Truly Bizarre is Right
I was staggered and stunned to hear on last night's late TV News that the Government had sent officials to Japan to advise traders and Japanese investors not to invest in the NZ bond issues - known as uridashi bonds.
WTF is going on when a Government with an open economy tells investors not to invest...particularly foreign investors. Normally countries/economies of our size are begging for foreign investment.
As John Key said it is truly bizarre when the NZ Government behaves like this.
The problem is the interest rates are so high Japanese investors cannot ignore them.
The solution is lower interest rates. To do that the Government's contribution should be to reduce its own monopolistic activities crowding out the private sector and further free up the economy (so we have real competition) from the vast state owned apparatus still in place (all the major energy generation bar one is state owned).
The state owned electricty sector should be floated - piece by piece - that would give something for foreign investors to mull over and would give the NZX a big fillip.
Finally and its a biggie - reduce taxes Michael. Better you let the people have their own money than making them go to those nasty foreign banks and borrow.
Alasdair Thompson of the EMA has had a brain freeze today if he supports the Government intervention. He knows better...another week at the beach or are you still at the beach?