English off to Davos talkfest

Bonds

Finance Minister to attend annual Swiss World Economic Forum

16th Jan 14, 10:19am by Gareth Vaughan

Finance Minister Bill English will attend the annual World Economic Forum meeting in Davos next week for the first time.

The annual Swiss talkfest attracts several thousand political, business and economic leaders from around the world.

“The Forum will provide me with an opportunity to better understand the global risks to New Zealand’s positive economic outlook,” English says.

“It will also provide me with a clearer understanding of how the people and markets we trade with are thinking about our common challenges.”

He says he’s especially interested in discussions about returning to what some people call “natural growth”, as major global economies exit large monetary and fiscal stimulus programmes.

“The unwinding of these stimulus programmes by large economies will certainly have an impact on small open economies like New Zealand’s,” says English.

He departs for Switzerland on 20 January and will return home on 27 January.

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14 Comments

by Alter Ego | 16th Jan 14, 12:32pm 1389828720

May I ask, why we should return to 'natural growth'?.

May I ask, why any change is required.?

We have never been had, it's so good.

Which one of these stimulus programmes unwinding, will we be emulating in future, borrowing from, adding to, taxing his brain and ours.

I would love to be a fly on the wall of this "World Economic Forum'

Maybe economic with the truth, will become a reality, in my thinking, not theirs.

I would dearly like to know in advance too the ramifications and agenda being discussed.

But I do not have a majic wand.

I hope someone has.

Davos is where English may get his orders from. If he has no ideas of his own, he should not be there.

If he does not have a 'better understanding" by now, maybe we should all quit, while we are ahead.

If we are an 'open economy', why is it a closed shop, or will it be some members only.

Will journalists be there to tell the truth, or will they just print the lies and statistics and bullshit, as usual.

I am working on a new thesis for future requirements, going forwards, not back.

So please make up my mind.

Or will it be just more of the same.

Print and be damned.??!! and never trust no one, ever again and so sorry, that includes most journalists, economic, financial and not up with the play.

Will the 1% be taxed to the hilt, will they get their comeuppance.

Will anyone go to jail for fraud, extortion, stealing, conniving, robbery counterfeiting and no-pay back.

Will they heck!.

Does no one else care to comment?.

by Plan B | 16th Jan 14, 12:58pm 1389830335

The only question that needs asking by a journalist before Bill goes is;

"What colour is his name badge?"

That is the only thing that maters at Davos

Any number of articles on how stupid Davos actually is will tell you that the colour of the name badge is the only thing that matters

So what colour is it?

by MikeM | 16th Jan 14, 1:09pm 1389830987

Bill is going to Davos primarily to unveil the secrets of our 'rockstar' economy. :)

by steven | 16th Jan 14, 1:24pm 1389831897

Dear Bill,

Growth is gone, welcome to a post peak oil world....

regards

by Mark | 16th Jan 14, 3:18pm 1389838731

I'm trying to think of something really negative to write here. I'm not sure what it should be, but it probably has the word "peak" in it.

by David George | 16th Jan 14, 3:42pm 1389840170

How about "why is it that with our terms of trade running at multi decade highs and interest rates on our debts at multi decade lows we are running one of the worst current account deficits in the developed world?"

Bill, anyone?

by Mark | 16th Jan 14, 4:05pm 1389841557

Hmmm, something with "peak" would sound catchier

by powerdownkiwi | 16th Jan 14, 4:52pm 1389844347

No need

There is no such thing as 'natural growth'. Every natural thing matures, ceases growing.

Or we'd all be as tall as the Empire State Builting, heading for the moon. This Minister simply doesn't understand exponential growth. That disqualifies him, and if we had half a savvy media, he'd be hounded out of office.

We don't, he won't, the stupidity will continue.

by Brendon | 16th Jan 14, 9:43pm 1389861816

"Every natural thing matures, ceases growing" Agreed : )

Happy New Year PDK.

In a forest the big trees die, leave a litttle light to penetrate the canopy space for the seedlings to find a home to grow from sapplings to mature trees and then the cycle continues.

In New Zealand do we give that little light to the seedlings or does our political economic system blow our seedlings away to foreign lands or bury them deep with a poor supply of nutrients for future growth?

by Ms de Meanour | 17th Jan 14, 9:40am 1389904802

This is a similar kind of semantic misconception as when people take the existence of the phrase "market failure" to mean that "markets are a failure".

Looking at the context, it's clear that by "natural growth" the Minister simply means "the level of growth that you get when you stop artificially driving economies with fiscal stimulus measures". That doesn't preclude the possibility that the "natural" level of growth could be zero, or even negative. It does not imply a presumption that growth is never-ending or that it takes place under all circumstances.

Economists do not believe that to be the case, much as you seem convinced otherwise. They observe that economic growth does happen under certain circumstances and that it doesn't happen under other circumstances, and they try to understand why. That is a worthwhile and difficult endeavour which deserves more respect.

by powerdownkiwi | 17th Jan 14, 10:25am 1389907547

If economics dealt with realities, and was capable of valuing them rather than denying them as 'externalities', I'd have more respect.

by Ms de Meanour | 17th Jan 14, 12:26pm 1389914810

To call something an "externality" is not to deny it. On the contrary, it is to identify and recognise it.

It's not economics that does not value externalities, it's markets.

That is why economists acknowledge externalities as an example of market failure, and work to develop ways of addressing them so as to correct that failure.

It's incredibly disappointing to be having to explain this.

by Casual Observer | 16th Jan 14, 8:38pm 1389857913

Family member lives in Davos - Economic Summit seriuosly disrupts life there - but there is a silver lining - Home owning locals are able to rent their 4bed homes out for 30,000F for a week. Pretty good money for the Swiss, for a week.

by Alter Ego | 17th Jan 14, 8:25am 1389900320

Is it not a bit rich, that the bubble building economists at the Summit of their powers, can power up a cute Swiss residence to the tune of 39,000 dollars per week.

Pretty good money, when the little people of the New Zealand populace are paying ones dues.

Might I ask another question.

Just where is Mr English staying?, what is his contribution to the Swiss economy, at our expense, going to be?.

A simple bed and breakfast would do, would it not?, probably flying economy class too, methinks.

Him being a prudent Finance Minister and so-called economist and therefore setting an example to us all.!!..., or did he put it on the Government credit card, we owe so much on.

Ironically, I would dearly like to know.