How National screwed us, the looming economic shockwave for democratic NZ from despotic China + why house prices will plummet

John Key’s ‘All our cows in one Beijing paddock’ strategy he pushed during his decade in power has  back fired spectacularly on NZ as geopolitical tensions grow.

All that money we sunk into intensive irrigation so that parched plains could yield grass for intensive dairy has led us into an economic relationship that is very bad for us…

New Zealand’s trading relationship with China is worth $19b and experts say that leaves the country ‘significantly exposed’

    • New Zealand’s dairy exports to China are worth more than $5 billion annually 
    • Farmers say the country is a “major player” and losing that business would have a “massive impact” on their lives 
    • Experts say New Zealand is “significantly exposed” to China on trade and is mindful of any reprisals    

…put aside the climate crisis causing gases this intensification causes, put aside the water it steals and pollutes, put aside all that – we have an intense economic relationship with an authoritarian regime that treats human rights like they are optional and who is backing Russia’s terrible war in the Ukraine.

Farmers screamed that Jacinda was a socialist, seeing as Xi is paying their bills and propping up their farms so much, who is the real Red under the Bed here?

When China is putting $5billion into Dairy Farmers pockets annually, I think it’s important of us to ask, ‘who’s your daddy’?

This economic friction will only intensify. Putin has upended the rule based global system and this war in Ukraine with all its ramifications are barely calculated, but China and Russia are bound in this conflict as the first nascent kick of a new power block against the West.

That puts us squarely on the chopping block for geopolitical retaliation in the months and years to come as this new world order  pushes back and China encroaches deeper into the Pacific.

Add the economic stress from China’s zero tolerance approach to Covid which keeps crushing supply chains and we have a perfect gravity of economic stress and geopolitical interests combining to create a double punch to the NZ economy.

On top of this is the unacknowledged impact of Chinese tourists coming to NZ to scout for property sales and we have a perfect storm of rising interest rates (predictions are two 50 point raises in a row), supply chain crunches, and falling house prices.

Being a world leading producer of the best food in the world means nothing if you can’t afford to eat any of it at home.

When the middle classes start seeing their house valuations declining, watch the venal nature of their political demands then.

Middle class Landlords are about to sound as self interested as Dairy Farmers.

If Winston starts a negative campaign against China, watch NZ First soar over the 5% threshold as those who don’t benefit from Dairy or rentals seek a new political home as National and Labour prepare to bend over backwards for them.

 

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