High praise for NZ

One of US President Barack Obama’s top financial advisors has given New Zealand a big pat on the back for financial management during the current global financial crisis:

This week, in a major international BBC debate on rescuing the world economy, Peter Orszag, Obama’s Director of the Office of Management and Budget until 2010, opposed the austerity only position taken by the IMF’s Chairman Christine Lagarde, and Wolfgang Schauble, German Minister of Finance,’ Mr Ryall said..

‘Mrs Lagarde and Mr Schauble said cutting spending was difficult but necessary. But Mr Orszag said it was better to take a mixed approach – with stimulus for the economy combined with deficit reduction that is put in place now but which takes effect over time.

‘President Obama’s former senior aide singled out New Zealand alone as the model for its balanced approach to the deepening international debt crisis,’ Mr Ryall said.

‘Mr Orszag said: … “for most countries it’s better to combine deficit reduction that you put in place now but that takes effect over time, with if anything, additional support, and that means stimulus, for the economy, effective immediately. And what’s interesting about the fiscal monitor the IMF published also as part of these meetings, is if you look across all the developed countries, there is only one country… which has actually done that, which is New Zealand- who have coupled additional stimulus with medium-term fiscal consolidation. That’s the right policy combination.”(BBC ‘World Debate – Rescuing the Global Economy – What Next?’)

  • onelaw4all

    Why would anyone want the endorsement of someone that had any involvement with the cluster**** that is the Obama economy?

    • Gazzaw

      I wondered how long it would take for a ‘glass half empty’ doom merchant to front.

      It’s irrelevant who you support in US politics, fuckstick. This is positive news for NZ and good for the way that we are perceived on the international financial market.

      • blazer

        we are, as we always have been perceived,so tiny as to be almost irrelevant.

        • Gazzaw

          And thats why it is important for us to seize every opportunity to present our economy in a positive light.

          • blazer

            by a banker who works for a bank that had to be bailed out by american taxpayers….what an endorsement…talk about scrapping the barrel.

          • Gazzaw

            As your old mate Goofy kept telling us endlessy “It’s all about perception”.

          • blazer

            don’t know goofy…so you concede it has no substance.i.e it is mere spin.Respect your honesty.Well done.

          • Alloytoo

            Who joined the bank after they finished paying it back with interest.

          • blazer

            so he joined up after the turn around,after the hard work and restructure was done!!

        • pukakidon

          Not irrelevant to us. Typical leftist doom merchant.

          • blazer

            and are you a typical right wing spruiker,the only way markets go is up.I’m sure you cant accept how small NZ’s influence is on a global scale.Mind you,you probably are impressed by yourself going by your rants.

          • pukakidon

            I couldn’t give a toss about our influence on others. I only care about getting our economy back on track. Ranting? thats funny you seem to have all day to spare to rant and never ending stream of madness on here. You are either a teacher or bludger. Yes your are right i one thing at least I do like myself it is called having self esteem, am not depressed with a low level of self esteem, for which you sound like you suffer. It could be the drugs that is making your paranoid and bitter.

            I take action rather than wait for someone else to wipe my arse like you Blazer. Here is some advice, do something different for a change like something positive or worth while, it will make you like yourself and feel much better. Even your bitterness to anything positive may leave and you may even like yourself.

          • blazer

            you are obviousl suffering from high self esteem.Beat yourself with a birch stick and have a lie down.Btw funnily enough there are many people who do not subscribe to your narrow view of life.

          • pukakidon

            You are right, and I feel sorry for them, so much negativity does not do any good.

  • CJA

    Whoa hang on what you mean we’re doing well? I don’t understand New Zealand is in bad shape because John Key lied about Kim Dotcom. Oh hang on the Kit Dotcom thing is just a load of (insert whichever swear you like) trumped up by our rubbish main stream media.

  • michaelh

    I’m sure we would have gotten even more praise if we had been printing money for past 2 years.

