The Government’s push to reduce its own borrowing to lower borrowing costs for all is backfiring because it turns out pushing costs and debt out and on to councils in an abrupt and chaotic way has just forced S&P to cut 18 council debt ratings. 1/4 thekaka.substack.com/p/s-and-p-do... - ThreadSky

bernardchickey.bsky.social • 24 days ago

The Government’s push to reduce its own borrowing to lower borrowing costs for all is backfiring because it turns out pushing costs and debt out and on to councils in an abrupt and chaotic way has just forced S&P to cut 18 council debt ratings. 1/4 https://thekaka.substack.com/p/s-and-p-downgrades-18-councils-blaming?r=akd4&utm_campaign=post&utm_medium=web&showWelcomeOnShare=false

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jessterraformearth.bsky.social•24 days ago

I'd call it Shooting Yourself In The Foot - Backfiring is an unpredictable accident when you could be aiming right. #nzpol

This was predictable and predicted... in 2023…
https://www.interest.co.nz/public-policy/125323/international-credit-rating-agency-sp-says-repealing-affordable-water-reforms

jessterraformearth.bsky.social•24 days ago

And 2024…
https://newsroom.co.nz/2024/02/20/councils-placed-on-negative-credit-watch-due-to-three-waters-repeal/

bernardchickey.bsky.social•21 days ago

Loving your source selection. A proud co-founder of both those. :)

jessterraformearth.bsky.social•21 days ago

Only the best! 😎

r-quazzy.bsky.social•24 days ago

Councils what do they do for us ratepayers. Stuff all, except for collecting our garbage.

bernardchickey.bsky.social•24 days ago

Also, the economy sank back into gloom in the March quarter, & remains 2.0% smaller per capita in the first year of the Government, than the previous year. In reality, ‘going for growth’ actually meant ‘going for contractions & downgrades.’ 2/4

bernardchickey.bsky.social•24 days ago

All because the Government wrongly believes it can't and shouldn't borrow to invest in infrastructure. If it's looking for guidance, it should go to Germany, the most fiscally stringent of them all. 3/4

bernardchickey.bsky.social•24 days ago

Germany has just abandoned its 'fiscal brake' because it found it didn't work to grow its economy or stop the young and poor revolting into voting for the far-right. 4/4

elenem.bsky.social•24 days ago

To be fair, it at least partially abandoned the fiscal brake because they need to massively ramp-up defence spending and that's because of Trump-Putin; the social stuff (especially with Merz in charge) is secondary and it may not have happened otherwise. Should be lessons here for Labour though

elenem.bsky.social•24 days ago

I suspect the current government would absolutely love to push people to the far-right.... We certainly know Seymour would.

nzheretic.bsky.social•24 days ago

Where did the Current Coalition Government get such bad advice?
#nzpol

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