"Confidence jump raises spectre of inflation"

Jul 6, 2011

The above heading quoted from the New Zealand Herald's BusinessHerald lead article (6 July 2011) just highlights what an absolute mess New Zealand's economic & financial system is in (let's include the world).

It's obviously a no win situation - we've had no confidence, no growth, no jobs, no pay increases (so depressing), low interest rates (that part is good)  and that's given us lower inflation,  and now a climb in confidence, a robust recovery, more jobs, higher pay (so exciting ... not for long), higher prices, higher interest rates (and that is not so good) and that gives us higher inflation.

If you've been reading newspapers ( hard copy & online) as long as I have, you'd see that nothing has changed in the world of economics, finance and politics. The problems are the same. The small array of solutions that are offered are the same and as each so called solution is implemented the results are the same ... we all get older and collectively deeper in debt.