This is actually old news. The Open Bank Resolution (OBR) Policy has been in the works for a while now (off the top of my head, it must be at least 12-18 months). I think it comes into effect in June. The financial press has been covering it for ages; the MSM and opposition parties in government only started making a song and dance after the situation in Cyprus reared its ugly head. I think it's a bit of a media beat-up to be honest. First, you've got to realise that we don't have a bank deposit guarantee scheme in New Zealand (we did for a short period after the GFC, but then it was dropped), so the OBR doesn't actually change the risk profile for depositors. All it really does is make it implicit that depositors are unsecured creditors. The theory behind the OBR Policy is that if the SHTF, rather than declaring a bank holiday (where depositors can't access any of their funds), the bank is able to continue operating and depositors would have access to a large proportion of their balances throughout the process. That's the theory; personally I don't see how it could possibly work. Surely if one bank gets in trouble, that will cause a run on all the other banks? Mish has covered this issue and made some good points: http://globaleconomicanalysis.blogspot.co.nz/2013/03/fraudulent-guarantees-fictional-reserve.html But I also agree with the comment from Jim Sinclair that the IMF is likely behind this. New Zealand has been used as a test case by the global elite for lots of economic and social policies over the decades. We're small enough that they don't care if it doesn't work out.
Of course, a proper trial involves a real-world stress test - destabilise the NZ economy and see if the plan works (cynical evil smilie here)
It would be good for the average Kiwi to consider Gold /Silver, maybe this will get them on the bullion wagon? I don't know though I can't even budge my own ( lovely but set in their ways ) kiwi family )-: One response I got was oh no gold is for the rich! Maybe oneday it will be imho
Join the dots... People scared to have savings in the bank due to risk. This encourages them to spend the money, or invest in stocks/property. Policy makers use inflation to force people to spend or invest money, rather than save it. Can you see the parallel? This is a way of forcing one effect of inflation, without actually causing inflation. And what will central banks be most scared of as they devalue their currencies? Runaway inflation. So we can see how this works, right? It's a psychological manipulation to prevent saving/hoarding of money.
It's what I was thinking too. Makes NZ less appealing as an escape from the over-regulated nanny state we currently live in doesn't it?
As a kiwi I see the writings on the wall. We're at the end of the road. Exactly as Gold Kiwi puts it we are the social engineering test ground for the same powers that run things in the "more important" parts of the world. In other news here April first everyone with a student loan will have their repayments increase from 10% to 12% automatically taken from our pay by the IRD. Our kiwisaver minimum contribution will rise from 2% to 3% of our pay. The excess tax on smokes went up $2 a pack at the beginning of the year and will increase at an increasing rate indefinitely from here on forward. There is an increasing media beat up on alcohol with a view to the same measures being introduced. Our "unemployment crisis" is being handled by shipping our unemployed to Christchurch under the guise of a government sponsored apprentice program. This cleverly poses as a great way to upskill our unemployed, address our tradie shortages and rebuild Christchurch in one clean sweep. The sad reality is that they are going to force people who don't want to work into apprenticeships and create a generation of sub standard tradies who were only passed to avoid embarrassment to the government program. There is talk of bonding these tradies to NZ in return for assistance provided. (now that doesn't sound like slavery at all) We primarily export food and raw resources and are in a similar "severe dollar overvaluation crisis". They've shipping all wealth and resource out of our country under our very noses. I believe we will get one last round of housing market recovery as we start using our kiwisaver accounts to get onto the property ladder. Our retirement savings scheme lets young people take out all they have contributed towards a house deposit and offers up to $5000 government assistance if you do. Most people just became eligible at the end of last year. I see this driving one last round of burrowing and spending before there's nothing left to milk from us. We will own nothing and owe every cent they could justify lending us under the fiat system. Most of us are completely owned by the "world markets" and the way our government is run for the benefit of foreign interests.
^^^^ How does the song go ? St Peter I can't go because I owe my soul to the company store ? Kind Regards non recourse
That'll learn you lot for banning US and French nuclear powered warcraft in the the 80's won't it? They got you back in the end didn't they? :/
I'm still proud of nz for being nuc free and having the balls to take the stand. Imho this is not revenge or related.
I wouldn't put it past them, the US/UK alliance has had centuries of colluding, bullying and terrorising other countries into getting their own way. Here's a bit of trivia - apparently at the end of WWII Churchill had drawn up plans to invade Russia - using 100 000 occupied German forces (also known as forced conscripts), luckily sense prevailed or the timing was wrong and the plan was abandoned.
Churchill is painted in history as a brilliant and wonderful leader - but the more I learn about him, the more I think he was pretty damn crooked.
He was a brilliant leader - but did have the British Establishment interests at the heart of everything he did. He was brought up with the British Empire being the 'only way'.
Yep and despite the fact that everyone in the Empire was a British subject they were only one step above those poor, unenlightened, ignorant souls not subject to His (now Her) Majesty. After all, one had to be "one of the chaps" to be considered worthy of any consideration other than sometimes "jolly useful" raw material.
He was a good leader for the British in WW2. He was a terrible First Lord of the Admiralty resulting in the disastrous Gallipoli campaign resulting in thousands of Australian (amongst others), military casualties. His chancellorship of the Exchequer in the mid 1920's is actually a very interesting part of his political career which is not very well known about.
Yes because 50 years of the Iron Curtain (a phrase he coined) was so good for Europe and the world. He and General Patton were adamant they could prevent the problems of the future as they saw them - ideas and catastrophes that the Soviets realised. But Western Europe and the Americans were so weary of war, no one wanted to believe the Soviets were a threat in 1945. Sadly Patton died in a car crash and Churchill was a lone voice arguing not to share peace with the devil. There are good reasons he is my Avatar.
