The Dim-Post

September 30, 2011

We can’t rewind we’ve gone too far

Filed under: economics,Politics — danylmc @ 3:15 pm

DPF on the credit downgrade:

This makes it even more imperative that the NZ Govt gets back into surplus as fast as possible.

The issue is not government debt but net national liability – because private debt can and does turn into public debt at the stroke of Bill English’s pen. The challenge is to grow the damn economy at a higher rate than 0.1% per quarter, increase savings and decrease borrowing.

Meanwhile, this Stuff piece on our Prime Minister’s adventure in radio – an hour long PR stunt on a network his government loaned $43 million dollars for no good reason –  is one of the most acidic straight news stories I’ve read in a long time:

Just days after a New Zealand SAS soldier was killed in Afghanistan and as Standard & Poor’s joined fellow ratings agency Fitch in downgrading the New Zealand economy, Key is hosting an hour-long show on Radio Live.

A news bulletin during the show reported the second economic downgrade, but Key had not mentioned it by almost halfway through his show.

Key interviewed All Blacks captain Richie McCaw and thanked him for the way the team was going.

His next interview is with international business star Richard Branson.

As well as conducting interviews, Key also read the weather and gave the preamble to each segment of the show.

Key is scheduled to hold a press conference once his show ends.

Update: Via TVNZ:

Hosting a radio show this afternoon, hours after it was announced New Zealand’s credit rating had been downgraded , Key said Coronation St was “worth saving”.

“Who’s home at 5:30?” Key said on RadioLive.

He said he would talk to “someone important” at TVNZ about the change of timeslot.

It’s 4:30. The news starts at 6:00. Key has until about 5:30 to get an All Black to do something newsworthy, or he’s going to be a laughing stock in the lead story.

About these ads

59 Comments »

  1. Key did some cricket commentary earlier in the year. He was pretty good at it.

    Comment by Orlando Figes' ghost-writer — September 30, 2011 @ 3:17 pm

  2. Well, there’s been talk that Key will quit politics during his second term – he’s obviously scoping out new job opportunities.

    Comment by Ross — September 30, 2011 @ 3:19 pm

  3. That’s some heroic spin by dpf. The downgrade in because of interest free student loans, not because of Key and English’s hands-off mismanagement of the economy.

    He also manages to take a swipe at “tax cuts for all”. Silly Labour, tax cuts are only for rich people!

    Comment by pete — September 30, 2011 @ 3:23 pm

  4. Broken record here, but national’s tax cuts weren’t – and aren’t – sustainable. If we want to address the deficit we would put the top tax rate back up as part of any plan.

    Frankly, I’m not sure National really does want to address the deficit, as it’s politically very useful for justifying selling state assets off to multi-nationals and your cronies.

    Comment by Steve (@nza1) — September 30, 2011 @ 3:27 pm

  5. I’m a little confused. Key just the other day was telling Parliament that 170,000 new jobs would be created over the next few years. But in 2009, Key told Parliament:

    “The No. 1 way to see New Zealanders down the road from their jobs is if their businesses cannot be funded. That is what happens when we have a credit downgrade…”

    Comment by Ross — September 30, 2011 @ 3:38 pm

  6. So John Key went on a radio show and talked about all the things the normal audience for that show like to talk about, rather than talking about all the things the opposition stooges would like to ring up and talk about. Those stooges in all likelihood not being the normal audience for that show. That to me in some ways sounds admirable.

    What I have an issue with is that some unnamed person in *Fairfax* thinks that we should criticise the PM for appearing on a *Mediaworks* station.

    Comment by R Singers — September 30, 2011 @ 4:10 pm

  7. Talkback radio tends to talk about politics and news and stuff, not the PMs cat.

    Comment by danylmc — September 30, 2011 @ 4:16 pm

  8. If they let him talk politics, it is electioneering and they would have to give a similar opportunity to other politicians – which would be death for audience ratings. While it might be *fair* to offer the same opportunity to Goff, who would want to listen to him blather on for an hour?

