ADRIAN ORR our NEW RBNZ GOVERNOR

[Aaron]

Article in the herald this morning criticising Adrian and the RBNZ. A Jenny Ruth article so does not seem to appear in the online herald. here is a link if you have a business desk subscription.
I think it may be the same article.

https://businessdesk.co.nz/article/o...money-printing

Much easier to criticise in hindsight but when Adrian was talking about setting up the trading banks for negative interest rates some people must have been thinking that he was an idiot at that time.

Why are trading banks making big bucks??

https://www.msn.com/en-nz/news/natio...c397abf2fb7f81

According to John Kensington, head of banking and finance at KPMG.

Kensington explains how New Zealand, up until Covid-19, had an "astonishing" period of economic growth where people were confident and bought up large in property, which in turn made the banks grow.

Really? are you sure it wasn't that since the 2008/09 bailouts people know that central banks had their backs so had no concerns taking on larger and larger amounts of debt. Is more debt the same as economic growth? Is John confusing economic growth with the wonder years when we had asset price inflation without the horrible CPI stuff that we have now. I guess as rents followed house prices up and people started living in cars it was not inflationary.

John Kensington would be a lot smarter than me so I guess he must be right. He also points out that the people making out like bandits in the NZ property market with Kiwis buying houses off each other for higher and higher prices is the Australian bank shareholders, so a large chunk of wealth heading offshore to Australia. Thanks Adrian.

[Aaron]

https://www.msn.com/en-nz/news/natio...59261aae9eca20

I think we need to tell the world about our thin ozone down south as well and the increased chance of skin cancer.

[Aaron]

I am not an expert but the largest increase in wages ever recorded. Is that inflationary??? Does this rise in prices follow excessive money printing?? Is the Funding For lending (FLP) program that finishes in December 2022 inflationary as well???

https://www.nzherald.co.nz/business/...GDRDDS733LX7A/

Also unemployment at record lows still despite the constant angst in the media about rising interest rates and rising unemployment. I would imagine most of the commentators are really worried about declining house and asset prices but don't like to expose themselves as selfish self-centred aholes.

The leveraged investors (and govt) will appreciate that Adrian is helping them long term as long as interest rates stay low while inflation runs rampant. I do not think this is an official mandate of the RBNZ but you would hope that Adrian is working on an unofficial mandate otherwise he looks like a fool and a total failure at the job he was entrusted to do which was to keep prices rising at 1-3%. maybe he thinks 7-8% is better.

[winner69]

Aaron - seen this?


Making stuff up and misleading Parliament

https://croakingcassandra.com/2022/1...ng-parliament/

[Aaron]

Aaron - seen this?


Making stuff up and misleading Parliament

https://croakingcassandra.com/2022/1...ng-parliament/

So his arguments for his failure are that

1/ inflation in NZ is not as bad as other countries. I don't think that is in the Reserve Bank Act as a target. Not being as bad as other countries. Although most central bankers originally argued for crazy monetary policy "because everyone else is doing it"

2/ Its Putin's fault and if he did not invade the Ukraine inflation would have been within his target. "Yeah Right"

Politicians can't be too unhappy with Adrian, issuing bonds and giving money to people to buy votes can't really happen as easily or at such low interest rates if the RBNZ does not print up some cash to buy them.

[Aaron]

I guess carbon credits will become more and more valuable as countries continue their grow and consume economies. Sad that NZs productive farming sector and employment in NZ takes a hit so Europeans can maintain their lifestyles with a clear conscience regarding climate change. What a load of BS. Farming pine trees is not particularly good for the land from what I understand. Apparently pine needles make a great organic herbicide though.

https://www.nzherald.co.nz/business/...OOVFJRSK44D5Q/

Dump costs for climate change onto farmers as well and it starts to sound more like townie politicians not wanting to upset their large city voter bases by dumping it onto the farmers as there are less of them to vote. Impeding one of the most important productive sectors of the economy is probably not in our long term interests but it will help politicians stay in power by responding to townies concerns about climate change.

I imagine every Aucklander is now insisting on catching a bus to work instead of sitting in traffic alone in their car.

[winner69]

I guess carbon credits will become more and more valuable as countries continue their grow and consume economies. Sad that NZs productive farming sector and employment in NZ takes a hit so Europeans can maintain their lifestyles with a clear conscience regarding climate change. What a load of BS. Not that farming pine trees is particularly good for the land from what I understand. Apparently pine needles make a great organic herbicide though.

https://www.nzherald.co.nz/business/...OOVFJRSK44D5Q/

Weird world eh Aaron

A guy on the radio the other day wa talking about how Germans are cutting down heaps of trees this winter so they can keep warm (shortage of gas and expensive energy blah blah0 ..... he was saying bugger emmisions and pollution as more important to keep the fire going and keeping warm

[peat]

Aaron - seen this?


Making stuff up and misleading Parliament

https://croakingcassandra.com/2022/1...ng-parliament/

he loves to have a go at the peeps where he used to be.
Orr is ideologically driven, and riding the ego wave of his success with the Cullen Fund (when really any monkey could have done well enough), and he really didnt see the tide was turning until way too late.

[Baa_Baa]

“Following the Reserve Bank board’s unanimous recommendation to me, I am pleased to reappoint Adrian for another five-year term, effective from March 27,” Robertson said.

[Aaron]

[FONT="]“Following the Reserve Bank board’s unanimous recommendation to me, I am pleased to reappoint Adrian for another five-year term, effective from March 27,” Robertson said.


[/FONT]

What a joke
“Adrian has demonstrated the skills, knowledge and experience to help steer the financial system through the 1-in-100 year economic shock of the pandemic. I am happy to endorse the recommendation of the Board. I have full confidence that he will continue to display the same integrity and leadership in performing his duties as Governor in what is still a challenging environment,” Robertson said.

A 1 in 100 year over-reaction by the Labour govt to a pandemic. I bet they would not do the same thing twice. Adrian might as he seems incapable of admitting to a mistake.

ACT leader David Seymour said he wrote to Robertson in September outlining the reasons why Orr should not be given a second term.

“He has shown poor leadership throughout his term, punctuated by high staff turnover and a failure to accept any responsibility for these issues.

“When appearing in front of the Finance and Expenditure Committee last week he refused to accept the Reserve Bank has got anything wrong, despite massively overstimulating the economy, causing consumer price inflation, asset price inflation, inequality, and now higher interest rates.

“He also carried out an extensive and expensive review into New Zealand banks’ conduct and found nothing of note but refuses to admit as much and claims changes are still necessary. He is incapable of accepting a mistake.”

One of the few times I agree with David.