Comments on: 90 seconds at 9am: Key torpedoes 2025 Taskforce; Farm lending falls

By: grant m

grant m — Mon, 30 Nov 2009 06:43:25 +0000

To stop Nz from going the way of USA we must avoid the following from happening.

The Control freaks (Govt, Banks and other money lenders) have taken advantage of Bernard’s persistence in pushing for land tax over CGT that they are now signalling thro the media that the changes to NZ tax system will pretty much be,
1 increase GST
2 intro property tax
3 reduce top tax to 30%.

This will mean that the average person will pay a lot more to live. While those who live a life a kin to a money trader will be able to carry on there way of obsession with money and getting one over every else.
The fact that the Govt will end up taxing new zealanders income, saving, spending, local body rates and now their home, makes this country pretty queer.

The biggest problem for NZ wether we are in a recession or a boom is the amount of borrowing and lack of saving. I’m amazed that so many intelligent people can’t identify this. We need to have tax-free income from saving for all individuals. This would encourage people to save which would reduce the inflation rate, lower interest rate for domestic burrowers and help to hold down the exchange rate of the New Zealand dollar.

But the money lenders would not be happy, unfortunately a certain group including the Government (GST) Banks and others is hell bent on making New Zealand a low income, high cost country.

By: AndrewJ

AndrewJ — Mon, 30 Nov 2009 00:56:54 +0000

@David Hillary
I wonder if the banks have been writing of debt. Its a huge change in lending if not, then yes, stress levels must be high.

By: AndrewJ

AndrewJ — Mon, 30 Nov 2009 00:53:58 +0000

If a business experienced a sharp downturn in sales it would cut costs,if a family had a partner lose a job or a drop in income in would retrench, cut spending.
These idiots running the country have had a cut in income and have decided to borrow more to pour into unproductive enterprises like DPB etc. They have not once mentioned how the intend to repay the 40 billion, which will more than likely morph to 100 billion. This is because Governments don’t repay debt. This Govt has no intention of repaying this debt they will sell something(asset sales mark ll). Why the hell can they not get it through their thick skulls that the best and only sensible option is to cut spending.

By: Roger Thompson

Roger Thompson — Sun, 29 Nov 2009 23:24:47 +0000

Doug : You raise a good point . There are any number of ” shoes about to drop ” overseas , which could send world sharemarkets and economies into a tail-spin . It may happen , maybe not . But the risk is real . And JK is doing nothing to strengthen our position , financially , in preparation . A good boy scout is ready for any eventuality . We here in NZ , risk being caught in the wilderness , with our britches down . $ 250 m. extra borrowing each week is ludicrous . Down-right stupid . And unnecessary .

By: David Hillary

David Hillary — Sun, 29 Nov 2009 23:18:59 +0000

No one is commenting on farm lending falling. Does it mean banks and lenders are tightening the credit terms for farms? Will farm prices crash? Lenders with large agricutlural exposures such as South Canterbury Finance could really get caught with this (see http://davidhillary.blogspot.com/2009/11/seven-ugly-gaunt-cows-that-could.html)

BTW I also have a poll running on SCF’s next credit rating: http://davidhillary.blogspot.com/2009/11/credit-rating-countdown-and-poll.html