    So why get the PM on to talk about his cat? Electioneering when you’re not electioneering…

    Comment by MeToo — September 30, 2011 @ 4:16 pm

  9. urrrmmm didn’t the world’s largest economy have a downgrade recently? Isn’t this entirely to be expected as the US downgrade ripples through the world?

    Comment by insider — September 30, 2011 @ 4:25 pm

  10. The Electoral Commission told RadioLIVE it had to be politics-free: http://www.stuff.co.nz/national/politics/5712154/DJ-Key-talks-cats-not-tax-on-radio-show

    Comment by WH — September 30, 2011 @ 4:31 pm

  11. The Electoral Commission told RadioLIVE it had to be politics-free

    I’m not surprised. The Broadcasting Act is pretty strict about this. Newstalk ZB got referred to the police last election for letting Shane Jones and Winston Peters say political things on shows they were hosting last election.

    ref: http://www.elections.org.nz/study/news/2008-media-releases/electoral-commission-decision-2008-34.html

    Comment by Graeme Edgeler — September 30, 2011 @ 4:49 pm

  12. I’m willing to bet Key will only get glowing headlines in the media for his display of confidence and the common touch. Most NZ media have long since suspended their critical facilities (such as they are) when it comes to the PM, and now seem to behave with all the cool analytical decorum of a 14 year old at a Justin Bieber concert.

    Comment by Nick R — September 30, 2011 @ 4:54 pm

  13. So the Prime Minister broke the law, when he *did* talk about the downgrade today, in that show? Hmmm.

    Of course, the Electoral Commission didn’t say to MediaWorks “You can’t have an interview with the PM”, or “You have to give him a free hour”. That was entirely their choice.

    Comment by sammy — September 30, 2011 @ 4:57 pm

  14. It’s 4:30. The news starts at 6:00. Key has until about 5:30 to get an All Black to do something newsworthy, or he’s going to be a laughing stock in the lead story.

    Who watches the TV news on a Friday Night?!

    Hell, who comments on ‘blogs on a Friday night?

    Comment by Phil — September 30, 2011 @ 4:57 pm

  15. ***newsflash***

    all black , full details at 6.

    i) gets a haircut
    ii) catches a fish
    iii) has photo taken with his shirt off
    iV) cuts himself shaving [therefore not fit to play for next 3 weeks]
    v) any other sports team does something and the all blacks shoehorn themselves into the story by publicly wishing them luck

    Comment by amc32 — September 30, 2011 @ 4:58 pm

  16. dammit, hoes does this thing work?

    first line was supposed to read

    all black [__insert anything you like here or choose from handy hint list below__]

    it was going to look so witty. sigh.

    Comment by amc32 — September 30, 2011 @ 5:00 pm

  17. and a shabby typo. fml.

    Comment by amc32 — September 30, 2011 @ 5:00 pm

  18. Sharemarket didn’t care, dollar fell. Maybe we should ask them to downgrade us another notch.

    Comment by bradluen — September 30, 2011 @ 5:40 pm

  19. Gee, you are bitter today Danyl.

    Comment by little_stevie — September 30, 2011 @ 7:37 pm

  20. I think The Key Project may well have jumped the shark today.

    Comment by the fox — September 30, 2011 @ 8:09 pm

  21. “Gee, you are bitter today Danyl.”

    National Party research unit forcing you to work overtime tonight stevo?

    Comment by Guy Smiley — September 30, 2011 @ 8:31 pm

  22. Lordy no Guy. I’m a free man. How come you assume anyone who questions the norm on this blog is a Nat stooge? Is it because you are a Labour stooge?

    Comment by little_stevie — September 30, 2011 @ 8:45 pm

  23. Hell no stevio. Just thought that someone as classy and urbane as yourself must have something better to do with your time than running interference for the Nats for free on a Friday night. Wee bit tedious no?

