cake. Milton Freidman said inflation is always and everywhere a monetary phenomenon. Has this been disproven?

https://www.rbnz.govt.nz/markets-and...-sheet-at-work
In response to COVID-19 we’ve introduced a range of initiatives to provide additional monetary stimulus and to support the smooth functioning of New Zealand’s financial markets. These initiatives have enlarged our balance sheet from its December 2019 (pre-COVID-19) level of $24.60bn to $89.18bn at the end of December 2021. During the month of December the size of our balance sheet increased by $1.41bn.

The RBNZ is responsible for managing inflation, its only tools are monetary, therefore you could deduce that monetary policy plays a large role in causing or reducing inflation.

If inflation is a problem (and the paragraph above might indicate where the inflation has come from) why is the RBNZ not doing anything about it.

They f**ked up by overreacting to covid but now seem reluctant to do anything to fix this.

I am guessing inflation will be easier to defend than a recession or slowing down of the economy prior to an election so the root cause gets ignored and incompetent people at the RBNZ get to keep their job.

To maintain "independence" I don't imagine parliament can sack the RBNZ governor. I wonder who can??

[Aaron]

Inflation is getting close to a crisis according to this article.
https://www.msn.com/en-nz/news/natio...?ocid=msedgntp

Inflation is always and everywhere a monetary phenomenon.

What is the RBNZ doing about the problem they have created, along with other central banks around the globe.

[Aaron]

Ray Dalio obviously expects inflation to continue and he expects central banks will keep devaluing their currencies.

https://www.linkedin.com/pulse/where...ity-ray-dalio/

I was hoping for a better buying opportunity before levering up.

[Logen Ninefingers]

Central Banks have to raise rates or they will face the guillotine. The peasants are usually pretty placid but every now and again they will revolt and revolt hard, usually when they can't afford to eat.

[Aaron]

Central Banks have to raise rates or they will face the guillotine. The peasants are usually pretty placid but every now and again they will revolt and revolt hard, usually when they can't afford to eat.

A lot of countries survive with high inflation, turkey, argentina, venezuela etc.

If you read the article and look at what is going on, inflation is preferable to increasing taxes and balancing budgets. People with assets will still be OK. It is the poor who get hit hardest. Printing money is more politically preferable to raising taxes. Printing money increases inflation.

I selfishly want stable money so that asset prices come down and I have a chance at social mobility. History has apparently shown that will not happen. I guess we need to see what happened in the past to invest for the future.

maybe the central banks pretending to fight inflation will set off a crash of the financial markets. At that point in time I borrow on the house to buy shares on margin in companies that already have debt. I then rely on central banks to inflate away the debt rather than stablise the money supply. Risky as it relies on the central banks continuing to be as weak and retarded as they have to date. No major interest rate rises, more money printing after an attempt to tighten, that would be my guess.

[Aaron]

How does Adrian Orr keep his job.
https://www.msn.com/en-nz/news/natio...?ocid=msedgntp

Inflated assets, inflating prices no action being taken to ensure price stability.

If history is a guide the RBNZ may not be responsible for the protests in Wellington but they might be responsible for the feelings of anger and frustration that some parts of society are feeling.

[winner69]

How does Adrian Orr keep his job.
https://www.msn.com/en-nz/news/natio...?ocid=msedgntp

Inflated assets, inflating prices no action being taken to ensure price stability.

who can sack him?

[Aaron]

who can sack him?

I had assumed the govt would be constrained from being able to sack him to keep some sort of independence but like everything it is up to our elected officials and the queen.

90Removal of Governor from office
(1)
The Governor-General may, at any time for just cause, on the advice of the Minister given after consultation with the Attorney-General, remove the Governor from office.
(2)
The Minister may give the advice—
(a)
for a cause referred to in section 92(1)(c) or (f) only if the board has made a recommendation under section 91 that the Governor be removed from office:
(b)
for any other just cause whether or not the board has made a recommendation under section 91 that the Governor be removed from office.


91(c)failure to adequately perform or exercise the functions or powers that are delegated by the board;