Bankers

Has NZ been left with a financial T-Rex?

New Zealand’s Prime Minister John Key has resigned.  I’m surprised at the timing – just after the Kaikoura earthquakes, and on the same day that Italy’s prime minister resigned.

It reminds me of that scene in Jurassic Park where the kids got left with T-Rex.  But let’s hold that uneasy thought for the time being.

he-left-us

Key should have resigned like he promised when it was proven that the GCSB is carrying out mass surveillance of us New Zealanders.  But when the Snowden revelations did indeed show that in 2015, nothing happened.  At least he would have had some credibility if he’d kept his word.

But he hasn’t kept his word.

For instance, he wasn’t going to raise the GST tax.   John Key’s changing opinion on GST rise.

On gay marriage – before his government passed it into law in 2013, he previously said “he did not believe there was a big demand for gay marriage in NZ and that civil unions were enough.”

Has John Key left big shoes to fill?  No, those big shoes look more like flip flops.

John Key flip flops like a girl changes clothes

His comments were flip and his neo-liberal financial leadership was a flop.

flip-flops2

So what has John Key done in the three terms he’s been in?

He raised GST to 15%, turned NZ into a tax haven for the one percent, sold NZ land to overseas investors thereby pricing our children out of the domestic housing market, signed NZ up to the TPP, sold state houses – which forced vulnerable NZ families into living in cars, and under his watch New Zealand’s gross debt has soared to a whopping half trillion dollars.

That’s what we know he’s done.  So what’s happening behind the scenes that we don’t know about?

How about New Zealand’s exposure to derivatives? 

Former Canterbury University accountancy lecturer Dr Susan Newberry, now professor of accounting at Sydney University’s business school, still keeps a fascinated eye on the “New Zealand experiment”. And some of what she sees she finds a little alarming.

Does the average Kiwi know the country’s balance sheet now has a derivatives exposure of $180b, she asks? That is rather a lot of those “financial weapons of mass destruction”.

It means the NZ tax-payer is on the hook if it all goes wrong and there is the international equivalent of a bank-imposed mortgagee sale. (Think Greece, Iceland and Ireland.)

But hey, what could go wrong?  It’s like 2008 never happened!

John Key was directly involved in the development of derivatives – the financial contracts and credit default swaps that no-one understands, which led to the toxic sub-prime housing loans, which led to the Global Financial Crisis. The likes of Merrill Lynch and the Bankers Trust profited from foreign exchange trades and derivatives speculation at the expense of national economies.

In transforming NZ into a tax haven and creating the speculative housing bubble, he’s done the same thing to NZ that he did to Ireland, when as head of global foreign exchange for investment giant Merrill Lynch he shifted a considerable amount of his business to Ireland in the mid-1990s to take advantage of a 10% tax rate for foreign investors.

Fran O’Sullivan: Key chases luck o’ the Irish

That’s what you get when you elect a banker for Prime Minister.  He’s done really well for the one percent.

Meanwhile, have we in NZ been left with a financial T-Rex?

derivatives

Other links:
The great big list of John Key’s big fat lies

Another Very Short Collection of John Key’s Lies

Trading Places: Running NZ like an investment fund

Don’t let the door hit your arse on your way out Johnny

A shaken nation

At midnight on the day globalists John Kerry (US Secretary of State) and John Key (prime minister of NZ) met in Wellington, NZ suffered another huge earthquake.  It did damage to the top part of the South Island and the capital, Wellington.

This quake was different because it was actually two huge earthquakes that happened simultaneously. Two earthquakes, that lasted two minutes, with two people dead, affecting two islands (the North and South Island) – and the land has undergone a two-metre shift south of Marlborough …with aftershocks felt in Seddon.

(The fact that Seddon is affected again is significant. I’ve explained in a previous post that the prominent statue of Richard Seddon outside NZ’s Parliament Buildings has come to represent the authority of the government in NZ. Is the nation being shaken because the government is again doing something out of its mandated authority?)

