One of my favourite writers, Bernard Hickey, has written another good article.
He outlines what the problems are and says we dont have to look any further than Japan to see where we to are headed – and for the same reasons.
So… if you want to turn NZ around, look at the issues that Bernard has listed, and do the opposite to what Japan did.
(actually, I am of the opinion that this is the least of our problem. Deal with the others first, then see where that leaves you. ~R)
A refusal to let rotten banks fail allowed many to suck up resources without lending or investing.
Hollowed middle classes
An explosion of outsourcing has allowed many multinationals to cut costs by sacking middle managers and manufacturing workers in developed economies… reducing the circulation of money and in turn reducing growth.
The heavily indebted nature of these developed economies has forced central banks to hold down short- and long-term interest rates to avoid economic collapses and to avoid governments going bankrupt… in vain attempts to fire up economic growth and to keep banks on life support.
Divided political systems in which leaders find it difficult to change policies make it hard for economies to dig themselves out of the morass. Vested interests in bureaucracies or from corporate backers can often block change. We have yet to see financial repression, but it is a strategy politicians like because it maintains the status quo.
(our present political system is guaranteed, and structured, to create futile bi-partisan bickering. There is zero incentive to remove disfunctional systems. ~ R)