Archive

Posts Tagged ‘savings’

Time to bend over again, fellow Kiwis (part # Rua)

20 April 2012 2 comments

.

2010

.

"If we ended up in a position where New Zealanders are tenants in their own country, I can't see how that would be in New Zealand's best interests." - John Key, 27 July 2010

.

2012

.

"No where is that better illustrated than in the Crafar farm deal where the tenant will be a Government state-owned enterprise, Landcorp." - John Key, 2 February 2012

.

As this blogger predicted and wrote five days ago, National has caved to the  Wide Boys from Beijing who rode in to town on 15 April,

.

China's no4 flies in as clock ticks on Crafar farm selloff
.

The loss of the Crafar farms – and other farms sold to foreign investors – is not just about loss of direct ownership. It is about losing the profits that all those farms will generate, to overseas investors.

The flight of profits to offshore investors began in the late 1980s when Doulas, Prebble, Bassett, et al hocked of our former state owned enterprises. As with farms, we didn’t just lose ownership – we lost the income streams they generated. (Which worsened our balance of payments deficit and in turn made borrowing from overseas much more expensive.)

National did precisely the same thing on 27 October 2010, when Warner Bros sent their ‘boys’ in to ‘persuade’ John Key to ‘see things their way’.  Two months later,  it was revealed that Warner Brothers had threatened our government that  ‘The Hobbit’ movies  would be taken offshore if  changes to New Zealand’s employment laws were not made according to their demands.

This time, it was our Chinese cuzzies visiting  New Zealand – this time threatening our trade with their country, “if we don’t see things their way”.

National capitulated on both occassions, yielding to threats made first by a corporation, and then by a foreign power.

In the case of Sky City and the proposed Auckland Convention Centre, the tactics are more akin to bribery; building a convention centre in return for changing the gambling laws so the casino can install up to 500 more gaming machines (pokies). Problem gambling is expected to rise commensurately.

If the reader is starting to pick up a common theme here, you’re not alone.

New Zealand has a government willing to prostitute the country; our assets; our laws – in return for financial gain. This is perhaps the shabbiest, most degrading government we have ever elected. If New Zealanders are not angry and repulsed  by what we’ve all be witnessing – then we’ve all lost our collective senses.

The question I ask every New Zealander is; who will be next to come to Wellington; knock on John Key’s door; and announce, “I’ve got an offer you can’t refuse!”

What will be sold next?

What laws will we have to change to satisfy some corporatation or foreign power?

Is this what it feels like to be a Latin American “banana republic”?

.

2014

.

An incoming centre-left government  must address these issues of sovereignty. We cannot allow every foreign Tom, Dick, and Harriet to take ownership of our most precious resources and to dictate what laws we must amend to satisfy their profit-line.

This must stop.

An incoming government must, immediatly,

  • ban the sale of all land to non-New Zealanders
  • non-farming land may be leased to overseas businesses,  but not sold
  • farmland must not be sold nor leased to non-New Zealanders
  • conduct a stocktake of land ownership at the next Census
  • land already in foreign ownership may not be on-sold to anyone except New Zealanders
  • introduce a capital gains tax
  • introduce a Financial Transactions tax  in conjunction with Australia and our APEC partners
  • introduce a sinking-lid policy on gaming machines with a view to banning them altogether by 2017
  • implement job-creation programmes (eg; free vocational training for able-bodied unemployed; building 10,000 new state-houses, etc)
  • introducing a land/wealth-tax to capture those 1% who pay little tax, because they can hide their wealth by structuring their affairs to escape paying their fair share
  • reinstate Kiwisaver’s previous provisions (scrapped by National) and make it compulsory

Part of the problem we face as a nation and economy is that New Zealanders have always been poor savers. Instead we prefer to borrow billions from offshore lenders and invest it in non-productive assets such as rental housing and investment farms. This speculative investment does not create wealth – we simply  shuffle money around like some mad reality-game of “Monopoly”,

” There has been a big reduction in household debt,  from 154 per cent of gross domestic product, and one of the highest levels in the world three years ago, to 144 per cent now. ” – Source

In the process of this reckless self-indulgence (promoted by certain irresponsible right wingers who delude themselves that is “wealth creation”), we are heavily in debt,

.

Treasury

.

Further to that, it makes us reliant on overseas capital.

In fact, it makes us totally  vulnerable to those  who hold the capital. We are at the mercies of those who hold the money-bags.

And they know it.

What makes matters even worse (yes, it gets worse) is that a National, once elected, exacerbates the problem with it’s blind adherence to free-market policies. National believes that only the free market can create jobs – with a little ‘nudge’, occassionally, by amending laws; reducing taxes; and implementing de facto subsidies. And anything else business wants.

In expecting only business to create jobs, National ties its own hands and becomes reliant on the markets for employment solutions. Unfortunately, those solutions are not always forthcoming.

Which means that National has to look at other, dubious, unconventional means to promote job creation. Such as the Sky City-Convention centre deal which might deliver more jobs – but will almost certainly create more problem gambling.

Who pays for more problem gambling? Answer; look in the mirror, Mr/Ms Taxpayer.

The sale of the Crafar farms; the dirty deals with Sky City and Warner Bros; our vulnerability to pressure from overseas investors are all symptoms of an economic malaise which the likes of Bernard Hickey, Gareth Morgan, Rod Oram,  and others have constantly warned us about.

Like the person who ignores the several “Warning” letters from debt-collctors – that is only postponing the Day of Reckoning.  New Zealanders are ignoring our own Day of Reckoning – and yet the warning signs of our gradual loss of economic sovereignty is fairly plain to see.

Whether we do something about it; abandon the lunacy of neo-liberalism;  implement planned policies that encourage saving; promote job creation; etc – then everything we’ve witnessed in the last few weeks, months, and years will be only a prelude to more unpleasant things to come.

.

2050

.

A young student at Levin University is scrolling through the results of his on-line search for ‘farms-history-new zealand-colonisation’ and finds the information he is looking for. He turns to his study-mate, and says,

Hey, it’s true what my grand dad told me. Farms used to be owned by New Zealand families back in his day!”

His study mate looks up from his ‘ii-Pad’ and peers at his friend’s pad,

Yeah? I wonder how they could afford it? No one can afford to buy land  unless you’re really rich or a big Corpora-State.”

Dunno“, replies the first student, “It looks like land prices weren’t that expensive , and then they started to rise when Earth’s population reached 6 billion.”

Wow! They really owned farmland? They’re so lucky. I wish we could buy our own farm!”

Well, at least we get to work on them. Once I finish my Degree in McDonalds Beefculture, I’m applying for a job at the ’14th Manawatu Herd-Complex’. Are you still going for the Shanghai Agricorp in King Country?”

Nah. I’m thinking I might change and apply for the Nestle Agriplex in Otago or Southland. They don’t pay as well, but they teach you German as part of the contract. The Shanghai Agricorp want me to learn Cantonese at my own cost.”

His study mate dims the screen on his ii-Pad and asks his friend,

Are you studying this weekend or doing some workpractice at McD’s?”

Nah. I’m going to see my family. It’s my ninth birthday, and we’ve hired a blanketspace at my favourite park...”

.

*

.

That was a bit of fiction. So far.

.

* * *

.

References

Rich list shows rich getting richer

NZ dollar soars on speculation of Chinese investment

Numbers reveal National disgrace

Bryan Gould: Free-market ideology wrong

Debt being paid off, but savings not growing

Bernard Hickey:  the High Court ruling against the Crafar Farms sale may be just the intervention NZ Inc needs to confont its addiction to foreign debt and asset sales

.

.

= fs =

Advertisements