Wednesday, 25 May 2011


We would have to agree with Kerry McDonald - there is a scant understanding of the parlous state of the NZ economy and that lack of economic literacy means that few will understand that it will take very little for us to end up as a basket case like the PIIGs, Portugal, Ireland, Italy and Greece.

So, for once we have to say that our support for this government is qualified. We still want more facts on what Plan B is - if it all turns to custard. We are not interested in Pollyanna projections.

We are not interested in what the PM thinks of the Wellywood sign or Tau Henare's tweets.

We are interested in is how he is going to stop the rampant feasting on our fiscal future as Kerry so eloquently puts it,

"New Zealands citizens are eating its breeding stock and next seasons seed -
its dangerously in debt and still borrowing heavily"

So this is one time when we need a government that doesn't indulge in frippery, and keeps the country well informed of the state of the nation and its stewardship and makes sure that we live within our means, despite the pain that will bring. But we are convinced - if you tell the nation why serious restraint is needed and they understand and believe growth can come from an export led recovery , that business is good,that profit is needed to fund the taxes to provide the sort of services we expect, like good roads and infrastructure -then we will get through what is a pretty tough time.


alex Masterley said...

It's a concern.
The Eurozone is looking more and more like a basket case.
I too would like the unvarnished detail rather than platitudes.
At the moment we are and have been lucky and most don't realise it.

Anonymous said...

There is no evidence whatsoever that the current government, any of the major parties, or any of the minor parties except ACT have any understanding of the dreadful position NZ is in.

Probably the largest sign of this ignorance is pricing both the nett debt and the deficit at an historically high level of the NZD - when all the debt is denominated in other currencies.

Price the debt at the long-run average exchange rate and NZ is at least as indebted as the PIIGS.

Price the debt at say a lower quartile - where the KIwi would end up once the markets realise we're in the shit - and we're by far the worst in the OECD.

Anonymous said...

Maybe it's not that we don't understand what Kerry and the Pessimists are saying, but that we don't think they're right about everything.

Anonymous said...

Well said, treat the majority of NZ'rs as adults, tell the truth and they will go with the Govt for the betterment in the long run.