Comments on: Beware English Bearing Greeks

By: Herodotus

Herodotus — Thu, 06 May 2010 21:15:47 +0000

But thank you anyway David for your regular input. Anyway Parliament is over for a week get out and enjoy.

By: Herodotus

Herodotus — Thu, 06 May 2010 21:14:32 +0000

David re net debt, gross incl/exc NZSF, ACC etc. There is some scope by ALL to cherry pick their data for their own means and still everyone to be hand on heart stictly correct. And for many who have limited contact with economics and finance, the terms for them are interchangable and mean all the same thing.
Re improving Lab a suggestion pick a term incl/excl whatever and continue to refer to that definition. For those with some basic knowledge we can see thru those who change from one def to another within the same context. Those who cannot we can never educate into the variations, and they will go more on the “feel” of the speaker.
As also stated I do know that your fingures are valid and totally correct, BUT so are other variations of the same theme depending what term we all cherry pick from.

By: David Cunliffe

David Cunliffe — Thu, 06 May 2010 08:25:36 +0000

@Herodotus – I was explicit in the definition of net and gross crown debt when I used each. Others in this thread, and the MOF, havebeen much less rigorous. As i said above, all the data i have used has been double checked, and that is my last comment on that matter

Much more important, as loota says just above is gettting incomes up. That means getting our economy on a sustainable path – fixing the external deficit, the savings deficit and the innovation deficit.

By: David Cunliffe

David Cunliffe — Thu, 06 May 2010 08:25:36 +0000

By: Loota

Loota — Thu, 06 May 2010 03:15:10 +0000

Debt’s one important measure, but its not as important as income per capita.

In other words, why be concerned if a country owes multiple $B debt if its income statement is so good that the debt pales into insignificance.

Let’s keep our eye on how to grow income per capita and not simply decreasing debt. (Yes, very clear that you are on to this, DC).

By: Herodotus

Herodotus — Thu, 06 May 2010 01:57:04 +0000

“NZ had net crown debt of zero % under Labour in 2008, rising to 5% by election time due to the GFC. NZ gross crown debt today is about 29% .”
This statement is typical of politics and a well schooled individual in the art of language. We have here a subtle change in context that many readers/listerners (Re radio & TV) would not pick up on. All we would hear is Lab = nil debt, Nat = 29%. BUT you have crossed over from Net to gross.
The links I linked to previously can still be correct and your statement can still hold true, as items like Student Loans ($10-$11b) require a source of funds to loan thus creating a debt $10b, yet we have an asset (Student loan) = $10b, thus netting out to be nil net debt. And interest is covered by operating surplus or funds sourced from Financing.
DTB I wiould be surprised if in this case MSM is not telling the story, as we can see from my initial comment above how easily a well skilled individual can alter what is being conveyed, and how BOTH can be correct!!

By: Richard Shaw

Richard Shaw — Thu, 06 May 2010 00:12:30 +0000

@David

Thanks, that has made my day

By: Draco T Bastard

Draco T Bastard — Wed, 05 May 2010 23:57:00 +0000

@ Herodotus:
Perhaps the MSM isn’t telling the whole truth.

By: David Cunliffe

David Cunliffe — Wed, 05 May 2010 21:05:57 +0000

@Richard Shaw. onto that – Reserve Bank Act review is a definite. Have endorsed new macroprudential tools adn will review other complementary measures.

@HEroduts. I have had experts recheck the debt numbers above. they are rock solid.

By: Jum

Jum — Wed, 05 May 2010 13:19:39 +0000

Tracey
Yes. Love the daily diary entries. One of the most professional websites I’ve seen. Well done you.