Thursday, May 8, 2008

Econo-colpyse now!

Econo-colypse or econo-collapse!

Adolf and I have tended to be more pessimistic than the mainstream with the impending recession, that judging by today's news is already with us.

I blogged some sad tidings earlier today.

Now, Bruce Sheppard of the NZ Shareholders Association, who previously warned of financial collapses in our banking sector, now warns of economic collapse.

In a disturbing entry, Sheppard says, thanks to our high debt levels, New Zealand faces property and financial meltdown, the OCR will be 3.5% by Christmas, not that it will matter much, the Kiwi will drop below US50c and A70c, petrol will hit $3 a lire, there will be inflation, stagflation and a depression.

By election time, there would be so much civil unrest, it won't be worth whoever winning such an election, and foreign merceneries might be drated in to restore order, as we don't have sufficient troops ourselves.

A bankrupt country will have to sell off state'assets' , Universal super will go, as will Kyoto, the free trade agreement with China, and state benefits will be means tested.

Eventually, Australia will give us "an offer we can't refuse, and Tasmania gets a promotion."

Oh dear! Seems Adolf and I were the optimists!!


Barnsley Bill said...

Marvelous post.
The economy is tanking so fast we have decided to return to Auckland. The opportunities to make money are too great to miss. We had intended to stay up here a year or two longer but Cullen has fucked things a lot faster than I thought he would.
House sales have halved, new listings have quadrupled. Time to start buying will be just after the budget... (got to make sure the history teacher does not fuck around with the rental market/ LAQC regime)....
And if national win in November I hereby promise to start paying income tax again. Last time I did was the week after Harry was sworn in as PM at the end of 2005

ISeeRed said...

New Zealand courted bankruptancy in 1984 and managed to avoid becoming part of Australia. The necessary reform and restructuring will be painful, but it'll just be a case of deja vu for Sir Roger Douglas. Thank God he's still around.

Anonymous said...


deja vu for Sir Roger Douglas.

Actually no, because in retrospect Douglas didn't really do that much - and some of the ideas he's pushing now (e.g. state funded vouchers for health & education) will only make the problem worse.

Douglas undid some of the evils of Muldoonism, but it was Richardson who really started the reforming process. It's another Richardson we need, not another Douglas! --- and given the state of the econony, we need a Richardson who will move faster, act more decisively, and "finish the job in one fell swoop"