And all this has happened during a super-moon and before a huge storm.  There were also strange lights, seen flashing across the sky in Wellington while the earth shook. These lights are an extremely rare occurrence, happening in only 0.5% of earthquakes.

Strange bright lights flash across Wellington sky during earthquake

What was the reason for Kerry and Key’s meeting?  Ostensibly Kerry had stopped into NZ on his way back from a trip to observe “climate change” in Antarctica – even though NASA found that it is not possible to say whether it is warming or cooling overall, and the ice sheets aren’t melting.

The real reason he was in NZ was probably to plan a way to get the TPPA finalised before Trump quite rightly puts a kibosh on the deal.

US Secretary of State John Kerry meets with John Key in Wellington with the future of TPPA on the line

Kerry and Key are not New Zealand’s friends. They are a threat to New Zealand’s sovereignty.

The TPPA has been negotiated in secret, aided by a compliant media. New Zealanders are not privy to this deal. It’s frightening.

Free trade agreements are not about jobs; they are about strengthening corporate power and maximising dividend returns to shareholders. Under the TPPA, corporations will be able to sue our government with lawsuits conducted in secret, foreign tribunals.

APEC is another globalist trade bloc designed to benefit the oligarchs.  This quake has forced John Key to delay his trip to APEC in Peru until later in the week.

Bollard, former governor of New Zealand’s central bank said “Many of the 21 APEC economies are seeing a rise in anti-globalization sentiment, and a key topic for the leaders in Peru will be on what this means for global trade.

Bollard believes the backlash against formal trade deals may lead members to conclude that APEC — which is non-legally binding, consensus-driven and takes incremental steps — is more crucial, as it works on a range of areas like food security and reducing inequality.”   Source: Leaders of TPP nations to review options with US President Obama

I shudder to think what “food security” and “equality” are going to look like.

Again I ask, is the earthquake a sign that the NZ government acting outside of its mandated authority?  The pattern of ‘two’s associated with this quake appear to be a sign, but God knows what it means.  I’m just thankful there wasn’t more loss of life.

It is significant this earthquake happened on the same day in history that New Zealand’s first governor, Governor George Grey arrived – on the 14 November 1845.

Coincidence?

Parliamentary Service has also released CCTV footage from the Speaker’s corridor, showing portraits of previous Prime Ministers swaying and banging against the walls.

http://www.newshub.co.nz/nznews/underneath-parliament-in-a-quake-2016111416

nz-prime-ministers-nov-2016

"From dissension, envy, hate,
And corruption guard our State,
Make our country good and great,
God defend New Zealand."

Links

Another major earthquake in New Zealand.

Leaders of TPP nations to review options with US President Obama

CERN boffins see strange … oh, wait, that’s just New Zealand moving 2m north

Enormous Earthquakes Hit Both Sides Of The Pacific And Experts Warn The San Andreas Could ‘Unzip All At Once’

NZ government in denial over housing crisis

Auckland Housing Crisis cartoonNew Zealand has got a previously unheard of problem – homeless families are sleeping in cars, while nearly half of the houses in our largest city Auckland (49%) are being snapped up by foreign investors and then sitting there empty!  The Chinese were the biggest group.  Last year in June it was 41% of Auckland homes. 

John Key, our prime minister and former banker who worked at Merrill Lynch, glibly believed most of the investors in the property market would be locals.  It was clear the government either didn’t have a clue or didn’t care.  NZ doesn’t have a foreign buyers register or any rules around speculation on houses.

Last year a whistle-blower from the real estate industry said mainland Chinese money snapped up at least 80 per cent of residential sales in parts of Auckland in March but were nearer 90 per cent in May, 2015.  Of course the whistle blower lost his job.

Here’s the radio interview about it: Property insider: It’s bigger than you think
“Property speculation is rampant, and I believe on the strength of these numbers that offshore Chinese investors are a very significant part of what’s going on,” said Phil Twyford, the MP for Te Atatū.  When he was accused of being racist for pointing it out, he said “I’m speaking for young New Zealanders who want affordable home ownership. If we solve this problem, if we ban foreign buyers, that will make a big difference.”
Leaked data shows Chinese offshore buyers fuelling ‘rampant’ Auckland property speculation, Twyford says.

