TLDR: This week in geo-politics, the global economy and Aotearoa’s political economy, we learned:
* Te Putea Matua (The Reserve Bank) found in its review of its own performance over the last five years it complied with its own act couldn’t have done much different to stop inflation jumping to 7% or house prices surging 45% in 18 months;
* The Opposition was “shocked and appalled” at the reappointment of Adrian Orr as Reserve Bank Governor for another five years, saying it would launch an independent inquiry into the central bank’s actions over covid if it was elected next year;
* PM Jacinda Ardern criticised bank profits as too high for them to keep their social licenses, but did not support a windfall profits tax or a markets study;
* Energy Minister Megan Woods delayed forcing fuel companies to mix in biodiesel to reduce emissions by a year to avoid increasing diesel costs by as much as 10c/litre; and,
* US inflation was slower-than-expected in October, amplifying hopes global interest rates won’t have to rise so much to control inflation, which unleashed stock and bond market rallies, which makes mortgage rate hikes here less likely for now.
What was in this week’s hoon
We talked with Oil Change International’s Global Campaigns Manager David Tong from Sharm-el-sheikh about progress at COP27 and McClatchy investigative journalist David Wieder from Miami about better-than-expected results for Democrats in mid-term elections and worse-than-expected results for candidates backed by Donald Trump.
We also talked about:
* Adrian Orr’s contested reappointment;
* The collapse of crypto-currency exchange FTX after its founder Sam Bankman-Fried failed to repay depositors with the token he created and then borrowed off them; and,
* Elon Musk’s tumultuous week in charge of Twitter, including warnings of bankruptcy and suggestions he would take it behind a paywall.
Other places I appeared this week
I was on RNZ’s Morning Report on Friday to talk about the Reserve Bank’s review.
I was on 1News talking about bank profits and a windfall tax on Tuesday.
Ka kite ano
Bernard
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