Is the NZ Government going to get rid of our deficit as we live in HOPE

GOING CLOSER TO YET ANOTHER BUBBLE

Check these today indexes:

The USA deficit is growing & so will NZ as we run on the back of the Fed who continues with their stimulus of a 0% interest rate but markets don't allow this and rates are too low so we don't save enough; we dont produce enough, the NZ government is too big & huge macro economic imbalances are taking shape slowly but surely. The Government is trying to reflate the economy or disease by pumping in more money & upping taxes on already stretched people.

This is Keinsein economics and US is hooked on cheap money by printing and they cannot repay what they borrow. Gordon Brown in the UK gave bankers a free hand with no restrictions & have tremendous debt. Paul Martin in Canada saw a race to gut the system with no rules & no government today has a way to get away from the next crash & Paulson just thought things were fine. The EU ECB gave cheap interest to banks to buy bonds and made bad banks solvant which was crazy as Greece & Spain lied about where their GDP status was actually at to get into the Eu's 3% thresh hold & then got cheap 1% loans that they couldn't pay back. If interest rates go to 7% today what do you think happens to banks--- it would bankrupt them as there will be no bail out this time if the Fed ups the rate. Bigger loses will result as they should have intervened in 2008 which was a disaster just like Bush was not even vetting who should get the bailouts. Now 2nd time. Bonds will lose value if this happens as banks borrow at zero interest then relend. The housing market will also collapse & the Treasury will default as we cannot even service a debt at 7% or more..

Governments run no business & they lie about our debt. They just take in money in the form of taxes then reallocate that money. NZ has reached a stage where we are borrowing more money and selling our assets which will see the costs of using such assets increase due to shareholders having a stake for profit. If we shrink government spending then we increase GDP. We need to create wealth and not spend it & paying for services we do not need. Too much debt you need to do something about it and this is when government hide from the fact especially closer to election time. But in saying that NZders & MPs spend beyond their means and those with high mortgages think they can carry it thru for 30 years when the next crash will spell disaster for many in a year or so.

NZ is heading for another economic crash and it will start when interest rates rise & the next 7+ earthquake comes about. Property sales have reached an endemic stage and when it does spending will crash,and the crises will begin. The cost of living has doubled and Councils persist in becoming business conglomerants increasing our rates to pay for mega projects and borrowing. We are top heavy on administration in most fields with less emphasis on the worker sector and our imports are increasing against our exports still although our current account deficit has dropped to around $600m from $3.2 billion in 2012. Interest rates will rise and when it does this will have an affect on the property market & crash the property market. Politicians say nothing as if they did they will not be elected & the same goes with councillors who hide what their financial situations really are. The govt lies like all governments as they never portray the real situation of an economy as they must uphold their status for their constituents. Thats why Key won't look at pensions based on wealth as thats his election lobby. So as the baby boomers increase and we live longer our care for the elderly just increases and the % of those supporting this become less. What we borrow we must pay back but politicians are leaving this to the next generation to think about so as our debt grows we find it even harder to service. When in debt an interest rate increase spells disaster.

We need more energy resources and unfortunately NZ does not have this source. We rely on our primary industry but with dairy our wastewater resources are being stretched and our waterways are being diluted with toxics as we increase the dairy farming with no end in sight. The NZ Government has too much internal debt due to excess spending as we are totally top heavy in the public sectors and administration across the board from central governtment to social services, pensions and no end in sight..

In NZ we are fuelling the fire to come as we have learn't nothing from the last sub prime crash and we need a major crash to get us all back to reality. Properties have doubled/tripled due to low interest rates. If rising interest rates creates bankruptcy in large banks like JP Morgan and Bank of America does it make sense to put your money in a local bank or credit union, or should you invest in gold and silver to protect savings or maybe even both? If the USA goes we go so its worth thinking with a soverign debt crises in USA underway & they keep shrugging it off like the 2008 crash be prepared for the worse. As at March 2013 we owed $139 billion? but our internal private sector deficit maybe a lot more than this? as dont believe what you read.