  • nazus

    I note that the media haven’t reported this

    • grandstream

      saw it on the NBR site. The comments are very funny, and it looks like the mornons like Penny Bright are up early ! When theleft cant argue the facts of this observation, they immediately attack the “man”………they cant accpet that he 1) might know something about economics, 2) there is another way that works that isnt idiot green or labour ideology……

    • blazer

      they didn’t report the biggest destruction of U.S air power since WW2 that occurred in Afghanistan on Sept 16th either.

      • Alloytoo

        For clarity, it’s since Vietnam.
        Also for clarity the 6 Harrier jets were destroyed “on the ground.”

        • blazer

          stand corrected re Vietnam…why do you think it escaped the mainstream media?

          • Alloytoo

            Because it’s not a reflection of their combat performance or US air Superiority, they weren’t shot out of the air, and they’re easily replaced. (The model itself is due for replacement).
            It’s as if the Ferrari F1 team trucks went off the road destroying two chassis. You’d be bleating how the race team lost two cars in a single crash.
            Misleading, irrelevant and putting you (to my mind) in the same class as Anti-Vaccers and YECs.

          • blazer

            so they are good reasons not to report ,are they?

          • Alloytoo

            NEWSFLASH:
            News agencies don’t report everything!
            Stop the presses……oh wait……

          • blazer

            a matter of priorities I guess…rarely any ‘good’ news coming out of Afghanistan.

          • Alloytoo

            Well stories about bridges and fresh water plants and schools rarely make the news unless some rabid individual is blowing them up.

          • blazer

            some rabid individuals blow up weddings and civilians just going about their daily lives.

          • Alloytoo

            Yes, like little girls innocently blogging.

          • blazer

            no one can condone that…but many can condone ‘enhanced interrogation’ and ‘collateral damage’.

          • Alloytoo

            Collateral damage is an unfortunate consequence of trying to stop bad men from shooting other little girls blogging.

          • blazer

            wouldn’t it make more sense to shoot the ‘bad men’ rather than innocent civilians.?The little girl blogger got shot last week…the collateral damage has preceded that event by years.

          • Alloytoo

            Only in her case the collaterial damage was her receiving an education,

          • blazer

            and of course ‘enhanced interrogation’ is reserved for those that need ‘educating’.

          • Alloytoo

            No, it’s reserved for those who want to shoot little girls.

          • blazer

            who decides ,-the bridesmaid blown to kingdom come at the wedding was a little girl too.

          • Alloytoo

            No body decides collateral damage.
            It happens.
            If somebody decided then they would be targets. (Like the aforementioned blogger)

          • blazer

            thanks for confirming you have NFI what you’re talking about.

          • Alloytoo

            And there we have the bankrupt response resorting to attacking the messenger.
            Grow up.

          • blazer

            read what you post,please.

  • Alloytoo

    I think this represents my view on the governments handling of the economy.
    While one could quibble on individual policies, and bemoan the expediancy of retaining stupid bribes like Working for Families, the government’s broad economic settings have kept the country on an even keel, allowing us to weather the storm dispite the setbacks in Christchurch.
    We have, (relative to the rest of the world), low unemployment, low inflation and low crime.
    Our single biggest security threat appears to be Labour’s infiltration of our spy agencies.
    When the proposed alternative economic settings seek to emulate Zimbabwe style voodoo economics to address largely imaginary problems, then you know we’re on the right track.
    Come on people, the rest of the world is going to hell in a hand basket.
    Time to stop whinging and get over it.

    • thor42

      I agree, Alloytoo.
      Labour and co would put us on the fast-track to joining Greece and Portugal’s economies.
      Cunliffe doesn’t know a THING about economics. He is utterly pathetic (and that goes for the rest of Labour, the Greens, Winston First and Mana).

  • BJ

    This endorsement should be on the front page of every NZ newspaper, every news bulletin, every business journal/magazine, every billboard – in fact everywhere the message can reach the brain dead or brain washed Labour and Green supporters.

    • http://avoicetoday.wordpress.com/ A Voice Today

      But it wont be as usual BJ. When do News media ever make positive stories towards a government “top news”?

