International Monetary Fund

Wogs vote No, they’re screwed now

The dumb Greeks have voted No.

They want to continue on bludging off the rest of Europe while they spend other people’s money.

Greeks have voted overwhelmingly “No” in a historic bailout referendum, partial results show, defying warnings from across Europe that rejecting new austerity terms for fresh financial aid would set their country on a path out of the euro.

With more than half the votes counted, official figures showed 61 per cent of Greeks on course to reject a bailout offer from creditors that was the official issue of the ballot.

The figures showed the Yes vote drew 40.1 per cent. An official projection of the final result is expected this morning (NZT).

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The square heads are getting sick of dodgy Greek ratbags

Time is up for Greece, and the Krauts are utterly sick of them.

Berlin has delivered a blistering attack on Greece?s beleaguered radical prime minister, Alexis Tsipras, accusing him of lying to his own people and seeking scapegoats for the country?s misery everywhere but in his own ranks.

The German government dismissed desperate attempts by Athens to salvage some form of bailout, prompting Tsipras to hit back, accusing the country?s creditors of trying to ?blackmail? Greek voters with dire warnings that a vote against austerity in this weekend?s referendum would be a vote to leave the euro.

Tsipras referred to leaders of other eurozone nations as ?extremist conservative forces? and blamed them for the capital controls that have forced the banks to shut down and ration cash. ? Read more »

Krauts call time on Olive monkeys

The Krauts have had a guts full of Greek whinging and are calling time on their economic intransigence.

Greece was on the brink of economic meltdown as Germany looked poised to push the country out of the eurozone.

With Greece about to default on a 1.5 billion ($2.4 billion) debt repayment, senior German politicians warned “enough is enough”. The Greek debt negotiations collapsed after just 45 minutes, amid fears Athens is now heading towards financial catastrophe.

Despite condemnation from European leaders following the breakup of the talks, Greek Prime Minister Alexis Tsipras, said: “We will patiently wait until creditors turn to realism.” He claimed the talks collapsed because European creditors wanted to slash Greek pensions and workers’ wages. Tsipras’ claims were immediately rejected by the European Commission. Guenther Oettinger, Germany’s EU Commissioner, said Europe should brace itself for a “state of emergency” in Greece from July 1 if Athens did not reach an agreement with its creditors. Sigmar Gabriel, the head of Germany’s Social Democrats, said time was running out for Tsipras’ Government. “Everywhere in Europe, the sentiment is growing that enough is enough.”

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Bludging Greek Ratbags Tell Creditors to “Get their Act Together”

Apparently it is all the creditors’ fault that the Greeks have a tax system that doesn’t work, have been on the bludge for years and cannot afford to pay it back.

Yanis Varoufakis, the Greek finance minister, said on Tuesday that the country?s creditors must ?get their act together? as loan deadlines approach for the embattled country.

The government has until Friday to pay public sector salaries, a week before the first of a string of repayments to the International Monetary Fund, totalling around ?1.6bn (?1.1bn) in June alone, must be paid.

Nikos Voutsis, the Greek minister of the interior, said on Sunday that ?this money will not be given and is not there to be given?. But on Tuesday Mr Varoufakis insisted that ?we will make the payment because I have no doubt that we will have an agreement?.

The euro slipped by more than 0.7pc against the dollar, as traders digested these conflicting messages from the country?s left-wing Syriza officials.

Kit Juckes, of Societe Generale, said: ?The Greek government will need some form of deal in order to release further funds if it is to avoid missing payments to the IMF in June.?

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Will Labour run on a Financial Transaction Tax?

Labour have a finance spokesman who has never worked in the real world, and basically has very little idea about finance.

It wouldn?t be surprising if he did what the Democrats are doing now they are in opposition, and promote a Financial Transaction Tax.

To pay for the plan, the U.S. would impose what Van Hollen called a tiny fee on market transactions, of 0.1%. A Democratic aide said the fee would apply to any buy or sell transactions, and include stocks, bonds and derivatives. The plan would also limit tax deductions on CEO pay above $1 million.

So far this type of tax has only been promoted by the looney left, in the form of the Alliance and Jim Anderton, Mana, and the Greens.

5. Financial Transaction Tax

The Green Party will:

  1. Involve New Zealand with the group of countries working to agree on a tax on international currency movements, to set up a fund to provide capital for poor countries to improve their social and environmental wellbeing. This would discourage currency speculation without being high enough to impede genuine trade.

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More good news

The good economic news keeps on coming in, destroying the opposition and their trash talking of the New Zealand economy.

The latest piece of good news is from the IMF who have given our economy a big tick.

Macroeconomic policies are moving in the right direction. With excess capacity largely exhausted the RBNZ has begun tightening monetary policy. The government?s plan to return the budget to surplus is on track. With public debt low and interest rates above the zero bound, the authorities have monetary and fiscal policy space to respond to shocks, and the free-floating New Zealand dollar provides an additional cushion against terms of trade and other external shocks. The well targeted macro-prudential policy framework should allow the RBNZ to take additional measures if needed to guard against the financial sector risks that would arise from an unsustainable acceleration in house price inflation.


Growth is forecast to increase to about 3? percent this year and moderate to a trend rate of 2? percent over the medium term. Strong construction activity is expected to remain an important driver for near-term growth (text figure), although the speed of the Canterbury post-earthquake rebuild and its interaction with the wider economy are less certain. The terms of trade are projected to ease somewhat due to an assumed moderation in global dairy prices, but remain high relative to historical levels and continue to boost growth in national income. The current monetary policy stance remains well below neutral, and with leading indicators pointing to an economy that is set to grow above trend in the near-term, pressure on core inflation should follow, particularly from the construction sector.

[…] ? Read more »

Are they talking about Cunliffe or Parker? Or, god forbid, Norman?

Apparently the Reserve Bank is to get a “big new tool”.


So who is it? David Cunliffe, David Parker or perhaps Russel Norman?

It is a brilliant headline.?

Labour is proposing to give the Reserve Bank “one big new tool” and broaden its objectives, Labour finance spokesman David Parker says.

Asked on TV3’s The Nation today if the Reserve Bank might be given an employment target, he said?”it might not be that blunt”. ? Read more »

How is the socialist prescription working for France?

Socialists continue to prove they can’t run a bake sale let alone a large economy.

Restrictive labour laws, rampant unions, higher wealth taxes, high minimum wages and all the other wonders that David Cunliffe and Russel Norman get all giddy over…end result 10.5% unemployment over 40% for the under 25s, the state consuming more than 50% of GDP and a colossal debt and deficit issue.

Fran?ois Hollande?s credibility is lying in tatters after figures indicated he had failed to deliver on a central government promise to “turn the tide” on unemployment by year’s end.

Riding lower in the polls than any of his postwar predecessors, the Socialist leader chose to defy predictions by the IMF, the European Commission and the vast majority of private economists to bank on a turnaround in French unemployment by the end of 2013.? Read more »

And you want to put this at risk?

The economy is growing strongly.

Why would anyone contemplate putting all that at risk by voting for a lurch to the hard left of Labour in coalition with the even harder left of the Greens. Their policies are anti-growth and anti-economy.

New Zealand will rank among the strongest-growing of the advanced economies this year and next year, according to the International Monetary Fund’s annual World Economic Outlook.

It forecasts New Zealand’s growth rate this year to be 2.5 per cent, bettered among the 35 advanced economies only by Israel, Singapore, Hong Kong and Korea. The average for advanced economies in 2013 is just 1.2 per cent.? Read more »

Sanctions are a waste of time

As we have seen in the Pacific, sanctions generally don’t work, even our dumb smart sanctions.

Sanctions are failing too against Zimbabwe, for the same reason. The West and the moralising meddlers all honour the sanctions and the Chinese fill the void. They are not as discerning as we are and so they get the influence while we sit on the side-lines.

Robert Mugabe always told a great many lies on the election trail, but this year, his biggest boast is actually true. Zimbabwe?s economy is recovering and he is overseeing an extraordinary mini-boom. ?Zimbabwe has not collapsed under the heavy weight of sanctions,? he boasted from the podium on Sunday ? and he is quite correct. The few sanctions imposed by the West have not stopped what a World Bank economist recently called an ?amazing? recovery. For those who like to believe that political freedom is the surest route to prosperity, it?s deeply depressing news. For the 89-year-old president, something has gone horribly right.

The election result is not due for days, but Mugabe?s Zanu-PF is declaring victory anyway. Never mind that the electoral roll contained a suspiciously high number of centenarians in a country where life expectancy is 51, and, by some estimates, two million dead voters. Mugabe deployed his old Marxist guerrilla skills: he rounded up his people, roped in the military to campaign for him and intimidated his opposition into staying at home. Neither he nor his rival, Morgan Tsvangirai, seem to doubt that this worked. Yet another Zimbabwean election has been rigged. ? Read more »