Richard Harman

NZ's Trump-Lickin' Government

Winston Peters reprimands NZ's independent Central Bank Governor, Dr Anna Breman as David Seymour bats for Elon Musk's X

“I miss the New Zealand spine and I didn’t appreciate it enough when we had it.” - Angela

It was relatively easy for Waikato University’s Neil Quigley and Finance Minister Nicola Willis to depose RBNZ Governor Adrian Orr last year.

By all accounts, Quigley pushed Orr out - perhaps another “present” for the National Party Coalition Government; and the subsequent cover up, unmasked only after an Ombudsman’s order, resulted in practically zero consequences for those who partook.

Those appear to include Neil Quigley, whose University was awarded its long lobbied for new medical school, Christian Hawkesby who claimed he “couldn’t recall” what happened to Orr ala Bill Clinton while appearing to accept lobbying from Christopher Luxon on National’s OCR “wishes”, and Nicola Willis, who oversaw Quigley’s misrepresentations to the New Zealand people without saying a word.

Over in the USA, Federal Reserve Jerome Powell, appointed by Trump in 2017 , has been suffering considerable ignominy with repeated and inaccurate attacks on him by the current US Administration.

Trump has repeatedly and publicly called for Powell to be sacked, told him to resign, and effectively social-media screamed for the Fed to cut interest rates, to drive Trump’s interests and agenda.

The remit of the Federal Reserve, like that of many central banks, is multi-fold.

The primary remit is to preserve the “stability and safety” of the financial system and operate as an independent body to “promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy”.

In other words, it uses a variety of factors to combat inflation, support the economy, and ensure that financial institutions (e.g. banks) are safe and sound.

In layman terms, how would you feel if your bank went bust, and your deposits / investment dissipate? Or if rampant inflation or stagflation renders your currency worthless, with little to no recourse?

A Trump Hatchet Job on Jerome Powell

Five months ago, Trump accused Jerome Powell of significant “overspending” on the US Central Bank Federal Reserve’s renovation project.

The video above shows Powell, typically stoically silent under a continual barrage of Trump Administration attacks, respond to Trump’s “overspend” accusations by pointing out that Trump’s figures include the cost of historical renovations.

This week Powell announced he was under “criminal investigation” related to those same Federal Reserve renovations.

The Fed Chair then openly accused Trump of using legal threats to influence Fed policy.

“This unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure [for lower interest rates].”

- Jerome Powell

And it most likely is.

Trump has long advocated for cuts in interest rates irrespective of data or economic reality.

Claims of “Defeated” Inflation

Two days ago, the US President claimed inflation has been slayed (“defeated”) in the US (on his watch of course) even as I guffawed at the concept.

Inflation is merely price rises over a range of time. It’s never defeated, only managed.

The next day, statistics showed that food prices continue to rise in the US and average inflation sat at around 3% - well above the Fed’s target of 2%.

As we see occur in New Zealand, the US Government made its announcements with a slurry of half truths and misinformation, for example by claiming that Biden caused “record” inflation, factually untrue for one, but also ignoring the context of that situation

e.g. Russia’s full fledged invasion on Ukraine, which contributed to rising prices globally, as well as factors such as worldwide supply issues during Covid that saw average inflation of 9% around the OECD.

Powell Last Man Standing In Trump’s Economic Pathway

Powell’s bravery and refusal to capitulate - and indeed a refusal to leave the Fed in the hands of a vested interests, billionaire group that would signal the end of the global financial system as we know it - is strong beyond measure.

And central bank leaders around the world rallied to support the bravery for a man holding his position at first post.

Central bankers from England, ECB, Denmark, Australia, Canada, Iceland, South Korea, Indonesia, Brazil, South Africa, and New Zealand etc. signed a statement in defence of Powell — but also for the sanctity and safety of the global financial system.

Winston Slays RBNZ Independence for Trump

Winston Peters, rather than respecting the independence and wisdom of those who did so, including the RBNZ’s Dr Anna Breman, publicly reprimanded Breman in an official capacity

Predictably, Willis and Luxon remain missing in action as NZ First attacks the independent central bank governor for being independent and professional, ala Donald Trump mode.

Conservative commentators responded unfavourably to Peters’ intervention:

Hobsons’ Pledge’s Don Brash, a former RBNZ Governor, said Powell was a “highly regarded Chairman” and that while Trump’s actions might precipitate shorter term rates in the “short term” to benefit Trump, it would likely yield higher interest rates in the medium to long term.

Infometrics’ Brad Olsen, former National Party MP aspirant, wrote:

“Disagree with the Foreign Minister on this. Central Bank (CB) independence is vital - it’s entirely appropriate for RBNZ to sign on backing CB independence, especially alongside RBA, BoE, ECB, BoC. Winston Peters notes at the top that independence is important.

Important too that NZ stand up for it”

Separately, political journalist Richard Harman noted:

“Trump’s bullying has rattled the financial markets and consequently NZ kiwisaver accounts with US shares are down.

Also impacting US $ dollar. An independent Reserve Bank Gov should be concerned about issues like that.”

Note: ex Atlas Network NZ Initiative member, and current The Post / Stuff Political Editor, Luke Malpass took Peters’ side calling Breman “naive” in an op ed.

NZ Government’s Systematic Pattern of Support

Peters’ reaction reveals a world where might is right, and a capitulation of international standards and professionalism.

By publicly reprimanding Breman, he is replicating Trump’s actions of attacking independent central bank governors for merely doing their job. The inter-relationship of the US financial system with ours is clear.

Peters is also signalling internationally that NZ is operating under a similar mode of financial governance, as the rebuke hit international press in Australia and the UK.

None of this is surprising.

From Judith Collins flogging off NZ as a military supplier to the USA, while breathlessly advocating for MAGA politicians, to allowing the US to set up its first standalone FBI office in Wellington 1, to Peters attempt to personally inform Trump prior to announcing NZ’s decision not to recognise Palestine, to Luxon declassifying terrorist group Proud Boys against police and security advice, to David Seymour’s Zionism, anti-climate and pro-gun policies, this NZ Government is firmly pro-Republican.

And as the world reacts and implements policies to combat Elon Musk X , a staunch Trump ally platform, from deepfake sexual images of children and others, points out that David Seymour was busy defending X.

(Free Speech Union also advocated against action.)

New Zealand’s Government has gone beyond diplomacy and foreign relations to firm capitulation to the MAGA Trump view of the world, and the way it operates.

Whether that’s a good thing or not is up to the people of Aotearoa New Zealand to decide:

Encourage your friends and family to enrol to vote, and make a call for themselves.

Thanks for reading! This post is public so feel free to share it.