{"id":949,"date":"2014-12-03T08:22:19","date_gmt":"2014-12-02T19:22:19","guid":{"rendered":"http:\/\/mananews.co.nz\/wp\/?p=949"},"modified":"2014-12-03T08:22:19","modified_gmt":"2014-12-02T19:22:19","slug":"new-zealand-economy-a-bubble-that-is-set-to-burst-2","status":"publish","type":"post","link":"http:\/\/mananews.co.nz\/wp\/?p=949","title":{"rendered":"New Zealand economy a bubble that is set to burst"},"content":{"rendered":"

\"avatr\"<\/a>\u00a0Mana News editor Joe Trinder<\/p>\n

\"bubble\"<\/a><\/p>\n

The Minister of finance Bill English has claimed he created a rockstar economy even today the Herald reported a rockstar economy<\/a>. That New Zealand is outperforming the developed world and OECD Nations, economist Paul Bloxham gives credit to the\u00a0Canterbury rebuild and\u00a0low interest rates. \u00a0Economists\u00a0Shamubeel Yakub is more realistic about the New Zealand economy\u00a0“For me the rebuild in Canterbury is not something you can count as a normal part of the economy – we’re replacing something that was lost”.<\/p>\n

\"cllombo\"<\/a>Recently Jessie Colombo an American\u00a0independent analyst and Forbes.com columnist\u00a0warned that New Zealand’s economy was a bubble set to burst MP Steven Joyce was quick to refute this claim\u00a0 and a compliant media undermine Colombo’s credibility to help keep New Zealanders head in the sand. Colombo\u00a0predicted the US housing bubble and \u00a0he offers 12 reasons why the New Zealand economy is not a rockstar\u00a0but a bubble set to burst.<\/p>\n

1) Interest rates have been at all-time lows for almost a half-decade<\/p>\n

2) Property prices have doubled since 2004<\/p>\n

3) New Zealand has the world\u2019s third most overvalued property market<\/p>\n

4) New Zealand\u2019s mortgage bubble grew by 165% since 2002<\/p>\n

5) Nearly half of mortgages have floating interest rates<\/p>\n

6) Mortgages account for 60% of banks\u2019 loan portfolios<\/p>\n

7) Finance, not agriculture, is New Zealand\u2019s largest industry<\/p>\n

8) New Zealand\u2019s banks are exposed to Australia\u2019s bubble<\/p>\n

9) Australian and Chinese buyers are inflating the property bubble<\/p>\n

10) New Zealand has a household debt problem<\/p>\n

11) Government overseas debt has nearly tripled since 2008<\/p>\n

12) The New Zealand dollar is overvalued<\/p>\n

Everywhere we are being told about this rockstar economy but are still wondering why it isn’t translating into our standard of living and money in our wallets. We have All Blacks claiming that the\u00a0National government is moving the economy forward. In reality the Canterbury rebuild is borrowed from a government debt now exceeding $60 Billion dollars, when National took control of the Beehive in 2008, debt was just over $10b. Borrowing billions of dollars\u00a0and then spending it frivolously\u00a0is not economic boom its government debt\u00a0causing a deficit. Government debt is costing the economy $27 million a day. The Finance minister has failed seven times to deliver a surplus budget because treasury is paying off the interests from debt.\u00a0Every New Zealander owes $13,000\u00a0in government debt.<\/p>\n

\"carrier\"<\/a>To explain how much money Bill English has borrowed $60 Billion dollars could buy Six Nimitz class super carriers each with a flight of carrier aircraft and New Zealand become a superpower. It could fund an Apollo programme and put a New Zealander on the Moon.\u00a0We should be able to see something tangible for this loan not just headlines we live in a rockstar economy. This generation wont pay off this\u00a0government debt National\u00a0has accumulated, \u00a0this debt will be the responsibility of our grandchildren as taxpayers. They will be wondering what our generation spent the money on and why didn’t they feed the kids\u00a0they had enough money.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a0Mana News editor Joe Trinder The Minister of finance Bill English has claimed he created a rockstar economy even today the Herald reported a rockstar economy. That New Zealand is outperforming the developed world and OECD Nations, economist Paul Bloxham gives credit to the\u00a0Canterbury rebuild and\u00a0low interest rates. \u00a0Economists\u00a0Shamubeel Yakub is more realistic about the […]<\/p>\n","protected":false},"author":2,"featured_media":893,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[1],"tags":[],"class_list":["post-949","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","last_archivepost"],"_links":{"self":[{"href":"http:\/\/mananews.co.nz\/wp\/index.php?rest_route=\/wp\/v2\/posts\/949"}],"collection":[{"href":"http:\/\/mananews.co.nz\/wp\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/mananews.co.nz\/wp\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/mananews.co.nz\/wp\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/mananews.co.nz\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=949"}],"version-history":[{"count":2,"href":"http:\/\/mananews.co.nz\/wp\/index.php?rest_route=\/wp\/v2\/posts\/949\/revisions"}],"predecessor-version":[{"id":951,"href":"http:\/\/mananews.co.nz\/wp\/index.php?rest_route=\/wp\/v2\/posts\/949\/revisions\/951"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/mananews.co.nz\/wp\/index.php?rest_route=\/wp\/v2\/media\/893"}],"wp:attachment":[{"href":"http:\/\/mananews.co.nz\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/mananews.co.nz\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=949"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/mananews.co.nz\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}