A Crisis of Stupidity
Ardern claims the inflation underpinning massive cost increases for the man in the street is driven by “overseas influences”. What she doesn’t say is that the ideas driving those overseas influences are the same ideas that are guiding her governance of New Zealand.
At the core of our cost of living crisis is the global shift to “renewable” energy sources, a policy that has caused massive rises in basic energy costs, and Ardern is enthusiastically backing this flim flam scam.
She has declared NZ and the globe are facing a “Climate Emergency”. She went to the UN where she told the whole world they simply must take action to avoid this impending disaster.
So they did take action. In energy terms, Justin Trudeau governs Canada and Emmanuel Macron governs France and Joe Biden governs the USA and Boris Johnson governs the UK and Scott Morrison governs Australia pretty much as Jacinda told them they must govern, and as she governs NZ.
All Western democracies have blindly pursued the myth of “renewable” energy (which really means no energy) and have simultaneously pushed legislation to cripple oil and gas production in their own countries. Leaving the oil market wide open to Russia, China and the Middle East. (and they couldn’t see the folly in this????)
Its not rocket science. A rise in energy prices has an exponential impact on all products. All goods are produced using energy. Production costs have risen as electricity charges to factories have sky rocketed. All goods are transported using energy. Transport costs (especially international shipping) have also risen astronomically as fuel prices have increased.
After energy, there is GST. Every transaction covering the cost of energy has (in dollar terms) increased tremendously, which also automatically increases the amount of GST applied to the transaction. So we have the enormous cost increases caused by renewable energy policies compounded by the govt’s own massive increase in receipts for GST.
The third major factor on cost of living increases has been a dramatic world wide over-reaction to Covid19. Using over-the-top shutdowns and work and travel restrictions that again have had exponential impacts on local and international supply chains.
As ships have waited to be unloaded at understaffed ports, they have had to charge huge demurrage fees that compound the shipping charges already increased by sky rocketing fuel costs.
Additionally, interest charges will increase as the money market realises that there’s not really much real money around, and that paper money as printed by NZ’s reserve bank is pretty much worthless.
Soon they’ll start scrabbling to protect themselves from their over extended loans in the property market and elsewhere. As many more astute observers have predicted, it will be a financial bloodbath that will make today’s “crisis” look like some kid’s birthday party at the local kindergarten.
The final but not by any means less important factor is that voters have been denied a choice on “climate change” issues by the undemocratic collusion of most of the main parties. Whether centre right or centre left, the opposition has refused to do its duty and actually oppose.
Now in New Zealand we’re apparently about to throw off the Ardern yoke, but accept a similar yoke from a man who boasts that his best management achievement at Air NZ was the electrification of the company’s car fleet. At the same time as he enthusiastically supported govt anti-fossil fuel policies that drove up the cost of air travel. Obviously a management genius right?
Last weekend Luxon proposed changes to taxation that he claimed would save households $700 a year. About one tenth of the average annual cost of living increase. He never mentioned energy, or climate change or the massive impact this phony “emergency” has had on this cost increase.
Yet recent polls indicate the same lemmings who rushed to vote for Ardern last election are now rushing off in Christopher Luxon’s direction.
Its not a cost of living crisis in NZ, its clearly a stupidity crisis, and you know what people say…
“You can’t fix stupid.”