“What I’m saying is that there is a tsunami of Chinese investment headed towards international real estate markets, including New Zealand. These numbers are coming from Juwai.com, the preeminent Chinese website that markets real estate, including New Zealand real estate. There’s a whole industry marketing our houses to Chinese investors.”

There are more than 6,000 real estate agents in Auckland.
Here’s a quote from Juwai.com about their buyers,

“Property is investment of choice – a stable investment exemplifying wealth & status. Chinese buyers spent US$37 billion on international residential property in 2013. 70% pay cash for property purchases.”

It quoted there are 63 million upper-middle-class Chinese and 2.8 million high-net-worth Chinese.  Less than 1% of them can read English.

The Chinese have deeper pockets than New Zealanders.  Our children will be the tenants of Chinese landlords – if they’ll even rent to them.

And then we hear that while people sleep in cars as the city grapples with homelessness, more than 33,000 Auckland dwellings are officially classified empty.  They’re called ghost houses.” That’s the size of a NZ town.  Running on Empty: Auckland’s “ghost” house problem.

The Minister for Housing Nick Smith replied “Diddly Squat” when asked about the percentage of foreign property buyers.  In fobbing the journalist off, it appears our government favours money over people.

Diddly squat

Opinion: ‘Diddly squat’ – Govt incompetent on housing

This is an article from 2012: Bernard Hickey: Govt eyes blind to housing crisis


More links:

1949-state-house-in-taita

Homeless family: The realities of living in a van

Kids living in vans? I’m mad as hell

The sellout of NZ

Thanks to greed, poor planning and economic mis-management, we can kiss goodbye to dreams of home ownership and a quarter acre section for the kids to run around on.  We now have people living in cars – unheard of before the economic reforms of the 1990’s.

New Zealand now has the highest housing prices in the world, next to Qatar!

How did we get here? These are a number of causes; (1) Supply and demand, (2) Land restrictions under UN inspired initiatives like Agenda 21 and now C40, (3) Foreign banks creating NZ’s money, and (4) Economic mismanagement.

(1 and 2) The demand for land out-stripping supply. The Auckland City Council has been restricting the amount of land that can be built on. Our media haven’t reported on this – but in December the Auckland City Council signed up to the C40 Low Carbon City Group, a group of councils across the world that regard carbon as a pollutant.  Carbon is not a pollutant – but we won’t go into that here.  I’ve already addressed that in Carbon Con, another blog post.

The C40 dream is for “compact cities” where car use is restricted. Our councils were already restricting land for building on under Agenda21, but it will really ramp up now Auckland is one of the C40 cities. The plan is for high density housing where people walk, bike, or use public transport. How can that be good for families? Gone will be our own private backyards where children and pets can play in the summer, and log fires in the winter. Gone will be our cars and garages. Gone will be land ownership and privacy. Surveillance will be increased and energy use will be monitored by things like “smart meters”, another thing that has been imposed on us.

big_4_money(3) Foreign Bank lending causing housing inflation.  The other reason for inflated housing prices is bank lending. NZ’s banking sector is dominated by big Australian Banks – called “the big four.” New Zealand banks were sold to them in the 1990’s.  The big four are the ANZ, NAB, Westpac and Commonwealth Bank. These foreign-owned banks hold 90% of New Zealand’s mortgages.

They make money electronically out of thin air and then loan it to New Zealanders at interest. Our money system is still based on the printing of bank notes, and nothing has been done to stop them from creating electronic money in this fashion. The overseas banks do have to have reserves, but its not covered by depositors funds – it’s covered by the inflated price of the land from the bubble they’ve created.

The big banks make huge profits which are taken out of NZ. They win, property owners and speculators win, and our children and people on the lowest rung of the economic ladder lose.

I’ve just heard on the news that half of the house buyers in Auckland are speculators. There are no laws to stop speculation in the NZ property market. The speculators don’t even have to be NZ citizens. It’s morally wrong.

