These people outwardly do not fill you with any sense of excitement.
The Reserve Bank is in a spot and, as a result, so are we as a country.
A couple of semi-interesting things happened and also one very interesting thing.
They voted 5 to 1 to cut. They don’t vote that often.
They also offered alternative scenarios, which they haven't done for five years. Alternative scenarios are not a good sign. If you have enough of them, you are literally making stuff up.
Anyone can drum up alternative scenarios. What I want to hear more of from experts is what is actually going on.
The important stuff is they have no bias on further cuts.
A lot of people thought we would get a cut yesterday, followed by one, possibly two, more.
The so-called "neutral rate", that's the cash rate settling at 2.75% or 2.5% – that now seems to be off the table.
Why?
They argue inflation, which is what drives them. That's their mandate.
The trouble with that is inflation is only just in the band. It's heading more towards the top of the band and here is the really big part – growth, or large dollops of growth, are not driving this inflation.
We are barely growing, if growing at all. Yet inflation is still a thing. That's not good for an economy and it's not good for the Government.
The Government, namely Willis and Luxon, leap, and have leapt, on each announcement talking about the money coming back into the economy as the interest rates drop. If the bank isn't cutting, then rates aren't dropping, and we aren't spending or feeling remotely bullish.
The Reserve Bank doesn’t care that much because they are fixated on inflation, whether it's driven by factors beyond our control —like insurance, shipping or councils— or growth.
Yes, we had growth in Q1. It was quite good growth too. The live GDP tracker has Q2 up a bit, but not much.
But it has annual numbers negative and inflation trending up.
What we need is help. We are in a quagmire we need to extricate ourselves from.
The Reserve Bank doesn’t look like they are that interested.
Mike Hosking is a New Zealand television and radio broadcaster. He currently hosts The Mike Hosking Breakfast show on NewstalkZB on weekday mornings - where this article was sourced.
They voted 5 to 1 to cut. They don’t vote that often.
They also offered alternative scenarios, which they haven't done for five years. Alternative scenarios are not a good sign. If you have enough of them, you are literally making stuff up.
Anyone can drum up alternative scenarios. What I want to hear more of from experts is what is actually going on.
The important stuff is they have no bias on further cuts.
A lot of people thought we would get a cut yesterday, followed by one, possibly two, more.
The so-called "neutral rate", that's the cash rate settling at 2.75% or 2.5% – that now seems to be off the table.
Why?
They argue inflation, which is what drives them. That's their mandate.
The trouble with that is inflation is only just in the band. It's heading more towards the top of the band and here is the really big part – growth, or large dollops of growth, are not driving this inflation.
We are barely growing, if growing at all. Yet inflation is still a thing. That's not good for an economy and it's not good for the Government.
The Government, namely Willis and Luxon, leap, and have leapt, on each announcement talking about the money coming back into the economy as the interest rates drop. If the bank isn't cutting, then rates aren't dropping, and we aren't spending or feeling remotely bullish.
The Reserve Bank doesn’t care that much because they are fixated on inflation, whether it's driven by factors beyond our control —like insurance, shipping or councils— or growth.
Yes, we had growth in Q1. It was quite good growth too. The live GDP tracker has Q2 up a bit, but not much.
But it has annual numbers negative and inflation trending up.
What we need is help. We are in a quagmire we need to extricate ourselves from.
The Reserve Bank doesn’t look like they are that interested.
Mike Hosking is a New Zealand television and radio broadcaster. He currently hosts The Mike Hosking Breakfast show on NewstalkZB on weekday mornings - where this article was sourced.
2 comments:
Every nation on earth is locked into the same central banking model, fiat currency, debt issuance, and interest-based manipulation. World leaders are fully complicit. They are actors in a script written by the central banks.
What’s the plot: Collapse the purchasing power of the people’s currency so central banks can offer them a new one, that they control completely. It’s not incompetence and it’s not poor policy. It’s deliberate economic warfare against the masses, we the people.
Step one: inflate the currency - print endlessly - suppress rates - drive up asset prices and cost of living - steal the people’s time, labor, and savings “invisibly”.
Step two: let the system break - create a crisis moment - claim the old system is unsustainable. (when all else fails, they take you to war)
Step three: introduce the solution - central bank digital currencies (CBDCs) -programmable money, expiring balances, behavioral controls and social-credit mechanisms.
Every nation is participating because they’re not sovereign. They are subsidiaries of the same global debt based financial machine, and the “illusion” of national independence hides the reality of centralized control through central banks.
Anon 11:58 I hope like hell you are wrong, but I’m afraid you may be right. Digital currency = control at an individual level - i.e. the personal surveillance it would allow means we may as well all live in China. I've recently started using cash again - use it or lose it.
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