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Thursday, June 14, 2012

The Emperor has no surplus

Bollard sees delayed surplus
The Government will not return to surplus until two years after Treasury's 2014-15 estimated timeframe, according to Reserve Bank Governor Alan Bollard.

Alan Bollard has examined the Goat Livers and sacrificed two virgins to the Gods of finance and has come down from the Mountain to declare what everyone else but John Key wants to acknowledge. That we ain't getting back into surplus by 2014.


The 2014 surplus illusion is terribly important to National. They have night polled David Farrar silly to understand the minds of NZ and the idea that in tough times we all have to cut back has become a mantra strengthened by a nation of guilty credit addicts who apply their self loathing of debt to the national psyche.

The illusion of surplus justifies the privatization of public services and deflects attention away from the lack of revenue caused by tax cuts to the rich. If there is in fact no bloody surplus, then why are we going through the pain without any gain? Other political aspirations start sounding far more hopeful and the injustice of that $2.8billion in tax cuts to the wealthy starts to bite far deeper.

Key's vacant optimism is as empty as his hollow surplus. The right don't have the economic solutions here, and implementing more failed free market ideology has all the reflect response of an alcoholic reaching for the bottle to cure a hangover.

Roost. Coming. To. Home. Swans. Black. Make a sentence.



At 15/6/12 1:47 am, Blogger peterquixote said...

honestly Bomber, coming home to roost with a black Swan egg in the basket, I don't think anyone believed the forecast for an instant. Perhaps our silence is disturbing, but most New Zealanders just go about their business and laugh it off, hoho, .
But it does show that Key has lost the edge. He is prepared to make political stupid and that is sad

At 15/6/12 7:41 am, Blogger Nitrium said...

When (not if) the proverbial shit hits the proverbial fan, either domestically or globally or both, the deficit WILL come down, simply because we won't be able to keep borrowing for Govt largess at current interest rates.
Pick your poison:
a) Cut Govt spending (I would argue that there is PLENTY of fat to cut from here).
b) Increase taxes (leads to offshoring of money and labour and lowers capital formation for new businesses, often temporarily increases unemployment lowering tax revenue).
c) Print money (leads to rampant inflation, has the same net effect as increasing taxation on EVERYTHING and decimates savers/capital formation).

There is no free lunch. There are no painfree solutions.

At 15/6/12 8:41 am, Blogger Frank said...

As Peter said above, I doubt most folk really believed Key and English on their Budget pronouncements. We've heard it all before; 170000 new jobs' raising wages; motivating NZers to stay in New Zealand - all grand promises which have come to nought.

Not only has the Emporer no clothes, but there's a fair amount of 'shrinkage' in a chilly wintry wing...



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