"Housing is the only thing Dr Bollard can hammer, writes James Weir in todays DomPost. "He would like to hammer dairy cows, and the government [spending], but the housing market is the only thing he can tackle."
Tackle? Grab around the neck, kick in the balls and stomp on the face more like, with the prediction of two more rate rises in the next few months. His tackle style is not very sporting, and as it happens, he's tackling the man without the ball.
This game needs a referee.
Tackle? Grab around the neck, kick in the balls and stomp on the face more like, with the prediction of two more rate rises in the next few months. His tackle style is not very sporting, and as it happens, he's tackling the man without the ball.
This game needs a referee.
Sorry, but why should Bollard hammer dairy cows?
ReplyDeleteOf the three; cows, housing bubble, and govt spending, cows are the only productive member of the economy.
He is hammering dairy cows, high interest rates means high NZD. Hurts dairy.
ReplyDeleteWell, it's a good thing Aussie is having a drought helping push up Mfat prices at the moment isn't it.
ReplyDeleteAfter 100 years can you believe that we still make most of our coin by converting grass into protein? Boggles my rural mind! Most nations would use that breathing space to develop a technology producing economy. We used it to produce NCEA.
Of course all he really needed to do a few years ago was either raise by 50 basis points instead of 25, or none instead of 25.
ReplyDeleteGiven that many of our issues are actually around exchange rate rather than interest rate, throw in some instability and the carry trade will unwind.
Of course the other unstated factor here is that Bollard is actually using the high dollar to hide the real inflation. Which will all end in medium to long term pain
What inflation?
ReplyDeleteOh, you must mean the government driven inflation caused by increasing spending from 30 billion to 55 billion in 7 years?