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Posts Tagged ‘dairy’

Award for Idiot Comment of the Year – And the winner is…

19 September 2015 3 comments

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Foot In Mouth Award - john key

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As international prices for milk-powder plummet to historic lows, wiping billions from Fonterra’s pay-out to farmers; the economy; and tax revenue;  sending farms to the wall and collapse; and pushing New Zealand closer to recession – our esteemed Dear Leader, John Key, had this to say about the downturn;

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"I mean - yes dairy prices are down a little bit..."

“I mean – yes dairy prices are down a little bit…”

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Dairy prices are down a little bit…”?

And I suppose World Wars 1 and 2 were “nations disagreeing a little bit“.

You can always count on the sky on Planet Key being warm and rosy.

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Contrast Key’s disingenuous, Pollyannarish positivity, with former Finance Minister, Dr Michael Cullen’s, warnings about the Global Financial crisis in June 2008, and how it was impacting on New Zealand’s economy;

“In 2008, New Zealand’s economy has begun to feel the effects of a challenging global environment. Global increases in commodity prices have seen the cost of food and petrol increase significantly here at home. Internationally, there are fears that these increases could impoverish tens of millions of people in developing countries.

The continued fallout from the subprime mortgage crisis in the United States and the resulting global credit crunch have led to higher mortgage rates and a weakening of the housing market domestically, squeezing the budgets of existing homeowners and reducing household spending and investment growth. The weakness of the United States Dollar has been an important driver of a very strong New Zealand Dollar, making life difficult for some exporters. Adding to this, farmers are battling drought in a number of regions and GDP growth will slow as a result.

While these challenges are not of New Zealand’s making, they are affecting New Zealanders today. And while the New Zealand Government cannot single-handedly bring down food and petrol prices or end the credit crunch, we have a responsibility to manage our way through these difficulties while protecting families from the harsh edges of any downturn.”

Cullen was up-front with New Zealanders, warning of tough times ahead.

Key treats us like children, because deep down, his barely-disguised arrogance taints and defines his view of New Zealanders.

Sometimes, though, the disdain he holds for ordinary Kiwis pokes through his public persona of “likeable blokiness”, and becomes manifested in sneering derision. As he has done with anti-TPPA protests and opposition to the partial-privatisation of state assets;

 

They don’t fully understand what we’re doing. My experience is when I take audiences through it, like I did just before, no-one actually put up their hand and asked a question.” –John Key, 27 October 2011

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“Well, the numbers don’t look like they’re that significant. I mean at the moment it’s sitting at around about 40 per cent. That’s not absolutely amazing, it’s not overwhelmingly opposed. But the people who are motivated to vote will be those who are going to vote against.” – John Key, 14 December 2013

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“They were expecting a big turnout, they were expecting a big vote in their favour and they didn’t get either of those. Overall what it basically shows is that it was a political stunt.”
John Key, 13 December 2013

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There’s three groups – some are Jane Kelsey and her people; she’s been opposed to every single free trade deal… she’ll never agree. The second group are the Labour and the Greens people; they are there with all sorts of stuff… Labour in their heart of hearts are actually in favour, but they’re in that oppositional mode at the moment where they’re opposed to everything… then you get to the third bit with people who are genuinely protesting, but I think protesting on quite a bit of misinformation.” – John Key, 17 August 2015

With each passing year, it gets harder and harder to hide the real John Key from public gaze.
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References

Radio NZ: PM shrugs off worries about economy

Treasury: Budget 2008

TV3 News: Key – TPPA protesters ‘misinformed’

Fairfax media: Asset sales promoted to seniors

NZ Herald: Asset sales proceed in spite of referendum

Fairfax media: PM playing down voter turnout

Previous related blogposts

Patrick Gower – losing his rag and the plot

Another media gaffe – this time it’s TV3’s Brook Sabin

John Key’s foot-in-mouth syndrome

National Minister refers to PM as “Wild Eyed” Right-Winger!

