Its been obvious to any observer that Key and English should have been doing so much more to change NZ’s economic course. As any one with any knowledge of finance or economics will tell you, the trick to recovering from a bad financial situation is not to wait too long before acting. Key and English have waited far too long. In a desperate personal and politically motivated obsession with remaining “popular”, they have coasted. Rather than speak out on the parlous economic position of the country, and inform NZers and sway them to the point of view that action must be taken, they have stood gape jawed and helpless as every opportunity has slipped by.
Tomorrow’s quarterly figures are going to show NZ’s worsening situation. And stop trying to blame it on the Canterbury earthquake for God’s sake. There is only one real reason we are in this situation and that is that the government has spent too much. Kept spending when it should have made cuts. Persisted with the delusional belief that tax income generated from payouts to welfare recipients, pensioners and government workers somehow equals real income.
Mr Key would not reveal the forecast deficit ahead of tomorrow’s releases, but said it was “a significant number…the tax take has been slightly less than we anticipated but the expectation is that it will come back into line next year”.
And where is the logic underpinning this outlandish example of wishful thinking? Completely absent. IMHO, given the shaky position of China, the worsening position of Europe and the USA, things are going to be one hell of a lot worse next year. Time for Key to stop being the rubbery master of smile and wave and damn well do something.