he explained he took the path of least regret (resistance) and everyone in the room agreed that boosting all their house prices 30% instead of having them fall 10% was definitely the path of least regret.
Also Adrian explained "going it alone on monetary policy in the face of a global shock takes enormous courage," Orr observed. ENORMOUS COURAGE??? and that is why the RBNZ has pretty much followed the playbook of the rest of the western world as Orr is a gutless wimp.
Tradables inflation has jumped from 0.5 to 8.5 per cent, accounting for half the overall increase, while nearly half of the other, domestic half is down to residential construction costs. Get those immigrants flowing back in to keep the virtuous cycle rising.
The RBNZ has totally failed in its mandate, admittedly during difficult times but difficulties mostly brought on by 30 years of easier money and lower interest rates.
Chloe Swarbrick tried to formally investigate the results of his policy but was blocked by Labour.
I never like the term "elites" (to vague) but I imagine all the people on those committees are perfectly happy with rising house prices. What is galling is that the bloated public service gets paid about 30% more on average than people in the private sector and for a lot of the Arts graduates in Wellington there would not be any highly paid roles for them outside government in private industry.
No one actually believes central banks will fight inflation.
Can’t see that happening in NZ ….cos inflation is all imported eh
Sweden didn't print money or 'splash the cash' as they let Covid run (pretty much) yet their inflation is high - how come if it isn't imported? https://www.usnews.com/news/business...ate-since-1991 "The consumer price index rose 6.4% in April from a year ago and was up from 6.1% in March, according to official figures from Statistics Sweden."
I guess Dobby because all central banks are doing the same thing. Maybe it is a global inflation. Is "Inflation always and everywhere a monetary phenomenon"?
if this information is correct the combined balance sheet for the four most important central banks in the world: the Fed, the European Central Bank (ECB), the Bank of Japan (BOJ) and the People’s Bank of China (PBOC).
On the eve of the great financial crisis in 2007, their combined balance sheets stood at just $5 trillion. Today the figure is $31.5 trillion.
15 years 530% increase in money or a 35.3% (530%/15yr)increase per annum.
The central bankers are caught now. The NZ treasury in the paper today said they were unsure of the direction of the OCR.
9% inflation in the UK, 4% drop in the S&P 500. Which way will they go? We know Adrian will take the path of least regret(easy option), which means he is more worried about the price of his houses and keeping asset values up. Only a matter of time before he flips, but how much inflation is there in 15 years of 35% money growth. Will more money solve the problem, much like more debt solved the 2008 debt crisis, are they just playing for time in the hope that growth will save the day.
I guess Dobby because all central banks are doing the same thing. Maybe it is a global inflation. Is "Inflation always and everywhere a monetary phenomenon"?
if this information is correct the combined balance sheet for the four most important central banks in the world: the Fed, the European Central Bank (ECB), the Bank of Japan (BOJ) and the People’s Bank of China (PBOC).
On the eve of the great financial crisis in 2007, their combined balance sheets stood at just $5 trillion. Today the figure is $31.5 trillion.
15 years 530% increase in money or a 35.3% (530%/15yr)increase per annum.
The central bankers are caught now. The NZ treasury in the paper today said they were unsure of the direction of the OCR.
So RBNZ and our 'money printing' would have little effect on all that and our inflation is largely imported?
It is foolish to think that we control anything at the moment - the big players actions are the ones that matter and affect things globally.
So RBNZ and our 'money printing' would have little effect on all that and our inflation is largely imported?
It is foolish to think that we control anything at the moment - the big players actions are the ones that matter and affect things globally.
Maybe, but there is appears to be a direct link to RBNZ policy at the start of the pandemic and house price inflation. Also probably more than coincidence inflation started rising when the govt started banking money into businesses and peoples accounts over the pandemic.
I have only seen the headline but Grant Robertson's plan to fight inflation (cost of living crisis) is to borrow money and hand it to people?
What a f**king genius.
How about sack Adrian Orr and reduce the inflation target to 0%. If a 1%-3% inflation is desirable why is 6% so bad. Why do we not count asset price inflation, house price rises appear to be flowing into rent increases?
My thinking is probably too simplistic and I am probably missing something.
It is and you are.
I believe the payments help the middle live through the inflation rather than tackle it.
Good to hear definite views no matter how stupid, although your second line creates doubt. You “believe” or you “know” the payments will help?
As we all know inflation is like a regressive tax or a thief in your wallet as the RBNZ describes it. Why would you not address the cause of the inflation rather than add fuel to the fire.
Before you throw your hands up like a retarded David Parker or Grant Robertson and say it is all imported. You don't think/believe/know the RBNZ more than doubling its balance sheet in one year between 2020 and 2021 might have played some part in the current inflation issue.
Robertson signed off on the money printing and the removal of the LVRs, both of which required the agreement of the Government of the day. He was also warned by official advisers that money printing would cause a burst of house price inflation and a widening of inequality. But he and the Reserve Bank also knew that burst would create a ‘wealth effect’ that would support consumer spending and business confidence through the worst of Covid. That’s not a bug. It was the feature. Quote Bernard Hickey.
Originally Posted by winner69
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