Podcast #26: Oliver Hartwich on the NZ’s economic house of cards
In this week’s New Zealand Initiative podcast, a scheduled release of the second quarter GDP statistics revealed the country’s economy dropped 12%, rather than the feared 16%.
But coupled with the government’s money printing plans, the true state of the New Zealand economy is tough to judge at this point.
Oliver Hartwich says the problem goes much deeper. The system of digging out of an economic hole by printing more money has been the hallmark of recessions since the US took itself off the gold standard in the 1970s.
Ever since, the world financial system has been a house of cards, waiting for a strong wind to blow it down.