Thursday, October 14, 2010

NZ is unaffordable [updated]

With ballooning debts and interest payments of a quarter-of-a-billion a week – and NZ’s elderly population set to double in the next 40 years --  it’s obvious even to ratings agencies who failed to spot the coming of the global monetary crisis that NZ’s current system (whence one group steals from another using govt as intermediary) is long-term unsustainable.

More old people, combined with a declining working age population, could escalate pressures on New Zealand's long term fiscal position, Standard & Poor's Ratings Services says
    "Without further reforms to address these mounting spending pressures, increasing net general government debt over the period may weaken New Zealand's long-term credit quality," he said.
    The increasing trend was in line with global findings, with S&P projecting that the government debt burdens of most advanced economies could reach unsustainable levels of more than 300 percent of GDP in the next 40 years, without fresh measures to address long term age-related spending trend.

There is only one sure-fire way to address the rise and rise of Borrow-and-Spend—which even at today’s record low interest rates is imminently unaffordable: Stop borrowing; stop spending.

In other words, stop the moral cannibalism of thinking an ever-growing group of people can live at the expense of everyone else.

How do you begin that? Simple, says my colleague Dr McGrath, taking a deep breath:

The government should immediately take transitional steps toward a privatization of health, welfare, education, accident insurance, scientific research, sport, broadcasting, the arts, charities, aviation, housing, environmental property rights, fisheries, consumer research, trade, electricity generation, sewage services, rubbish collection, water reticulation, gas supply, railways, land information, transport, roading, agriculture, the maritime industry, the fire service, earthquake and fire insurance, the blood service, artificial limbs, forest research, food quality rating, gambling, postal services, symphony orchestras, walking, tourism, deer hunting, apartheid, land ownership, children, disabled people, drugs, property valuation, banking, superannuation arrangements, fishing, business mergers, Maori people, Pacific Island people, motor vehicles, women, weather forecasting, welfare, widgets and juveniles.
    Our credit rating is heading toward junk status, our currency sinking next to the Australian dollar. New Zealand is fast becoming the new Greece. There will be riots in the streets when our debt level leads to cuts in welfare benefits and pensions. This can be avoided if our government acts now.

That’s what a responsible government would do—or at least contemplate. Instead, Smile-and-Wave will keep on spending his time apologising for things TV hosts might say, while continuing to Borrow and Spend.

_JohnBoy01

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4 Comments:

Blogger Sanctuary said...

"...it’s obvious even to ratings agencies who failed to spot the coming of the global monetary crisis..."

Because anything they say now is just SO credible. Or not.

"...The government should immediately take transitional steps toward a privatization.."

Absolutely, new Zealanders just love that stuff, why look at how many times we've elected governments that honestly campaign on that platform! Democracy is such a BITCH for fanatics.

Still, you can howl on teh internetz, which at least spares us hearing you howling at the moon.

10/14/2010 01:24:00 pm  
Anonymous Anonymous said...

And you can shove your head up your arse Sanctuary and pretend the problem doesn't exist or maybe you acknowledge it does but can be solved by borrow, tax and spend?

Fuck democracy. It doesn't work. We need a libertarian autocrast in charge for 10 years to shake the malaise out of most of us (but not me cos I see that problem like PC does).

10/14/2010 01:43:00 pm  
Blogger Ruth said...

Bill English told a group of financiers a couple of months ago that the govt simply could not touch superannuation and other old folk benefits. He said it was ingrained into the NZ psyche. Which it is.

I will repeat what I have said many times - the denture clacking brigade are the most selfish you will ever see - far more so than DPB recipients etc. They have had all the good times and now they want you and me to pay for their retirement and their drugs. It's all "me,me,me".

"Greatest Generation" my ass.

10/14/2010 03:52:00 pm  
Blogger Sanctuary said...

An autocrast! Autocrast. Just the sort of word you get when you give the credulous a half baked idea and a keyboard.

Planning the admirably ambitious project of overthrowing liberal democracy before one can even spell the proposed replacement not only risks ridicule, but is also somewhat putting the cart before the horse, don't you think?

10/14/2010 06:29:00 pm  

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