Two choices

Voters next year have two choices.

A National-led government that understands the importance of low inflation:

. . . These forecasts of low inflation are good for New Zealand households, particularly those on lower or fixed incomes. In addition, average floating home mortgage interest rates are now around half what they were 5 years ago in 2008. For a family with a $200,000 mortgage, that is saving them around $200 a week.

Or the alternative:

Hon STEVEN JOYCE: Well, there are a number of alternative policies that would put substantial benefits of current low inflation and low interest rates at risk, and that would, of course, cost New Zealand households dearly—for example, trying to artificially and substantially devalue the exchange rate or going soft on inflation; or, for example, opposing the Government’s share offer programme and instead borrowing billions of dollars more to pay for priority assets like schools and hospitals; or, for example, just pulling out the photocopier and printing more money. All of those things would send interest rates and inflation through the roof, directly affecting New Zealand households and families. They are, of course, the cornerstones of the Labour-Green opposition—

Oh yes, the Green Party still wants to print money:

Norman 14032013

So NZ is borrowing other countries (sic) freshly printed money and paying them interest for the privilege. So why don’t we print some of our own?

4 Responses to Two choices

  1. Andrei says:

    Voters next year have two choices Hobson’s choice.

    David Shearer is correct in one thing though, money is being printed and “lent” to keep sinking Nation’s afloat, where do you think the EU bailouts are coming from?

    Germany which has large gold deposits in other countries is repatriating it, even as we speak – why do you suppose that is happening?

    David Shearer’s solution is wrong of course – I don’t know if there is a solution to the crisis that is about to overwhelm us all, or our children anyway


  2. TraceyS says:

    The only way to minimise paying interest is to borrow less. So he’s making an argument for asset sales. He clearly doesn’t appreciate the downsides to “printing money” that the lending countries will have to confront at some stage.

    “… paying them interest for the privilege” – who would expect to borrow money without paying interest (excepting students)? Students could be excused for wanting free money because they’re often just starting out and finding their wings.

    But can Russel Norman be excused for expecting free money? He’s at the verge of his financial edification and wants to be educated, by trial and error, at the expense of all of us. It would be much safer if he’d just go back to university and get himself a Commerce Degree.

    I trust that New Zealander’s will send him in that direction following the next election.


  3. TraceyS says:

    We need to teach our kids to use their own bonces and not to be misled by idiots. And their hands, of course, so that they may do things for themselves. That’s our only hope really.


  4. Scary seeing the possible deputy prime minister of a labour/greens government saying stuff like this. Something from the book of Mugabe politics


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