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New Zealand Bank Posted:
retail banking is all what an economy needs, I mean what are the governments are doing on this.
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New Zealand Bank Posted:
I don't understand why is the reserve bank so weak and poor !
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mist Posted:
Perhaps IMF formulas are not accurate for this area.
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mist Posted:
" tax increases in one area supports decreases in another is correct" it can only be correct if it is true. Observation and repeated sampling has proven that the hypothesis is faulty. Tax increases in one area are not causally linked to decreases elsewhere - not "possibly", not "it adds up". "Philosophically" it _might_ but testing proves it does not. One could even say "it should" but we both know an equivalent term for "it should" is "doesn't" What drives taxes down is political advantage. If a political party has an agenda they don't want the public to look at too closely, then sweeters (aka "bait") is put forwards. Tax decreases is a classic. This can be achieved because the tax increases and tax decreases are not linked. They're not zero sum nor do they have causal or proportional connection. This is because the "buffer solution" in the middle is that endless hole. tax increase means more spending. tax decrease means more government borrowing. The in/out relationship is decoupled, through size and power in the marketplace (financial economy). The abysmal productivity is because of the massive overheads from doing business in NZ. personal taxes double the rates of the US, huge taxes on goods and services, massive levies on critical imports, price gouging in the energy and communications markets, interest rates 300 to 500 times that of the US!, and not nearly the number of cost writeoffs either (subscriptions, training, vehicle rebates). Nor would get the 401k option either, of rebuying into the same market and not having to pay CGT. Oh and horrendous ever inflating local rates, again much much higher, for less, than our foreign counterparts (excepting Scandinavian countries). Our "abysmal production" is a result of this overtaxation being sand in the gears of the economy, wearing it down and rubbing out real growth. Putting CGT makes that problem worse!! And to sum up... your last comment.... O.M.G. You think that improving our situation, of people not wanting to save or invest in government buggered industry is to bugger up the ability to accumulate equity in useful assets??????? Where do you think people are going to get savings or capital to do anything??? (including retiring when their earning ability is severely reduced!) Put it in finance companies???????????? Buy the oh-so-excellently-performing NZX? In the few companies squeaking by?
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John Walley Posted:
I think we agree on the lending without security issue. It might well be that the intent to change the source of tax and not increase government spending is fictitious, however given the provision that government spending does not change the statement that tax increases in one area supports decreases in another is correct. The broader point is demonstrated by the Romney situation where he pays tax at half the rate of his salaried staff - and in the USA capital gains carry a 15% tax rate - it will be interesting to see how that one pans out. For New Zealand the economic distortions supported by the complete absence of capital gains tax are clear from our abysmal productivity record. Why save, why invest in production (taxed interest paid or via the income statement) when money can be made without tax from passive asset appreciation.
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RBNZ must continue to add tools to monetary policy http://t.co/ubJ0GgqE
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Quarterly Survey: Sales up overall but exports down http://t.co/HaVoEYER
4/05/2012 9:21 a.m.


9/5/12

John Kay: Reducing the risk of a systemic failure in the banking system
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John Kay explains what misconceptions led to failure in the banking system and what measures can be taken to avoid future failures in a presentation to the Foundation for Science and Technology.

http://www.foundation.org.uk/events/audios/audiopdf.htm?e=453&s=1240

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tags: john kay, banking system, risk trading


7/5/12

Member Profile: K9 Natural
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A unique product and tireless work to get past food compliance issues have turned K9 Natural into a fast growing business.

K9 Natural was founded in 2006 by Geoff Bowers and Bruce Mayhew to offer a dog food that reflects their dietary requirements. The food is modelled on the diet of a wolf and contains 85 percent meat, blood and bone, and 15 percent fruit, vegetables, eggs...

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tags: k9 natural, member profile, calvin smith, geoff bowers


4/5/12

RBNZ must continue to add tools to monetary policy
Print-friendly 10 comment(s) Posted in: In the media

The Reserve Bank announced new tools to be used to prevent future banking crises yesterday with the Core Funding Ratio and new Basel III regulations topping the list. Our economy is way out of balance so any effort to look beyond the simplistic interest rate tool to push back against asset price inflation is welcomed say the New Zealand Manufacturers and Exporters Association (NZMEA).

... read more...



tags: rbnz, ocr, basel iii, core funding ratio


4/5/12

Quarterly Survey: Sales up overall but exports down
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The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during April 2012, shows total sales in March 2012 increased 4.87% (export sales decreased by -4.52% with domestic sales increasing 13.6%) on March 2011.

The NZMEA survey sample this month covered NZ$545m in annualised sales, with an export content of 44%.

Net...

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tags: survey, capacity utilisation, canterbury earthquakes, exchange rate, current account


1/5/12

Gareth Morgan: House prices a cancer for the economy
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Gareth Morgan explains the reasons for, and consequences of, New Zealand's housing obsession in an article for the New Zealand Herald:

The over-investment in housing that we've sponsored has come at a high price: diversion of capital away from deployment in industry and income and...

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tags: gareth morgan, capital gains, reserve bank, business investment


26/4/12

'La la land' a better place?
Print-friendly 0 comment(s) Posted in: In the media

John Key made the comment on Monday that currency intervention is “la la land stuff”. A simple comparison between countries that have practised exchange rate management and New Zealand indicates that residency in ‘la la land’ might be desirable say the New Zealand Manufacturers and Exporters Association (NZMEA).

NZMEA Chief Executive John Walley says, “The ‘la la land’ comment is...

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tags: john key, la la land, exchange rate, current account balance


24/4/12

Still scared of a currency target?
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The Government and the Reserve Bank (RBNZ) must back up their words with actions in response to an overvalued exchange rate say the New Zealand Manufacturers and Exporters Association (NZMEA). The Reserve Bank makes its Official Cash Rate announcement on Thursday with no change expected, but recently released RBNZ minutes show that the bank was uncomfortable with the level of the New...

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tags: currency target, exchange rate, current account, ocr


19/4/12

Exporters pay the price for monetary policy failure
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The latest inflation statistics demonstrate the wealth transfer from the traded economy to the non-traded economy. This must stop say the New Zealand Manufacturers and Exporters Association (NZMEA). Statistics New Zealand’s March quarter figures show non-traded inflation up 1.2% from the previous quarter with traded inflation down -0.4%.

NZMEA Chief Executive John Walley says, “New...

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tags: monetary policy, inflation, cpi, exchange rate, current account


17/4/12

Will to ‘resist’ currency appreciation encouraging
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John Key’s comments that the Government is considering what can be done to resist the high New Zealand dollar are encouraging say the New Zealand Manufacturers and Exporters Association (NZMEA). Key made the comments to the Indonesian Economic Committee.

NZMEA Chief Executive John Walley says, “Clearly when Statistics New Zealand finds that 37 percent of exporting firms identify...

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tags: current account, exchange rate, john key


16/4/12

Brian Gaynor: Why the kiwi can't catch the kangaroo
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Brian Gaynor writes on why New Zealand's economy cannot catch Australia and what needs to change in an article for the NZ Herald:

The problem in New Zealand is the small population and the inability of manufacturers to achieve economies of scale.

As manufacturers expand...

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tags: nz dollar, productive sector, job creation