How tone deaf of the Reserve Bank Governor to say this Wed 22 May that the Bank will eventually "win the day" with its choke-hold monetary policy. The folks who lose the day will, of course, be everyone in the country who has borrowed money.
As is accepted by independent observers - and not accepted by the RBNZ inflation deniers - the Bank blundered its way into creating the rising prices we are experiencing by printing money & throwing the notes onto the inflationary bonfire, fanning it in all directions. The Bank is now suffocating us by sucking the oxygen out of NZ, trying to halt the fire it ignited, with high Official Cash Rates. What seems most important to the RBNZ is that it becomes "the winner" out of this mess, and by implication, regular New Zealanders end up the losers.
The Governor claimed this Wednesday 22 May that the last leg of inflation has proven sticky around the world and hard to graft down. As always, Orr blames everyone but himself - he once blamed Putin & bad weather due to climate change for NZ's inflation. The weather has been pretty good lately - what's the excuse now? How ironic that on the very same day the RBNZ was arguing everyone else is in the same inflationary mess as us, the front page news in the UK declared how inflation had fallen to 2.3% (within our RBNZ 1-3% target). The BBC reported on 22 May, as the RBNZ Governor was speaking, "UK Inflation falls to 2.3% as energy prices cool" and The Financial Times reported, "Well, Inflation Has Been Defeated". Number 10 Downing Street issued this Press Release, signed off by the Prime Minister:
Click to view
The Governor claimed this Wednesday 22 May that the last leg of inflation has proven sticky around the world and hard to graft down. As always, Orr blames everyone but himself - he once blamed Putin & bad weather due to climate change for NZ's inflation. The weather has been pretty good lately - what's the excuse now? How ironic that on the very same day the RBNZ was arguing everyone else is in the same inflationary mess as us, the front page news in the UK declared how inflation had fallen to 2.3% (within our RBNZ 1-3% target). The BBC reported on 22 May, as the RBNZ Governor was speaking, "UK Inflation falls to 2.3% as energy prices cool" and The Financial Times reported, "Well, Inflation Has Been Defeated". Number 10 Downing Street issued this Press Release, signed off by the Prime Minister:
Click to view
This graph is the reason why the UK PM called a snap election yesterday. How embarrassing for the RBNZ to caught out telling a porker about how the rest of the world is like us, when it is not. How tone deaf of the RBNZ to claim it will be the (eventual) victor in this fight - that it will be the below-the-belt boxer who wins - whilst turning 5.2 million Kiwis, by implication, into the knock-out collateral damage losers. When will this RBNZ horror story end?
Sources: https://www.pressreader.com/new-zealand/the-press/20240523/281595245647433
https://www.rbnz.govt.nz/hub/news/2024/05/official-cash-rate-to-remain-restrictive
https://www.bbc.com/news/live/business-69027403
https://www.ft.com/content/bd267f0f-a6da-4639-a23a-a67fdd8d55d8
Sources: https://www.pressreader.com/new-zealand/the-press/20240523/281595245647433
https://www.rbnz.govt.nz/hub/news/2024/05/official-cash-rate-to-remain-restrictive
https://www.bbc.com/news/live/business-69027403
https://www.ft.com/content/bd267f0f-a6da-4639-a23a-a67fdd8d55d8
6 comments:
When, oh when, will Breaking Views enable upvotes on this site?
This post would get hundreds!
Again , why is an expert in Economics and Finance not our Finance Minister in this hour of need?
Ms Willis may be a natural financial genius but she is an English Literature graduate with Journalism School. She is not Janet Yellen ( US Fed Chief and Yale-trained economist.)
She cannot and will not stand up to Luxon - who is on the marketing side of Business
In 2019 the RBNZ had staff numbers of 275 but by 2023 its ranks swelled to 510 and delivered a level of incompetence not seen before in NZ. If Adrian Orr had an ounce of dignity he would step down as the most clueless governor ever to draw breath. His arrogance this week to blame everybody but himself says everything about his arse covering character.
The Coalition budget is next Thursday and obviously Nicola Willis's first foray.
If there is only National / Labour style give and take and nothing inspirational as is espoused in Breaking Views daily , then NZ needs a changing of tables on the Coalition political hierachy
NZ needs to be ONE NATION - ONE PEOPLE and National has to deliver in this budget.
Debt creation is how ANY central bank keeps its power. The more debt they create, the stronger they become.
As central banks continue to inflate/create ever increasing amounts of cash, inflation rises.
When a central bank creates currency, the newly created bills are not just magically worth something. Every single central bank issued note created, in order to attain purchasing power, must steal a fraction of a fraction of a fraction of purchasing power from every other existing bill to gain its own purchasing power. Therefore, the more cash a central bank creates, the more purchasing power of the currency overall is lost.
The FACT is system liquidity is RAPIDLY drying up. This means that although the system appears to be already completely debt saturated, there is simply not enough debt to sustain the system.
Central bankers, politicians, “insiders,” ALL UNDERSTAND THE CURRENT SITUATION, but they cannot allow the public to become aware. Because if they did, it would cause worldwide pandemonium. So, what they do instead is distract, deflect, lie, and use every and any means possible to keep the public from knowing the truth.
Do you want to know who YOUR REAL enemy is? Its the central banks.
To answer your query, Professor - not unlike our education debacle, the problem only has a possibility of being rectified, if and when then head honcho is gone and there's a change of culture.
Not unlike other problems that face this coalition Government, I see a lack of intestinal fortitude to do what's necessary as the bigger issue.
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