No amount of spin can hide a hole that big

$4.2b surplus gone – Govt in the red – 06 Mar 2008 – Politics: New Zealand Political News, Analysis and Comment including 2008 election coverage – NZ Herald

No wonder the Labour client-blog sites have been spinning furiously about a mis-quote which has now been retracted. They needed some distraction from the impending hole profligate government spending has created in our country’s accounts.

Labour essentially have stolen from us the ability to pay our own debt off faster and added to the country’s debt. The vaunted Kiwislaver and Cullen Fund have taken massive hits as the American Sub Prime Crisis that would never affect us actually does.

The main reason the accounts have dropped into deficit – and come in so far away from forecast – is that the financial portfolios of the New Zealand Superannuation Fund, Accident Compensation Corporation and Earthquake Commission have been hurt by falling world markets in January.

The super fund’s returns on its assets, which include international shares, were $1.5 billion lower than forecast over the seven month period, ACC’s were $700 million short and the Earthquake Commission’s were $300 million below.

Got that billions burned off the value of assets from a crisis that would never affect us. Add to that the destruction of private wealth of Telecom and AIAL through meddling. Yes, noth of those companies were targets for Cullen Fund investment.