Your hemorrhagic Kiwisaver balance is the dawn of late stage capitalism collapse, entropy isn’t improving much from now on in
Investors checking their KiwiSaver fund’s returns over the past month may have done so with a grimace of pain.
The combination of rising global interest rates, Russia’s invasion of Ukraine and supply chain disruptions meant global financial markets had a volatile start to the year.
All of this was not good reading for anyone checking their KiwiSaver fund balance. So we asked the experts to explain what’s going on and what investors can do about it.
It seems that some mainstream media are realizing that economic carnage is looming.
With 60% of New Zealanders having mortgage refinement this year, going from historically low interest rates to rapidly rising rates with the severity of the debt we now have, we are reaching the event horizon of a hole. debt black.
Most commentators failed to appreciate the magnitude of Grant Robertson’s lifting of the debt ceiling earlier this month.
Taking Crown assets like the NZ Super Fund and liabilities like debt held by Kainga Ora, Grant was able to raise our debt ceiling.
By simply allowing our debt ceiling to rise, Grant is able to continue government spending without raising taxes while keeping rainy day cash on hand.
And that is what most commentators miss.
Robertson is one of the most cautious finance ministers Labor has ever had, always tossing left-wing ideas to keep left-wing populist economics from spooking the Treasury.
His pact with the Wellington bureaucracy is that he is the trusted pair of hands that will never allow neoliberalism to be challenged beyond the broadest measures (the health budget).
Grant’s solemn promise to the Nazgul of the Treasury is that no Bernie Sander left-wing populism will ever be allowed to emerge from angry people.
Grant looks like he’s loosening the purse strings but has no intention of spending that purse and that’s what should make everyone nervous.
Grant is planning a higher debt ceiling because he is smart enough to see the dangers looming on the horizon.
Putin is just getting started.
The recession in America and Europe is just beginning.
China is becoming increasingly unstable as the weeks go by.
Geopolitical crisis + economic collapse + catastrophic climate change = impending collapse.
Grant raises the debt ceiling so he won’t spend more, he raises it because he knows what’s coming next.
When a politician as cautious as Grant opens the checkbook, we should all be very worried.
As TDB has pointed out from the start, the 3 Covid tsunami waves are:
1 – The immediate cost in human lives and illnesses due to the virus.
2 – The economic carnage of the virus.
3 – The psychological impact of a unique universal event and the isolation and alienation and mental stress that created.
We have passed the first peak of death and disease in the world, we have just started the second wave of economic carnage and the psychological impact of all this is only just beginning to be recognized.
By now, Grant Robertson and the Labor Party have told everyone who listens that the spike in inflation is just a blip and that life will return to normal in the 3rd or 4th quarter of this year.
Inflation is only a spike and the economy will get back on its feet with hyper tourism, exploitation of migrant labor and more language school scams of international students.
That’s what will save us, huh?
Nearly 400 million people in 45 cities across China are now fully or partially locked down under China’s strict zero-Covid policy. Together they account for 40%, or $7.2 trillion, of the annual gross domestic product of the world’s second-largest economy.
… add the Ukrainian war and the instability of wheat and the basic manufacture of metal prices along with the impact on developing economies…
Small countries are also in trouble. Many have borrowed heavily over the past decade to cope with the effects of the 2008 financial crisis and the pandemic. Now, interest rates are starting to rise, just as the prices of basic necessities like food and fuel are jumping.
…and you have geopolitical shockwave after geopolitical shockwave hitting us and breaking neoliberal free market global supply chains.
You do not believe me ? So ask the World Bank and the IMF...
The World Bank cut its forecast for global growth in 2022 to 3.2% from 4.1%, anticipating a sharp deceleration from an estimated 5.5% growth in 2021. The latest outlook from the IMF arrives later on Tuesday .
World Bank President David Malpass told reporters that “severe overlapping crises” are weighing on the recovery.
“There’s Covid-19, inflation and Russia’s invasion of Ukraine,” he said on Monday.
Developing countries, many of which are facing high levels of debt and falling currency values, as well as soaring food prices, are of particular concern, he added.
Breakdown: Around the world, the engines of growth are shutting down as prices rise and the war in Ukraine wreaks havoc on strained supply chains.
…the ramifications of this cannot be overstated…
Europe, which depends heavily on Russia to meet its energy needs, is particularly exposed. There, much could depend on Russian President Vladimir Putin’s next move. If Germany’s supply of Russian natural gas were suddenly cut off, Europe’s biggest economy would lose a shocking $238 billion in economic output over the next two years, the country’s forecasters have said.
…these pressures also affect America…
In the United States, inflation has reached a level not seen for four decades. That has forced the Federal Reserve to consider an aggressive withdrawal of its support for the economy in the time of the pandemic, heightening fears that it could raise interest rates to the point of triggering a recession.
…all of this is blatant inflation, economic stagnation and recession, so Grant’s optimism that the Treasury is right and inflation is just a temporary spike that will be corrected by hypertourism, l Exploitation of migrant workers and international student language school scams seems less half full and more shards of glass half in your mouth.
I don’t think we’re ready for this jelly.
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