    Comment by Guy Smiley — September 30, 2011 @ 9:33 pm

  24. The problem with spending your three years in government only conducting an election campaign is when the actual election campaign comes along you are only left with Ricky Gervais country.

    Comment by Sanctuary — September 30, 2011 @ 9:35 pm

  25. Guffaw. The dynamic duo strike again. Come on guys try a bit harder. A few ad hom attacks don’t convince many people (as Clark Inc found). A good political campaign plays the positive.

    Comment by little_stevie — September 30, 2011 @ 9:45 pm

  26. It’s certainly a big ask competing against Labour’s heavy hitters such as Darien Fenton and maybe Key is starting to lose it.

    Comment by NeilM — September 30, 2011 @ 10:52 pm

  27. Guy Smiley, one of the more pleasant aspects of this site is that it’s one of the few where people don’t generally get accused of bad faith just because they have different opinions.

    Comment by NeilM — September 30, 2011 @ 11:03 pm

  28. As opposed to the fucking Standard. God, that’s embarrassing.

    Comment by Rhinocrates — September 30, 2011 @ 11:55 pm

  29. Key’s intention of talking to “someone important” at TVNZ is odd, aren’t they all important there? That’s what they keep telling us.

    I don’t care about Coro, but I’m jealous – at least Coro fans have one program they think is worth watching.

    Comment by Pete George — October 1, 2011 @ 7:23 am

  30. Umm, stevio’s contribution is no different to Guy’s. He assumes that people commenting are ‘campaigning’ rather than speaking in good faith, and opened with a boring ‘aren’t you bitter’ gambit. Not seeing anything worthwhile there. What’s his opinion/ Don’t know. All I know is that that he finds it all a bit bitter, and that bitterness is bad campaigning tactics.

    This site isn’t that much different to the standard. It’s just that the attacks are a bit more meta.

    Comment by Pascal's bookie — October 1, 2011 @ 9:39 am

  31. I tend to disagree – certainly there are trolls and tribal poo-flingers, but the trolls stand out as an exception to a general trend. In the Standard it’s become so automatic, overwhelming and ritiualised that I often have the impression that the majority of its contributors are poorly-programmed chatbots that would come nowhere near passing the Turing Test and have little more than “CT-RWNJ-Scab!” in their vocabularies (I don’t go anywhere near Kiwiblog).

    Comment by Rhinocrates — October 1, 2011 @ 10:22 am

  32. Meta critics! You do know my dear Pascal, that the only people who take blog comments seriously are journalists? Sometimes I/S makes a discovery via an OIA and bomber is making a go of it as an independent broadcaster, but mostly we are all just show off footsloggers in the cyber-trenches of life.

    Comment by Sanctuary — October 1, 2011 @ 10:25 am

  33. If I have a large billboard of the face of the Party Leader of my choice, or perhaps of them doing something non-political like kissing babies, but no party logo or writing on it, how would that be viewed by the Electoral Commission? I appreciate they have a job and a half sorting out where to draw the line on things, but that seems to be the visual equivalent of giving airtime this way.

    Comment by bka — October 1, 2011 @ 12:16 pm

  34. @ amc32 – The effort was appreciated :) And now you know how Phil Goff feels most days ;)

    Perhaps bka has something too – I have sudden visions of Ministry of Disinformation style black & white posters of ‘The Relaxed Leader’, aka ‘His Comfortableness’. Maybe different scenarios – DJ Relaxed, His Comfortableness cuts ribbon, Saint John carrying children thru No Man’s Land, etc. Saturate the nation with the glorious visage of the Most Economic (with the truth)…

    Comment by bob — October 1, 2011 @ 9:21 pm

  35. Why don’t they take all the damned money that’s sitting there (NZ Super Fund, money currently being used to fund the Dramatic Arts, all the other money that’s floating around, the money that they’ll get from the asset sales) and create 200,000 jobs? This will stimulate the economy no end, and we’ll end up with a massive super fund in the end that will considerably dwarf what’s sitting in the current one.

