PM Chris Hipkins

[pete376403]

Hopefully the riding mortgage rates will help voters make right choice.

Independent Reserve Bank sets the base rates. Non-government owned trading banks set market interest rates. Where in this process does the government get to control anything?

[TheDemonLord]

Independent Reserve Bank sets the base rates. Non-government owned trading banks set market interest rates. Where in this process does the government get to control anything?

Independent is doing a lot of heavy lifting there.

Firstly - it is wholly owned by the Government, which in-of-itself wouldn't make it 'Independent' - but the real crux of the issue is that the RBNZ's primary function (the bit that people are pointing to as 'separate' from the government) is defined in Legislation and the Policy Target Agreement (which is public and determines what the RBNZ is going to do) is agreed between the RBNZ And the Finance Minister.

In short - the Government and RBNZ agree on what outcome they would like e.g. it used to be to keep inflation below 4% IIRC - and then the RBNZ issues currency or changes the OCR in pursuit of that agreement.

It is therefore entirely possible that the Government could write an update to the Legislation that the OCR could not go above x% and change the Policy target agreement.

And people implicitly know this - because the RBNZ is owned by the Government and you never have full independence from that which owns you.

[TheDemonLord]

We tend to get what we voted for though.

I couldn't agree more...

Well, what everyone else voted for, cause I didn't vote for Labour...

[pete376403]

We have statutory independence from the government. This means we have operational autonomy to achieve our long-term objectives for the financial system.
https://www.rbnz.govt.nz/about-us/ou...ion-and-values

Maybe the long term objectives are agreed between RBNZ and Government.

[TheDemonLord]

We have statutory independence from the government. This means we have operational autonomy to achieve our long-term objectives for the financial system.
https://www.rbnz.govt.nz/about-us/ou...ion-and-values

Maybe the long term objectives are agreed between RBNZ and Government.

They are - effectively what they are saying is they are empowered by the Government to make decisions on their own without asking the Government for permission.

It does also mean that in some circumstances they can act contrary to what the Government wants.

However, they are still empowered by Legislation. Legislation that could change. As a hypothetical, tomorrow the Government could introduce Legislation to print a Billion Dollars a day - the RBNZ would have to do it and we would have Zimbabwe levels of inflation.

The operating theory of the RBNZ is that the long-term objectives (which they are empowered to do through legislation and policy) allows them to implement short-term unpopular policy that might fly contrary to the interest of the current government.

The problem is that any government can only tolerate unpopular policy for so long. Even from institutions that have Statutory independence - like the HRC, IPCA etc.

To be fair to the RBNZ - they are simply trying to fix the mess that Labour created with the tools at their disposal.

[BMWST?]

They are - effectively what they are saying is they are empowered by the Government to make decisions on their own without asking the Government for permission.

It does also mean that in some circumstances they can act contrary to what the Government wants.

However, they are still empowered by Legislation. Legislation that could change. As a hypothetical, tomorrow the Government could introduce Legislation to print a Billion Dollars a day - the RBNZ would have to do it and we would have Zimbabwe levels of inflation.

The operating theory of the RBNZ is that the long-term objectives (which they are empowered to do through legislation and policy) allows them to implement short-term unpopular policy that might fly contrary to the interest of the current government.

The problem is that any government can only tolerate unpopular policy for so long. Even from institutions that have Statutory independence - like the HRC, IPCA etc.

To be fair to the RBNZ - they are simply trying to fix the mess that Labour created with the tools at their disposal.

fair? Is it fair that people are being impacted by high inflation when that inflation is caused by the government(largely) who then requires the reserve bank to put the squeeze on to those people who cant afford it and may lose their house and their jobs

[TheDemonLord]

fair? Is it fair that people are being impacted by high inflation when that inflation is caused by the government(largely) who then requires the reserve bank to put the squeeze on to those people who cant afford it and may lose their house and their jobs

Bearing in mind, my Mortgage is up for renewal this year and I am absolutely shitting myself as to how bad it's going to be - looking at finances and seeing what excess fat can be trimmed and what sacrifices we might have to make, so when I say what I'm about to say - know that I am absolutely in this position:

If we think of NZ as a Ship - The captain (Labour and Stalinda) ran the ship aground, the ship is starting to sink (due to all that money being printed) - so the chief engineer (the RBNZ) in order to save the ship, seals a number of water-tight bulkheads. Some people on the other side of those bulkheads are now irrecoverably screwed and condemned to drown to death.

