General Chat

Gordon Brown was a master of creative accounting. I also notice that all governments never "spend", they always "invest". I have just "invested " in a new car. I don't expect to see a return on my money. Bob

They have not reduced the debt, though, Graham. In fact it is considerably more than the so-called surplus. If you are in debt you are in the red.

In order to reduce a debt you have to have more money coming in than you have going out. Hence you would be in the black.

Bernard Hickey is the chap Huia.. rides a bicycle everywhere and knows all about economics and he is the one person who comes on radio about the economy etc that I understand. Sometimes he is a panellists other times he is one of those that discusses when it is his subject.. we listen to National Radio at 4pm -5pm every afternoon. Stephen Franks and Duncan Garner were the panellists yesterday after the budget and Bernard was invited to comment.

We have few assets left (in Oz).

The Government sold many (government owned, therefore owned by the PEOPLE) to overseas companies, that explains why the cost of electricity is now sky high.

Many so-called "Aussie" companies are owned by non-Aussies.

We need to have a proper balance sheet for New Zealand Inc., showing all our assets and liabilities.

I don't think I would trust that Finance chap, going by some of the rubbish that is spouted.

And we should NOT have to borrow from overseas. If we have the materials and manpower we need in New Zealand, then why not borrow from our Reserve Bank at nil interest?

It was a question that was asked on our radio panel last night how can we owe and be in credit... and a Finance chap who is brilliant explained it all. I think I understand but don't ask me how it works.. we are okay here with our own build up of funds re taxes etc.. but we are not okay with our borrowing from overseas.

And it does look like keeping two separate sets of books.. one for when you are selling a business and the other which could be the actual facts.

BTW Australia does it as well.

I think it's called creative accounting.

If we did it, we'd go to jail.

:-|

NZ's Finance minister has just delivered his budget. He claims that the books are now in the black, but he says his next big target will be to tackle the country's debt. How can we be both in the black and in the red at the same time?

He says "paying the interest on our debt this year will cost $3.6 billion". The govt. is still borrowing money, but it is now down to $75 million a week, less than the $110 million a week they borrowed last year. Net Govt. debt is expected to peak at $66 billion in 2016/17.

He talks about having surpluses, but how can there be surpluses when we have to pay so much interest, or will more of the country's assets be sold, leaving us as serfs in our homeland. You note that I don't say 'in our own country' as it wont be ours anymore.

:-0