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To: KyrosL who wrote (71643)	12/11/2009 3:48:13 PM
From: Gib Bogle	Respond to of 74559

Don't distract Maurice with facts, you'll put him off his stride.

To: KyrosL who wrote (71643)	12/12/2009 3:34:13 AM
From: Maurice Winn	1 Recommendation Respond to of 74559

Kyros, we need to keep an eye on the debts and their definitions. I was discussing the NZ government deficit = excess of government spending over income which must be funded by increasing debt, pixelation of new NZ$, taxation, fees, imposts, duties and other fleecing jargon. That item you linked had this explanatory note: <This entry records the cumulative total of all government borrowings less repayments that are denominated in a country's home currency. Public debt should not be confused with external debt, which reflects the foreign currency liabilities of both the private and public sector and must be financed out of foreign exchange earnings. > Note that government deficits derive from citizens. NZ citizens have gone crazy on money borrowed from Japanese and have used that borrowed money to bid up the price of their houses and have spent the "profits" of the capital gains on making each other coffees, cars, overseas holidays and general consumerism. They have used their houses as ATMs. As the chickens come home to roost, the government will find their income dwindling [as they have done]. The fact that NZ interest rates were so high has enabled the Reserve Bank to cut interest rates and keep the game going a bit longer. People have even bid houses up a little as a result. People buy houses in the way little children buy lollies. They put their money on the counter and ask "How many lollies can I get for all my money?" The helpful bankers calculate it for them, telling them to go and buy a house and how much they can borrow to do so. The yokels go and buy. They don't consider that they can rent the same property for half the cost of a mortgage and that when they have lost their job, the mortgage repayments will be onerous. Nor that the rates [taxes] on their property will be going up inexorably, relentlessly and mercilessly to fund the depredations of bigger and bigger government kleptocracy. Mqurice