It proves, yet again, no one seems to really have a handle on what's going on.
Secondly, and most worryingly, is it was 50 points.
While Australia sees no need to move at all, we are still in the large end of the spectrum.
The Americans moved by 25 points, but we moved by 50 because of the size of our hole.
And with the cash rate at 5.25% it is surely more than fair to suggest that the top out at 5.5% is real and the banks suggesting that 5.25% was it finished, are wrong.
It's also fair to suggest that something north of 5.5% is surely not out of the question, which then leads to the question - when does it end?
How bad does it have to get before we see some sort of light?
Australia doesn’t move and those who do move, move 25 points at the max. Those economies see inflation dropping. Do you think we see inflation dropping?
Yes, we see signs that things are tightening and spending is not what it was. But through a combination of things unique to us we have taken a bad scenario and completely cocked it up.
My great hope is this is finally starting to sink in for those who have dismissed it all as just the cost of Covid.
We printed more per head of the population than anyone outside America, the Government spent like there was no tomorrow and we are missing our debt targets because tax take is down, despite tax rates going up.
Our debt is getting ever more expensive. The Government continues to hand out more and more money, 1.4 million of us got more just last Saturday.
We are in recession yet wages are still going up, we don’t have enough people arriving so, as the Reserve Bank says, the labour market is beyond capacity, the immigration settings are insane and, even if they were loosened, there is now a real question as to how many actually want to come.
We are in trouble.
Yes, everyone was in trouble post Covid. But as the decisions are laid bare, as the consequences present themselves, as our Reserve Bank does what it does, it is increasingly obvious that we have cocked this up and are in way worse shape than most others.
We have been economically upended by incompetents and incompetence.
50 basis points is an indisputable sign of abject failure.
Mike Hosking is a New Zealand television and radio broadcaster. He currently hosts The Mike Hosking Breakfast show on NewstalkZB on weekday mornings.
The Americans moved by 25 points, but we moved by 50 because of the size of our hole.
And with the cash rate at 5.25% it is surely more than fair to suggest that the top out at 5.5% is real and the banks suggesting that 5.25% was it finished, are wrong.
It's also fair to suggest that something north of 5.5% is surely not out of the question, which then leads to the question - when does it end?
How bad does it have to get before we see some sort of light?
Australia doesn’t move and those who do move, move 25 points at the max. Those economies see inflation dropping. Do you think we see inflation dropping?
Yes, we see signs that things are tightening and spending is not what it was. But through a combination of things unique to us we have taken a bad scenario and completely cocked it up.
My great hope is this is finally starting to sink in for those who have dismissed it all as just the cost of Covid.
We printed more per head of the population than anyone outside America, the Government spent like there was no tomorrow and we are missing our debt targets because tax take is down, despite tax rates going up.
Our debt is getting ever more expensive. The Government continues to hand out more and more money, 1.4 million of us got more just last Saturday.
We are in recession yet wages are still going up, we don’t have enough people arriving so, as the Reserve Bank says, the labour market is beyond capacity, the immigration settings are insane and, even if they were loosened, there is now a real question as to how many actually want to come.
We are in trouble.
Yes, everyone was in trouble post Covid. But as the decisions are laid bare, as the consequences present themselves, as our Reserve Bank does what it does, it is increasingly obvious that we have cocked this up and are in way worse shape than most others.
We have been economically upended by incompetents and incompetence.
50 basis points is an indisputable sign of abject failure.
Mike Hosking is a New Zealand television and radio broadcaster. He currently hosts The Mike Hosking Breakfast show on NewstalkZB on weekday mornings.
3 comments:
Winter is indeed coming, Apathy is costly.
They are protecting the assets of the wealthy at the expense of everyone else. Especially the workers, the poor and desperate; who are now also the workers.
What a fix we are in. Less government spending and lower interest rates would balance out better than upping rates and dishing out moolah.
MC
The whole system seems basically flawed. Robertson prints money galore and the only mechanism to control the resulting inflation is the crude creation of recession. The burden falls very unequally. Savers and those who lose jobs, often very productive positions, are hard hit. Meanwhile benficiaries and the unemployed get fully indexed increases on which they pay no or negigible tax.I hope all the low skilled immigrants are not all granted citizenship. With them and established fast multipying low ability sections of the community we are fast headed for South American territory, and not just in terms of inflation.
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