Inflation & market interest rates are falling fast in the US, Europe & China, but Aotearoa-NZ's inflation & mortgage rates are set to stay stubbornly high for longer because of the new Govt's actions
As always, thank you Bernard for helping to connect the dots. This time on government policy and cost of living impacts. I think this is too important to leave behind a paywall. Could you please open this up.
Most of the people I know are rich white people. I am a communist in their eyes for extolling the virtues of the ‘out of control socialism ‘ of St Jacinda. The overriding sentiment I heard them express is that she gave away all their hard earned wealth to people who are too lazy to work. The irony is that most of them actually don’t do any work. Hard work for them is managing the money from investments in property and stocks or managing their spouses who they married for their wealth. The difficulty of finding cheap deals on overseas trips and finding ways to motivate poor people how to work hard like them are major concerns.
House price inflation is actually what they want. Other inflation costs them a negligible portion of their expendable income. So inflation is a good thing.
The present lot was elected only for one purpose - to undo what the previous government gave to the undeserving poor and lazy people at the bottom of the pile. No ideology, just plain entitlement.
Wannabe white guys like Peters and Say More seized their opportunity. They are just hired guns.
Yup, but never mind the St Jac stuff, the just deposed administration made a feast of transferring wealth from the poor to the rich, especially around real estate, please don’t call it housing, speculation. Tweedledum and Tweedledumber driving our ramshackle capitalist cart off the cliff.
My question is ‘where is Labour’. This first week of the new government is a blatant asset grab for the already wealthy, but our main opposition party is strangely quiet, overshadowed by TPM.
Labour and the Greens need to come out fighting for their people. No time to be licking wounds when there is a takeover of assets and an assault on the poorer among us going on in full sight.
Is it a catch 22 though, as if inflation were falling faster than interest rates go down more quickly and house prices rocket up again? Just one instead of the other, though this way is slower and has a more immediate effect on rent prices
The key bit is to understand that the real power in our political economy does not lie in parliament. Administrations come and go as they meet the needs of capital. Labour had worn out its usefulness and had been replaced by the other puppet glove. Note the establishment funding of elections $1 million from Baileys Real Estate for the Nats., for example. Despite a six year rampage of real estate inflation under Labour. The gambling addicts needed a new cover story.
As Chris Slane highlights in his cartoon, this is a feature not a bug. Inflation doesn't affect everyone the same way: For the wealthy and powerful, it gives them cover to hide all manner of sins of tax obstruction, lobbying and, of course, price rises; high interest rises protect the wealth of those who can afford to live outside of debt.
Our naive insistence on "change" at all costs has walked us right into this idiocy, and the best defence the centre voters seem to have for their vote now is "Give them a chance - Labour were no better!"... Protests like yesterday's are so important to ensure this new government understands its leash is far shorter than the centrists who fell for their slimy mistruths seem prepared to give them.
Though I agree there will be considerable rates hikes if govt doesn't do something, but I wish to point out that Otātahi Mayor frightening us with 18% rate hike is a load of 💩. It's an attempt to prepare us for assets sale he said he wouldn't do and to avoid conversation about the elephant, sorry, stadium, in the room.
Stadium are important backwards looking. Are they truly important for our future when they rely on massive fossil fuel burning in the form of flights? And do they have to be this big when patronage numbers of rugby games are shrinking? It's a vanity project of the well off looking to revive the glory of their youth. My solution to the funding problem is to issue an invoice to each of those who submitted in favour of a gold plated stadium no matter the cost. Let them put their money where their big mouth is.
Lets not forget Mauger attended a National Party function on election night. So the chances he will advocate for our best interests and fair share of funding from the new govt are probably about zero.
Thanks for that final 'palate cleansing' photo Bernard, it really helps me process the bad news. And deep bows to the plant world for the beauty it provides free of charge, no strings attached.
I can see our society, the once benign Kiwi society, dividing before our eyes. I've persuaded my husband whose friends are all rich white folk, to come and live in a street that better represents our population. It is an eye opener for him. The scrappy, noisy, busy, in-your-face side of life, but one which nevertheless has a caring underbelly. I've learned to look through a person's eyes to their soul, not outside at their size, race, income, attitude, grasp to survival. He is too. But it has taken a life threatening illness for that inner part of him to suddenly wake up. Never too late! I just hope that this Kaka that we so enjoy (thanks Bernard and Lynne) doesn't become a vehicle for further hatred and division. Some of those rich white entitled folk operated on you, treated you well in a bank, brought a human judgement on your errant son, researched solutions to awful illnesses that helped your ageing parents, encouraged your stroppy daughter through principled teaching, etc. Don't lump people into categories, get close enough to look into their eyes.
I don't know Luxon. My kids do. They were employees of Air NZ. I have experienced the rudeness of Peters towards our candidate in public and berated him for it. I know that if I had a ghastly end facing me with Motor Neurone Disease, I would be grateful for Seymour.
Is there a psychologist among us to explain why this group of secure wealthy people are so afraid of and threatened by anything that is not like themselves. Is this xenophobia?
As always, thank you Bernard for helping to connect the dots. This time on government policy and cost of living impacts. I think this is too important to leave behind a paywall. Could you please open this up.
Most of the people I know are rich white people. I am a communist in their eyes for extolling the virtues of the ‘out of control socialism ‘ of St Jacinda. The overriding sentiment I heard them express is that she gave away all their hard earned wealth to people who are too lazy to work. The irony is that most of them actually don’t do any work. Hard work for them is managing the money from investments in property and stocks or managing their spouses who they married for their wealth. The difficulty of finding cheap deals on overseas trips and finding ways to motivate poor people how to work hard like them are major concerns.
