Archive for May, 2009

I have spoken on this subject in the past but it is well worth repeating it again. It is not only the tidal wave that can drown you , but the volume of water that comes behind it….especially the water that is swept out to sea by the force of the pressure of water going forward.

For every action there is an equal and opposite reaction …Law of Gravity.. Wasn’t it Issac Newton who said it?

There is such naivety out there that frightens me…Well it doesn’t frighten me…and it shouldn’t frighten you because you know better than the idiots of the world….the same idiots who would go surfing on that same tidal wave.

The biggest indicator of economic crisis in New Zealand and in fact the rest of the world is Unemployment.

People losing jobs, people not being able to  repay debt ( Mortgages) plus cost the Government in economic assistance. Even politicians  say stupid things…. ” Debt is not a bad thing”….well it is when Debt equals 93% of GDP. But when the United States runs their economy on close to double that ….about 170% of GDP that’s all right???              The United States economy is not a good role model .

Because if you operate on that sort of debt you have to borrow to fund it, and that is where this whole credit worthiness / stupidity comes in.

Because of a very big increase in the tax take, plus some good years of sustainable growth , New Zealand had a big bag of financial lollies for the Government to give back to those that had in effect worked for it and deserved it. Sadly the previous Government invested it largely offshore in all sorts of ” safe” investments, only to find when the  global economy turned pear shaped that not only had $8 billion been wiped out we were an equal amount further in the red. As I type this I see flashing on the Television Screen, “Baby Boomers Miss out! “

Who are these baby boomers ? People born after 1945 ( the last great war ) who are now about to retire. And who for the last 50 years have faithfully paid taxes, saved as hard as they can….now to be told forget about the Government being there to support them in a way they have been promised for all the years in the past.

If this was a county of Politcal activism we would have had civil unrest by now. But we are ” softened ” by the news that a credit agency ( S &P ) have actually increased our governments credit worthiness to allow us to be able to borrow more.

I just hope that the present Government do not waste money in the future. On things we as a nation can not afford. Because if we dont we are doomed ( financially )

How true is the word of God found in any Bible that says  ‘Do not store up on Earth treasures that will rot, break, rust and be destroyed, but store up treasures in Heaven where these things will never happen.”

Dont believe all you hear on the idiot box, most of the financial observors ( and Politicans) are idiots… dont be seduced that there will be a miracle cure  that will suddenly wipe away all our financial ills….the best way is to use wisdom and common sense and dont expect the government now or the future to be there as some sort of Financial Cookie Bear….they have never been there in the past to make you rich and they certainly are not in a position to make you rich  in the future .

Lindsay Walker

29th May 2009

L