New Zealands Prime Minister "You Can't Spend Your Way Out of the Crisis"

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gyrogearloose's picture
gyrogearloose
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Posts: 549
New Zealands Prime Minister "You Can't Spend Your Way Out of the Crisis"

Knock me over with a feather....

 

Mr. Key wrote:

That idea -- growing a nation out of recession by improving
productivity -- puts Mr. Key and his conservative National Party at
odds with Washington, Tokyo and Canberra. Those capitals are rolling
out billions of dollars in stimulus packages -- with taxpayers' money
-- to try to prop up growth. That's "risky," Mr. Key says. "You've
saddled future generations with an enormous amount of debt that then
they have to repay,"

http://online.wsj.com/article_email/SB123638162497057661-lMyQjAxMDI5MzA2...

 

 

maveri's picture
maveri
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Re: New Zealands Prime Minister "You Can't Spend Your Way ...

go the Kiwi's !!!

:-)

jhelge's picture
jhelge
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Posts: 43
Re: New Zealands Prime Minister "You Can't Spend Your Way ...

He obviously doesn't understand Kensian Economics. Let me explain: you print huge somes of money with a MAGIC money machine and it defies the laws of economics and maintains the value of each dollar. That is how all wealth is generated. He must be thinking of of those trashy machines the Zimbabweans use. What were they thinking?!

 

In all seriousness, this does not help calm my urge to move there.I have a feeling I am not alone in that regard.

kiwixport's picture
kiwixport
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Re: New Zealands Prime Minister "You Can't Spend Your Way ...

Hello Guys / Girls,

Not enjoying being the cynic but my impression from reading the full article was that this is merely a traditional kiwi symptom of being slightly behind the times. NZ is potentially not in the state the US, UK and Aussie are but by following the policies Key is advocating they are trying to catch up.

One reason Key is prehaps not borrwoing and spending is because maybe NZ simply doesnt have the 'weight' to successfully bid for it, considering the demands for credit by UK and US plc. Also NZ is already heavily indebted.

Therefore Mr key is going for the next worse thing. He talks about relaxing the Resource Management Act (RMA) which imposes a planning process on any landuse, taking into account environemntal and sustainability issues.

They are trading off sustainable landuse with the desire to entice foreign investment by relaxing the planning regualations for landuse / resource extraction. This is not a good thing. It is just as short sighted as what other Govts are doing and equally despicable. You are merely robbing from future generations in a different way.

The RMA makes sure that landowners, forestry companies, dairy co-ops etc manage the environemnt in a sustainable way. It is being de-toothed to entice foreign capital in a ore competitive way. I fear NZ becoming another Africa, with foreign investors being sold access to our natural landbase. This is similar in my eyes to exporting your manfacturing ability, in many ways it is the NZ equivelent.

PS I read this in the NZ herald, link below and it came across very differenantly from the WSJ version above in my opinion

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10560868

About NZ; with a low population I hope we can 'enforce' some democracy. I think it was Dr Bartlett who summized that democracy (being able to hold your leaders to account) is inversely proportional to population.

At the moment, this whole mess is not high on the average kiwi's radar. I hope it changes. 

Cheers,

always the optimist, but planning like a pessimist. 

 

 

  

 

gyrogearloose's picture
gyrogearloose
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Posts: 549
Re: New Zealands Prime Minister "You Can't Spend Your Way ...
kiwixport wrote:

Therefore Mr key is going for the next worse thing. He talks about relaxing the Resource Management Act (RMA) which imposes a planning process on any landuse, taking into account environemntal and sustainability issues.

My business partners and I have been in the position of having to spend  tens of thousands of dollars in the process of applying for a resource consent to build a plant to divert used car tyres from the dump and turn them into fuel.

Our discharge of concern is SO2. According to the district plan, the amount we wanted to discharge fell within the amount allowable without needing to seek permission (or even having to notify) the neighbours.

A year after we started the process, we were informed that the final sign off was to be in 4 days.

2 days later we were informed that we would now have to get permission from our closest neighbours before they would sign.

That took a further 4 months. 

All the while 25 ton per day of tyres being taken to the dump.

Part of the application process required us to have atmospheric modelling done to show how much S02 the surrounding areas would be exposed to.

The unmitigated stupidity of the RMA meant that

1 :- The people closest to us were essentially unaffected by our discharge, but we had to get their permission.

2 :- The people further away would bear the brunt of our discharge, were not consulted or informed.

 

Talk about need of an overhaul.

 

 

 

kiwixport's picture
kiwixport
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Posts: 10
Re: New Zealands Prime Minister "You Can't Spend Your Way ...

It wouldnt suprise me if aspects of the RMA need an overhaul. I am only familiar with the aspects pertaining to agricultural and forestry applications. Many of these my peers disagreed with but at times like this, when political expediency overides long term sustainability, I would rather have a 'water tight' RMA than a heavily diluted one designed to stimulate foreign investment.

I would argue that the money spent forces enterprises to consider the imapcts of their activties and go thru a complete systematic check of their activities. No system is perfect but the aim of the RMA when it was introduced holds true. In such matters I am glad NZ has so far been cautious. 

If the RMA over regulates, better than the unregulated mess currently happening in the financial system. Hopefully we will still have a land base fit for purpose.

The RMA has not stopped the rapid expansion of the NZ foresty sector in the last 20yrs but has I hope improved the operations in terms of long term sustainability.

It would be interesting to see what Mr Key intends 'relaxing' in the RMA. I cant honestly say I know, only that I am naturally catious, even more so after recent events.

 

 

 

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