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90 seconds at 9 am: Xinhua says China won't repeat 2008 stimulus this time around; US markets calmer; Spanish fears burble; NZIER sees stagnant economy; Aussie editing jobs outsourced to NZ

90 seconds at 9 am: Xinhua says China won't repeat 2008 stimulus this time around; US markets calmer; Spanish fears burble; NZIER sees stagnant economy; Aussie editing jobs outsourced to NZ

Here is my summary of the key news overnight in 90 seconds at 9 am, including news from China's official news agency, Xinhua, that the Chinese government has no plans to repeat its massive stimulus programme from 2008 any time soon.

Some investors in global financial markets had hoped that China might repeat its lightening-fast stimulus programme of 4 trillion yuan of infrastructure spending to try to boost a flagging Chinese economy.

But Bloomberg reported Xinhua said a repeat of the stimulus plan, which softened the blow of the Lehman crisis for the New Zealand and Australian economies, was unlikely.

“The Chinese government’s intention is very clear: It will not roll out another massive stimulus plan to seek high economic growth,” Xinhua said yesterday in the seventh paragraph of a Chinese-language article on economic policy, without attributing the information. “The current efforts for stabilizing growth will not repeat the old way of three years ago," Bloomberg reported.

China's Communist leadership, which is also distracted with a once-in-a-decade changeover, is worried inflationary pressures unleashed by that 2008 spend-up may cause social strife.

Meanwhile, US markets were calmer overnight and US stocks closed up 1%, partly on hopes pro-bailout parties in Greece may win elections on June 17 and avoid a 'Grexit'.

However, fears remain about Spain's parlous budget situation and its weak banking system. Spanish 10 year bond yields remained over 6.4% and German 10 year bund yields remained at record lows. Roche announced it had stopped supplying drugs to 12 Spanish hospitals because local governments had not paid their bills for two years. See more here at Bloomberg.

Closer to home, the NZIER forecast stagnant economic growth over the next two years because of a weak global economy and a slow Christchurch rebuild, saying the Official Cash Rate was likely to remain on hold until 2014. NZIER said a rate cut was possible if the European situation worsened. See more here in Alex Tarrant's article.

But there is hope for some types of work. Fairfax Media has announced plans to outsource 56 sub-editing and production jobs from the Illawarra Mercury and the Newcastle Herald to editorial production centres in New Zealand.

The New Zealand dollar was steady around 76.2 US cents in morning trade.

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24 Comments

 

Europe’s debtors must pawn their gold for Eurobond Redemption Southern Europe’s debtor states must pledge their gold reserves and national treasure as collateral under a €2.3 trillion stabilisation plan gaining momentum in Germany.

 

http://www.telegraph.co.uk/finance/financialcrisis/9298180/Europes-debt…

 

 

TruthDestroysWorlds

4 hours ago

 

This is what the game is all about.

Get nations so into debt using paper currency (fake money),
that in the end they have no option but to give up all of their real money (their gold and other valuables).

The really difficult part of the scam being of course, to first get all nations who have gold (and other valuable assets) onto a footing of purely fiat currency.

Currency which can literally be created and 'borrowed' to infinitum.

 

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Very true Andrewj. 

True wealth is never destroyed, it just changes hands... its the golden rule - he who has the gold in the end will makes the rules.

Thats why they are going to create trillions and trillions of still more debt and use it to trap nations into giving up their real wealth... the scam only works if people accept fiat though.... thats why gold is the defender of human freedom and property rights... this scam is pulled again and again and again... If you read the IMF legislation - every country has to give an account of its gold reserves (and rate of production out of the ground)... in many cases now days that info is actually harder to get than the nuclear launch codes and so only guesses can be made.... as the info is deliberatley hidden via instruction from the BIS... we know the gold in fort knox is not all there as coin melt has turned up through the LBMA... thats why a full audit of fort knox will not be going ahead...

The people on this website can be divided into two groups, those that get this and those that don't.

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I agree Andrewj.

The NZ population need to be aware we are being sucked down the same track.

The repayments of enormous "paper currency (fake money)" debt will be with our real assets of our natural resorces and our dairy farms and fisheries, and current and future debts saddled with crippling debts.

However the vast majority of the NZ population does not currently giva a damn and have no real interest in this so long as they are getting their welfare payments (which are being propped up by borrowed "fake" paper or "electronic" money).

The best solution for NZ at present may be to firstly start educating the entire NZ population about what is going on.

Maybe Bernard Hicky could do a television documentary about it, and educate the country.

On this site at present is already "preaching to the converted".

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I have been thinking about this whole mess for a while, and have come to the same conclusion;  education.  The average Kiwi has no idea how the whole financial system works, and those who work in finance are all to happy to keep it that way.  It may take years before the benefits of education start to show but this is surely the best way forward.

 

By education I mean teaching about how money is created out of thin air, government bonds, covered bonds, inflation/deflation, CDOs, resource depletion, energy consumption and extraction, population growth, demographics,  that kind of thing.  I do NOT mean educating Kiwis how to choose the lowest rate mortgage.  I believe that if more people are taught the basics they'll be better able to take care of themselves.  An enlightened society is not what the big business wants however so education may be a tough ask at this stage of the game.

 

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OK maybe I should have said something along the lines of loaned into existence and backed by claims on the future.

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Education? Requires the media. I've had a complaint into Morning Report, and look like one re Mora's 'The Panel'.

He addressed 'Powerdown', which was fair enough, but his 'ring-in' was an economist. Powerdown is a physic issue. I emailed him that, but he addressed it again with?