HOW DO MAORI FIT INTO THIS:

With Maori we have our land but many acres of our land are not being utilized. Maori look after there elderly unlike many pakeha in retirement homes and the way around is to create your lands for better useage to grow your kai to hedge against the incoming economy crash. Maori look after there own and must work as a wahanu grouping but Maori need to start thinking of more unity before the economy implodes by doing things together & taking on challenges as a team. We are living beyond our means and living standards are in a sad state with employment levels dropping & a dependency on benefits making us lazy. Our pension numbers increase and more jobs are lost due to technology and manufacturing moving overseas. But businesses are hampered too by spiraling insurance, rents, ACC levies, taxes, Kiwi saver, advertising, resource consents and marketing costs & if these businesses are exporters they then must come overcome consents, regulation boards, then pay for the increasing transport fees and exporting costs to reach end markets. Its going to get harder as manufacturing shifts to overseas and outsourcing is more cost saving so working Kiwis struggle even more. More of our ideals are exported to countries like our dairy heifers, plants, & technology overcomes work processes. As business shifts more to internet, towns will slowly evaporate as shops will not be able to sell specialist items any more as one can buy on the internet and it will be left to $2 shops & food outlets as rents will keep shops struggling. Once one supermarkets start home deliveries the rest must follow and we will even see the Warehouse with their own courier system in each town so folks can buy from home without leaving their sitting room and have everything delivered. It will make us more dependent yet more lazier and remember we are amongst the top 5 countries of obesity in the western world now.

The financial crises will happen again and we predict 2015 when the Fed increases interest rates.

For Maori what not too do:

1/. Do not use sell or use your land to be taken over by Te Tumu Paeroa but if so make sure your contract does not allow them to use your land for borrowing against? If so you may lose your land. Land is land and they are not making anymore. Your whanau can grow what meets your needs. Sell everything else but never your land.

2/. DONT BORROW. GET OUT OF DEBT: Get rid of debt, credit cards. My tipuna said this: When you borrow from a bank eg. $10k......... double it =$20k...........then halve it again = $5k . Gives a total repay back =$25k immaterial of interest rates & inflation? Use this as your guide with any mortgage loan and don't listen to your Bank. Ask your self have you got any savings & don't leave it in Kiwi Saver as probably its already been used to borrow on?

3/. You need a roof over you thats yours--a must. Remember the more equity [ownership] the better as you will never pay back a mortgage payment of $200,000 as that will compound to a sum of $500,000 you will need to pay back in your life time. Can you do this then live thru: car payments; living costs, sickness, schooling, hospitalisation and emergency funds--I think not so don't start as your job might not be safe in 5 years time. Keep away from short term fixed mortgages as when the time comes to remortgage you will find a mere 1% interest rise will mean $60,000 more per year to pay back. Can you then pay this extra cost on top of inflationary other costs--NO. The aim of government is control. If they control mortgages from banks which will happen they will control the world and you with the proposed world order.

4/. Be prepared for a slide in NZ. Buy essentials and get rid of non essentials. Look at tools for work and living, trading. Cut credit cards and buying sprees & live within your means. We are on a bubble again as we never learn't from the last sub prime

5/. Iwi need to rein in spending on projects that have not had a wider analytical study & of long term investments and not short term quick rich which has backfired on some Tribal settlements. Trusts need to be open to their owners as well as Boards and tribal entities.

6/. Grow your kai, drink more water rather than cocacola and get away from unhealthy food, cigarettes. Exercise more and work rather than sit at home watching TV.

7/. Healthcare. Prepare.

8/. You need cash not in the bank but hidden at home. Gold & silver will rule when the denomination of paper money becomes useless.The elite have already bought up loads of silver and gold. Now Germany etc want their gold back. India, China are keeping their gold?? NZ has nothing.

9/. You need at least 6 months of food and water. Prepare for the inevitable

But not all is Bad. There have been very good results from tribes who have managed exceptionally well with their assets. They have used methods that allow them time to make excellent assumptions & analytical research in their endeavours for their people by not looking at short term goals; nor to themselves; nor having incompetent Iwi members making there decisions. By using due diligence in there undertakings they have turned the tables & such tribes keep this to themselves while those who have problems follow the opposite trends as the exponants are questioned !!!!!?.