Tuesday 9 September 2014

NZ National Party borrowed 65 BILLION over 6 years. WHY ???

SUMMARY:  These are some of the latest figures out on the NZ Treasury website, to 31 May 2014

The Financial Statements of the Government provide a record of the Government’s financial performance for the eleven months ended 31 May 2014 and its financial position as at that date.

At a Glance.
Core Crown Gross debt  82,150,000,000   as a percentage of GDP 36.3%

Core Crown
Core Crown tax revenue 56,497,000,000
Core Crown revenue 61,840,000,000
Core Crown expenses 64,173,000,000
Core Crown residual cash (3,833,000,000)

1. Using GDP for the year ended 31 March 2014 of $226,551 million (Source: Statistics New Zealand).
2. Using forecast GDP for the year ended 30 June 2014 of $230,717 million (Source:  Treasury).
3. Gross sovereign‐issued debt excluding settlement cash and Reserve Bank bills.
4. Net core Crown debt excluding student loans and other advances.  Net debt may fluctuate during the year largely reflecting the timing of tax receipts.

Core Crown includes Ministers, Departments, Offices of Parliament, the NZS Fund and the Reserve Bank of New Zealand but excludes State‐owned enterprises and Crown entities.

Source:   http://www.treasury.govt.nz/government/financialstatements/monthend/pdfs/fsgnz-11mths-may14.pdf  p.2

Note (on NZIER):  If the government is persistently running deficits, that is spending more than it earns, it will have to borrow money to meet the shortfall. Accumulating more and more debt is not sustainable, as the government can become insolvent!

Source:  http://nzier.org.nz/about/economics-explained/fiscal-policy/

 Source:  NZIER

2nd Source:  NZ Treasury  

One of my questions is...  

If there's enough revenue being collected, ie:

Core Crown tax revenue 56,497,000,000 
Core Crown revenue 61,840,000,000 
Core Crown expenses 64,173,000,000 
Core Crown residual cash (3,833,000,000) 

WHY are we loaning money at all... ?? - especially THIS amount of money over 6 years...  (65 billion)

That's just plain old UNFATHOMABLE !!!

Here are some other links that will help as we try to figure out what the heck is going on...

Table 9 – Net debt and Gross debt.  Year ended 30 June 

Actual   2009   * Net debt ($m) 17,119  (% GDP) 9.2%  * Gross debt ($m) 43,356  (% GDP) 23.4%

Actual 2010    * Net debt ($m)  26,738  (% GDP) 13.9% * Gross debt ($m) 53,591 (% GDP) 27.9%

Actual 2011    * Net debt ($m) 40,128  (% GDP)  20.0%  * Gross debt ($m) 72,420   (% GDP) 36.2%

Actual 2012    * Net debt ($m) 50,671  (% GDP)  24.3%  * Gross debt ($m) 79,635  (% GDP)  38.2%

Actual 2013    * Net debt ($m)  55,835 (% GDP)  26.3%   *Gross debt ($m)  77,984  (% GDP)  36.7%

Note 24: Borrowings
30 June 2013
Budget 12
Budget 13
30 June 2013
30 June 2012

By type

57,29658,713Government bonds57,37753,850
4,7003,576Treasury bills4,0848,954
251204Government retail stock199229
6,2447,183Settlement deposits with Reserve Bank7,5755,917
2,4012,035Derivatives in loss13,1882,807
1,4711,499Finance lease liabilities1,4541,515
30,84427,570Other borrowings26,21027,262
103,207100,780Total borrowings2100,087100,534

By source

85,67485,309Core Crown84,87084,510
5,2575,156Crown entities5,2515,325
27,63625,884State-owned enterprises24,83925,374
(15,360)(15,569)Inter-segment eliminations(14,873)(14,675)
103,207100,780Total borrowings100,087100,534

By maturity

34,34530,511Expected to be settled within one year30,51743,195
68,86270,269Expected to be outstanding for more than one year69,57057,339
103,207100,780Total borrowings100,087100,534

By guarantee

76,21274,924Sovereign-guaranteed debt75,68475,701
26,99525,856Non-sovereign debt24,40324,833
103,207100,780Total borrowings100,087100,534
  1. Derivatives are included in either borrowings or marketable securities depending on their gain or loss position at balance date. This treatment leads to fluctuations in individual items primarily due to exchange rate movements.
  2. Total borrowings are the total borrowings (both sovereign-guaranteed and non-sovereign guaranteed) of the total Crown. This equates to the amount in the total Crown statement of financial position and represents the complete picture of whole-of-Crown debt obligations to external parties.
  3. Total borrowings can be split into sovereign-guaranteed and non-sovereign-guaranteed debt. This split reflects the fact that borrowings by State-owned enterprises and Crown entities are not explicitly guaranteed by the Crown.
A few questions arise out of this table:

Who was the PURCHASER of the $57.37 billion in Bonds?

-  If it was NZ, WHERE did we get the money from... ??  

-  WHO loaned it to the current NZ government, the Nats ??

Why did we owe $7.57 billion to The Reserve Bank?  

Who OWNS the Reserve Bank?    -  It's apparently NOT the NZ government.

Why is NZ playing in the Derivatives casino?

Who DECIDED to play in this casino ??

   ie:   Derivatives in loss  = $ 3.188 BILLION DOLLARS... "LOST" in the Derivatives game, June 30, 2014

Where did the "Other Borrowings" come from?  

   ie:  Other borrowings  $26.2 billion

Does "By maturity" mean:  "PAY THIS NOW" ??

By maturity    - as at June 30, 2013.  All figures are in BILLIONS.

Expected to be settled within one year30,517

Expected to be outstanding for more than one year69,570

Total borrowings100,087

What happens if we don't or can't ??

More primary sources:

New Zealand's overseas debt, Discontinued in June 2013. E3


  1. It's my firm view that we are being debt laden courtesy of our merchant bankster PM 'the key' for the purpose of setting us up to default, as a nation, when the next manufactured financial crises inevitably and cyclically arrives. Then we will have to trade off certain resources and suffer 'austerity measures', sound familiar? The blueprint for this has already been used successfully in many other countries... and all roads lead back to the Banksters at the Federal Reserve, World Bank, IMF and Bank of England.

  2. yes great work look forward to any follow up re the questions you raised - thanks - jenese


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