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Reserve bank telling porkies? May 2021

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  • Reserve bank telling porkies? May 2021

    With the economy going great guns, and debt levels becoming a worry....
    Why have the Reserve Bank kept their foot on the gas pedal?

    Coming out with their same old excuse, "look over there, it's not my job".

    Would someone smarter than me please explain what's in it for them?
    They seem to be going off on a mission of their own, and seeing how long the can get away with it for.

    No one believes their excuses anymore.
    So what are they really up to?

    Covering their behinds?
    What problem are the actually trying to solve for themselves?




  • #2
    What action do you reckon RBNZ should be taking?

    Seems to me they were late with the LVR restrictions, they should have been in place late last year.

    Further, its looks like they plan to be late with lifting the OCR. Second half of 2022 is one current interpretation of the smoke signals.

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    • #3
      Originally posted by Sanya View Post
      What action do you reckon RBNZ should be taking?

      Seems to me they were late with the LVR restrictions, they should have been in place late last year.

      Further, its looks like they plan to be late with lifting the OCR. Second half of 2022 is one current interpretation of the smoke signals.
      I'd hate to tell anyone how to do their job.
      Not until I had a chance to talk to them about their reasoning, objectives, difficulties, and methods.
      The complexity of Macro and Micro economics,
      and how it intertwines with immigration policy, education, and external operators (Such as the technological aspirations of China for example).
      Not to mention our pervious debt commitments and current expenditures.

      I'd seriously need a month with the books to make a plan.
      Maybe it would be a whole lot more complicated once I started looking at the data.

      I do agree with your assessment.
      (From the facts that we have access to).

      I would have probably ever so slightly nudged up the
      OCR.. just by a vey smidge.

      Don't forget , the OCR is only one of many things that the RESERVE BANK keep their eye on.
      At the moment they seem to be hunting down money laundering compliance issues.

      I would ask the Boffins to construct a liquid model, in a sim, to show me the effect of the LVR tool .
      I need to see everything moving all at once, in real time.
      Might even see how to introduce resonant waves into the flow... (you know AC current has power advantages over DC current).


      I would also take a step back and question what is actually meant by "inflation" ,"employment", "growth", "stability" etc etc, with the aim to construct an economic symphony fit for our new Eden.

      Last edited by McDuck; 29-05-2021, 09:59 AM.

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      • #4
        And that's the result of you working for the tax slave school/universities indoctrination camps most of your life McD... you have no real world experience or real world education.

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        • #5
          Originally posted by Jeffa View Post
          And that's the result of you working for the tax slave school/universities indoctrination camps most of your life McD... you have no real world experience or real world education.
           

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          • #6
            Originally posted by Jeffa View Post
            And that's the result of you working for the tax slave school/universities indoctrination camps most of your life McD... you have no real world experience or real world education.
            You're very wrong, yet again.
            I've had a fair bit of interesting and varied work experience.

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            • #7
              Originally posted by Jeffa View Post
              And that's the result of you working for the tax slave school/universities indoctrination camps most of your life McD... you have no real world experience or real world education.
              Keep it civil.

              I don’t agree with McDuck on very much but appreciate his frequently differing views which often provide pause for thought and act as a valuable antidote to in-group homogeneity. I hope this forum can avoid balkanization whilst encouraging an argumentative community.

              Comment


              • #8
                Originally posted by McDuck View Post

                [...]

                I would have probably ever so slightly nudged up the
                OCR.. just by a vey smidge.

                Perhaps. One wonders whether inflation will compel an OCR increase sooner bearing in mind that it usually takes between 1 - 2 years for changes in the cash rate to have their maximum effect on economic activity and inflation.

                Comment


                • #9
                  Originally posted by Sanya View Post

                  Keep it civil.

                  I don’t agree with McDuck on very much but appreciate his frequently differing views which often provide pause for thought and act as a valuable antidote to in-group homogeneity. I hope this forum can avoid balkanization whilst encouraging an argumentative community.
                  I agree, unfortunately with McD when he's on the back foot he tends to be less than civil as you can see by his banned stripes.

                  Comment


                  • #10
                    Originally posted by Jeffa View Post

                    I agree, unfortunately with McD when he's on the back foot he tends to be less than civil as you can see by his banned stripes.
                    Lol.
                    Is that what those are?
                    I had no idea what they meant, or when they turned up.
                    I thought it was a signal level or a volume level ..something like that.
                    I can honestly say I don't recall getting any notification warnings about infractions.
                    I'm always ready to learn from my mistakes.
                    Is there a place you can go to see what they were issued for?
                    Probably a fair cop, but just to be sure.

                    Hey, you have two already?
                    It took me 16 years to build up 4, you're doing rather well in comparison.


                    Last edited by McDuck; 29-05-2021, 03:51 PM.

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                    • #11
                      Originally posted by Sanya View Post


                      Perhaps. One wonders whether inflation will compel an OCR increase sooner bearing in mind that it usually takes between 1 - 2 years for changes in the cash rate to have their maximum effect on economic activity and inflation.
                      Personally, I don't believe the RESERVE BANK are working to an inflation or employment target.
                      I believe they are working to another less obvious target,
                      and selectively reporting on inflation and employment data as a cover story.

                      Last edited by McDuck; 29-05-2021, 04:22 PM.

                      Comment


                      • #12
                        Originally posted by Sanya View Post


                        Perhaps. One wonders whether inflation will compel an OCR increase sooner bearing in mind that it usually takes between 1 - 2 years for changes in the cash rate to have their maximum effect on economic activity and inflation.
                        The inflation forcast by the RBNZ are most likely politically motivated to keep Robertson at bay.

                        A forcast is an assumption, which doesn't mean much until it actually happens or not.

                        My broker was trying to tell me to lock in long term rates now as he was saying ANZ was seeing 1 and 2 year rates moving higher next month...I don't listen to experts who earn less than me and still work 7 days a week.

                        However, I see interest rates increasing as a good thing,it will take some heat out of the market ,shake out the weak investors,teach millennials to spend within their means,and less chances of more regulations on landlords.

                        Higher inflation and interest rates mean higher rent's, The RBNZ was forecasting decade high record wage growth and this is good for rents .

                        However I don't see interest rates moving higher for the very long term but that's another story.

                        I have tried to be civil in this post, thank you and God bless you all.

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