So we are reminded at every opportunity, tiresome time after time, by the mechanical mouths from the right and the lunatic loons from the left. They shout about the fact that the NACTionalMP gummint is continuing to borrow, as NZ slowly recovers from Michael Cullen's recession we didn't need to have.
Just like the irresponsible and incompetent media who today are turning cartwheels in an effort to sensationalize the SCF depositors guarantee pay out, these foolish people fail to tell you the other side to the story. You see, there ALWAYS is another side to their stories which remains undisclosed.
Adolf doubts any of these fundamentalist shouters or lazy reporters has ever read a set of accounts. Had they done so they would know the cost of the SCF guarantee is not $1.7 billion but rather some insignificant sum or perhaps even zero once the receivership is concluded.
It is just as well newspaper reporters don't run the economy. They cant even get simple maths roight. On one hand the Herald shrieks shock and horror over the 'bailout' costing every man woman and child $405 while Stuff informs us the cost per person is $372. These are the nations LEADING newspapers, folks.
But back to the notorious and much hyped $250 per week borrowing. It simply ain't true.
If you go to the gummint accounts for the twelve months to May 2010 you'll see the increase in borrowings was not $250 million per week.
No, the actual figure is $166 million per week. If some of the fundamentalist fools who populate blog comments threads had bothered to look they might have learned that a major part of current borrowing simply rolls over existing debt. It's called refinancing, chaps.
Perhaps the right wingers (stop borrowing, stop benefits, slash gummint expenditure, let the market sort it out) would have preferred to simply let a quarter of the population starve and resort to crime to survive and perhaps the leftist zealots would have ramped up the borrowing to $500 mil per week so as to pour paper money into a paper tiger called the Cullen fund.
Adolf congratulates John Key and Bill English for getting the balance pretty much right.
The fiscal and personal consequences of moving to any of the positions advocated by the unbalanced extremists would have made the 1930s look like a church picnic.
There is a new Woodpile Report up
3 hours ago