ADRIAN ORR our NEW RBNZ GOVERNOR

[peat]

Bernard Hickey writes what I consider to be a scathing piece about Orr and the RBNZ because the way I read that article it blames a large chunk of inflation, (the housing component) on the RBNZ and their lifting of the LVR and their Covid induced bond buying

The dirty little secrets inside our nation of inflation (substack.com)

[Recaster]

Thanks for posting that Peat. Doesn't seem to be behind a paywall. Cheers.

[Aaron]

Thanks for the posts.

Interesting stuff but a bit depressing on a day we remember the futility of war and the ultimate sacrifice made by earlier generations to ensure a better life for future generations.

Almost the complete opposite now with future generations likely to be worse off than the current generations.

[Aaron]

Winners mate Michael Reddell popped up randomly on you tube.

https://www.youtube.com/watch?v=-PxXVF05l9M

The interviewer seems awkward.

Also in todays herald a case against the reserve bank and the finance minister.

https://www.nzherald.co.nz/business/...WES3N2URJZROM/

The irony that after overseeing the biggest transfer of wealth in NZ history David Parker wants to look at the fairness of our tax system. I guess we could blame monetary policy first for creating the tax free capital gains and tax policy second.

https://www.beehive.govt.nz/speech/s...our-tax-system

haven't actually read this yet, better get onto it before commenting.

Although this is nationals response. The tax system is fair????

https://www.msn.com/en-nz/news/natio...4b15c3a509e622

Chris obviously wanting to help aspirational voters rather than bottom feeders.

Although not related to RBNZ Michael Reddell on immigration

https://www.newshub.co.nz/home/new-z...g--expert.html

And another but not sure about the qualifications of a Cambridge-based economic commentator.

https://www.nzherald.co.nz/nz/john-g...ORLN4EVSHC6RM/

Personally mine is not an economic argument against immigration, I just don’t like lots of people and think we should invest in the people already here. Too many townies no good for anyone.

[peat]

Also in todays herald a case against the reserve bank and the finance minister.

https://www.nzherald.co.nz/business/...WES3N2URJZROM/

Personally mine is not an economic argument against immigration, I just don’t like lots of people and think we should invest in the people already here. Too many townies no good for anyone.

totally
would love to read that article but dont subscirbe to NZHerald anymore
Orr is not a RB govenors a88hole.
Reddell just slays him over and over again. Forget the tane mahuta story, Where's the economic commentary Adrian?

[Aaron]

Tim Hazledine an economics professional says that inflation is supply chain related, nothing to do with money printing by the RBNZ or historically low interest rates.

He is more worried that the RBNZ talking about controlling inflation will cause people to lose jobs and suggests what we might do to stop the deflation.

Reading this crap makes me want to buy a pitchfork.

https://www.nzherald.co.nz/business/...AAF3F7KNVWSA4/

Is it true that constantly rising prices are good for people and the economy. If so what is the proof. Currently all I see in NZ is rampant asset price inflation, a widening gap between the asset owners and the rest and a loss of social mobility meaning you can't become one of the asset owners. Probably a bit extreme at this stage, but it is the direction we are headed and all these economists suggest are ways to speed this up.

Is it also true that the financial system would collapse if debt stopped expanding. Maybe that is the real reason, no one wants to be around when the ponzi breaks.

Any economists posting on share trader? I would be interested to know.

Jenny Ruth was also in the herald this morning but I can't seem to find her articles online. She was criticising the RBNZ but not for the same reasons as me.

[winner69]

Hey Aaron …did I read it right in that Prof Tim was saying we should cut GST by 5% points

That would be good …even for those who already spend more than 100% of their income.

[Aaron]

Hey Aaron …did I read it right in that Prof Tim was saying we should cut GST by 5% points

That would be good …even for those who already spend more than 100% of their income.

Normally I would support dropping the rate on a regressive tax like GST but if I understand him correctly as it is just a brief supply chain inflation problem (nothing to do with money printing or interest rates) we could get through the short term price increases by taking 5% off the price of everything, instead of raising interest rates and ending the bull market in asset prices.

Not only could we keep pumping asset prices but with the drop in GST even less wealth distribution going on.

But with all the wealth accumulating at the top no doubt amazing trickle down effects would result, creating a utopia for everyone.

What a genius.

[winner69]

So with inflation running rampart across there’s not much said about the Modern Monetary Theory these days

[Aaron]

Só with inflation running rampart across there’s not much said about the Modern Monetary Theory these days

Isn't MMT just a flash way to say money printing?

From what I can gather when the money is printed and pumped into financial institutions it is capitalism and asset prices are inflated.

When money is printed and handed to people directly it is socialism and you get CPI inflation.

Neither are good for society long term as far as I can tell. After the initial high and euphoria of the first round of printing, larger and larger amounts of money and debt are required each time to keep it going. Much like methamphetamines, great for performance enhancement initially but once over the peak not so good.

That said it has done well for the last 22 years, no reason we can't get a few more decades out of it before the currencies collapse and become worthless.