ADRIAN ORR our NEW RBNZ GOVERNOR

[JBmurc]

I think he got banned.

Wonder what for .. ?? didn't see anything that bad ... but ST is much stricter than the likes of HC

[Aaron]

What sort of emissions reduction could be achieved by not having an extra 50,000 people come into the country each year?
https://www.nzherald.co.nz/business/...KALEX2PK5BP7A/

Seems silly to worry about cow farts when you are working against emissions by running an economy based on more people consuming more stuff. (stuff manufactured in China who use coal as a main source of energy)

[Aaron]

Reading the herald this morning enraged once again at central banks.

https://www.nzherald.co.nz/business/...I7P5VJCZ2D4VI/

Tough guy Orr may be raising interest rates a bit, but funding for lending goes on. I guess FFL juices the housing market without affecting the CPI too much.

Jenny Ruth had an article in the herald but they don't seem to show up online, I guess as she writes for a competing publication.

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

Former Bank of England (BOE) governor Mervyn King has decried money printing by central banks around the world in reaction to the covid-19 pandemic, labelling it a mistake.

Interesting article, basically central banks are not doing any self assessment as to whether their actions are a good idea.

I guess investors on this site will be happy that yields are going up on fixed interest and even dividend yields, provided the economy doesn't crash and take down earnings.

Sad that central banks feel the need to constantly save the speculators.

[Aaron]

I wonder if Japan is a glimpse into our financial future.

https://www.zerohedge.com/markets/ja...l-markets-bank

[ynot]

I wonder if Japan is a glimpse into our financial future.

https://www.zerohedge.com/markets/ja...l-markets-bank

Yen holders diving into crypto sounds desperate.

[Aaron]

Yen holders diving into crypto sounds desperate.

Sounds suicidal.

An excerpt from Bill Bonner's daily newsletter. Bill is a bit too libertarian for my tastes but always interesting to read.

Either they voluntarily abandon their inflation policy…or let it run its course.

The pain will be severe, one way or the other. Stopping inflation now will mean huge losses on stocks, bonds, and real estate. Businesses will go broke. Millions will lose their jobs as the economy corrects two decades of Fed mischief.

But sticking with the inflation policy will be much worse. The longer it goes on, the more distorted, indebted, and fragile the economy becomes. ‘When the money goes, everything goes’ — including the political system…and the social norms that a civilised society depends on.


That said Japan is still a very cohesive society, but I guess the yen is only just starting to lose the trust of the world markets.

Tough choice but Adrian earns over $700,000 a year and owns a couple of houses so you can guess which way he would lean if making a choice between the two options.

Be great to hear how Tesla God is getting on, his faith in central bank lunacy may have been shaken. It may be tall poppy syndrome or envy but it is hard not to enjoy (just a little bit) the potential downfall of someone who has been so definite/smug.

Maybe "downfall" is too harsh but "an opportunity to see an alternative view".

[winner69]

Aaron …hope you’ve read this Orr speech to an international audience

Awesome stuff

But no answers to current problems …never mind as Reserve Bank is akin to the being Tāne Mahuta of New Zealand’s financial landscape.

https://www.rbnz.govt.nz/hub/publica...eech2022-06-13

[peat]

its not his Maori metaphors that concern me , other than that they are a distraction. I actually think they are the right way for an org such as a RB to play the Maori card
But his inability to read the tea leaves and sell those bonds he bought at the worst time ever., that is a sacking offence.