National Minister refers to PM as “Wild Eyed” Right-Winger!

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don't ruin my hawaiian holiday - john key

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This blogpost was first published on The Daily Blog on 14 September 2015.

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The Great NZ Sell-Off Continues…

7 September 2011 4 comments

Despite recent assurances from the Prime Minister, John Key, to restrict foreign purchases of NZ farmland, his assurances that,  “I think we’re making progress in this area” seems to be based on empty words and little more.

As the Dominion Post  reported last year, “an average of 82 hectares of agricultural land per day has been approved for sale to offshore investors”.

Some recent headlines bear out that report,

It seems quite clear that John Key’s optimistic view that ” I think we’re making progress in this area” is wildly misplace. As usual, his soothing, reassuring words bear little relationship to reality.

But voters have yet to figure that out, collectively.

What the New Zealand public does understand, with crystal clarity, is that selling our farmland to overseas investors is counter-productive; counter-intuitive; and short-sighted economically.

It also cheats our children of their birthright.

New Zealand farmland is over-priced and farmers have gotten into trouble with massive bankloans and reducing equity. In part, this is due to the weasy credit that has been available to NZ society since 1985, when our banking system was de-regulated by you-know-who.

De-regulation meant that vast amounts of money flowed into NZ, for banks to lend out as mortgages, investments, loans, etc.

It also meant that, as money-supply increased, so did property prices. Quite simply, we could expect to sell our properties because there was an endless supply of money available from banks. Purchasers could borrow 80%, 90%, and sometimes 100% for mortgages.

So property prices went up. Our borrowings went up. Demand went up, as speculation was tax-free (remember that there is no Capital Gains Tax in NZ). It was an uncontrolled spending spree, without any consideration that eventually, the bubble would burst.

Well, in 2008, the bubble burst. In early 2008, there were signs that there was a crisis looming in the US banking industry. On 3 March 2008, the Federal Deposit Insurance Corp, the US federal agency that backs bank deposits,  identified 76 banks as in trouble , a 52% increase from a year ago.

By July 2008, Freddie Mac and Fannie Mae, were in severe financial  trouble.

On 15 September 2008, Lehmann Bros, in Wall St, New York, filed for bankruptcy. The subsequent chain reaction of banking failures sparked a global financial crisis and the world fell headlong into a recession.

Here in NZ, credit dried up, and suddenly our farms were no longer worth the high prices that people had been paying for them. The property boom came grinding to a halt, and the “bubble” well and truly burst.

We  could no longer afford to buy over-priced properties to make speculative profits that had been financed using money borrowed from overseas. It was time to pay the Piper.

For many owners of farmland, the obvious solution seems to be to sell properties to overseas interests. Foreigners have the necessary capital – which local New Zealanders do not.

Unfortunately, in doing so, we are effectively locking-out our next generation from the opportunities that our generation – the massive-borrowing, heavily-indebted, Baby Boomers – had enjoyed. We have played “monopoly” with our farms; making ever-increasing profits; as we sold land to each other in a kingd of mad, money-go-round.

Now, we can only save our indebted ‘skins’ by selling out to foreign interests.

This is simply another chapter of the story I told here; “Greed is Good?“.

Is it fare, I ask myself, that we have priced farm land out of reach of our children?

Is it fare, I ask myself, that instead of our children enjoying the same opportunities that we did – that instead it will be Germans , Americans, Swiss, Chinese, etc, who will now reap the benefits?

The greed and naked self-interest of Bany Boomers is well known. It is no secret that we have looted the wealth of this country, and have left our children with fewer prospects than we enjoyed. No wonder so many of them have left New Zealand, and plan never to return,

“A Victorian-based Kiwi with a student loan debt, who did not want to be named because he did not want to be found by the Government, said he did not intend to pay back any of his student loan.

