I commented on another thread and I will say the same thing again

This amounts to the banks lending 4-5 million dollars every hour they are open to Farming NZ Inc. The cost of this is $400-500,000 an hour in EXTRA interest payments every hour they are open.
Please God save us from our banks before they suck us dry!

SteveL
this thread tells the story of whats happened and whats going to happen with regards to Ag

http://www.interest.co.nz/ratesblog/index.php/2009/04/30/rbnz-cuts-ocr-5...

Thanks Les, very greatful for your help navigating me to what I miss in my periodical visits due to work and family committments - cheers.

stevel - thanks for that great article from today;
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=1056...
A definite for my ever increasing file on this scary man that the nation loves so much.

It is being said that John Key is a political maverick, that is bollocks he has been closer to the true levers of power in this world than any other New Zealander in history bar none. I cant recall off the top of my head the meeting he took off to after gaining power, but he ran into George Bush on camera and although the greeting was breif it had the warmth of a couple of pals who had not seen each other for a while.

I have a question for the unfettered free markateers out there. If those persons get their way that just pulled 10s of billions out of our stockmarket with miraculous timing once again just before it collapsed and are now heavily investing in select farming properties and are hard out trying to get Fonterra listed on the global exchange for companies in order that they can sell New Zealand land to the very highest bidder available.
You free marketeers would claim that is there individual right and freedom to do so. Then lets say the Chinese capatalist dictatorship Sovereign Fund step in and start buying up New Zealand productive land as they have indicated to their elitist fraternity partner Mr John Key in the above link, what then happens when China starts using our productive land and producing food for its upper class, food which will be exported at very little gain to the wider economy of NZ.
The few speculators that plotted the gameplan prosper immensly. Wider New Zealand faces higher food prices due to increased demand caused by new Chinese owner exporting large amounts of New Zealand food off shore.
A massive net gain to a few. A massive net detrimental impact on wider society and all would be recorded as beneficial to our GDP.
What would you say Roger Kerr, the law of the market, the law of the jungle should be allowed to prevail, or should wider society be afforded protection from such a potential outcome.
Should foreign owner have ever been able to do anything but lease NZ land, not buy it, to begin with?

I have a friend who has been doing budgets on Dairy farms this week. A 630 cow herd is making 300k before interest tax and drawings.
So we can now work out that every hour a bank is open the income from a 1000 cow herd is required to pay the interest. In the sheep industry its $25 a lamb so we need to sell 20,000 lambs an hour to pay the interest.
Drive around NZ and can someone tell where these Cows and sheep are. This is on top of the interest already incurred on our $40+ billion of farm debt.
What has happened is that banks like Rabo instead of stopping lending and selling up farms, have gone for another 300 million Bond issue so they can continue lending to farmers. There is no 'mark to market' in this its all 'mark to an over optimistic model', as for sale signs come down across the country.
The effects of the banks continuing to supply fuel to this massive bubble are going to be catastrophic and we will have to sell our souls. Its time to hold banks to account,its time to let highly indebted farms fall.Banks need to take a hit and cut this bullsh*t out.

Kate.

That Herald article your link points to is an attempt to control yesterday's damage. It is well worth reading because it reveals a lot more than was probably intended. Keep a copy - it may disappear.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=1056...

Phil - only have two minutes, just a thought until I can answer more fully. A cabal is not a cartel. It is only a loose affiliation of like minded people. The basically decent majority have suffered the most at times in history when elements of elitist cabals try to put one over each other in the balance of power struggles that ensue. Sound familiar at all?

Silas, link works for me - but if you search the article title, "So long, Sanlu" on the Herald website you will get it as well.

waymad.

The RBNZ's November Financial Stability report had agricultural debt at 450% of agricultural GDP as of September 2008. Since then debt is up 7% and I am certain GDP is down.

Agricultural debt at 500% of GDP at the end of March 2009 sounds a very reasonable assumption.

Profit from agriculture for the year ended June 2009 - likely a $2.5 billion loss or thereabouts provided Fonterra pays out $5.20. That before asset revaluations.

Asset revaluations - a minimum of $30 billion deflation for agriculture but possibly twice that to the end of June.

I agree more digging is required but I detect an unwillingness by some parties to engage in the process and provide details.

Is there a problem? Cynically - only if you dig.

You may be interested in these links

http://www.doctorhousingbubble.com/the-schism-between-wall-street-and-ma...

"So as you can see from the above charts, there is no green shoots in the Main Street economy. Sure, Wall Street is shooting to the moon but that is because the pit bosses are now trading amongst themselves fleecing the public. Recent data shows insiders actually selling into the momentum:

"(Barrons) Leading us to the question with which we began these musings: If those now infamous shoots of recovery are popping up all over, why would insiders be so aggressively dumping stocks?

Yet, they indisputably are. According to a study prepared for Bloomberg by Washington Service, a research outfit, directors, officers and the like have sold $353 million worth of stock in this fading month, or 8.3 times the total bought. As a matter of fact, according to the firm, insider purchases of $42.5 million are on track to make April the skimpiest month for such buying since July 1992.

The pace of selling in the first three weeks of this month, incidentally, was the swiftest since the market peaked and the bear came out of hibernation with a vengeance in October "˜07.

We're quite aware that insiders are not infallible. But they are, after all, in the front lines of commerce and industry and so presumably have a better fix on the economy and the prospects for recovery than analysts and economists, whether of macro or micro persuasion."

This is the ultimate bear market rally so proceed with caution."

And from Chris Martenson, a post that dovetails with the Dr Housing Bubble post above:

http://www.chrismartenson.com/martensonreport/fuzzier-than-ever

"Executive Summary

* GDP report for 1Q2009 is a mess of Fuzzy Numbers
* The surprising 2.2% increase in PCE, or Personal Consumption Expenditures, is discussed
* Ostensible signs suggest that the bottom is in, but the numbers do not line up at all with hard, factual data
* Sales tax receipts declined in first quarter
* The GDP report for the first quarter of 2009 is in serious conflict with actual state sales tax data
* Vehicle sales are down nearly twice as much as the 19% claimed by the BEA
* The extent to which investors are fooled by these government reports is the extent to which they risk losing a lot of money in the stock market"

Seems there are other ways China can help boost an economy than just taking more milk and more shares:

Strength needed in Asia-Pacific - Rudd

http://www.news.com.au/adelaidenow/story/0,,25418432-5005962,00.html

Kevin Rudd's defence white paper highlights China's growth

http://www.news.com.au/couriermail/story/0,,25419457-953,00.html

Iain
thanks for the link On Newpapers

The problem is this guy is in trouble

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=1056...

Murdock is owned by the banks,David Kirk nobbled Fairfax. We are in for another round of consolidation. Thank God for the Net, its where I get all my News. I dont miss the Nprs anymore, they had nothing to read in them. The papers must be getting a hammering at present I m expecting serious consolidation and lots of Job losses, the delivery boy tells me lots of people are canceling sub's.
What does worry me is that personalities Like Branson end up being controlled by the bank,s have little or negative equity in their businesses and yet continue to devour competition or give an appearance of competition. A mutual Bank often has a majority controlling stake on both sides, yet this is not seen as anti-competitive behavior.