    The Government should just get on with it, so next year we don’t have to look at the grief-stricken faces of the PM and his Southland Deputy as they sit together in a conference room, devastated that the NZ economy has gone the way of Ireland.

    Come on, this is what they’ve been intending to do anyway for some time now. Just get on with it, I say, and then maybe we’ll get our top-notch credit rating back.

    Comment by Betty — October 3, 2011 @ 10:40 am

  36. Betty said: “Why don’t they take all the damned money that’s sitting there (NZ Super Fund, money currently being used to fund the Dramatic Arts, all the other money that’s floating around, the money that they’ll get from the asset sales) and create 200,000 jobs”

    as far as I can tell, the only large sum of money they could raid to do this is the money set aside for building motorways. The idea that there is a lot of money being spent on funding the dramatic arts that would create more jobs if spent some other way is, quite frankly, laughable.

    Comment by Kahikatea — October 3, 2011 @ 11:18 am

  37. @ Kahik

    Didn’t you get that memo about $13Bn for the Royal NZ Ballet of Significance? (not to mention the $1.3Bn floating around for the Ultra Fast Symphony Orchestra.

    Comment by Gregor W — October 3, 2011 @ 11:37 am

  38. @Danyl do you listen to some bizzaro world talkback radio station where they talk about sane, rational, and relevant things? What’s the Wellington freq?

    Comment by R Singers — October 3, 2011 @ 11:51 am

  39. No, but there is some money being used to fund the dramatic arts. And, let’s fact it, National don’t care about the dramatic arts. What they care about is the farmers, the rich, themselves, and rugby, not necessarily in that order.

    New Zealand has recently received a double credit downgrade all in the space of one or two days. We have $130B that the Crown and the private sector owe, amounting to 70% of GDP. This is now, in the face of this global financial crisis, considered excessively high.

    So, my point is, why don’t they get on with it. There’s billions in the superannuation fund, they’re getting a truck load from asset sales, and they should take the opportunity to cut funding in areas that they don’t like and take advantage of ideas such as a capital gains tax because now is the best time to do all that.

    If they want to win 2014, then they will think seriously about doing all this, instead of sitting there in the middle of next year wirth egg on their faces because the economy has gone the way of Ireland and Greece, and they didn’t take the opportunity to implement their own policies and march forward with their viewpoints in a political context,at the best time for them to do so.

    Comment by Betty — October 3, 2011 @ 12:59 pm

  40. Reading Betty’s comments, it’s kind of like when my Girlfriend and I get into a heated argument about what we would do if we won lotto…

    Comment by Phil — October 3, 2011 @ 1:03 pm

  41. “35.Why don’t they take all the damned money that’s sitting there ”

    Betty’s right, it’s all just sitting there in a big swimming pool under the beehive.

    Comment by Clunking Fist — October 3, 2011 @ 2:08 pm

  42. I see little need for dramatic arts funding when we are all regularly treated to Betty’s ongoing performance programme of leftwing-rightwing equal-opportunity failtrolling. Which appears to be meeting with great success.

    Comment by Sam F — October 3, 2011 @ 2:23 pm

  43. @CF

    Bill English as Scrooge McDuck?

    Comment by Gregor W — October 3, 2011 @ 2:39 pm

  44. Ah, but alas, in the cosmos of life there is always the need for someone to balance out the distortions embraced by mass society.

    Comment by Betty — October 3, 2011 @ 2:44 pm

  45. Hi Betty,

    What the fuck are you talking about?

    Comment by Gregor W — October 3, 2011 @ 2:59 pm

  46. “What the fuck are you talking about?”

    I repeat, great success.

    Comment by Sam F — October 3, 2011 @ 3:10 pm

  47. “Didn’t you get that memo about $13Bn for the Royal NZ Ballet of Significance? (not to mention the $1.3Bn floating around for the Ultra Fast Symphony Orchestra.”