      • Gazzaw

        Spot on AVT. The early morning on-line Horrid headline was all about JK’s alleged brain fade over the drinking age. FFS the Horrid will be suggesting that he has premature dementia next. TV One was little better last night but I suppose it gave their little mate Chubby Cheeks Robertson something to rabbit on about. I guess it’s all about taking the focus off what must be Shearer’s week from hell.

      • blazer

        they try and filter propaganda,spruiking and misinformation ,not always successfully granted.

    • blazer

      why because a Citigroup exec says so?Citi was a basket case…rescued by the GOVT…hellooooo!!!!

      • Alloytoo

        Yup and the Government made $12.4 Billion on the deal.

        • blazer

          so how does that make Citi grp execs look good?

          • Alloytoo

            It does rather, how much social welfare gets paid back with 26% profit?

          • blazer

            I wonder if Citi shareholders look at it the same way you do.Do you use crutches,because you are very adept at shooting yourself in the foot.

          • Alloytoo

            Citi shareholders are probably pleased as punch they didn’t lose everything. (Employees too).
            And for the second time today: Grow up.

          • blazer

            ‘Sure enough, Moody’s came out late Tuesday with a negative outlook on the
            company. Read
            Moody’s cuts Citigroup outlook to negative.

            It wasn’t that Corbat and O’Neill said anything wrong during the call. It was
            that they didn’t say anything at all. No explanation why Pandit was out. No
            comment on the bank’s tumultuous relationship with regulators. ‘
            If I was a shareholder ,this news the other day would not be too inspiring.

          • Alloytoo

            And this news comes almost 2 years since they repaid their bailout. How is it relevant to this discussion? (other than moving the goal posts that is)

          • blazer

            its relevant because a Citi grp executive ,who it seems cant run a bath is praising the Nats economic management.Look up the top…Peter Orszag.

          • Alloytoo

            Yet he joined Citi group after they drew on the not yet established SBLF fund to repay their TARP obligations.

            For everyone’s information.
            http://en.wikipedia.org/wiki/Peter_R._Orszag

    • blazer

      really…so they can say…and who the fuck is Peter Orszag?

      • Tristanb

        It’s better than having to say: “Not fucking Bernard Hickey again!”

        • blazer

          yes he is unpopular with those who cant accept reality,…the bearer of bad news bias…I guess.

          • Tristanb

            He’s just such a negative fucker. Seriously. The guy hates everything.

          • blazer

            thats the catchcry of all who cannot withstand critique…the guy is pointing out the need for fiscal prudence and reform.

  • http://avoicetoday.wordpress.com/ A Voice Today

    Thanks for the clip Whale. I have linked it in to a post that will go up later today on my blog.

    I think the government will use this as vindication for their policies. Bit of a boost for them really!

    In general the government has had the right approach to the economy. Some things not so good, but overall they have been okay.

  • Sir Cullen’s Sidekick

    I am not surprised by this news item Tories. This is a strong endorsement of the policies of our PM Sheep Shearer and his economic brain. From strong support from Deputy PM and Finance Minister Ozie Mozzie Norman, Sheep has kept us out of economic crisis. Well done.

    • pukakidon

      The best use for the sheeps brain in order to raise our economic prospects would to donate it to a farmer as compost.

  • blazer

    yes NZ with an ex Wall St trader as P.M is a subservient lapdog to the U.S.They do what they are told.Funny these people who supposedly know the answers,caused the whole crisis themselves and continue on with the same practices .So looking at debt loads ,which countries are running a surplus?U.S,Australia,Gt Britain,France,Japan,??? A great big charade of print and pass the parcel,postponing the inevitable and imposing an impossible burden on the younger generation.Swan voted treasurer of the year,yet every single aussie owes over $50,000au on a per capita basis!And of course the banksters are making bigger profits..tell me if these aussie banks are so strong why do they claim they are paying more for international borrowings when interest rates are at record lows!And of course they no longer follow the OCR when setting interest rates.How convenient,one day the full story will emerge about S.V.I’s ,the mortgage ponzi of drip feeding mortgagee sales to maintain high prices(big mortgages,easy money),continual hawking of high interest products,manipulation of the XE and on it goes.If house prices retreated 30%,ALL the banks in Australasia would be underwater.New rules and regulations urgently needed.Do the banks lend for productive enterprise?a very token amount..mortgages are the lions share of bank lending.

  • blazer

    an earlier comment I made has been removed ,any particular reason W.O or just because you own the site and you didn’t like it.

    • Sarrs

      Nah I wouldn’t think that would be the case, he allowed comments to be published that insulted his Mum (God rest her) the other day. I doubt what you said was as offensive as that. Maybe it just got lost in disqus among the 50 other comments you’ve posted today. Just retype and it will come up.

      • blazer

        yes ,thats why I was surprised,it was not offensive but obviously not what he wanted anyone to read.Its his site and he can move,remove posts as he likes I guess.Will not resubmit ,he will remove it obviously.He has not bothered to say why …probably speaks for itself.

    • pukakidon

      Paranoia?

      • blazer

        I wasn’t aware he sufferred from it.One explanation I guess.

  • blazer

    ‘This blog believes in airing contrary points of view’….if that is true…put my earlier comment back up…there is nothing not factual in it.

    • Krim Dotcom

      many an idiot has complained about this before – most problems of this kind are to do with disqus performance issues – maybe ask politely and privately before shooting your overactive mouth off…

      • blazer

        already did that.Perhaps you should familiarise yourself with the thread before shooting off your over active mouth.

        • Krim Dotcom

          your question above to cam was neither polite or private komrad…

          • blazer

            I guess you’re 1/ 2 right…you’re not 1/2 witted too I hope.

  • Sarrs

    I have always thought that NZ’s economy has performed well throughout the GFC. Unemployment has risen but it hasn’t sky rocketed like other countries. Our interest and inflation rates are under control. Yes, currently our high dollar is hurting exporters but even through the ‘good times’ this was the case. The dollar isn’t at record levels or anything.

    I believe sound fiscal policy coupled with the stoic and practical nature of most NZer’s is what has worked. There’s no miracle solution to economic problems, it takes time and patience and I firmly believe we are no more than two years away from complete recovery. I think the way NZer’s abandoned the Labour party at the last election is proof positive that NZer’s know these are difficult times and that a National led government is what it’s going to take to get through.

    • blazer

      interesting…what do you think caused the GFC and have any of the causes been addressed to ensure recovery?(post 51)

      • Alloytoo

        The cause is simple, the assumption of too much risk.
        The solution is don’t be greedy.

        • blazer

          how profound!Go and write ‘I must not be greedy’ on the blackboard 10,000 times…problem solved…!

          • Alloytoo

            No need.
            The market rewards excessive greed appropriately.
            There is no problem to be solved.

          • blazer

            if you mean excessive greed is rewarded by govt bailouts to encourage more excessive greed ,you are right.

          • Alloytoo

            You mean those US bailout funds which are 56% repaid and which have earned US$87 billion for the treasury since 2008? I forget, what’s the return on social welfare in dollars?

          • blazer

            as QE3 is allocated at 40bil per MONTH (till infinity atm) and trillions have been poured into bail outs you might be way off the mark old chap.The govt stumped up $30 bil just for JPMorgan to absorb Bear Sterns…$87 bil in nearly 5 years is laughable.Social Welfare is big business in the U.S ..JPMorgan earns over 40bil running the food stamps programme.Hard to measure the economic stimulus ,the consumer spending impact on the economy,suffice to say it is huge.

          • Alloytoo

            You mean the $25 billion money which was repaid less than a year later, plus the $1.7B in dividends and warrent proceeds.

          • blazer

            who/what are you referring to now…do you know,is it Citi ,the Govt,JPMorgan …you are commending.

          • Alloytoo

            It’s not hard, pay attention:
            Not Citi, as it is not mentioned in your previous comments.
            Not the US government as they’re the ones who extended the $25 Billion loan.
            And the Winner is JPMorgan.

          • blazer

            well ,its funny that the U.S Govt is sueing JPMorgan for mortgage fraud,the numbers involved make the figures you mention look like chump change.

          • pukakidon

            Dont burst a blood vessel in your head. You know that the sunlight has shone now and the country/Politically right is recognised for its fiscal responsibility and maturity. National are in a good position and it is on the up for NZ. Lets hope the coalition of the mad don’t get in, otherwise it will all be for nothing and it will be back to handouts and bribes.

          • blazer

            I hope you are right…but I fear its just wishful thinking.

          • Alloytoo

            Goal shifting noted.

          • blazer

            you brought up JP Morgan.

          • Alloytoo

            um. no….you did.

            “The govt stumped up $30 bil just for JPMorgan to absorb Bear Sterns”

          • blazer

            ‘And the Winner is JPMorgan’….this IS goal shifting.Pay attention,you often contradict yourself.

          • Alloytoo

            You seem to have English comprehension problems.

            When I say “The Winner is JPMorgan” I am implying that I, in response to your previous query, am referring to JPMorgan.

            Are you being deliberately obtuse or just stupid? it’s getting hard to tell now.

          • blazer

            imply seems to be your favourite defence.Try saying what you mean,but first make sure you understand what you’re talking about.

          • Alloytoo

            I understand perfectly. You are a liar, either directly or through omission.

          • blazer

            this may interest you…’
            The federal government seems to
            be on track in recouping the $414 billion in taxpayer money spent under the
            Troubled Asset Relief Program, with $120.7 billion now outstanding. But it turns out that over
            130 bailed-out institutions paid back their TARP money simply by taking out
            loans from yet another government program, suggesting that the government–and
            taxpayers–actually haven’t gotten paid back yet. .

          • Alloytoo

            WOW

            $430 Billion dollars repaid from a SBLF $30 billion dollar facility.

            JPMorgan & Citi bank repaid managed to repay 70 Million from the SBLF $30 Billion Dollar facility before it was even established..

            From your impressive analysis of this we can only conclude that you are Russel Norman’s personal economic advisor…..fresh out of Zimbabwe.

          • blazer

            you need ton bone up on TARP…you are confused.

          • Alloytoo

            I think you need bone up on basic arithmetic.

            SBLF $30 Billion dollar facility is never going to repay $430 Billion against TARP.

          • blazer

            SBLF-’the Small Business Lending Fund (SBLF) is a dedicated investment fund that
            encourages lending to small businesses by providing capital to qualified
            community banks1 and community development loan funds (CDLFs) with
            assets of less than $10 billion. Through the SBLF….I dont think you understand what this funds role was.As I said you are confused.

          • Alloytoo

            The article you quote claimed:

            “130 bailed-out institutions paid back their TARP money simply by taking out
            loans from yet another government program”

            That other government program was SBLF, which was a $30 Billion fund.

            You attempted to imply that the vast bulk of the $414 Billion of the TARP money which has been repaid to the FED was simply rolled over into another government fund (SBLF).

            That is patently false.

          • blazer

            I think your comment ‘you attempted to imply’…speaks volumes ,and confirms your confusion .

          • Alloytoo

            No, I’m just dealing with a liar. you claimed: “130 bailed-out institutions paid back their TARP money simply by taking out
            loans from yet another government program”
            http://www.sodahead.com/united-states/tarp-being-repaid-with-government-loans/question-2517313/
            “It turns out that over 130 bailed-out institutions paid back their TARP money simply by taking out loans from yet another government program, suggesting that the government — and taxpayers — actually haven’t gotten paid back yet,” the newspaper reports.

            “Forty percent of the 341 institutions that have exited TARP’s biggest single initiative — the $205 billion Capital Purchase Program — simply refinanced their loans through a separate, $30 billion government program known as the Small Business Loan Fund.”

            Ooooh see there “Small Business Loan Fund” (SBLF)
            “$30 Billion”
            Funds repaid under TARP $430 Billion.

          • blazer

            your thought processes are addled.No lies,they are quotes-.’Treasury spokesman Matt Anderson e-mailed me to point out that the law creating
            the Small Business Lending Fund “specifically required that banks who
            participate in TARP could participate in SBLF,” adding that the banks
            capitalized through the fund also have “the same incentive to increase their
            lending to small businesses under the program.” This doesn’t change the fact
            that TARP is being repaid with other public funds, though it does show that the
            government was well prepared to provide alternate ways …’now show the inconsistency.

          • Alloytoo

            Kindly demonstrate how the $30 Billion SBLF fund was used to pay $430 Billion Tarp repayments.

          • blazer

            nor I or anyone else has claimed that.Some coys like JPM did not want or need TARP,but acquiesced for unitys sake ,to instill confidence.Many paid it back as quickly as they could ,because of the interest rates and preferred stock obligations.What I have posted is accurate,it is your own assumptions regarding the % of repayment that is where you fall down.

          • Alloytoo

            My “Assumptions” are at most 5% out, furthermore your previous comments are (by your own admission) irrelevant to Citi group, or even JPMorgan. Still your partial lapse into honesty must have been exhausting. Take the day off.

          • blazer

            dont beat yourself too fiercely over it.

      • Sarrs

        In my opinion the GFC was caused primarily by a few factors
        1. People borrowing money they couldn’t afford to repay. This is both the fault of the lenders and the individuals. I’m not just talking about home loans but credit cards and overdraft facilities as well. Using that money to buy things with no long term value – shoes, clothes, tv etc – things you can’t sell for much should the shit hit the fan, as in when interest rates went up to combat the inflation all this spending was causing.
        2. The increase in investment in high tier lenders who promptly passed the money on to property developers. We’re talking finance companies here. The living of lavish lifestyles with borrowed money, always thinking there is more to come. The biggest problem with this is that it was other people’s money that was being spent. Yea, the interest rates were high and a professional like myself would have thought twice about investing but when you looked around the market place everyone (except banks) were offering the same thing.
        3. This astonishing world-wide culture of entitlement. This is bred from points one and two and only exacerbated by ever increasing welfare handouts. The materialism of some people is frightening. Most people don’t seem to know how to live within their means and it sickens me.

        As for addressing these issues, I think 1 and 2 have balanced themselves out. The key is to remember what happened and why, so that history doesn’t repeat. I’m not hopeful that we’ve learned yet though.
        Point 3? I think we’re doomed. Even socialists seem to think that $60k a year is a pittance. People aren’t willing to sacrifice any aspect of their lifestyle despite it being financially necessary to do so. I don’t think any country in the developed world is better than others – Australia, England, America, all face the same problems. No one has a solution. Just because we’ve handled the problem slightly better than other countries doesn’t mean the problem ceases to exist.

        • blazer

          I think you make this good point…’so that history doesn’t repeat. I’m not hopeful that we’ve learned yet though. ‘…until banking is regulated so that Commercial Banks and Investment banks are separated and answerable(as before Greenspan and co lobbied for the repeal of Glass Steagall Act)then the cliche is…’we continue to kick the can down the road’.Wall St banks are parasites…who have no product,they gamble and distort markets and interfere where they do not belong,because they can.e.g oil futures …supplier to airline a 2 party transaction…do not need a 3rd party ,gambling and manipulating prices .

          • Sarrs

            It’s totally honest, I don’t think consumers have learned their lesson re over extending their credit. A good deal of the blame lies with the banks and as much as I am anti government regulation and interference in this instance I think the public need protected from themselves.

    • viking

      Unemployment has risen but it hasn’t sky rocketed like other countries

      That would be because 40-50 thousand a year for the last 5-6 years have left for Aussie. Would it not/

      • RockyFist

        40-50 thousand may have left for the last 5-6 years but do not forget to add back what has come back into the country through immigration. Please quote the whole story not half.

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