David Chaston details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news the Government has decided to borrow to fund the Christchurch quake reconstruction and that this will add another $10 billion to our already growing public debt, and further delay when the public accounts will be back in surplus.
A universal reconstruction tax seems to be off the table.
That debt may top 30% of GDP by 2014, although it must be said that a level like this is relatively low when you make international comparisons.
Overnight, the NZ$ sank and is currently down to 71.75 USc – actually, our dollar is basically back to where it was at the low point of yesterday morning’s rout.
Currency worries are very much on the mind of the big and powerful. Japan may be about to intervene to try and stop the yen rising, and the G7 is currently in an unscheduled huddle trying to figure out a response to contain the currency crisis.
Sudden currency changes can be inflationary, and overnight India raised its official benchmark rate by 0.25% to try and hold back inflationary pressures there. Their move, in the face of the Japan quake shock, reinforces that many public policy people are in fact more worried about rising consumer prices than the fallout from Japanese disasters.
US CPI was released overnight, and apart from a spike in food and energy prices, overall inflationary pressure there was a modest 2.1% year-on-year. The food component rose markedly, although a good part of this was reversing declines earlier in the year.
There is more evidence the US economy may be in a sustainable recovery - parcel shipments by their two biggest carriers are showing solid growth.
And in Japan, there is little progress to report. The nuclear catastrophe has not yet happened, and there are reports of water finally getting into the reactor rod areas. But local and international concern remains at high levels. The US is being especially critical of Japanese management of the crisis. We still seem to be in stages of increasingly desperate measures being taken.
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20 Comments
G7 are going to propose that if the yen becomes too volitile a sell off for USD and EURO....30min ago.
the EURO...? that'll help.
The G7 could always print some money and toss it from a safe distance in the general direction of the damaged nuclear reactor's then lower interest rates for extra containment.
Walter, Interesting article on Nuclear development plans. Surprising how many reactors are being built.
http://belfercenter.ksg.harvard.edu/power/2011/03/16/the-global-future-…
AndrewJ here's a little paperwork you may find interesting to read in conjunction with your link to Walter.........................http://www.npec-web.org/article_file/00000000-NonPaper-IntlFinanceInvestment_030211_0538.pdf
Walter you may also find points of interest on how multilateral Bankers get around financing these projects
“The Natural Tee Club” ” - I know.
http://www.thevcroundtable.com/index.html
http://www.thevcroundtable.com/meetings.html
..all listed.
Where are to public debates about policies, finance and economics here in NZ ?
Andrew, Christov - The VC Roundtable is a private, invitation-only, organization whose membership includes the general partners of the venture capital funds, corporate strategic VCs, and the leadership of angel organizations from all over Southern California. The purpose of The VC Roundtable is to provide a private forum for the regular interaction between the members.
Reading through the link above - it turns out such organisations all over the world are almost secret societies, who don’t interact with the public in decision making and/ or are willing to apply democratic political rules.
It doesn’t surprise me the existence of so many NPP's are the results of that. The same games are played in the banking and oil industry.
Andrew, Christov - yes/ no ??? - thank you - great response to an important issue.
Apologies Walter I had gone for the day......I'm going to do some reading on this over the weekend and see just what line connections I can make before I get set upon as a conspiracy junkie..... I have locked your links in for a revisit.
Andrew yes - it seems we are at the beginning of a nuclear war between “Human Stupidity” and “Mother Earth” with of course only one winner - but many losers.
Good link
Where the Hell's Hickey? I get cranky when he's not around.
Mark : That's a lark ! ....
.... You get cranky when the lanky loon of gloom is away ? ....
Hey , he's wrecking a fecking kidney in Sydney ,
don't you see .....
.... But those who drive trucks ,
never go to Starbucks
'Cos the old fella will refuse to pee !
My apologies to David, he's very good. I miss Bernard's portents of doom though, it's oddly soothing.
I'll be back, as Arnie once said.
FYI G7 have pledged to intervene to help the Bank of Japan weaken the yen
http://online.wsj.com/article/SB100014240527487033284045762072722444591…
cheers
Bernard
Gees big guy your slipping ....I started the thread with that.....I'LL hook you up some links huh....just off the cuff.
In Sydney Mark. He'll be back on Monday.
Its Friday ...YAY! and you know what that means scamps..?...only three more sleeps till Bernards back...?...er ..uh...nope it means the friday gag in honour of.... well i think you'll work it out.
Einstein dies and goes to heaven only to be informed that his room is not yet ready. "I hope you will not mind waiting in a dormitory. We are very sorry, but it's the best we can do and you will have to share the room with others" he is told by the doorman. Einstein says that this is no problem at all and that there is no need to make such a great fuss. So the doorman leads him to the dorm. They enter and Albert is introduced to all of the present inhabitants. "See, Here is your first room mate. He has an IQ of 180!" "Why that's wonderful!" Says Albert. "We can discuss mathematics!" "And here is your second room mate. His IQ is 150!" "Why that's wonderful!" Says Albert. "We can discuss physics!" "And here is your third room mate. His IQ is 100!" "That Wonderful! We can discuss the latest plays at the theater!" Just then another man moves out to capture Albert's hand and shake it. "I'm your last room mate and I'm sorry, but my IQ is only 80." Albert smiles back at him and says, "So, where do you think interest rates are headed?"
The U.N. have Okey-diddily-dokilyed the blasting out of the Libyan skies , the war-planes of Gaddafi .
...... will stockmarkets tremble and pall ?...
Will the price of oil go up ?....
........ Come Monday , will Hickey pull a sicky from the Starbucks coffee ?
Time to invest in the weapons makers Gummy....not every day they get the chance to wipe out one dictator's toys in a show sure to guarantee the next dictator will buy new toys.....
Guess who said this :
"One of the issues is that Kiwibank has been staffed and organised on the assumption of very strong growth. At any particular point in time it's staffing is reflecting the anticipated needs for the growth of the next phase rather than it's current service delivery profile. As a consequence its actual cost ratio is actually quite high by banking standards.
"This period of slow growth which is going to be inevitable for Kiwibank over the next year or two is probably an opportunity to address more firmly that issue of cost reduction within Kiwibank itself." herald.
Hard to believe isn't it...Cullen!
Pity he went about staffing the state sector on the assumption there was very strong growth...because as a consequence of his poor management the state sector actual cost ratio is stonking high by past standards.....and did we see Cullen address more firmly the issue of cost reduction within govt...saving taxpayers the pain today....not a bloody bit.
Altered...ergo.....but no real change........Just like a certain forlorn hope...that it would.
http://www.scoop.co.nz/stories/BU1103/S00588/securities-commission-move…
http://www.findata.co.nz/News/11511944/2m_Waikanae_fraudster_jailed.htm
Spot the bigger crook.
A new ... NEW ZEALAND past time.
Past time that the Securities Ommission played a small part....instead of just being...a small part.
No point in ranting, no point in stating the obvious, not point in blogging, no point ...and now certainly now, NO INTEREST.
Lots of interest in a venue for a footy match.
Lots of interest in Oil-lie's diatribe on the housing front.
(I have a horse called Ollie, won a few races in the past...another hack, past its prime).
ho hum...
Orf to the knackers....this week.
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