Monday, August 04, 2008

Borrowing to get rid of Winston First

Yes, it's Monday morning again. For those of you who have to haul your sorry ass out of bed and disappear into the dark, wet cold morning, here's some comfort for you.

It's going to be a big week.

Sense has come out of the Nats conference giving a strong, positive direction and points of difference. Instead of the self-serving negativity that continually emanates from Liarbour.
-I believe in hard work.
-I believe in education.
-I believe in a fair society.
-I believe in playing by the rules.
-I believe in the power of families.
-I believe in being pragmatic, and not being blinded by ideology.

Most of all, I believe that this country, that New Zealand, is capable of so much more.

JK gave a speech that has a sense of purpose and long term direction. Just what the seriously disgruntled electorate requires. His 10 points are inspiring and forward thinking, not just about maintaining the status quo.

Sure, there will be derogatory comment from the other side over a couple of percent extra borrowing in an $180bn economy, but it much less than most punters have on tick with a mortgage and other credit. Today's voter's are comfortable with high debt, particularly debt that is properly used for long term asset purchases, not frivolous discretionary spend on nice-to-haves.

And instead of raping your overtaxed wallet for the $5bn, they will only have to free some moths from the cobwebs there-in to service the interest of say $750m. It is sound economics to me, just the same way families should be operating their budgets. And getting a tax cut to boot might be the massive stimulus the economy requires. Some will say we are borrowing to fund tax cuts, others for infrastructure.

Pure semantics, have you never run a holiday up on tick so that you feel good and can put your head down upon your for the next few month's?

And the other topic for the week is will Winnie make it to Friday drinks at Bellamy's?

Keeping Stock has a great analysis. Action after the vote of confidence scenario looks tempting. Used and abused to max by the black widow herself. She will be ever anxious to cast off the Winston First millstone to improve polls.

I suspect that Winston will be cast adrift before Friday, but then he has lived through worse times. 5% is not a difficult target and any publicity...

So have a nice day while you commute in the smog, contemplating all this. I am off for a coffee and then will commute to my workplace at the dining room table from the lounge.

Have a good one, don't work too hard.

No comments: