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.