Central Bank Gov. Mocks Citizens - Government Laughs
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Posted 16/02/2024
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"It's a great business to be in, Central Banking, where you print money and people believe it" he joked, as participants laughed openly.
While talking about the "fiscal challenges, exetra [sic]", Adrian Orr reassured viewers that what they are dealing with is a "slightly different beast". He stated in a dry and humorous tone "We actually fund ourselves and then work out what dividend is needed to pay".
At this time of financial pain and high interest rates (set by central banks) for their debt-based, fiat currencies, Reserve Bank of New Zealand Governor Adrian Orr found hilarity in the fact that citizens actually believe in their money. This was recorded Monday at a parliamentary committee meeting and has sparked outrage from listeners.
New Zealand, like Australia, has been working hard to develop and implement a central bank digital currency. This could be ammunition for even more humour from central bank governors, as it would not even require printing and could be inflated at record-breaking speeds.
As covered previously, the Federal Reserve in the U.S. has gone from acting as an invisible hand to enjoying the limelight. Fed members give seemingly weekly statements and interviews in which they take credit for having control over the economy. This potentially dangerous move (for them) makes them a target of criticism when things go wrong.
When it seemed like central bank actions could not get more blatant, New Zealand’s Reserve Bank Governor has clearly stepped up to the plate and taken it to the next level. The hilarity of people believing in what this small group of individuals prints can be illustrated below.
The above chart is how one should be analysing the Australian Dollar. This is its value against gold for just the last 17 years. Notice how dramatic the drop is, and how the fall seems to have become steeper more recently. This could draw serious attention to the term “savings account”.
Is his joking and the government’s laughter justified? Partially not, as legal tender laws enforce the use of their currency. But also partially yes, as the citizens they have been mocking and laughing at this week mostly still believe in their money and continue to use it as a savings vehicle for their families.
The downward arc in currency value has continued even through rising interest rates. The real surprise may come with the reversal that is likely to happen this year. Citizens have a clear choice now of being proactive or literally being the butt of the joke. There is only one true money.