The 37-year-old’s loan was about $18,000 when he left New Zealand in 1997. He expected it was now in the order of $50,000. The man was not worried about being caught as the Government did not have his details and he did not want to return to New Zealand.

“I would never live there anyway, I feel just like my whole generation were basically sold down the river by the government. I don’t feel connected at all, I don’t even care if the All Blacks win.

“I just realised it was futile living [in New Zealand] trying to pay student loans and not having any life, so I left. My missus had a student loan and she had quite a good degree and she had paid 99c off the principal of her loan after working three years.” – Source

As we lose more and more farmland to overseas ownership, we should also expect some fairly noticeable consequences to follow;

1. Profits will flow back overseas, to offshore investors’ banks. This will impact on our Balance of Payments (negatively, I might add). This, in turn, will affect our sovereign credit rating; the interest rates we pay for money we borrow… and finally, our mortgages.

2. As farm produce fetches higher prices overseas, expect to see this reflected in the price of dairy products and meat that we purchase in our supermarkets. We have already experienced the high cos of milk and cheese, due to high prices overseas. Expect this to worsen.

Property and farm owners may object. They will squeal like stuck pigs, in fact. But the sale of our land to foreigners, whether American or Chinese; Australian or German; will eventually impact impact negatively on our economy and on the prospects of our children.

Enough is enough.  No more pandering to the self-interest of Baby Boomers.

It is time that common sense kicked in. The sell-off of our country has to stop. Otherwise, as John Key warned, we will become tenants in our own land.

To hell with that.

 

 

Are we being milked? asks Minister…

7 August 2011 3 comments

So the Commerce Commission decided not to hold an inquiry into milk pricing in New Zealand?

But Minister of Agriculture, David Carter, still wants a Parliamentary inquiry to investigate the matter?

Hmmmm…  it’s not because the election is only three months away, and National is fearful that Labour and the Greens will be making this an election issue? Surely, politicians can’t be that cynical and manipulative?

Of course not.

What was I thinking.

Perhaps if I might be so bold, and offer Mr Carter a word of explanation as to milk pricing. The price of milk is determined by the free market. The same free market that National endorses, advocates, and embraces with all it’s manly  ‘love’.  The same free market that National has ordered TVNZ to pursue, by cancelling it’s Public Charter. The same free market it chases with the Trans Pacific Partnership free-trade negotiations.

Yes, National is the party of the Free Market. As John Key told our American cuzzies on 22 July,

“At the most basic level, we share a commitment to the democratic, capitalist system.”

So there you have it, folks.  In a nut-sell. Or milk bottle, if you prefer. We are a capitalist system,which means that the price of milk is determined by what you, the public, are willing to pay for it.

Something to consider of 26 November – Election Day.

As for Mr Carter’s call for a  Parliamentary Inquiry – my money is on nothing ever coming off it. Much like National’s much-vaunted Jobs Summit in February, 2009.

Remember that little farce?

Postscript #1;

On TVNZ’s Q + A,  David Carter was interviewed by Guyon Espiner, who asked the Minister if two supermarket chains offered enough competition at the retail end of milk distribution. Carter replied that there was competition and said,

“Well, if people want to buy the expensive brands, they can pay $4.80 up to $5.40. They can buy a cheaper brand at that supermarket for $3.30. They can go round the corner to a dairy, quite often, depending on where they live, and perhaps buy that for $2.90. What I’m saying is there’s a big variation on the retail price of milk.”

‘Scuse me?!?!

Milk is cheaper at corner dairy’s, and on sale for $2.90?!?!

Pray tell, Mr Carter – what colour is the sky on your planet? Because on our world, corner dairy-stores are the more expensive option to buy goods.

National members of parliament – out of touch with reality since 1936.

Full transcript of interview

Postscript #2;

Postscript #3;

*sighs* I didn’t have to be Ken Ring to know this was going to happen (though Ken would’ve been a month wrong in his predictions).  It’s Election Year. This is when politicians play silly buggers up to November 26th…