Aunty Helen partly right

So Helen Clark told the Herald last night that national was taking a "laissez-faire attitude" to the current financial crisis.

I would have to agree with her to a certain extent.

Am I getting soft now that she isnt terrorising New Zealanders anymore in her capacity as Prime Minister?

Not really, but you have to come out and call it how you see it.

I like to think that I do.

Anyway, moving right along. 

Having said that I agreed somewhat with the former Prime Minister this is where our agreement ends. Careful planning of any "economic stimulus" on the Government's part must be done.

The American 700 billion plus bailout hastily slapped together before Christmas hasn't and will not work and at least half the money has disappeared down a black hole-par for the course for most Governments im afraid.

While everyone is entitled to a Christmas holiday, especially John Key and his National Party, after a hard fought and won nasty election campaign on Labour's part, the current financial crises does need some considerable and reasonably swift care.

Lets not forget who got us into this position in the first place. Labour and its profligate spending on social interfering and empire building. 

We shouldn't also forget that as this was unfolding during the recession that started in late 2007, and continues to this day, Labour's answer was to buy a run down train set for 5 times its worth, promise to give more money to students and beneficiaries post the 2008 election, increase the cost of doing business, introduce a crippling tax via carbon trading laws and spending taxpayer money and valuable time on digging baseless dirt on John Key when they should have been concerned about an economy in recession.

Michael Cullen was a the centre of this economic mis-management.

I am hoping John Key has used his summer break to put his brilliant economic mind to the question at hand and we will be waiting to see how his Government will put together a package that isn't a socialistic handout but a real economic stimulus where it is needed.

The tax breaks coming up latter this year are going to help and more taxpayer wealth back in taxpayer hands is going to to the business.

We want and need economic stimulus not more of the same welfare mentality that got us in this dire economic position in the first place.

Related Amazon reading

Growing Surplus, Shrinking Debt: The Compelling Case For Tax Cuts Now by Peter Sperry
Buy new: $1.50

Available for download now

c Political Animal 2009

Is that it?

So Labours response to an economy in possible meltdown?

"Guarantee" deposits.

It is voluntary for institutions and will cost banks. It is free in Australia.

And they announced it at their election kick off making it a political rather than an economic decision.

John key pleaded for a similar scheme last week, while Labour has dithered in the face of economic disaster.

The second arrow to their emergency response is to bring forward infrastructure spending. A good idea but something National will do as well. 

No mention from Michael Cullen about cutting back on wasteful Government spending, including the economy destroying global warming taxes that they have and will introduce.

Cullen is likely to step up such unproductive spending in the hope by him that it needs to go higher to "look after the vulnerable" but all that will do is put growth at risk.

Labours two moves have impact on the economy sometime in the future but there is nothing immediate from Labour to address current problems and there clearly needs to be.

It really is more of the same from the last nine years, an approach to the economy that managed New Zealand into its current recession.

It ain't enough.

c Political Animal 2008

Labour dithers while economy is in danger of collapse

The world, and that includes little ole New Zealand is running close to the brink of financial collapse.

The credit crunch, a fallout from the sub prime meltdown has seriously affected global stockmarkets and it is only a matter of time before that seriously impacts our real economy.

Currently The Labour Government, through the lame-arsed mis-management of the economy by Michael Cullen, has us limping through a recession, but it could get worse if action isn't taken, and soon.

The rest of the globe is acting to intervene in this financial crises and over this weekend finance ministers from around the globe have convened in Washington to brainstorm solutions to the problem.

Cullen meanwhile is silent. He seems relaxed in the face of possible economic doom.

For a Government who has been hands on with intervention in the economy for nine years it seems bizarre that they are now hamstrung in the face of possible re-election or indeed just don't care about the serious position the world and New Zealand finds itself in, economically speaking.

For his part Cullen has been all over the place with the state of what has been happening in the United States and has been changing his opinion from day to day as to the seriousness of the situation.

Labour simply need to cut back expenditure on wasteful spending, cut taxes and use whatever spare cash there is to build infrastructure-it would be perfect timing for a new Auckland Habour crossing construction announcement, amongst other stuff.

Instead we get nothing from Labour, zip, zero, zilch, nada, sweet FA.

His only answer so far has been to pass more new taxes and restrict more personal freedoms.

