Sue Kedgely’s Unbelievable Economic Ignorance

There’s been some rubbish talked in the blogosphere about Mediaworks and their deferred license payments. Not much of it measures up to the idiocy exposed in a press release from the watermelon’s Sue Kedgely. I’ll leave out the nonsense about double standards, TV One and Radio New Zealand. Kedgely is a standard and common type of communist who believes she can take money from those who earned it because enough people voted for her to do that. She never worries about testing her actions against moral values. The idiocy lies in these statements-

This story shows just how cash-strapped the private equity company which owns TV3, and half our commercial radio stations, is. And how vulnerable broadcasters become when they are reliant on finance from private equity companies, and the likes of Goldman Sachs and the Royal Bank of Scotland. The incident also highlights why we need at least one publicly owned television channel in New Zealand –a channel that is not owned by overseas companies like Goldman Sachs.

Whatever one’s reservations about TVNZ and the government’s decision to strip it of all of its public service functions, so that it is now virtually indistinguishable from commercial television, at least it isn’t reliant on a cash strapped private equity company. The incident also highlights that TV3 –and Radio Works—could go broke. What would happen then? I can’t imagine too many buyers lining up to buy TV3 in the present climate.

The fact that the government is borrowing $300 million a week to keep RNZ afloat and subsidize TV One apparently completely escapes Kommie Kedgely. Even the fact that the government looks quite likely to go broke like the European PIGs is beyond her scope. She must have forgotten what Bill English said only a few weeks ago. Before the Christchurch earthquake-

Government financial statements for the six months ending December 31, show the cash deficit heading towards a record $15.6 billion in the current financial year, Finance Minister Bill English says. The statements show revenue and spending broadly in line with forecasts in the Half-Year Update. “However with the cash deficit already sitting at a record $13.2 billion and set to rise to $15.6 billion by June 30 – adding to New Zealand’s already large stock of foreign debt – there is no room for complacency,” Mr English says.

“This Government has borrowed heavily to support the economy and jobs during the recession and the early stages of recovery, but that kind of borrowing cannot continue indefinitely. “New Zealand as a whole needs to save more, spend less and reduce its heavy reliance on foreign debt – and the Government is a crucial player in this.

The debt situation that threatens private broadcasters might be dire, but its nothing compared to the debt that ignorant irresponsible Keynesian communists like Kedgely have put the government into. Her precious socialist broadcasters are, as a result of that debt, as likely to go broke as anyone.

9 thoughts on “Sue Kedgely’s Unbelievable Economic Ignorance

  1. “save more, spend less”

    lowering interest rates is not really going to encourage this.

    i wonder if this is the last throw of the dice, $300m a week, low interest rates, rising fuel and food prices, rebuild costs, inflation. if the economy does not pickup soon, how long can this last? how long before sue and the unemployable are throwing bricks through windows and burning cars…

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  2. I can’t imagine too many buyers lining up to buy TV3 in the present climate.

    I have a Fourth Form economics textbook for Sue, it talks about how price will meet supply x demand…

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  3. sinner, you mean the unemployable. there are plenty of jobs here in hawkes bay. too hard…
    we are loosing our employed to aussie, the dollar is fine, we dont need to encourage any more borrowing. you are not offering any solutions to the hole that is being dug. we need to stop the welfare train and bloated spending. this will work long term. sure the hit will be more un-employment, but maybe these people can go to aussie, or do some seasonal work.
    otherwise, next up is the sale of SOE’s to pay for debt and more spending..

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  4. Pingback: Sue Kedgely of the Gweens | milfordmullah

  5. I guessing he’s including the FTTH rollout and $11 bn of SHs, plus new hospitals and schools as part of the vote health and education budgets… Just retreading the stats I’m guessing…

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  6. i agree, the amount required to put us in the black is huge.

    i cant imagine just slashing the health budget to zero would go down very well.

    a plan to reduce government to core responsibilities over a 10 year period, would work. unemployment would go up and so would crime. the economy would contract but quickly return to prosperity and growth. a leader would be needed, who had vision, the ability to sell his vision. as wealth grows, again the government is tempted to grow…

    …of course this will not happen. A lot of kiwis are unhappy and want change but lack the intelligence to realize that it would need to be a whole package. this will mean they loose government services or benefits, not understanding that total economic growth will result. media will twist, spin and beat-up, fortitude will be lost and votes split. the remainder of NZ is employed by the government, paid a benefit, soft, brainwashed, lazy or too drunk or stoned to care about life. as our education system turns out more of these and our motivated leave for aussie, the scales tip…. irreversibly.

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  7. some will be better off when they are forced to be responsible, a lot would be worse off. that is the sacrifice the country would have to make. the family would have to take the responsibility. if not, charity. not going to happen though, we don’t have the stomach for it.

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