Although not universally liked I had a lot of respect for Don Brash. In many ways he's the polar opposite of Helen Clark; polite and principled with a good sense of humour. But in the end Dr Brash became victim to Clark's shrewd political spin machine. This is a victory of spin over substance.
John Key is the likely successor. He has the makings to be popular, but I'm not sure of him yet. He trumped Cullen in the finance debates last election. So either way Clark's toast!
Yesterday North Korea tested a nuclear weapon under ground to the out cry of many countries around the world. Many people are contrasting Iraq's lack of WMDs with North Koreas apparent nuclear test. However the big difference is korea's next door neighbour China. North Korea is pretty much under the Chinese thumb with China providing a life line to the country. And in return China uses North Korea as a lighting rod to defect attention from it's own problems. But the erratic Kim Jong-il must be worrying for even China.
Just because the economy is doing well doesn’t necessarily mean the country is doing well. This was highlighted by outgoing Fletcher Building chief executive Ralph Waters.
Politicians tend to spin economic data to their own means, so it’s hard to get the full picture. But when a high power executive uses his farewell lunch to warn about the economy with no apparently gain to him, I took note:
The record $14.54 billion current account deficit should have shocked people out of their complacency, but that had not happened. "Strong economic activity that is consumption-driven is also a bit misleading as to how we are really traveling. The current account deficit is a reminder but, in the main, the country seems oblivious to the large structural imbalances," he said.
"Yet as a country we do all we can to discourage major manufacturing investment here, with the lack of certainty of power, its uncompetitive pricing relative to external options and the success vested interests have in making meaningful new investments very difficult, if not near impossible.
"These are false luxuries that the country cannot afford."
Makes ominous reading. I think the lack of certainty of power is a critical issue. How many more rivers are going to be damned and how much more coal is going to be burnt – both environmentally unfriendly, before NZ bites the bullet and goes nuclear? I’m not necessarily pro nuclear, but what I object to is putting the NZ future at risk for the sake of anti-nuclear political rhetoric.
This article in the Telegraph reaffirms to me why capitalism is good.
"What has caused this massive benefit to the poor? A series of government regulations? A good-looking politician with an easy smile and a "vision"? No. Capitalism.
No single individual did it. Thousands, or millions, did it. They were not directed by any central agency. They just operated in a capitalist system."
"Who invented cars? Who refined their design and manufacture to the point where they are affordable by millions of people? Not governments. The diverse, resourceful, determined power of capitalism.
Why does the system work? Because it provides incentives and motivation. If you invent something, you may get fame and fortune. If you supply food or cars cheaper, you get more customers. Simple enough."
Thanks to Capitalism I drive a refined European car instead of a crap Lada. Sure capitalism has its faults, but I'm not going to jump on the anti-capitalism bandwagon just because it's fashionable.
Over 10,000 more civil servants have been employed by the govt over the last seven years. This means:
More desk space occupying over 40% of Wellington's CBD.
Office area increases from 226,124m2 to 371,547m2
Translates to 37 rugby fields - with 15 added on in the last 7 years.
34,000 more people employed in the state sector.
Total of 280,000 people employed by the state.
Yet no increase in serves!
"Little to indicate New Zealanders are getting more services and better results for the large increase in resources....What little information exists is not encouraging" Treasury Report, 2006.
So there we have it. There are more civil servants to moderate our lives and to collect taxes for the govt coffers. And more state sector employees to pay union fees which ultimately fund Labour's election campaign. Tidy little arrangement
The Melbourne Commonwealth Games came to an end this week. New Zealand came 9th on the metal table with 31 metals (6 gold, 12 silver & 13 bronze). Apparently it was predicted we'd get a total of 46 metals, so probably not the best result. We were beaten by Scotland (6th) & Jamaica.... man.
The next games are in Delhi India 2010.
British Prime Minister Tony Blair was in the country this week, his first visit. Despite Blair's popularity waning in the UK, I still agree with a lot he has to say on international relations specifically American isolationism. I find the way Blair speaks in total contrast to our own crass PM. At least Blair has the courage to stand by his convictions unlike our own poll driven Prime Minister.
Brash delivered his Owera III speech on the 1st. Before reading the speech myself, I read what Brash’s opponents thought of it. I don’t know what speech they heard but it didn’t sound anything like what I read.
I’ve also been following the news story about Muslim outrage over a cartoon of the prophet Muhammad printed in an independent Danish newspaper. Apparently it’s against Islamic law to draw Muhammad so the poor Danes have faced boycotts against Danish products, protests, embassy closures in Denmark, withdraw of ambassadors, and even threats against Danes abroad. If Muslims are offended by a silly satirical cartoon, just wait till a ‘South Park’ episode comes out.
I understand that Muslims are offended, but aren’t they taking it a bit too far? Printing a satirical cartoon is one thing, but burning the Danish flag in the middle of a street is on a whole new level. There comes a point where the reaction out weighs the original offence.
I just read in the NZ herald that Don Brash plans to stay on as leader of the National Party. Although Don is getting on a bit, I think he's a real decent guy with a sense of humour & manners, qualities that are lacking in the current PM. So I'm quite pleased with the news.