Make no mistake, how this economic crises is attacked by Labour in the next week or so will mean the difference between a reasonably shallow recession for a medium term to a deep recession for a number of years.

Nationals response has been weak as well, but hey they are not on the treasury benches, Mikey boy is and so far he has failed.

Big time.

Related reading from Share Investor Blog

Learning from history

c Political Animal 2008

Time to focus on Michael Cullen's economic mis-management

Michael Cullen has fucked up the economy , lets be clear about that, I have been saying it for years and we are now in a disastrous financial position thanks to his mis-management of the economy.

I cant for the life of me then understand why the media is focusing on how John Key will pay for much needed tax cuts when the answer lie in what Michael Cullen has been wasting our money on for the last 9 years, bureaucracy, free money and wastage on things like KiwiRail, Working for Families welfare and interest free loans.

Cut back these and the stimulus of tax cuts will be easy to afford.

The real questions should be asked of Cullen.

How did he manage us into the recession we are in?

Why didn't he cut back unproductive spending?

Why didn't he cut taxes years ago?

Why given a looming recession did he buy KiwiRail for 6 times more than it was worth?

Why did he hire so many bureaucrats -an increase of more than 40% over 9 years-the health portfolio has 1 bureaucrat for every hospital bed!

Why did you buying votes with billions of taxpayer dollars before the 2002, 2005 Elections

Some serious questions have to be asked of Michael Cullen. He has spent our money like a drunken sailor over the last 9 years and simply doesn't care because the spending fits Labors socialist agendas.

The blame for our current mess lies almost completely with him. Outside forces have only had a minor influence thus far but will impact at a latter date.

He has simply spent everything New Zealanders have earn't over the last 9 years and he has dropped us in it.

Yesterdays books should mean toast for Labour for the 2008 Election and the media focus should be on their reckless fiscal ways not on erroneous stories about how National will afford tax cuts.

Helen Clark is right that the 2008 Election is about the economy, about how badly Cullen has managed it.

c Political Animal 2008

Its about the economy stupid

Much has been written about the current meltdown of the worlds financial markets and apart from the fact that it is failure brought on by politicians interfering in the free market, rather than the favourite whipping boy of the socialists, the free market itself, it presents problems for our new government come November 8 2008-whoever gets elected.

This election is really about the economy. If it is about trust, then it is about who you would trust to manage their way through a deep recession, one that we are already in by the way.

Michael Cullen and Labour have mis-managed their way through 10s of billions of taxpayer dollars over the last 9 years.

Given that we have had the best economic conditions in generations, our economy did average to poor and the high taxes that were siphoned off during those good times has produced nothing but a bloated bureaucrat heavy unproductive nation on the brink of economic collapse.

As a voter you would have to ask yourself, where was the restraint, where was the saving for a rainy day approach? Instead we got the Robin Hood plunder the taxpayer approach to give to those who didn't earn it in the first place.

The fact is Cullen found it difficult to manage an economy with the best economic conditions in generations, with economic conditions at crisis levels he is a mere possum caught in the headlights.

All quotes are from the Granny Herald:

"New Zealand is facing a serious economic challenge..."

Aug 29

"There's a lot of factors coming together there," Dr Cullen said. "I think probably the worst is over now."

Sept 12

"...but the economy was vulnerable to an expected slowdown in the global economy.

..."

Sept 15

"...was welcome news ahead of the expected recovery in the fourth quarter of this year".

Sept 29

"...the problem could earlier be deemed a financial crisis rather than an economic one, it was getting beyond that now".

Oct 1

Michael Cullen seems more than a little schizophrenic on the state of our economy and while so unsure about it he has continued spending like a drunken bloody sailor to buy votes for the 2008 election!

The truth is Michael Cullen's only success in his nine years at the financial helm has been to overtax working kiwis and he has done that very well, he achieved his socialist goal, but when it comes to matters productive his petticoat is showing and it is in need of a damn good wash and disinfectant.

You are better off with a man who has experience in complex financial matters, not a PHD in History, as Michael Cullen is, a man who has run a business and knows about growing that business, in good times and bad.

John key is that man and his life from welfare recipient to multimillionaire through hard work and determination is evidence of that.

The 2008 Election really is about the economy and there is nothing stupid about that.

c Political Animal 2008