ANZ's Business Outlook Survey preliminary data for April show pricing expectations for NZ firms have hit a new high in a series that goes back nearly 30 years

We are all going to be billionaires!

Just hold on a little while longer. Soon we'll open up our borders to low-wage migrants from developing countries, bringing the much-needed cost relief to businesses.

This

The companion article to your link was a fascinating read. Thx.

https://www.zerohedge.com/news/2021-04-07/deflationary-gap-and-wests-wa…
(The above text is an excerpt from the book "Grand Deception" which is only available from the Red Pill Press since Amazon.com banned the book (twice) at the orders of the US Department of State.)

Although I studied economics at the university, I don’t recall coming across the subject of Deflationary Gap. That’s strange, for we’re talking about a systemic flaw of the capitalist economic system that predictably corrodes the democratic framework of society....The Deflationary Gap can be closed either by lowering the supply of goods or by raising the supply of purchasing power, or by a combination of both methods. In the last century in Europe, the vested interests usually sought to prevent the reform of the economic system (a reform whose need was made evident by the long-drawn depression) by adopting an economic program whose chief element was the effort to fill the deflationary gap by rearmament. ....analysis, based on the historical developments in the aftermath of the economic depression of the early 1930’s closely parallels today’s events.

The economic crises which germinated from the same systemic feature present in the modern economic system, followed a similar pattern in economic and political developments that we are witnessing today.

"Oh, no this is isn't inflation, goodness no. It's just that the things we eat and the things we live in are suddenly much much more expensive. It's ok though, becuase we have more money than usual right now, so we will buy them any way."

As Mick Jagger said to Jerry Hall when he came in from work "another day, another quarter million dollars"

Great link - thanks.

These people are all over the shop at the moment. Not a good sign. Perhaps Aird is looking to leave the industry.

The following highlights the thinking over at the RBA:

With the economy currently dependent on household consumption, stronger property prices are encouraging people to spend and boosting confidence that delivers wide-ranging financial benefits.

Now, the economy doesn't 'currently depend' on the wealth effect. It has done for the past 30 years.

Research done by the RBA itself suggests there are real economic risks with this ramp-up in debt. The research, by Fiona Price, Benjamin Beckers and Gianni La Cava and released in 2019, found strong evidence of a “debt overhang effect” where every 10 per cent increase in debt reduced household expenditure by 0.3 per cent.

Wow, that's a real indictment of the RBNZ and Treasury's optimistic faith in the Wealth Effect, surely.

Question is, do equities do the same, given that most have inflated based on making one way bets using free money.
As soon as interest rates start to move back, the pressure will really come on.
My mortgage rates have moved from 6% to 2% over 6 years, but really can central banks take them back there without global collapse, given the level of debt governments themselves have taken on?

Until confidence is waning, in short supply.. no body cares about policy results, which all based on calculating the short term impact.. keep on doing the same to the point when all those essential workers decide to do prolong work strike. NZ is just cosmetics, deep inside.. not worth it.