Former Productivity Commission Chair Ganesh Nana explains why a group of economists have written to PM Christopher Luxon to urge the Government to urgently suspend cuts to spending & investment
The LGFA is not 80 per cent owned by councils, and 20 per cent owned by the Crown, as the note at the bottom of this New Zealand Government media statement says.
The Primary Bond Dealer Banks that fund the whole thing by credit they type into their computers at the time of making the loans are the owners until the debt is cleared, which will be never, because the nation can never clear the debt it has now, let alone more of this amount.
In most cases the councils and the Government that put up the required capital reserve base and are now said to be shareholders, borrowed that capital as part of their loans then gave it back to the Rothschild International Bank designed scheme in a slight of hand maneuver to get the thing off the ground.
This is not sharing the load over generations, this is making debt slaves of future generations.
To find out all you should know about The Local Government Funding Agency and the danger it is putting land owning ratepayers in, go to this link:
Good to hear Ganesh talk about the letter sent to Lux. I couldn’t open the pdf file. Wonder if there is any way that Subtrack can date the live streams as no way for me to check if I’ve already viewed them.
I am a novice at economic comment. Ì have been waiting for outing of Nicola Willis and Luxon. So glad to wake this morning and read this brave and exciting letter.
I’m not sure I’d even bat an eyelash if this government founded the counter-productivity commission at this stage. I suppose they have already done so in all but name.
'Finance Minister Nicola Willis, who was copied into the appeal, said it was “consistent with the long-held views of the individuals concerned, some of whom had a close association with the previous government”.'
A key thing for me in this interview is the 'hollowing out' discussion. This is a fact - my work puts me in contact with a wide range of businesses across many different sectors and what I'm seeing is layoffs, downsizing, closing of branches, suspension of investment and replacement of equipment. And the pace of this 'hollowing out' is only increasing in my opinion. And will take a long time to recover from.
I am assuming that much of the external debt talked about here is our yearly balance of trade deficit. We can improve our balance of trade by higher value exports or less import or both. Given that the major contributors to import costs are fossil fuels and new vehicles, both cars and trucks, maybe changing our transport structure from cars and trucks could help. Is our car/truck culture the other ingredient to our woes, along with Bernard’s “real estate economy with bits added on”?
We could substantially reduce the cost of imported oil if there was a concerted push to electrify the transport fleet. Reducing emissions is a bonus and would save us blowing billions on the carbon offset bill about to come due.
I really appreciate you two explaining some of the economic jargon used in this letter from the economists. Even though (most of the time) it's just a google search away, having someone not only explain but also put into our countries context can be really helpful to understand what is being said.
The LGFA is not 80 per cent owned by councils, and 20 per cent owned by the Crown, as the note at the bottom of this New Zealand Government media statement says.
The Primary Bond Dealer Banks that fund the whole thing by credit they type into their computers at the time of making the loans are the owners until the debt is cleared, which will be never, because the nation can never clear the debt it has now, let alone more of this amount.
In most cases the councils and the Government that put up the required capital reserve base and are now said to be shareholders, borrowed that capital as part of their loans then gave it back to the Rothschild International Bank designed scheme in a slight of hand maneuver to get the thing off the ground.
This is not sharing the load over generations, this is making debt slaves of future generations.
To find out all you should know about The Local Government Funding Agency and the danger it is putting land owning ratepayers in, go to this link:
https://www.facebook.com/share/p/14Z3bNhmvp/?mibextid=oFDknk
Good to hear Ganesh talk about the letter sent to Lux. I couldn’t open the pdf file. Wonder if there is any way that Subtrack can date the live streams as no way for me to check if I’ve already viewed them.
https://open.substack.com/pub/ganeshnana/p/economists-call-for-immediate-suspension?utm_source=share&utm_medium=android&r=bth19
If I've shared it correctly, I think this Substack post has the full text of the letter.
I am a novice at economic comment. Ì have been waiting for outing of Nicola Willis and Luxon. So glad to wake this morning and read this brave and exciting letter.
I’m not sure I’d even bat an eyelash if this government founded the counter-productivity commission at this stage. I suppose they have already done so in all but name.
Cool response to call from economists to suspend spending cuts
https://www.waikatotimes.co.nz/business/360490580/group-economists-call-pm-suspend-spending-cuts-others-less-certain
'Finance Minister Nicola Willis, who was copied into the appeal, said it was “consistent with the long-held views of the individuals concerned, some of whom had a close association with the previous government”.'
https://youtu.be/mtCIdpnQoWk?si=v8g7qeJ8qCNtqz4l
Red card offence, playing the man not the ball.
Also not true. Girol was chief economist for Treasury.
Good to have the economists report to government to hopefully help it understand the difference between its own books and the health of the economy.
Thanks Ganesh for the clear explanation.
Where is the Treasury and Commerce in this debate? Is the Finance minister following their advice or ignoring it?
A key thing for me in this interview is the 'hollowing out' discussion. This is a fact - my work puts me in contact with a wide range of businesses across many different sectors and what I'm seeing is layoffs, downsizing, closing of branches, suspension of investment and replacement of equipment. And the pace of this 'hollowing out' is only increasing in my opinion. And will take a long time to recover from.
Excellent interview with Ganesh and giving a bit more depth to the interview on morning report hope we get 100 likes
I am assuming that much of the external debt talked about here is our yearly balance of trade deficit. We can improve our balance of trade by higher value exports or less import or both. Given that the major contributors to import costs are fossil fuels and new vehicles, both cars and trucks, maybe changing our transport structure from cars and trucks could help. Is our car/truck culture the other ingredient to our woes, along with Bernard’s “real estate economy with bits added on”?
We could substantially reduce the cost of imported oil if there was a concerted push to electrify the transport fleet. Reducing emissions is a bonus and would save us blowing billions on the carbon offset bill about to come due.
Oh dear. When even the orthodox economists see that cuts are destructive then they must really see the danger!!!
I really appreciate you two explaining some of the economic jargon used in this letter from the economists. Even though (most of the time) it's just a google search away, having someone not only explain but also put into our countries context can be really helpful to understand what is being said.
You guys are making a difference, thanks