David Chaston details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand.
It is hard to imagine a bigger weather event than is hitting QLD and northern NSW right now. 150 mm of rain in an hour is massive. I hope that dam holds in Brisbane, and our thoughts are with everyone affected.
The costs to the state and the region will be enormous, and create distortions that will affect NZ. We will be monitoring these closely in the weeks ahead. There will be global impacts. As Bernard has observed many times, Australia might be a province of China, but we are a suburb of Australia in the world economy.
Those global impacts will include effects from the Australian wheat crop, and coking coal for steel production. Both have caused world-wide prices to rise already.
In other news, in somewhat of a surprise, Japan will join China in buying European debt, helping the Irish, Greeks, and Portugeuse debt-fund their economies. In fact, Portugal declared it wasn’t in any crisis and won’t be applying for EU bailout funds – a similar declaration was made by both Greece and Ireland, just before they did - although the Chinese and Japanese offers weren’t around then.
However, there was a modest recovery in the euro overnight, and European stocks rose.
Oil has jumped to over 91 US dollars after the US expert panel reported on the BP oil spill disaster, and their recommendations will raise the cost of drilling in the Mexican Gulf and delay any expansion there. It seems $2/liter at our pumps is just days away.
The Dow, gold, and copper prices were all up just a fraction overnight.
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29 Comments
2011 telling us more then.........
People, as I wrote weeks ago – now there is more water coming - here in AU/ NZ and of biblical proportion (Climate Change). http://www.bom.gov.au/products/IDX1374.shtml and as a consequence does damage in the billions overtime worldwide – insurance companies literally running out of money.
For God sake - where does all the money, access, petrol and food come from to pay, drive, transport and feed the world ??????????
Now - for the first time in one of my serious articles, - I use the word doomed, to see where the world is going . NZfarmers and people living on exposed locations be prepared – the world is changing.
2011, the year like not one before – telling humanity, which way we are going - a year, which makes us all poorer in many ways. A sleepy New Zealand government, struggling for decisions, makes the situation worse.
To hard for the free market to go alone.
We need a structured, well organised economy, because the world changed and is changing fast and forever.
One day in the near future you people will say Walter was right – we should concentrate on diversity, quality - not Fonterra etc.
Climate change will hit especially big cooperates hard and therefore agriculture exporters. In combination not allocating infrastructure needs to NZcompanies, but importing - will collapse our economy and societies.
Smaller nations have to think small – but with bigger ideas - branding a “100%NZpure economy” – not turning the purest water/ air into the dirtiest - building an economy the other way round.
Portugal is taking an IMF bailout package for sure...being sorted right now....question I have is: what are the steps NZ is likely to take over the coming months that will lead us down the same pathway as Portugal and Ireland?
English certainly is borrowing $50million a day right now...$350million a week....$1.82billion for this coming year.
The Govt (your) debt is climbing rapidly and the fiscal hole is opening fast. Only the survey BS and media spin to hide the truth.
The household debt total remains close to $200billion
Everything....is reliant on exports booming for a prolonged period. Is this likely?
The economy is recognised by foreign bond buyers as 'unbalanced' and the risks are reaching a level that S&P find it necessary to start being honest about NZ.!
In the midst of this we have the aussie disaster ongoing...we have the Beijing move to throttle inflation....we have Bernanke at the Fed lying like buggery and printing like a lunatic...the BoE facing a crisis of BS having lied about inflation for years and losing the confidence of the markets...we have the housing deflation and foreclosure farce entering stage three or is it five in the USA...we have the aussie property market in a stupendous bubble of madness and already in decline....we have seriously unaffordable housing in NZ supported by the RB and govt policies. Unemployment is at a new normal and the banks are farming the economy.
And on Jan27 we get Bollard to tell us he is going cheaper for ever because cheaper for longer is not working.
Finally, are you looking forward to the budget still months away...the delay is needed to put the finishing touches to the spin and BS.