Who do you blame? The Chief Engineer for simply doing their job and saving the ship? Or the Captain who should never have been at the helm in the first place (Fuck you Winston).

I know where my wrath is directed.

This is what I meant by 'To be fair to the RBNZ'. I don't begrudge the RBNZ for doing what they are supposed to do. I lay the entirety of the blame at the Labour Government and Stalinda.

[Ocean1]

Where in this process does the government get to control anything?

They print tens of billions of dollars and dump them into the economy while producing absolutely nothing?

Do I get a prize?

[pete376403]

They print tens of billions of dollars and dump them into the economy while producing absolutely nothing?

Do I get a prize?

Reserve Bank does the printing so that independence from government thing again?

[R650R]

I wonder did anyone keep count of how many times Hipkins and the Police said there was no spike in crime after the cyclone????
Well they have now admitted CRIME DOUBLED during week after and that’s just reported events!
You can imagine there would likely be more where say a farmer presented a firearm to defend property and didn’t report it knowing he’d be the one charged.
It’s even worse when you consider lack of mobility as only two gas stations were open in Napier in first two days. Also majority of people were at home as many workplaces closed/inaccessible etc...

“For burglaries, there were previously six a day on average in the district which rose to 13 per day on average between February 14-20.

Burglary figures then dropped back to normal levels in the weeks following.

For public order incidents, there were normally 27 reports a day which rose to an average of 53 a day between February 14-20.

Those incidents stayed relatively high for the following two weeks at around 48 per day before reducing.”

Btw what they like to call “disorder” events is usually full on gang confrontations/fights it’s not just some noisy teenagers in street that the title suggests.

[husaberg]

I wonder did anyone keep count of how many times Hipkins and the Police said there was no spike in crime after the cyclone????
Well they have now admitted CRIME DOUBLED during week after and that’s just reported events!
You can imagine there would likely be more where say a farmer presented a firearm to defend property and didn’t report it knowing he’d be the one charged.
It’s even worse when you consider lack of mobility as only two gas stations were open in Napier in first two days. Also majority of people were at home as many workplaces closed/inaccessible etc...

“For burglaries, there were previously six a day on average in the district which rose to 13 per day on average between February 14-20.

Burglary figures then dropped back to normal levels in the weeks following.

For public order incidents, there were normally 27 reports a day which rose to an average of 53 a day between February 14-20.

Those incidents stayed relatively high for the following two weeks at around 48 per day before reducing.”

Btw what they like to call “disorder” events is usually full on gang confrontations/fights it’s not just some noisy teenagers in street that the title suggests.

You are just not that bright .

Spencer and Strobl (2019) find that hurricanes cause crime to rise by 35 percent. More specifically, they find that aggravated assault, break-ins, and shootings increase during hurricanes, while murder, rape, and robbery decline.

[R650R]

What’s going on chippy???

Hopefully he’ll come home and get the right royal broom out and deal with Meka-gate like he did with Mash.
What a disgraceful disrespect of democracy to not speak to leader and leave but not leave your party, abandoning those who did vote for you, abandoning people in a disaster zone (she was in charge of cyclone recovery). Who knows what triggered all this. Hopefully it was behind the scenes good stuff like abandoning co-governance and other depetatist nonsense.
He should sack her to avoid abuse of due process that is circumventing Waka jumping law. Yes I know there are other instances where it was not used but could have been.

[Berries]

I'd tap it.

[husaberg]

Someone hasn't quite figured out the vote for a party is separate from the vote for an electorate mp.

[TheDemonLord]

Someone hasn't quite figured out the vote for a party is separate from the vote for an electorate mp.

All too often, that's not the case.