Careful Economic stewardship…my ass!!!

[Imported from Whale Oil Beef Hooked on Blogger]

Thanks to Gman for this woeful list of Michael Cullens and Mrs Peter Davis economic achievements.

The Economy is going to the dogs. That’s not National spin, that’s the opinion of the Government’s own economic advisor; the Treasury.

Here’s what the Treasury have released:

  • Inflation is up to the maximum legal limit and is maxed out. Inflation is expected to rise above 3%–the highest it has been since 1990! Both the Reserve Bank and the Treasury expect to have it go higher. The good news is that they are predicting that it will come down in a bout a year, not because they raise the OCR, but because they are expecting a recession! Inflation projections are now higher than they were in the Budget.
  • Interest rates are up, and are under enormous pressure to go up even higher.
  • Economic activity is down
  • Growth is down
  • Employment is down
  • Fuel prices at record highs. Here’s a kicker—Petrol prices shot up 7.1% in the last quarter (that’s 8x the rate of inflation!
  • Dollar expected to go down and trough at 55c by next year
  • Balance of Payments Deficit worst since 1976, Muldoon was PM!
  • Trade deficit is at historic high, highest since Muldoon was PM, again.
  • Imports up 2.4% in the last quarter.
  • Currency hemorrhaging
  • Business confidence is at historic low. Business confidence is now at a state of net pessimism (meaning—most businesses now think that he economy is going to get worse, and are therefore not hiring). 34% more businesses expect the economy to get worse than those who expect it to get better—a record.
  • Consumer confidence is at historic low
  • Investment is down
  • Key commodity prices down
  • The Current account deficit is higher than it has ever been in the history of record keeping—7% of GDP.
  • Building consents are down 38% from this time last year.
  • Retail sales are low and are decreasing 0.6% in the last quarter, nominal core sales fell 0.7% in the last quarter. Domestic spending power is expected to deteriorate further as we head into recession.
  • Merchandise exports (important for NZ) are actually down 1.1%. This is actually a reversal of what was predicted in the Budget. There is now a record trade deficit, the highest it has been since they began recording it.
  • Household Energy prices are up 1.5% for the last 3 months, appliance costs are up 0.8% for the quarter
  • 11% MORE firms expect to make less profits
  • 10 out of the 24 retail industries reported a drop in sales, even when seasonally adjusted.
  • 70, 550 New Zealanders left the country with no intention of ever coming back last year.
  • All major banks expect the economy to get worse and are moving their assets accordingly
  • Most New Zealanders expect the economy to get worse over the next year

Can’t wait for the PREFU….I feel a BNZ coming on!!!

 


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