One of the unfortunate realities of 2022 has been rampant inflation and its effect on the ability to make ends meet for so many folk. Even I am rather glad my New Hope Coal dividend arrived last month (God I love fossil fuels!) for me to live on for a while. Inflation has been deliberately engineered by globalist interests to soften people up for a lower standard of living, caused by both the printing of money and deliberately ensuring there is a shortage of products.
Anybody stupid enough to seriously believe there are factories in China unable to supply as many products as you want, and container ships happy to transport them to the port near where you live, deserves to be finding it tough to make ends meet. The notion that empty shelves at the Mosgiel Countdown supermarket are caused by a war in Ukraine is about as convincing as suggesting vote counting in Wisconsin, Pennsylvania, and Arizona was halted because a water main burst in Atlanta. But I digress.
Inflation is something that can be easily fixed. A great deal of newly printed money is sloshing around our economy; Orr could raise the OCR to 12%, thereby sucking vast sums of this money out of the system. He could also stop printing money. Combined with this, the government could stop the nonsense regarding imported inflation, where shortages have been engineered.
It would undoubtedly be stiff medicine to administer to a fairly sick patient; what would be the effect of such measures?
It would mean 1st mortgage interest rates would be around 15% by the weekend. A lot of people with ‘marginal’ mortgages they couldn’t afford would default. This is arguably a good thing as there would be a cleansing; a clean out of the housing market with numerous mortgagee sales speeding up a fall in house prices. Most people would learn their lesson about taking on debts they cannot afford, and also take a far more realistic view of house prices in their area.
We would also see a drop in the price of many goods, back to the prices we were accustomed to prior to the inflation rate skyrocketing; the cost of living would once again be manageable. Oh, and inflation would be down to 1% (if that!) by the June 2023 quarter.
Except it isn’t going to happen because the socialist government doesn’t trust the people.
The socialist party remembers bitterly the 1975, 2011 and 2014 defeats where the working class voted Tory; this is – naturally – entirely the fault of the people rather than anybody in the socialist party.
Unlike, say, Roger Douglas in the 1980s, they genuinely don’t trust the people; don’t believe the man in the street “gets it”; fully understands the need for stiff medicine and that if you “get it over and done with” you can look forward to a better future – and re-elect them.
A cynic may suggest that because people sitting around the Cabinet table know what rotten, repulsive people they all actually are, it never crosses their mind the man in the street would ever give them credit for doing the right thing.