    There’s been a lot of vans around here bearing the word ‘Chorus’. Maybe this explains why.

    Comment by Kahikatea — October 3, 2011 @ 3:25 pm

  48. But of course there can only be one “nation’s van”, as cited in the 7th verse of God Defend New Zealand, where it says “guide her in the nation’s van, preaching love and truth to man”

    Comment by Kahikatea — October 3, 2011 @ 3:26 pm

  49. Actually, let’s consider that actors and other people employed in “the dramatic arts” are generally on the bones of their arse and almost certain to spend every cent they receive immediately. The KLF notwithstanding, they aren’t going to burn the money or bury it in the ground. Whereas we know that the rich and middle classes have been saving their tax cuts or deploying them unproductively on overpriced houses.

    It’s hard to think of anything more immediately stimulatory than giving money to an actor (or a musician, or a painter). We should give them far more, not less.

    Comment by Stephen Judd — October 3, 2011 @ 5:07 pm

  50. Whereas we know that the rich and middle classes have been saving their tax cuts.

    And that’s just terrible!
    I mean, it’s not like we have a savings (lack thereof) problem in NZ…

    deploying them unproductively on overpriced houses.

    House prices have moved pretty much sideways in recent months/year. Are they overvalued and by how much? Well, ask any two people and you’ll get two different repsonses.
    Sales volumes are generally low. Mortgage approvals are well down compared to where they were in the boom.

    So no, they haven’t been investing in unproductive housing.

    Comment by Phil — October 4, 2011 @ 12:32 pm

  51. Oh, try and play along Phil.

    Comment by Stephen — October 4, 2011 @ 12:44 pm

  52. “So no, they haven’t been investing in unproductive housing.”
    Weeell, actual, me and all my friends are paying off mortgages on houses bought at pre-recession prices,

    Comment by Clunking Fist — October 4, 2011 @ 1:18 pm

  53. paying off mortgages on houses bought at pre-recession prices

    You should build a house – a nice big one. That way you get to feel superior to your friends on 2 fronts:

    1) You’re investing in the real sector – builders could do with some help about now
    2) Your house is way nicer than the cold and/or leaky shitbox they live in.

    Comment by Phil — October 4, 2011 @ 2:15 pm

  54. You should build a house – a nice big one.

    Yeah. On all that available suburban land.

    Comment by Gregor W — October 4, 2011 @ 4:58 pm

  55. Aotea has plenty – we’ve bought 660sqm of land (and it’s flat!) and are building over summer. Outside of rush hour, it’s a 20 minute drive to the heart of Wellington CBD.

    Comment by Phil — October 4, 2011 @ 5:43 pm

  56. Where I’ve built is 20 minute drive in rush hour (22 min on bus). Good luck with your build. Are you having a baby and changing jobs, too? I found just building wasn’t exciting enough.

    Comment by Clunking Fist — October 4, 2011 @ 6:35 pm

  57. Hmmm. By suburban I meant quick bus trip or longish walk. My own skewed criteria though.

    Comment by Gregor W — October 4, 2011 @ 9:43 pm

  58. I am talking about, to summise (you bigoted rude redneck) using the billions from asset sales to create jobs (so we have a decent economy under National, so people have a way to make an income, so they can pay their bills, so we can continue to afford computers, so you can continue with your dim-witted views and unnecessary swearing towards someone who is actually trying to come up with ideas to help).

    Comment by Betty — October 5, 2011 @ 11:43 am

  59. Unless you raise your family in a council flat, you need serious money to buy within walking distance of cbd. Or Old Money, lol.
    What’s not quick about 20min bus journey in rush hour?

    Comment by Clunking Fist — October 5, 2011 @ 12:05 pm


RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

The Rubric Theme. Create a free website or blog at WordPress.com.

Follow

Get every new post delivered to your Inbox.

Join 421 other followers

%d bloggers like this: