Truth about New Zealand

These are my observation of New Zealand. I love New Zealand, I spend a good part of my life there, I finish Hi-school there and graduated from Auckland Uni. I worked in Australia/New Zealand for a good 2 years.

From the outside, NZ seems like a prosperous country, laid back and relaxed. But truth be told, New Zealand is in terrible debt which stands at 21.2% of its entire GDP!! The reason? The National party led by Robert Muldoon in the 1980s borrowed a large sum of foreign capital to buy assets that did nothing to improve the condition of NZ. To this day NZ is still in debt with a trade deficit as big as 8-9% of its GDP! The NZ government have refuse any audit on the outcome of foreign capital borrowing.

From all that in order to sustain a relatively high living standard New Zealand have been selling its assets to foreigners(big ones). For starters all their banks accept for 1(kiwi bank) have been sold to foreigners, do you know the implication of a country that is under the mercy of foreigners that own her banks? Even so there are talks about selling Kiwi bank, their only national bank! A recent study have shown that NZ productivity level relative to her population is the 3rd lowest in the OECD. So to sum it up, NZ is in a hole, big debts, large trade deficit, highly unproductive population(3rd lowest in the OECD) and relying on selling their assets to sustain their living standards. What have this result into? Ridiculously high taxes, increasing trade deficit due to money being siphon out to foreigners that own their assets and New Zealand being at the mercy of their offshore asset masters. Just to name a few.

Do you think all these are by coincidence? Do you know what Alan Bolard their fed chairman said? "A return to that borrow-and-spend behaviour before household debt has been reduced to more prudent levels is a clear risk, Bollard warns, and a threat to a sustained recovery."

He is basically saying, we need to spend more and save less to get us out of the recession. He says this knowing that NZ is in a dire situation.... You don't spend your way out of recession, you produce your way out of it. Having NZ spending will put them deeper into a debt hole. NZ leaders know what they are doing to NZ they ain't dumb, judging from their actions they are purposefully running NZ into a crisis somewhat like Ireland. It is the same thing American politicians are doing to their country, running their country into an abyss. For what reason? The rabbit hole is deep..... I will explain it another day.