Thursday, October 29, 2009

Bank Governor Backs English

Update: Since the Reserve Bank announcement this morning the Kiwi has dropped a whole cent against the $US and three quarters of a cent against the $A. Good news for exporters. Good news for all New Zealand.

Adolf started to read a spittle flecked rant by Cactus and gave up after the first paragraph.

For a more rational analysis, one could do no better than look to the governor of the Reserve Bank who had this to say when he announced today's decision to leave interest rates unchanged for the best part of a year :-

"In New Zealand, the housing market has reversed some of the decline in prices experienced over the past couple of years and a very gradual increase in household spending appears to be taking place. Government spending is also supporting activity. Business spending, however, remains weak and credit growth is very subdued."

If the governor and the finance minister took advice from Cactus and her shrieking friends from the far right, by now we would have blown our economy out of the water by overloading it with unemployed ex civil servants with no job opportunities in the private sector.

It's all to do with timing and the right time to slash the public service is when private industry is ready to soak up the drones and put them to productive work rather than simply transfer them from the public sector payroll to the WINZ payroll.

The shouters seem to ignore John Key's oft repeated statement that he does not intend to make wide ranging cuts 'during a recession.' That's the right call. The fundamentalists of the right should learn to be patient and see what happens when we actually come out of recession.

11 comments:

Lou Taylor said...

The thing is Adolf, we aren't going to come out of the recession in any great shape. Not back to the easy days of the last decade that Cullen pissed against the wall anyway.

Borrowing billions to ensure that peoples lifestyles are maintained isn't a solution. It's putting the taxpayer against the wall.

If English doesn't stand up for taxpayers then we may as well vote Labour. At least they are honest in their intentions to shaft us.

Anonymous said...

simply transfer them from the public sector payroll to the WINZ payroll.


Not when you ban the civil service, unionists, and Labour voting fucks from every getting a benefit


60%. Never a better time to change NZ.


Never a better time to wipe out Labour and the Unions forever.


Frankly, I could see a good reason to dissolve parliament, campaign on a 5 year term and FPP, have a snap election, get a National majority government on 60%, and the change the fucking constitution

Redbaiter said...

OK Adolf, so Key is working to a master plan. (So where does the sucking up to Maori fit into it?) I'm watching keenly for the results, especially the transfer of the public servants. Any idea when that might happen?

Redbaiter said...

" we would have blown our economy out of the water by overloading it with unemployed ex civil servants with no job opportunities in the private sector"

Jezuzz. They're merely participating in grossly overpaid work for the dole schemes now, with the added disadvantage that they're cluttering up the economy with their dumbfuck regulations and otherwise seriously impeding the recovery.

Get the bastards cutting gorse for a pittance. A much better all round result.

Sus said...

" .. rather than simply transfer them from the public sector payroll to the WINZ payroll."

Two reasons in favour of doing just that:

1. Less fiscal drag
2. Fewer to do harm

And what is 'rational' about hailing the decline in the housing market and keeping interest rates artificially low?

Doesn't that sound all too familiar -- or have you forgotten the term 'asset bubble' already?

Sus said...

Correction: s/be 'hailing the reversal ..'

sagenz said...

good call addie. I refrained from posting on that very subject from lack of time

Grant said...

Good post Adolf. I notice the labour party blog is quoting this cactus kate as some sort of authority. Who is she? As far as I know she lives in Hong Kong and is just a political groupie. How desperate is that? What tools.

baxter said...

It's all to do with timing and the right time to slash the public service is when private industry is ready to soak up the drones and put them to productive work rather than simply transfer them from the public sector payroll to the WINZ payroll.......I don't disagree with your comments but the Government could give a strong lead by getting rid of the useless Commissioners and ex Labour icons like Cagill and Palmer and the associated Commissions, instead they are been sustained in their bludgery while some Civil servants are being dispensed with, who had some justifiable expectation of a secure career and have little to fall back on.

Anonymous said...

IMHO we are near the top of the middle high in the W and will soon move into the 3rd stage. This will continue for the next 18 months before we start the climb out.

gd

Anonymous said...

Finance Minister Bill English said the Government would not go back on its promise to retain entitlements but the next round of tax cuts would not be happening in the short term.

Just in time for the next election Bill will give us the chewing gum cuts again that he will take away after the election.
Haven't we seen this little play before. Oh yes that's right. It was by Bills favourite well performing previous and in ex and last failed Finance Minister.

Just a reminder. "If you keep doing what you have always done you will keep getting the same results"
So are we continuing to do the same thing or Not? eh
We struggle to see anything different.