Another economist.

 

Hard to understand, denial perhaps?

 

So we have to go through the 'complaint' ritual - probably more than once - to get them to address what is truth, rather than asking High Priests whether there is a heaven. May take some time.

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Jim Mora! My god that guy wouldn't  know objectivity if someone shoved it right where the sun don't shine.  (in my opinion) From his sickly demeanor, to his obvious PC (political correctness) masters degree . Then to top it off, his total lack ( and his moronic panel guests) of understanding of the real monetary system and how money ,inflation, interest and Government Bonds work. They just can't for a life of them see the GLOBAL 'ponzi scheme' that controls their very lives

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Probably seen it but this is George Carlin's rather cynical but hillarious take on education et al (warning: a bit crude)

http://www.youtube.com/watch?v=-PkWf9M3rUw&feature=related

 

 

 

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I appreciate the points you are making, but I think you let your argument down when you say "However the vast majority of the NZ population does not currently giva a damn and have no real interest in this so long as they are getting their welfare payments (which are being propped up by borrowed "fake" paper or "electronic" money)."

The apathy that you rightly assert exists is a result of many things. Narrowing it to welfare recipients narrows the field. Also, it is unclear what you define as welfare. The recipients of superannuation are being subsidized by taxpayers as well, but I'm not sure you include them in your apathetic welfare receiving group, although I would agree with you if you did. 

I think perhaps the apathy comes from the general propping up of the economy with credit, which results in many sectors being rewarded, among them property investors. This means that the status quo is working right now for people who sell homes they own outright for half a million to a million dollars, or people constantly "trading up" in property. It is very hard to find people railing against that bullish trend, outside of this website. It has made virtual kings of lowly farmers and the newly affluent are not keen to see the dissapation of their wealth, even though it may be illusory.

It is not just welfare recipients who are receiving benefits.

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? I don't have problems with farmers. Lowly farmer was a poor choice of words, but then this isn't an aritcle in a magazine, just an off the cuff reply to another posting. Please don't be so quick to take offense. If you read the entire reply it is not defaming farmers in any way, just stating that easy credit has made many people rich, including, but not limited to, people who sold off property at great profit. 

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I think some of the 'apathy' might be due to limits on time and energy.  After working all day, then doing all the things we need to do in an attempt to hold our lives together; bills, food, maintenance, then there's little time or energy left to take interest in finance, or in fact anything other than trying to get a decent sleep before the next day.

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 Just beautiful Bernard....so now even Fairfax  knows how to save money using Mexican journo's.

 Still it's an opportunity to reclaim our Pavlova with a tweak here n there.

 The NZIER ou of step with treasury...? how can this be..? they obviously left Managed Confidence out of the equation..!

So we are left to subtract NZIER forecast from Treasury forecast leaving us to study the divine properties of  Bull manure.

No stimulus from China...? That's not gonna be good for anybody...! did Treasury not alert the Chinese they had already factored it in........good lawd.!what a difference a day makes eh Billy Bob. 

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Next they will be outsourcing that over priced internet garage sale unit to eBay.

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a so called expert on bbc radio this morning said that china will be able to absorb any slow down in growth easily.

please advice the nats how this can be done

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LOL....yeah right....no evidence it can do that so its hope and a prayer.......

regards

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Reading the Shropshire News ( as one does ! ) , the Monday edition reported that during the 60 year reign of QE II , UK house prices have trebled in real returns ....... trebled !

 

........ well , strap me down Batman to contain the excitement ....... houses actually returned 2 % p.a. in real terms ( less the average 3 % average for maintenance , plus rates ....... )

 

2 % ..... joy joy joy !

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and if you look at bonds and shares you will find a similar result.....I suspect...

Im pretty sure I read that if you consider from 1929 to now you will see that similar outcome....ie start of of GD1 to start of GD2...

Yet Govn bonds are probably safer.

regards

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Not to mention this Cracking Story  from Dairy Crest...GBH...maybe a few pointers for Fonterra on  focusing on the positives while losing money.......it's all go  there in Shropshire although I suspect the 16,000 atending the farm show may have picked a few local dairy hampers.....

http://www.shropshirestar.com/business/shropshire-business/2012/05/24/dairy-crest-profits-in-shropshire-up/

Ripping yarns for sure !

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Fonterra's track record suggests they could give pointers to Dairy Crest regards focusing on the positives.

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Depends on where in Shropshire, some areas are very expensive....

Im also not sure where you get costs of living being lower...

Check out car insurance costs for one.....

regards

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Can't compare car insurance costs between UK and NZ as the UK has compulsory insurance whereas NZ has the bizarre situation where the highest risk drivers are the ones without insurance.

And as Sore-loseer points out you can reduce the costs by driving better and choosing a lower-risk car. When I lived in the UK my insurance costs were very small thanks to not crashing, driving a car that wasn't a favourite of thieves and shopping around providers.

One particular bug-bear of mine in NZ is that my car rego ACC contribution is the same as the 20yo with a string of accidents and convictions driving the souped-up Impreza. Make ACC contributions part of compulsory insurance and he can pay his fair share. Might make him drive a bit more safely too

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...... meanwhiles , that great fortune producer Facebook , has lost face again , down a further 11 % overnight ..... closing around the $US 28 mark ( which oddly enough , was aroundabout where they originally planned to list them ....... until " greed " raised to the second or the third power took over )

 

Now kiddies : Remember what Uncle Gummster says if you're rushing in to buy some shares :

 

... " Don't be hastie ! " .....

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Facebook, more Facebrick.

 

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