(4) Economic mis-management.  Finally, we don’t have enough builders. The National Party decided that ‘the free market’ would deliver all the industry training New Zealand needed,” effectively wiping out the old apprenticeship system in the 1990s. Wage subsidies for apprentices on block courses were abolished in 1991, leading to the huge trades skills-crisis facing New Zealand today.  Source: http://www.scoop.co.nz/stories/PO0507/S00250.htm

What can we do? Here are my ideas.  Stop unelected overseas entities from stealing our wealth.

Put pressure on our local and national government to demand the councils get out of the C40 “low carbon cities” initiative. Our rate payers are not being looked after in this group, and rates have gone up and will continue to go up. Technocrats in the UN, carbon exchanges and overseas investors are the only winners here.

Ask for a change to the money system. Ask why we aren’t creating the money electronically and giving it to Housing NZ?

Join Positive Money NZ – they’re part of an international movement for money reform.  http://www.positivemoney.org.nz/

Demand that we reinstate building apprenticeships.

Stop speculators buying our homes. Make it so they can invest in forestry or commercial property – but make it illegal to speculate on our homes.

Demand our local and national governments use some common sense – something that has flown out the window with the neo-liberal reforms of our economy in the early 1990’s. Blind fools in our government have let “the market’ dictate business and economic activity here, without any rules around the banks or the investors – resulting in this mess. They’ve enriched themselves at the expense of our country and our children.

Don’t borrow from the big four Australian Banks.  Go to the Cooperative Bank, Kiwibank or the Taranaki Savings Bank – they are all NZ owned.

There’s also Liberty Trust, who provide Interest Free Lending from pooled money.

I’d love to hear what you think.


Further links: Bernard Hickey: Power of printing money

NZ in Panama paper leak 60,000 times

key-panama-lieHere’s a story of greed and hypocrisy.  This is what happens when a country elects a banker as prime minister. 

New Zealand is one of the highest taxed nations when it comes to income tax, and we also pay 15% GST on everything we buy.  Even children have to pay tax after the government cut children’s tax credits in 2012.

There’s no privacy protection for us when it comes to the government or IRD.

Also, under the US FACTA law (Foreign Account Tax Compliance Act), any NZ citizen unlucky enough to be born in the US will be reported on by the NZ government to the IRS if they try to open a bank account, or file a company return.

So that’s what happens to individuals.

But if foreign investors park their money here, no questions are asked and no tax is paid.

Our prime minister John Key got the law changed for this in 2011 when he wanted to turn NZ into a “financial hub” – like Ireland.  When he was head of Merrill Lynch’s derivatives and global foreign exchange business in London, he shifted a lot of the bank’s business to Dublin.

The result was Ireland’s financial crisis, where the clever use of tax-haven rules and a huge credit boom permitted real estate prices and construction to grow quickly before declining ever more rapidly.

Even though John Key was fully cognisant of Ireland’s collapsed banking system and financial hub collapse, he was cock-a-hoop about doing the same thing to New Zealand.

Glib, smooth and dismissive, in December 2010 Key rubbished objections to his plans and directly specified a 0% tax rate, telling the Minister of Economic Development Gerry Brownlee to deliver him a paper that had zero rating of funds.

In February 2011 Gerry Brownlee (Minister for Economic Development) delivered what he wanted, and in May 2011 the international financial “advisors” started drooling.

The law change in September 2011 to 0% tax  for foreign investors made NZ a tax haven.


When a 60 minutes report came out in 2012 about wealthy foreigners dodging tax, Peter Dunne (government lapdog minister) and John Key described it as “legitimate tax avoidance.”  Under the law John Key said that tax evasion is illegal, but tax avoidance is not.

But this is what the IRD department says to the NZ tax payer about tax avoidance:  What’s wrong with tax avoidance

Nothing got done about this issue.

Now in 2016 the birds are coming home to roost.  We have NZ trusts at the centre of Malta money scandal, and NZ is mentioned in the Panama paper leak 60,000 times.

What else are we going to find?

