Thursday, July 24, 2008

Where to now



Bollard has just cut the OCR by 25 points and the dollar has responded.

Any possible benefit to be had by lower interest rates , assuming that the banks are in a position to pass them on ( which I suspect not) has just left town. The two F's - food and fuel - just got more expensive.

Our way of thinking for the last 50 years is stuffed and our standard of living is going down by the day.

The only place to start is to cap and then lower central and local government spending, add a hellava lot more accountability to this spending and give the people more say in the spending of their own money by lowering taxes.

The third F -the $60,000,000,000 FEATHER bed that the government has carefully made for their ultimate benefit is UNSUSTAINABLE.

7 comments:

dad4justice said...

The party is over folks , get hard and forget PC niceness as things are going down. No place for political nitwits and wimps, the money squeeze is on.

pdm said...

This is a blatantly political move.

With inflation running in excess of 4% and his main role to reduce it shouldn't he be raising the rate?

Lou Taylor said...

You are right pdm
But if anyone believes that the Reserve bank is independant then they probably believe in the tooth fairy as well.
It doesn't matter what Bollard does, up or down , The economy is so tight that any possible margin or advantage it may create will be well snaffled long before it reaches Joe Public.

adamsmith1922 said...

Lou
My apologies for misidentifying the author of the post when I commented over at The Inquiring Mind, I have now corrected the reference thanks to Fairfacts pointing out my error. Again sorry

Lou Taylor said...

No problem
I don't do this for the glory but so my kids will inherit a great country

Anonymous said...

"Where to now"

Australia, Singapore, Hong Kong, Shanghai?


With inflation running in excess of 4% and his main role to reduce it shouldn't he be raising the rate?


Absolutely. That's how we know that this was politically motivated. See Brash's absolutely damning response.

so my kids will inherit a great country
then you're gullible as well as foolish.

Lou Taylor said...

Don't bother commenting on my posts and calling me gullible and foolish under an anonymous name