3 Comments

This government is not a business government. Its not even really a home owner or FHB government, its a house investor government, and wellbeing seems to be a marketing excercise. The problem they are creating for NZ is once the world is opening up, what green shoots is this government helping to flourish that position NZ for the next 10 plus years in global competitiveness? My guess #1 highest house prices maybe in the world, #2 great retirement / bolt-hole for the worlds most wealthy. NZ is heading towards a dangerous trajectory in terms of the future of business and incomes. If renters are required to pay investors mortgages, where is their income going to come from as rents continue to rise. Minimum wage increases?

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What I want to know is who is the Government borrowing from and in what currency? If it is in $NZ then we are effectively borrowing from ourselves and that can be repaid with a stroke of the keyboard. If it is a foreign currency then the question is why and who benefits from that?

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Of course the Govt and in fact any Govt doesn't want to fall on a housing bubble burst so no guesses they will keep the status quo of low/zero % chugga chugga all aboard the private economic debt human centipede or The Simpsons Monorail.

USA has got effective GI logistics with vaccination and are opening the economy while other big boy economies will soon get their ducks in the row why would people stay on kiwi wages and prospects of advancing are not meaningful ... won't take long before many will bugger off for better chances. People need hope so why get out of bed if you can't get somewhere.

I'll give it 18 months and things might differ or the worst case scenario the Covid-19 mutates from the shit show happening right now in India to something more deadly and with the possibility of vaccines becoming less effective thus 'Original Antigenic Sin' then everyone is screwed.

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