25/05/2023
9/9/2022
A COUNTRY BETRAYED.
It is the most significant financial and economic event in NZ history, measured in dollar terms.
It involves hundreds of billions of dollars of debt, primarily mortgage debt.
It was the betrayal of a generation of young New Zealanders who are now the most indebted Kiwis in history.
It has created a multi-billion-dollar homeless crisis.
It was the manipulation of NZ's economy and property market, between 2008 and 2017 by John Key and his associates, who used mass immigration to make themselves billions of dollars while thousands of Kiwis were made homeless, or forced into the largest mortgages in history.
The 4 top Australian banks, who have used their enormous ad spend to manipulate the narrative around the housing crisis - NZ does not have a housing crisis it has an immigration crisis - have recorded some of the largest profit increases of any banks in the world. (7 out of the top 20 shareholders in NZME, who own the NZHerald and Newstalkzb, are bank nominee companies)
In 2009 ANZ Bank ( NZ ) made $628 million in profit for the year. The same bank which rewarded John Key with its chairmanship made $1,919 million in profit in 2021.
Nearly all the increased profits are the result of immigration and most will end up in the pockets of Australian shareholders.
Between the time Key was elected PM, until he walked out of the job (with full cognisance of his impact on homelessness and debt) NZ's population saw the fastest increase ever - over an 8-year period - climbing from 4.2 to 4.85 million people, as Key used his power to give away NZ.
Financially this period of immigration is the most expensive housing and infrastructure disaster in history.
John Key and his cohorts pumped up the housing market and refused to acknowledge the homeless crisis they were creating. Both foreign and local Chinese and Indian speculators, poured into housing, fighting each other at auctions to take advantage of huge capital gains, and little to no capital gains tax, while Key refused time and again to keep a foreign buyers register. NZ houses were advertised as far away as Singapore.
There was speculation that Key's other refusal, to disclose tax records, would have shown multi-million dollar land and property investments in West Auckland.
While Key and his friends were making outlier profits from their property portfolios (Christopher Luxon owns 8 houses) young New Zealand first home buyers were forced to purchase into the greatest housing bubble in history.
According to the REINZ ( real estate institute of NZ) house prices in Auckland went up a record 79% between 2008 -2017 driven by immigration. There were similar increases around the rest of NZ.
For Key and his mates, this was fantastic news and exactly as planned. For those now living in motels, cars, or have purchased into the bubble this is devastating.
At the beginning of 2022, the average house price in NZ was just over $1 million dollars. But the most concerning statistic is first home buyers and owner-occupiers with low deposits, who are servicing average mortgages in excess of $672,000!
In the last 15 years, young Kiwis have been caught in a housing market which has seen huge demand pressure - and the never-ending upward trajectory of prices - along with historically low-interest rates, which have acted like an accelerant on demand, allowing for staggering price inflation.
NZ now has a group of young homeowners who on an income-to-debt ratio are some of the most indebted people in the world!
The NZ housing bubble is one of the most overinflated in the world. It is built on the manipulation of demand by politicians using immigration.
( Basic economics and an example of supply-demand pressure.)
There is no fundamental economic reason for NZ's housing market to be so out of alignment with offshore markets, which is a dire warning for the future.
The debt from the homeless crisis and the infrastructure crisis will turn into NZ's greatest financial disaster. (It is well underway with Ardern now printing money.)
With an inevitability that Key was acutely aware of when he deserted politics, the housing market and economy are now facing some major threats.
If the globalist Ardern stops immigration the housing market will collapse as demand dries up. It will also lead to an increase in unemployment.
( When Ardern came to power she faced the worst homeless crisis in history, so she doubled refugee numbers signed the UN migration pact and increased immigration numbers, exasperating the problem.)
But as Ardern continues with Immigration she is destroying NZ's welfare system, economy and environment - NZ's real economy.
She is burying the NZ economy under debt. Total debt is now over half a TRILLION dollars! Owed by just 5.1 million people.
The record unemployment that is touted by politicians is simply a manipulation of the economy. Keeping Kiwis employed building houses for migrants.
It is the number one sector of the economy by revenue and employment, but everything is being funded with hundreds of billions of dollars of debt.
Debt that cannot be repaid without more debt!
The other threat is interest rates. ( This is the current driver of falling house prices.)
As inflation increases the cost of money is rising.
Rising interest rates will limit borrowing power resulting in lower house prices. (negative equity is becoming a real and dangerous reality.)
Higher interest rates are starting to hurt those holding mortgage debt bought at lower rates.
These people have little room to move if rates move too high and will be forced into mortgagee sales. (One of the reasons the head of the ANZ bank recently took to the media demanding more catastrophic immigration.)
Hugh mortgage debt owned by young New Zealanders is robbing our domestic economy, as a sizable chunk of their weekly pay goes to satisfy housing loans.
As less money is poured into our domestic economy our standard of living will shrink. (less tax for Jacinda)
Those caught in Key's housing bubble are facing the twin threats of rising interest rates and dropping capital values.
The catastrophic cost of bringing hundreds of thousands of migrants to NZ and then having to provide infrastructure like schools, hospitals, welfare, extra roads, water services, power etc is the primary reason for Ardern's historic indebtedness.
Ardern is not only the most indebted politician in history ($138 billion) she has printed a staggering $55 billion and is planning on printing more!
Many councils are also facing the same infrastructure problems from population growth/immigration and have record debt on their balance sheets.
All of this government/council debt will need to be repaid by those paying record mortgages and rents!
Thanks to Key and Ardern taxpayers now have a multi-billion dollar homeless crisis, with thousands of Kiwis without housing.
(When Key came to power in 2008 taxpayers were not paying one cent to motels to hide homeless Kiwis. When Key deserted politics, taxpayers were borrowing $100 million a year for motels, and thanks to Jacinda that sum is now over $300 million a year.)
So this is the reality of NZ in 2022.
A country whose mainstream media is being manipulated by its advertisers and has lied constantly about a fictitious 'rockstar economy'.
A country whose state-owned media will not talk about the immigration crisis or debt for fear of upsetting their boss, Jacinda Ardern.
A country in big debt and big trouble.
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From a purely economic perspective, NZ's population - to retain a first-world standard of living - should be less than 1 million people. NZ's wealth is derived from its commodities-based economy and commodity economies do not require large populations.
Currently, NZ has a debt-based economy, building houses.
