Give that man a job! Pity the vast bulk of the public are too short-sighted (stupid?) to accept "cemp" because that would appear to be "government intervention" and the government trying to hurt their pockets and steal their money (even though it would benefit them hugely in the long run by paying their mortgage off earlier). So instead we get a 1% base interest rate rise which hurts their pockets just as much, doesn't benefit them... oh and just happens to lay waste to other areas of the economy such as the export sector... Ooops!
Rant off! ;-) -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Robert martin Sent: Friday, 27 July 2007 11:44 a.m. To: NZ Borland Developers Group - Offtopic List Subject: Re: [DUG-Offtopic] RE: [DUG] basic question Hi Inflation is a BAD thing, when it is significantly greater than Growth and caused by certain factors (wage / price spiral etc). It is not BAD if your economy is growing and it is being caused by factors that the economy has no control over (petrol prices for example). The idea of looking a housing and saying it is causing to much inflation yet ignoring fuel prices (which push up the price of everything) is patently ridiculous. As is excluding Interest rates from the inflation calculation. There are better tools to control inflation that economists don't talk about because they (generally) work for banks. For example what if we had a compulsary extra mortagage payment percentage (cemp). So instead of raising the general interest rate, add say 1% to the cemp. This extra payment would go to the persons mortgage (paying it off faster, and actually benefit the person), be immediate (not have a 2 yr lag) and help savings. this would acheive the same thing as raising general interest rates (make people have less money to spend). The only people who would loose would be...... the banks. The other thing is that GDP should be factored in to inflation calcs. I.e if GDP is 5% (wouldn't that be nice), an inflation rate of 3.5% wouldn't mean that the reserve bank needed to put the brakes on. Rob Martin Software Engineer phone +64 03 377 0495 fax +64 03 377 0496 web www.chreos.com Wild Software Ltd Phil Scadden wrote: > And inflation is a BAD thing. The problem for government is how to reduce > consumer spending. OCR is very crude tool but other measures (limit > overseas investment, capital gains tax, etc are dubious and very hard to > parlimentary support for). Kiwisaver MIGHT reduce expenditure but I'll bet > sharemarket soars as fundmanagers desparately try to find places to invest > will in turn put more pressure on dollar. Shame government didn't have to > balls to tackle the property market 3 years ago. > > > ---------------------------------------------------------- > Phil Scadden, GNS Science Ltd > 764 Cumberland St, Private Bag 1930, Dunedin, New Zealand > Ph +64 3 4799663, fax +64 3 477 5232 > > _______________________________________________ > NZ Borland Developers Group Offtopic mailing list > Post: Offtopic@delphi.org.nz > Admin: http://delphi.org.nz/mailman/listinfo/offtopic > Unsubscribe: send an email to [EMAIL PROTECTED] with Subject: unsubscribe > > _______________________________________________ NZ Borland Developers Group Offtopic mailing list Post: Offtopic@delphi.org.nz Admin: http://delphi.org.nz/mailman/listinfo/offtopic Unsubscribe: send an email to [EMAIL PROTECTED] with Subject: unsubscribe _______________________________________________ NZ Borland Developers Group Offtopic mailing list Post: Offtopic@delphi.org.nz Admin: http://delphi.org.nz/mailman/listinfo/offtopic Unsubscribe: send an email to [EMAIL PROTECTED] with Subject: unsubscribe
