Quote of the day

AS if we needed proof that Australia is losing its mojo, our cocky little cousins across the ditch are rubbing our noses in their success.

The Kiwis are killing it.

The New Zealand dollar is set to hit parity with ours, for the first time in 30 years.

Its economy is growing 20 per cent faster. Its GDP per capita is rising while ours is falling.

Its competitiveness rankings have outstripped ours. Its unemployment rate is 5.7 per cent compared with our 6.3 per cent, and that’s with a higher participation rate.

The NZ budget is heading towards a surplus while ours spirals ­further into deficit.

In a world lacking impressive leadership, Prime Minister John Key and his finance minister Bill English are shining lights, running the most successful and stable conservative government in the world. . . . Miranda Devine

4 Responses to Quote of the day

  1. Gravedodger. says:

    Just as many if not most New Zealand voters have a very poor understanding of the Australian electoral system with compulsory voting, preference ranking, a chaotic and dysfunctional Federal upper house and all repeated at State level except for Queensland that has no state parliament upper house.
    I wonder if Miranda Devine who is a regular commentator on Politics from a more conservative bent has a grip on the knife edge plurality John Key and Simon English are forced to deal with that has the votes of Fairy Dunst, Actresses and a race based party needed to make law under our flawed MMP system.
    The latest challenge to democracy produced that had a sitting list MP able to contest a by-election while retaining his parachute of the List and now can alter the proportionality set last October by bringing in another NZF MP only five months after a general election.

    It is in the light of that potentially chaotic plurality that Mr Keys efforts since we were plunged into recession a year earlier than the rest of the world while The Lucky Country enjoyed the mining boom to give a measure of protection from the worst of the GFC that really makes the success for NZ look truly “Rockstar”.

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  2. Andrei says:

    I don’t know GD, the near parity of the Kiwi dollar with the Aussie might reflect the global drop in global commodity prices the Australian economy is dependent upon rather than excellence in New Zealand’s financial stewardship.

    My personal opinion is that we are in actually in a major depression that is for now being swept under the carpet for now but that the whole house of cards is about to tumble.

    The Northland bye election and the resultant change in our parliament’s proportinality is neither here nor there.

    The international financial system we have lived with all our lives was etablished at Bretton Woods in 1944 and was grossly violated by Richard Nixon in 1971 which had the effect of making the “International Community” pay for the Vietnam War.

    This was a confidence trick and has been being repeated ever since but its days are numbered .

    The real warning came in 2008 with the concept of “too big to fail” being sold to a gulliable public by people who rabidily espouse free market darwinism for most commercial enterprises.

    John Key emerged, and prospered in the Post Nixonian environment and knows how to play the game in that system.

    But when the rules change, as they must what then?

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  3. Urban Redneck says:

    The “rock star” economy is all spin and no substance. If you take a moment to examine the systematic weaknesses of the NZ economy just below the surface, thing look pretty dire longer term.

    We have an out of control property bubble fueled by low global interest rates, mass immigration and exacerbated by a glut of non-resident foreign buyers looking for places in the world they believe to be safe places to park their money. House prices have double in value in since 2004 resulting in NZ having the third most overvalued property market in the OECD with home price to rent rations at 76% above their traditional average. Mortgage debt has spiraled from $70b in 2002 to $186b now. The country’s mortgage to GDP ratio now sits at a whopping 85%!

    Mortgages now account for 60% of the banks loan portfolios and some experts fear that these banks are too exposed to economic tremors which might arise in Australia or China down the track.

    NZ’s average household debt to income ratio has soared to just under 150% as opposed to where it was in the early noughties at around 100%.

    Government overseas dept has tripled since 2008 !! as the National government has seized upon these global low cost borrowing opportunities in order to keep feeding the burgeoning state apparatus the financial fuel it requires. Money inflows into NZ, thanks in large to zero rate interest and quantitative easing at the US Federal Reserve have seen NZ dollar become grossly overvalued. Even the Double Dipper from Dipton expressed concerns about this in February stating his worry as to how this will affect exporters.

    All National are willing to do is to play a smoke and mirrors game by pumping up GDP growth through mass immigration and the ensuing housing demand and consumption spending that arises from it in order to make the government debt to GDP ratio appear more palatable.

    it won’t last.

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  4. Andrei says:

    What is a mere $87 billion dollars between friends Urban Redneck?

    It pales into insignificance when compared to the US Governments debt of $18 trillion and growing by a billion dollars a day.

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