Sorry chaps, there is no room in $11.5 billion for a cut

[James Deuce]

You're dead right MDU, BUT there have been rumblings about Reserve Bank economic policy in NZ and our (comparatively) High Interest rates.

[paturoa]

Have you guys seen our balance of payments?

We don't deserve to be a "first world" country. If every investor calls in what NZ owns, that 11.5 Billion isn't enough to prevent us ending up like Nth Korea in about a week.

Good point - Except that is private not govt debt.

And a significant proportion of this private debt is financing homes, cars (and dare I say it bikes!).

Alongside this is our comparitive low savings rate...

So why are some many people borrowing money and / or not saving any????

Methinks these things are related.

[Big Dave]

What sky sport channel was it on?

[James Deuce]

Good point - Except that is private not govt debt.

And a significant proportion of this private debt is financing homes, cars (and dare I say it bikes!).

Alongside this is our comparitive low savings rate...

So why are some many people borrowing money and / or not saving any????

Methinks these things are related.

Yes but private debt is used by institutions that loan to Governments as an indicator that Government Finance policy is working to provide a platform for that debt to be serviced. The fact that beneficiaries can get mortgages is an indicator that Government financial policy is out of step with the requirement for that debt to be serviced.

[sAsLEX]

Yes but private debt is used by institutions that loan to Governments as an indicator that Government Finance policy is working to provide a platform for that debt to be serviced. The fact that beneficiaries can get mortgages is an indicator that Government financial policy is out of step with the requirement for that debt to be serviced.

but beneficiaries pay tax on what they are given?









Never understand that......I am paid out of tax money and then get taxed on that weird.

[James Deuce]

It's the Robin Hood theory of Govt. Taxation.

Thoroughly fucking mad. Excuse the language.

[paturoa]

Yes but private debt is used by institutions that loan to Governments as an indicator that Government Finance policy is working to provide a platform for that debt to be serviced. The fact that beneficiaries can get mortgages is an indicator that Government financial policy is out of step with the requirement for that debt to be serviced.

yeah true but I was coming from another angle ..

- if people are working, shouldn't they be able to buy stuff without using private debt.
- if people are working and choose not to buy stuff, wouldn't the balance of payments be lower with the increased available national capital.

Income re-distrubution policies are driving this.

And note the sharp end of the Capital Gain tax just got wedged in place a couple of months ago - watch this space....

Arrrgggghhhh.... this is all getting too sterile, I want to be angry and fume a bit more!

[Squeak the Rat]

I like Bollards recent warning, that home-owners are not saving enough.

How can they save enough when they've mortgaged themselves up to the eyeballs and having to service their debt you ask? Exactly his point.......

[WRT]

What gets me, is (generally speaking) you have two fair ways of running a country - tax the fk out of everyone but provide all their services (medical, safe society, good roads etc), or tax them lightly but make more of a user pays society.

Seems we have the worst of both worlds, high tax but poor levels of service.

[The Stranger:Me]

Have you guys seen our balance of payments?

We don't deserve to be a "first world" country. If every investor calls in what NZ owes, that 11.5 Billion isn't enough to prevent us ending up like Nth Korea in about a week.

So that would kind of be like banks demanding payment of every mortgage. They just wouldn't get it, plain and simple, so they would be stupid to do this. People with money to invest are generally not too stupid, though there are exceptions.

Is the 11.5 Bil going to fix the balance of payments? Whos debt are they going to relieve with that? Mine I hope.

[ManDownUnder]

Is the 11.5 Bil going to fix the balance of payments? Whos debt are they going to relieve with that? Mine I hope.

I just found some of the $11.5 Bill

Rego on bike just paid.

Licence fee $24.50 - ok so far
ACC Levy $166.50 - owwwwwwwwwww
Other Levies $1.64 - not so bad but... tax?
Administration $6.72 - I FILLED THE FORM IN - WHAT ADMIN?
GST $24.92 (A tax on a levy aka a tax on a tax??

Grand total of $224.25, total rounded down to nearest 5c.

It's obviously not the whole $11.5b... but it's a mandatory part of it

[ManDownUnder]

You're dead right MDU, BUT there have been rumblings about Reserve Bank economic policy in NZ and our (comparatively) High Interest rates.

Those rumblings are my stomach... it does that every time I get the shits

[sAsLEX]

How can they save enough when they've mortgaged themselves up to the eyeballs and having to service their debt you ask? Exactly his point.......

So one is better to shit money down the drain renting?!

[The Stranger:Me]

ACC Levy $166.50 - owwwwwwwwwww

Quick, while it is fresh in your mind object.

See this post

Last day today

[James Deuce]

So that would kind of be like banks demanding payment of every mortgage. They just wouldn't get it, plain and simple, so they would be stupid to do this. People with money to invest are generally not too stupid, though there are exceptions.

Is the 11.5 Bil going to fix the balance of payments? Whos debt are they going to relieve with that? Mine I hope.

That they wouldn't get it isn't in doubt, but we wouldn't be able to borrow any more money from anywhere, whihc effectively kills the economy stone dead. 11.5 billion runs Social Welfare for 12 weeks.