Arun, the sooner the NZ government's creditors pull the plug on the profligate spendthrifts running the show, the less money said creditors will lose and the less carnage can be created by the governmentalists who spend their days harassing and stifling the people who actually produce value in NZ.
<If New Zealand has been living on debt (credit card) for some time and the credit limit is decreased, it will have to economize or miraculously get a much higher income from its resources. Sometimes bad things happen together, just as your credit limit is cut, your client also cuts business - does not buy your iron ore any more, and you have less income and less credit limit. Isn't that not happening right now to individuals? >
With no more cash going to the government, they'll have to get it from tax payers or cut their pay rate to match current taxes or increase fines or something.
When the politicians tell the public "We need $1 billion extra a month from you guys to maintain ourselves in the manner to which we have become accustomed because our overseas creditors have turned off the tap", the public will invite said politicians to get jobs more suited to their talents, such as cleaning out the spouting or collecting rubbish around the streets or mowing lawns - hmmm, maybe not, because many of them would not be able to push a mower for long. Perhaps they could get a job directing traffic at intersections. But perhaps not. They'd cause traffic jams. Traffic lights are more intelligent than the average governmentalist. We could send them to Afghanistan as goodwill ambassadors.
The economic boom from creditors cutting loans to the NZ government would be huge. Heck, it might be worth citizens passing the hat around to promise at least some payment to the creditors if they cut off further loans by Monday.
If 90% of governmentalists were fired, then each actual worker could have a couple of helpers around the house. It would be so much fun ordering around ex tax collectors, customs officers, Resource Management Act kleptocrats and all sorts who need something useful to do.
Mqurice |