House price inflation is actually what they want. Other inflation costs them a negligible portion of their expendable income. So inflation is a good thing.
The present lot was elected only for one purpose - to undo what the previous government gave to the undeserving poor and lazy people at the bottom of the pile. No ideology, just plain entitlement.
Wannabe white guys like Peters and Say More seized their opportunity. They are just hired guns.
Yup, but never mind the St Jac stuff, the just deposed administration made a feast of transferring wealth from the poor to the rich, especially around real estate, please don’t call it housing, speculation. Tweedledum and Tweedledumber driving our ramshackle capitalist cart off the cliff.
Unintended consequences.
Intended
+1 for opening up to public
Lynn - they are Zantedeschia lilies. They will be loving this week’s rain 🙂
Zantedeschia is the botanical name for Arum lilies. Provenance Ethiopia.
I know them as calla lilies.
You are right
Wonderful Rex. You’re absolutely right about the rain.
Hi, please share, this type of commentary needs to be considered by a wider audience. Mike
Was Adrian Orr the governor during the covid cash lolly scramble?
Maybe a pedantic question Bernard, but was the current coalition voted in or was Labour voted out?
Good point - I don’t think many longed for the current arrangement!
My question is ‘where is Labour’. This first week of the new government is a blatant asset grab for the already wealthy, but our main opposition party is strangely quiet, overshadowed by TPM.
Labour and the Greens need to come out fighting for their people. No time to be licking wounds when there is a takeover of assets and an assault on the poorer among us going on in full sight.
Don’t expect a timid emasculated Servant of money to come out fighting any time soon.
Is it a catch 22 though, as if inflation were falling faster than interest rates go down more quickly and house prices rocket up again? Just one instead of the other, though this way is slower and has a more immediate effect on rent prices
The key bit is to understand that the real power in our political economy does not lie in parliament. Administrations come and go as they meet the needs of capital. Labour had worn out its usefulness and had been replaced by the other puppet glove. Note the establishment funding of elections $1 million from Baileys Real Estate for the Nats., for example. Despite a six year rampage of real estate inflation under Labour. The gambling addicts needed a new cover story.
As Chris Slane highlights in his cartoon, this is a feature not a bug. Inflation doesn't affect everyone the same way: For the wealthy and powerful, it gives them cover to hide all manner of sins of tax obstruction, lobbying and, of course, price rises; high interest rises protect the wealth of those who can afford to live outside of debt.
Our naive insistence on "change" at all costs has walked us right into this idiocy, and the best defence the centre voters seem to have for their vote now is "Give them a chance - Labour were no better!"... Protests like yesterday's are so important to ensure this new government understands its leash is far shorter than the centrists who fell for their slimy mistruths seem prepared to give them.
Though I agree there will be considerable rates hikes if govt doesn't do something, but I wish to point out that Otātahi Mayor frightening us with 18% rate hike is a load of 💩. It's an attempt to prepare us for assets sale he said he wouldn't do and to avoid conversation about the elephant, sorry, stadium, in the room.
While I understand stadiums are important community assets you have to worry when they seem to come before drinkable tap water.
Stadium are important backwards looking. Are they truly important for our future when they rely on massive fossil fuel burning in the form of flights? And do they have to be this big when patronage numbers of rugby games are shrinking? It's a vanity project of the well off looking to revive the glory of their youth. My solution to the funding problem is to issue an invoice to each of those who submitted in favour of a gold plated stadium no matter the cost. Let them put their money where their big mouth is.
Spot on - ideally should have been funded by issuing bonds that interested parties could subscribe to rather than just dipping into rates
Lets not forget Mauger attended a National Party function on election night. So the chances he will advocate for our best interests and fair share of funding from the new govt are probably about zero.
This commentary definitely needs to go beyond the paywall, there's nothing like it out there at the moment.
Thanks for that final 'palate cleansing' photo Bernard, it really helps me process the bad news. And deep bows to the plant world for the beauty it provides free of charge, no strings attached.
Thankyou Imago
I support opening this article to the wider public.
https://www.spglobal.com/ratings/en/research/articles/231119-new-zealand-local-government-outlook-2024-bridge-over-troubled-waters-12911552
Deep dive into the Council debt rating...
I can see our society, the once benign Kiwi society, dividing before our eyes. I've persuaded my husband whose friends are all rich white folk, to come and live in a street that better represents our population. It is an eye opener for him. The scrappy, noisy, busy, in-your-face side of life, but one which nevertheless has a caring underbelly. I've learned to look through a person's eyes to their soul, not outside at their size, race, income, attitude, grasp to survival. He is too. But it has taken a life threatening illness for that inner part of him to suddenly wake up. Never too late! I just hope that this Kaka that we so enjoy (thanks Bernard and Lynne) doesn't become a vehicle for further hatred and division. Some of those rich white entitled folk operated on you, treated you well in a bank, brought a human judgement on your errant son, researched solutions to awful illnesses that helped your ageing parents, encouraged your stroppy daughter through principled teaching, etc. Don't lump people into categories, get close enough to look into their eyes.
Please look into the eyes of Luxon, Peters and Seymour and tell me what you see. All I can see is a black hole where compassion should be.
I don't know Luxon. My kids do. They were employees of Air NZ. I have experienced the rudeness of Peters towards our candidate in public and berated him for it. I know that if I had a ghastly end facing me with Motor Neurone Disease, I would be grateful for Seymour.
Is there a psychologist among us to explain why this group of secure wealthy people are so afraid of and threatened by anything that is not like themselves. Is this xenophobia?