The value of money has dropped by two thirds in 30 years

[Banditbandit]

Fortunately most of that is private debt, making this:

See this article http://www.stuff.co.nz/business/5106...o-71-6-billion clearly says "Government debt rises to $71billion.

That's money our Government has signed up to pay back .. and borrowed to fund it's promises ... Just like Cyprus ...

[Akzle]

See this article http://www.stuff.co.nz/business/5106...o-71-6-billion clearly says "Government debt rises to $71billion.

That's money our Government has signed up to pay back .. and borrowed to fund it's promises ... Just like Cyprus ...

thaaaaaat's right. and why did they think they could? a) becuase sheep chose them to make decisions, b) becuase you're some kind of corporate-tax-slave-legal-person, and, doing the maths, you're likely to stay that way, which means they can borrow against the earning potential of you and your children.

good fucking deal!

(BTW, legally, "NZ's" debt, is entirely your problem. OBR, bring it on!)
(srsly, tinfoil hat me all you like, when will people actually wake up and smell the bullshit)

[Brian d marge]

Makes my roses grow does manure

Stephen

latest news from off the grid central , the tank sprung a leak had to find emergency accomodation for fish , and the result was , me crayfish died

bugger , he was getting big to !

[flyingcrocodile46]

This is probably a large part of the reason.

Paper money is virtually worthless. Its only value is that that we give it when buying and selling product. Product (land,cars,TV's,food,clothes etc) is where the only real wealth is. Product growth the world over is very slow and percentage wise is typically in low single digits. It struggles to keep up with increasing competing population (land has no show).

Govts or central banks tend to print money (fiat money) so they can pay their debts and wages bills etc (or in the case of central banks, so future taxpayers will pay them interest on the near worthless paper). When extra paper money is released into circulation without a corresponding increase in product (say 8% more paper money over and above say 1% of product growth), The economy which previously assigned $300,000.00 value to each of only 800,000 homes available will quickly adjust itself through supply and demand to $324,000.00 for each of 808,000 homes.

Imagine what happens if your govt does that for 10 straight years. The same houses now costs about $647,000.00 each. That's right, unless your income has kept pace , not only has your money halved in value, but you also have less of it to live and plan your life with.

That couldn't possibly happen though. Could it
http://goldsurvivalguide.co.nz/heres...on-statistics/

[Brian d marge]

This is probably a large part of the reason.

Paper money is virtually worthless. Its only value is that that we give it when buying and selling product. Product (land,cars,TV's,food,clothes etc) is where the only real wealth is. Product growth the world over is very slow and percentage wise is typically in low single digits. It struggles to keep up with increasing competing population (land has no show).

Govts or central banks tend to print money (fiat money) so they can pay their debts and wages bills etc (or in the case of central banks, so future taxpayers will pay them interest on the near worthless paper). When extra paper money is released into circulation without a corresponding increase in product (say 8% more paper money over and above say 1% of product growth), The economy which previously assigned $300,000.00 value to each of only 800,000 homes available will quickly adjust itself through supply and demand to $324,000.00 for each of 808,000 homes.

Imagine what happens if your govt does that for 10 straight years. The same houses now costs about $647,000.00 each. That's right, unless your income has kept pace , not only has your money halved in value, but you also have less of it to live and plan your life with.

That couldn't possibly happen though. Could it
http://goldsurvivalguide.co.nz/heres...on-statistics/

Very good , like that ,

The word "product " doesnt sit right with me , not sure why ( . When extra paper money is released into circulation without a corresponding increase in product)

if that product is related to population growth i.e demand, I can see the links

Stephen

[mashman]

The real money is in energy. Products are on so good as long as people want or can use paper money to buy them. If paper money is becoming worth less because of some fascination with growth, inflation and the accumulation of wealth being attracted by wealth, then there are going to be more people falling into the don't have enough paper money to buy products category. Then the knock on effects of people being laid off to keep the company afloat, more taxation being required from less workers to fun those newly unemployed rinse and repeat until you have a society that is receiving their $10.80/hour directly from the government... providing you work for them of course. Product prices can only fall so far and wages aren't keeping pace for the vast majority of people, so it's only a matter of time until drastic measures are taken to recoup the money being lost by joe public. I love the future, it's such a pathetic wimp of a place with millions of Oliver Twists begging for more.

[Ocean1]

See this article http://www.stuff.co.nz/business/5106...o-71-6-billion clearly says "Government debt rises to $71billion.

That's money our Government has signed up to pay back .. and borrowed to fund it's promises ... Just like Cyprus ...

That'll learn me to check, eh?

So, leme see if I can get this right, that's $17500 dollars each. So, unlike Cyprus it's not a large lump of GDP: http://www.tradingeconomics.com/coun...nt-debt-to-gdp

So, like you I'd rather tighten the belt a notch than borrow for frivolous fripperies. The fight starts when you try to decide what that means, eh?

[mashman]

See this article http://www.stuff.co.nz/business/5106...o-71-6-billion clearly says "Government debt rises to $71billion.

That's money our Government has signed up to pay back .. and borrowed to fund it's promises ... Just like Cyprus ...

So what happens when the $ starts falling back to its usual "value"? Does that mean where we pay $1 back in debt, we'll be paying $2 instead? and that's assuming that the interest rates for the loan aren't "flexible".

However the bit that does make me chuckle: "English said the deficit would fall back to below $10b next year and then ''be virtually eliminated'' in 2013/14. The Government would then start running surpluses and repaying debt."... that's an amazing magic trick. It's been $10 billion for what seems to have been forever, yet it's going to all but vanish.

Given that the nats have cut costs left and right, why do they need to keep on borrowing? and where has the money been spent thus far?

[mashman]

That'll learn me to check, eh?

So, leme see if I can get this right, that's $175 dollars each. So, unlike Cyprus it's not a large lump of GDP: http://www.tradingeconomics.com/coun...nt-debt-to-gdp

So, like you I'd rather tighten the belt a notch than borrow for frivolous fripperies. The fight starts when you try to decide what that means, eh?

$175 or $16000? given 71.6 billion of debt and 4.5 million men, women and children in the country. Or is it really $45k given 1.6 million net tax contributors?

[Ocean1]

$175 or $16000? given 71.6 billion of debt and 4.5 million men, women and children in the country. Or is it really $45k given 1.6 million net tax contributors?

Lost a zero, fixt. Isn't a quantity that many could cheerfully peel off a wad from their wallet, and I'd rather it was less. I'm not silly enough to be bleating about increased public debt AND spending cuts, though.

[mashman]

Lost a zero, fixt. Isn't a quantity that many could cheerfully peel off a wad from their wallet, and I'd rather it was less. I'm not silly enough to be bleating about increased public debt AND spending cuts, though.

You mean you aren't even slightly curious as to why the govt has made spending cuts and yet still borrow money? Not even slightly curious about what they've spent that money on?

[Ocean1]

You mean you aren't even slightly curious as to why the govt has made spending cuts and yet still borrow money? Not even slightly curious about what they've spent that money on?

Dole bludgers, mainly.

[mashman]

Dole bludgers, mainly.

An extra $10 billion on bludgers? Not the private sector adding less to the economy and the govt having to borrow to cover that loss?

[Ocean1]

An extra $10 billion on bludgers?

Of course not.

Dole bludgers AND DPB bludgers.

[Akzle]

Dole bludgers, mainly.

srsly? I think uber troll.
Benefit fraud <1/100th tax evasion costs.
It was in the herald and all.