Prime Minister John Key’s register of interests has revealed he has a short-term deposit in a company specialising in New Zealand foreign trusts.  Source: Edwin Mitson, Business Desk, Yahoo! Finance.

He has refused to disclose his tax details.

When Key was asked if it was right that trustees did not have to tell the IRD who was behind the trust, what assets it had, its income, its beneficiaries, the residence of its settlor nor the nature of its assets, Key deflected reporters by saying they should “ask the IRD.”  Even though he was the one who demanded the tax shelter for foreign investors in 2011.

Iceland’s prime minister resigned last week after being the first major casualty of the Panama Papers leaks which revealed how the super-rich manage their money.

Will there be calls for John Key to resign if we find his hand in the cookie jar?  Unlikely.  He previously promised to resign if it was proven that the GCSB carries out mass surveillance of New Zealanders. When the Snowden revelations did indeed show that in 2015, nothing happened.


Links:

2010 Key itching for quick action on financial hub

2011 Key changed the law to extend NZ as a tax haven

New Zealand now an attractive tax location for offshore managed funds

2016 Panama papers: NZ trusts at the centre of Malta money scandal, Mossack Fonseca papers show

Panama papers: Mossack Fonseca ‘bragged about lax New Zealand tax rules’

Calls mount for tighter rules on foreign trusts as Key denies NZ a ‘tax haven’

Quote: “Whilst the PM has been shaking hands with devious financial operators around the world and promoting our tax system, and doing little to ensure its integrity, we are now known as one of the world’s ‘quiet tax havens’ as the leaked documents reveal.”

He said Key and his colleagues were doing nothing for NZ’s international reputation, with more than 12,000 trusts set up here that pay no tax on their overseas’ earnings.

Tax toll on NZ

Greece was fleeced and made to fail

greek-bailout-cartoonGreece did not fail on its own. It was made to fail.

In summary, the banks wrecked the Greek government, and then deliberately pushed it into unsustainable debt … while revenue-generating public assets were sold off to oligarchs and international corporations.

The rest of the article is about how and why.
Greece — The One Biggest Lie You Are Being Told By The Media.

I recommend the associated video: Confessions of an economic hitman.  It’s 24 minutes long and explains how a global empire has been created by the oligarchs.

The corporations identify a country that has resources that they covet.  First they’ll arrange a huge loan to that country, but it won’t go to the people, it will go to corporations and infrastructure projects; things that will benefit the rich.  But the whole country is left holding huge debt ….

Conquering by debt

Golftus

Golfing-While-the-World-Burns

Obama likes his golf – it’s unbelievable but he even went golfing after Isis beheaded James Foley and the 21 Egyptian Christians.  Do you know how many times Obama has played golf since becoming president?  I came across this funny golf counter showing the number of games he played since his first day in office: http://obamagolfcounter.com/

They missed the 3rd Jan 2014 when Obama golfed with our Prime Minister; John Key, the PM Banker in charge of of NZ.  Apparently NZ is one of the USA’s closest friends.

Golf

John Key golfing with Obama

John Key, Prime Minister of NZ, golfing with Obama

That’s him here, with Obama >>>

John Key was a former banker who worked at Merrill Lynch and the Federal Reserve Foreign Exchange division.

He was involved in the development of derivatives – the financial contracts and credit default swaps that no-one understands, which led to the toxic sub prime housing loans, which led to the Global Financial Crisis …  sigh.

John Key New Zealand Prime Minister played a large part in the Global Financial Crisis.

These guys are into classical and economic liberalism – which is supportive of free trade, globalisation, free immigration and cultural liberalism (such as supporting legal recognition for same-sex marriage).   They do not have the best interests of their nations at heart.

No wonder we’re losing so much freedom in NZ, what with all the spying, the TPPA, FACTA, and Biometrics collecting (RealMe).

Obama-Sub-Par-Posters-at-The-Masters-in-Augusta-08

“Sub Par” Obama Street Art ~ Santa Monica

So what do you think of the performance of our respective leaders in guiding our countries?

Related links:

Artist Releases CONTROVERSIAL Painting of Barack Obama