Tuesday, October 4, 2011

New Zealands credit downgrade. Or the Story of more Neo-Liberal economic "successes".


It would be funny if it was not so serious.

NACT (New Zealand,s,  Right wing, Neo-Liberal Government) cannot even meet performance targets from, the totally discredited, "credit rating" agencies.
Agencies which are on the side of the same economic dogma as NACT.

This could have been avoided simply by legislating that no private finance companies would be bailed out.

The New Zealand Government, like, the other failing States, Ireland, UK, Greece and the US etc, has made it obvious that private finance debt is a taxpayer liability.

Look to Argentina and Iceland to see the benefits of telling the banks to get stuffed. Argentina, one of the worlds fastest growth economies since 2002, when they told the banks to take a bath.

Noting that most lenders to Governments have taken no notice of States credit rating downgrades recently.
Government bonds are still considered much safer than private lending.

One of the reasons for the continuing recession in the USA.  The cashed up  prefer to lend to the Government instead of industry and development. Government lending at 0% intended as a stimulus is being invested in 3% yeald Government bonds.

Meanwhile the Media have had almost no coverage of Nationals failure to succeed, even under their own terms. If we had a credit downgrade under Labour it would have been frontline news.

A rugby players nuts are more important!

1 comment:

  1. Oh yes! It's a fact that would be funny if not so seriously problematical. All Blacks appear to be more important - you've mentioned it right.