Economy

Does Russel Norman stand by all his statements?

The Green party likes to ask the gotcha question of the Prime minister…Does he stand by all his statements?

Well time for the show to be on the other foot.

Does Russel Norman stand by all his statements?

Russel Norman’s talking down the economy again – lamenting the state of the dairy industry.

Falling dairy prices are highlighting the danger of National’s economic strategy that focuses on the export of a few, simple commodities, the Green Party said today.

Dairy prices are down 8.4 percent this week – a 41 percent fall from their highs in February. Whole milk prices are down 11.5 percent largely due to weaker demand from China.

“National’s economic strategy has simplified our economy and concentrated our exports on a few, low-value-added commodities,” said Green Party Co-leader Dr Russel Norman.

“We want businesses to get on with innovating and exporting high value products that command high prices and support high wages.”

“National has bet the farm on the farm and it isn’t working. A growing reliance on one or two commodity exports has made our economy more vulnerable to commodity price swings.

“Producing increasing amounts of milk powder also has huge, downstream environmental impacts. We need to build a smart green economy with much lower carbon emissions and water pollution.

“A smarter way forward is to invest in innovation and policies that support our manufacturing and ICT export sectors.

“National is not building a strong, resilient export sector.”

Perhaps someone might like to ask him:   “You are proposing a carbon tax of $25, starting at $12.50 on all dairy farmers. You said at the time “they could afford it”. Now that dairy prices have fallen 41% are you going to abandon that policy?”

Read more »

More good news

No matter how hard Labour tries to trash talk eh New Zealand economy, all indicators are showing the economy is recovering fast.

All regions across the country recorded growth in the number of jobs advertised on Trade Me Jobs according to an analysis of listings onsite in the April-June quarter.

Head of Trade Me Jobs, Peter Osborne, said the number of job listings nationwide was up 19% on the same period in 2013, continuing the healthy job market trend evident since the September quarter. “Growth in listings has been very strong, despite the potential handbrake effect of the unusual combination of Easter and Anzac Day holidays in March, and a Budget that had a cooling effect on the number of jobs advertised in May.”

Mr Osborne said most advertisers were upbeat. “We’re hearing plenty of optimistic reports from recruiters and employers, and the majority are planning to keep on hiring too.”

He said improved economic and employment opportunities in New Zealand also contributed to the lowest ever level of migration to Australia in May. “Kiwis are increasingly likely to stay in New Zealand which is good news for NZ Inc, and is also complemented by returning expats who have noticed things on the improve back here in New Zealand.”  Read more »

The crisis continues

via Idealog

via Idealog

When will this damn economic/manufacturing crisis end?

New Zealand manufacturing activity expanded for an 18th straight month in February with signs a buoyant economy is creating jobs.

The BNZ-BusinessNZ seasonally adjusted performance of manufacturing index edged lower to 56.2 in February from an upwardly revised 56.3 in January, and 55.4 in February last year. A reading above 50 indicates expansion in the sector.   Read more »

More good news

The good economic news just keeps on flowing, not so you’d notice in either the mainstream media or from utterances from an increasingly negative opposition.

Exports are soaring…despite, I might add, a high NZ Dollar.

In the December 2013 quarter, seasonally adjusted dairy export values rose 27 percent, Statistics New Zealand said today. Dairy volumes, after adjusting for seasonal effects, rose 23 percent while actual prices fell 1.1 percent.

Total export volumes rose 9.7 percent in the December 2013 quarter while total export prices fell 0.5 percent. Both movements were strongly influenced by dairy, which accounted for 39 percent of the value of goods exported in the December quarter – twice as much as meat and forestry combined.  Read more »

More good news

Labour is really going to find it hard to continue to bad mouth the government and the economy as the economic news just keeps on getting better and better.

The latest ANZ business outlook survey has business confidence at a 20 year high.

Business confidence survey readings are the strongest we’ve seen since  1994.

  • A net 71 percent of firms are optimistic about general prospects – the highest reading since March 1994.
  • Firms’ activity expectations regarding their own business (+59) rose to the highest reading since June 1994.
  • Expected profitability (+45) is the highest since April 1994.
  • A net 32 percent of businesses expect to be hiring more staff – the highest reading since December 1992.
  • Investment intentions (+35) are the strongest since March 1994.

Read more »

Still more good news

The good news just keeps on rolling in as the economy hums.

Anecdotal evidence form the likes of trucking firms is starting to be confirmed in hard statistics.

No amount of trash talking New Zealand from the opposition parties can stop an economy in recovery.

New Zealand business confidence climbed to a 20-year high in the fourth quarter, lifting expectations for profits, hiring and investments, and raising the prospects for inflation to start to accelerate.  Read more »

“A dog could run China’s banking system”

I wonder how far away the secret police are from arresting this brave fellow.

The former chief economist and spokesman of China’s National Bureau of Statistics estimated that the mainland’s economy grew 7.7 per cent in 2013, while also making a scathing criticism of China’s banking industry, likening it to an automated system that even a dog could successfully run.

“Banking in China has become like a highway toll system,” Yao Jingyuan said at a Saturday summit on China’s economy held at Nanjing University. “Banks charge every time money goes through them.

“With this kind of operational model, banks will continue making money even if all the bank presidents go home to sleep and you replaced them by putting a small dog in their seats.”

Yao added that there were no longer any real bankers in China, and that most bankers had become “freeloaders” who latched onto the wide profit margin they could enjoy by taking advantage of interest differences between deposits and loans.    Read more »

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How stuffed is the Aussie economy?

by blokeintakapuna

At grass root level, by the guy on the street – actually Civil infrastructure engineers and construction contractor engineers to be more precise (the people who design, then build it all) – in both East & West Coast cities – tell me that things in Aussie could get very ugly indeed come the New Year.

During a conversation about media slanting narratives to fit the agenda they are pushing, talk turned to “the news in Aussie” v’s “news in NZ” and if our MSM can shelter and protect and even “enable” the likes of our corrupt Mayor with his nepotism, what are the Aussie MSM getting up to with how things are in the economy – now that there’s been a change in government away from the ALP?

The Civil Engineer in Perth writes:

The resources slow down is far worse here than people seem to realise. I think the media have been caught up with elections and the hot topic of illegal immigrants. The economy seems to have passed without much comment. The reality is exactly as your buddy in Brisbane describes. Significant lay offs, salary freezes, salary downgrades and virtually nothing happening.   Read more »

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It’s the economy stupid…

Labour and their fellow travellers the Green Taliban would ahve you believe that National don;t know what they are doing with the economy.

But a string of new statistics prove otherwise and show that we have a world leading manufacturing sector expansion underway:

Manufacturing PMI

The BNZ-BusinessNZ seasonally adjusted PMI for July stood at 59.5, which  was 4.3 points higher than June and a return to strong levels of expansion seen in May. Compared with previous July results, the 2013 value was the highest since the survey began in 2002, and the third highest monthly result on record. Overall, the first seven months of 2013 has averaged a healthy 56.3.  Read more »

Govt vs Household for NZ

Earlier I posted a meme regarding bringing government accounts down to the level of the household budget so people can understand.

A reader has emailed:

All sourced from the Treasury Website.

I couldn’t get a true estimate of what the Government’s net assets were – the SOEs are valued at $29 Billion (Down $3 billion due to rail in the last 12 months) and there is $50 billion in assets held by Crown Entities (Think this will be mostly Hospitals, Schools and State Houses) and $29 Billion owned by Core Crown. While some of this would be prime commercial property in various cities, most would be impossible to sell like Highways, National Parks and historical locations, Parliament and Waitangi. While nowhere as dire as the US, we’re probably close to debt being 100% of government assets.

Either way, it’s not looking bright for the next few years until we are back in surplus and from there only disciplined governments will keep us afloat.

So, here is the New Zealand version:


Government Household
Tax Revenues  $65,383,988,000
Non-Tax Revenues  $7,070,077,000
Capital Receipts  $1,828,959,000
Total Income:  $74,283,024,000 Net Income $74,283
Expenditure  $81,664,760,000 Net Expenditure $81,665
Increase (Decrease on FY2012)  $2,165,626,000
Net Deficit: -$7,381,736,000 Added to Credit Card $7,382
Total Gross Crown Debt:  $79,635,000,000 Total Credit card debt $79,635
Total Net Crown Debt:  $50,671,000,000 Debt less cash assets $50,671