This big-spending government got a wake-up call this weekend, courtesy of the gimlet eye of the ratings agencies who are now scouring the world to find the next Ireland on the horizon—and with this government borrowing a quarter of a billion a week just to tread big-spending water, the New Zealand Government is now in their sights. The Wall Street Journal quotes
ANZ senior economist Khoon Goh, who says, the outlook revision suggests "Standard & Poors are more concerned about the state of the government's finances than initially thought."
The net result is that the government will have to tighten its belt more than initially projected and try to return to surplus…
Sadly, it was apparent listening to Billy Bob English on Radio NZ this morning that it’s a wake-up call he’s too tied up in the status quo to take, and that his government is going to carry right on spending more than it has.
So much for responsible government.