A major target of the US Fed money printing has been to reflate the US housing market.
It ain't working. Not even remotely. According to Corelogic house prices have been falling heavily for 4 months, and the rate of decline is increasing.
http://www.calculatedriskblog.com/2011/01/corelogic-house-prices-declin…
Case Shiller is starting to pick up the same trend.
So far all that money printing has puffed up the US share market and set off a cascade of inflation. But the price of most US citizens main asset continues to deflate.
The economy is so bad that I got a pre-declined credit card in the mail.
I ordered a burger at McDonald's, and the kid behind the counter asked, "Can you afford fries with that?"
CEO's are now playing miniature golf.
If the bank returns your check marked "Insufficient Funds," you have to call them and ask if they mean you or them ..
Hot Wheels and Matchbox stocks are trading higher than GM.
McDonald's is selling the 1/4 'ouncer'.
Parents in Beverly Hills and Malibu are firing their nannies and learning their children's names.
A truckload of Americans was caught sneaking into Mexico ..
Motel Six won't leave the light on anymore.
The Mafia is laying off judges.
BP Oil laid off 25 Congressmen.
And, finally...
I was so depressed last night thinking about the economy, wars, jobs, my savings, Social Security, retirement funds, and our bleak future, that I called the Suicide Lifeline and was connected to a call centre in Pakistan. When I told them I was suicidal, they got all excited, and asked if I could drive a truck.
I wonder what impact the Queenslands floods will have on NZ recovery now. Considering the number of builders etc the government was banking on to re build Canterbury from across the ditch, they will have plenty of there own work now, and more than enough for any NZ builder out of work and pay rates will be higher than here. Watch the insurance rates go up here with earthquake and now those floods since most of our insurance companies are owned by OZ.
http://www.cnbc.com/id/41019790
America's housing market is officially in depression. Ours won't follow though, we are totally different.
Forget the RWC muzza...our future tourism potential is in being the destination for Chinese Communist Party Poopers out for some R&R or a spot of...what is the Chinese national sport anyway...oh yeah...buying up and outgrowing America!
"China Southern Airlines, China's biggest carrier, will bypass Melbourne in favour of a direct Guangzhou-Auckland route, bolstering the projected economic benefit of the new service by half."herald
Hey Walter...are you learning Mandarin..the way to get the tourists in....:
http://www.nzherald.co.nz/travel/news/article.cfm?c_id=7&objectid=10693901
pop down to the highway Walter...mind the bloody trucks....paint this overtop the 'welcome to Kaikoura' sign......
海鲜So it's Chinese this time , is it ? .......... Really sure of that ........'Cos we don't want a repeat of the 1980's , when we were all exhorted to learn Japanese , as they were to be our financial life-line into the future . ............ We start the Mandarin lessons now ............?????
First indications of the 'rebuild repair' nightmare in Christchurch.... http://www.radionz.co.nz/news/canterbury-earthquake/66144/unlicensed-chimney-repairs-could-put-lives-at-risk-board
Once upon a time, blokes used to build their own chimneys and then along came the red tape. I can't understand why anyone would want to put a chimney up down there these days...bloody useless things...best option would be state of the art wood burner with exposed flue and water jacket...if the red tape allows it....although I thought Christchurch had a ban on woodstoves and chimneys!
Not necessarily Wolly, I am about to put my patent application in for a system that will resurrect that old fireplace. Although older inefficient wood burners are the main target for my invention.
But for me the idea of all the thermal mass that can be stored in a chimney is great.
The two biggest factors for thermal performance of houses is orientation and thermal mass.
Thanks for that , St. Nick . I was a very confused wee Gummster ....... 'cos on my visits to Briscoes I used to spend some money , not save it .......
..... But , in all fairness , the Briscoes glossy inserts gave us alotta work down at the Press . Helped to pay down more than a few mortgages amongst the crew .
Does anyone know what the real prices are , when everything in the shop is permanently 25 to 70 % off ?
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