Posts by Andrew C
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Hard News: A Big Idea, in reply to Richard Aston,
But among all those Kiwisaver schemes how much is actually invested back into NZ ? How much is plugged into more inflationary property investments ?
I'm with Gareth Morgan, and as best I can tell - 0%
Disclaimer: some is invested with international index funds, so there is a small possibility that they have invested in some NZ property fund/trust, but I very much doubt it.
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Hard News: A Big Idea, in reply to WH,
When a New Zealand resident earns a profit – whether from their own business or from the receipt of dividends – they are likely to spend a proportion of that income on goods and services within New Zealand.
This is the bit that confuses me, as surely that applies to the injected purchase price of the asset (farm, bank, whatever) as well? i.e. we got money in from overseas for the initial purchase, hopefully at some future expected profit multiplier.
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Hard News: A Big Idea, in reply to WH,
Our lax overseas investment rules allow vendors to sell their assets to foreign owners at higher prices but the repatriation of profits abroad tends to weaken our economy
This is the bit that prompted my previous question WH, can you explain why? I'm not arguing the opposite side, I just don't understand.
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Hard News: A Big Idea, in reply to Rich of Observationz,
I’d just compensate by reducing the principal repayments on the mortgage.
Or perhaps borrow more, figuring you will pay it back when your kiwisaver matures.
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Hard News: A Big Idea, in reply to WH,
they also tend to increase the exchange rate.
I did a quick chart of NZ/US exchange rate vs OCR since 1999 and I am not convinced they are highly correlated. As an example, the last 5 or so years has seen an increase in the x rate but the OCR has remained almost flat.
Data here
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Hard News: A Big Idea, in reply to debunk,
And we need to stop selling natural assets (land, forests etc) to overseas buyers so income from them, capital gain etc goes the same direction
I wish I had asked this question when Rod Oram made his initial post - yes the profit etc now does go overseas, but then again didn't the overseas buyer also just deposit a massive chunk of money into NZ to the seller? Surely that is a good thing, and so overseas ownership is not a black and white "it is bad" thing?
Im not an economist so I don't understand this stuff, but hopefully someone here does and can explain.
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Hard News: Jones: The contender leaves, in reply to Jean Hughes,
it is great news for Labour and if National plotted it then their timing is very badly out and they have helped Labour immeasurably
You cannot be serious. Even if you believe the party is better off without Jones, having him go rogue and publicly blindsiding Labour with his resignation has done nothing to enhance the status of Labour as a serious and stable party.
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Hard News: Jones: The contender leaves, in reply to SHG,
You can tell the guy who really has no clue because he goes on television dressed like this
As someone on WhaleOil noted: 1 button is casual, 2 is relaxed, 3 is Hasselhoff
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Hard News: Things worth knowing, in reply to Matthew Poole,
but if that’s the case, say so!
Oh I don't disagree Matthew, I was just pointing out the aspect of who actually paid may be a non-story.
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Hard News: Things worth knowing, in reply to Russell Brown,
So there’ll be no problem with telling us who paid for your dinner, minister?
Over on WhaleOil Cactus K makes the point that there could be cultural mores in place around who pays for what at a dinner.