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David Parker advocates returning to Muldoonism

by Whaleoil on September 15, 2012

David Parker thinks the Reserve Bank should be given special powers:

The Reserve Bank should be given more tools to deal with the high value of the New Zealand dollar, Labour MP David Parker said today.

The kiwi has climbed sharply following the US Federal Reserve’s latest stimulus package announcement.

Mr Parker, Labour’s finance spokesman, said under current laws the Reserve Bank had to focus on inflation.

But he added that its objectives needed to be broadened “so that the Reserve Bank is required to address the exchange rate and employment in New Zealand with the same priority given to that as controlling inflation”.

Mr Parker said if the Reserve Bank had that objective, it would have all the powers it needed to address “our over-inflated currency”.

What David parker is advocating is a return tot he very powers that Muldoon had…no thank you very much.

Quite how he thinks the Reserve Bank can influence the currency in an open market against…oh I don’t know…China, or even a modest sized trading room of an international bank is beyond me…it would just burn truck loads of cash and ultimately be futile.

When David Parker advocates for this he is advocating to an increase in fuel prices and almost everything else we consume….basically so that we can continue to pour money into farmers pockets.

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  • Vlad

    This is advocating taking a (blunt) knife to a gunfight. Heaven spare us if this kind of naive fool is elected in coalition with Greens, who would want to carbon tax us into oblivion.

  • johnbronkhorst

    Didn’t labour try this under auntie helen…when they said the dollar was too high? The bought a load of US dollars to lower the exchange rate……it did for about half a day…it then went immedistly back up….meaning that all they achieved was to GAMBLE our money (and lose) on the INTERNATIONAL currency market!!!! DICK HEADS!!!!!

    • Megahoops

      Yes, they sure did. Epic fail. We need to recognize our relative size to the large overseas banks and economies such as The US and China. I thought JK was really good on Q and A this morning. David Shearer was all waffle as per usual. JK basically said adapt or die, the Kawerau Mill situation reminds me of a who moved my cheese situation.

  • Allan

    Labour has no answer, they are economic illiterates as their record proves. They had 9 years of the best economic conditions that the world has seen in decades and wasted it on Socialist wet dreams instead of forging a strong economy. The incoming National lead Coalition was left with an economic basket case with massive debt and climbing unemployment and that inheritance, combined with the global economic downturn are the main causes for the low growth that we are currently experiencing. Interesting to see though is that the Socialists just dont get it. They are still promoting spend and hope policies without any thought as to where the money will come from. They do not deserve to be anywhere near the halls of power and the only hope for NZ future is that they remain in opposition for a very, very long time.

  • Phar Lap

    Everytime i see or hear that pathetic shitbag my skin crawls.Any dummy knows that to meddle with our currency in any shape or form,especially on the down, our standard of living would plummet even worse than it is now.Of course a rat bag like than couldn’t get his company records up to scratch, and here he is breathing,here’s me, i know how to make it happen.He wouldn’t know if the town clock was up him.

  • baw

    We can either have a stable exchange rate, or a low inflation rate, but not both. (or both but very badly). Because if you raise interest rates to decrease inflation, you raise the value of the Kiwi dollar. And vise versa.

  • Blue Tim

    I note that Fed Farmers does to advocate for intervention.

    • Engineer

      Of course they do, it is in effect a subsidy from the tax payer to farmers.

      • Will

        Farmers are NOT calling for currency intervention. It puts our costs up and labour would just tax any increase in income off us anyway. Better to retain a strong dollar and seriously look for ways to reduce costs (almost always bureaucratic) to business. There are two sides to a balance sheet.

  • Blue Tim

    … does not advocate …

  • nzd.gbp

    He means dollar dilution, not currency purchases. I.e. turn on the printers. I wonder how he’ll sell this policy to Jacinda Adern since it’ll push that Grey Lynn villa even further out of her reach. I’m sure he knows printing doesn’t create wealth, but instead it redistributes from savers to the public sector and borrowers. And it’s the public sector and borrowers who create jobs apparently. Oh and home owners. It’s as if he hasn’t been around for the last 10 years.

  • Sideshow Bob

    The NZ dollar has gone up along with the GB pound, Aus dollar, Canadian etc so it has very little to do with us as it is the US dollar going down that is making the others go up. Perhaps David Parker should try to prop the USD up. Good luck with that David.

    • MrV

      Exactly we should trade more with countries whose currencies have remained more or less on an even keel with ours (GB, Aussie, Canadian etc) and forget about the countries trying to devalue themselves to the poorhouse.

  • Will

    David who? Honestly Parker is so anonymous and ineffective in his role that it doesn’t really matter what he thinks, or what policy he advocates. He, like the rest of Labour, is a joke.

  • GregM

    Oh great, so is he suggesting ” quantitative easing”, or print more money in plain English.
    What a fucking tosspot. How about he sorts out his own business before he comes up with financially illiterate ideas that are going to affect my business.

    • lovinthatchangefeeling

      Didn’t that great economic genius, Labour-leader-losing socialist, and good friend of the Klarkenfuhrer, Lyin Gould, suggest something similar? Something recently in the new tabloid NZ Horrid that was absolute tripe

    • blazer

      why is Q.E so bad for NZ and so good for the U.S?

      • AnonWgtn

        blazer – read my 10.08
        Its disaster for the US, and any country to just print money, Greece tried it often.
        The US are doing it for the third time in Trilions.

  • Troy

    Parker is a theoretical boffin who uses his oratory to try and impress – he should go lecture at a university, say, in China where no-one would really be interested in what he has to say.

  • AnonWgtn

    The biggest problem is Obama who is now trying to push the American people to spend by printing, again for the third time, banknotes.
    Does this stupid socialist not realise that in trying to buy votes he is continuting to destroy the American economy thoroughly.
    Las Vegas, Atlantic City, Chicago, and the mafia and drug cartels love lots of cash floating in the economy.
    They again will be the main beneficiaries.
    No wonder the books being written are called “The Decline and Fall of the American Empire”.

    • Butts_McButts

      Most of that won’t make it into anyone’s hands as cash. It’ll go towards freeing up credit that won’t be available to anyone who can’t already get it. It will cause a slight smoothing in some balance sheets, but very little of that money will result in anything more ending up in anyone’s weekly pay cheque.

    • blazer

      Q.E supports confidence,supports the same policies that caused the GFC…allowing liqudity to dry up will collapse the stock exchange and the Wall St parasites.The so called efficiency of ‘private capital has been exposed as a sham.The govt provides welfare’ to maintain the eventually doomed debt cycle that fuels want and maintains the ‘ruling’ class and their Hamptons lifestyle without producing anything of real worth.

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