Friday, May 29, 2009

Armstrong Flat Out Wrong - And FFM

John Armstrong was generally positive about yesterday's budget, except for one glaring howler.















"The big black mark against the document is the almost cavalier gutting of the Cullen superannuation fund and with it what was left of the shallow consensus on pension policy."

Sorry John, try and get it through your head that If Cullen had been delivering yesterday's budget he would have done the same thing AND he would have suffered a credit downgrade. (Just for being the perpetrator of the mess.) Yes, the English upgrade is a major political coup for National because now we will see the cost of overseas borrowing for trading banks decline and that decline flow on to borrowers - personal and business. That alone means hundreds of new jobs but Mr Armstrong seemed interested only in pessimism.

Remember it was Michael Cullen, who sold the fund to parliament AND the public on the basis that contributions would be made ONLY in years of fiscal surplus.

FFM, Steven Joyce was right. New Zealanders don't want and won't tolerate Roger Douglas's recipe for recovery. They don't want the forty or fifty farmer suicides which were the unreported legacy of his last turn at the economic oven.

8 comments:

Anonymous said...

They don't want the forty or fifty farmer suicides which were the unreported legacy of his last turn at the economic oven.
I don't mind 50 farmer suicides. At least a couple of thousand beneficiary suicides? ABSOLUTELY!
It's called "doing the right thing".

Psycho Milt said...

So, anyone other than fascist nutbars backing FFM on this?

homepaddock said...

Would you increase your mortgage to play the share market?

If it's stupid to do that as an individual it wouldn't make sense to do it as a country.

Ruth said...

Yes, the English upgrade is a major political coup for National because now we will se the cost of overseas borrowing for trading banks decline and that decline flow on to borrowers Very true - a downgrade would have been a disaster. A few ideologues would see banks offshore funding dry up for the sake a $10 a week tax cut! I see no one interviewd by NZ Herald this morning cared about tax cuts being cancelled.

Bloggers endlessly repeating ideological/partisan talking points which fly in the face of global reality does not qualify as either educational or interesting.

Sally said...

Ruth - Interest.co.nz this morning reports -

"SBS raised its five year mortgage rate this morning by 25 basis points (bps) to 7.85%. This follows similar moves by ANZ and National yesterday, who raised three, four and five year mortgage rates by as much as 35 bps."

"The US government is now borrowing US$100 billion per week, which is pushing up long term rates internationally. Over the last month, NZ five year swap rates have risen 36 bps to 5.10%, while five year government bond yields have climbed 44 bps to 4.77%.

"The Budget released yesterday forecast government bond issues here of as much as NZ$200 million a week for the next ten years, potentially pushing up interest rates here too."

observer said...

Michael Cullen sold the fund to parliament AND the public on the basis that contributions would be made ONLY in years of fiscal surplusThe thing that the Labour Party, and most political commentators have forgotten! We should all repeat it, every day, in writing, until it is a national mantra.

James said...

"They don't want the forty or fifty farmer suicides which were the unreported legacy of his last turn at the economic oven."

That silly old socialist fool Adolf at it again eh?

So ending the stupid socialist nonsense of subsidising farmers to produce stuff no one wanted to buy,therefore making all Kiwi taxpayers poorer as a result was wrong because some farmers choose to top themselves was it Adolf?

So nothing should ever be changed because a small group may end it all?Emotional hostage taking alright with you is it Pops?

What Douglas did made many more people better off as a result....not by stealing their money to subsidise the inefficent but by leaving them more of their OWN money to use as they choose.

Got a problem with that comrade Finkelstien?

Adolf Fiinkensein said...

James, you are hereby on holiday for a month.