G7 – the view from the top is fine, if a bit fuzzy

The omens were good for the G7 summit at Carbis Bay in Cornwall.  Untypical blazing sunshine and a victory for England’s footballers in the Euro Championships put the hosts in fine fettle (qualified only slightly by the NZ cricketers’ series win).  

The first and most important objective was achieved: the world leaders managed to agree not to disagree. Even better, no one called the host, Britain’s PM Boris Johnson, “weak and dishonest”, no matter how much they might have been tempted.

But despite the 25 page summit communique, direction and leadership was a little harder to find.

Continue reading “G7 – the view from the top is fine, if a bit fuzzy”

G7 – not so good in the margins

Some say it wouldn’t be a proper G7 summit without a row between the UK and France.  In this case, Boris Johnson taking the opportunity to ask France’s President Emmanuel Macron how he would feel if Toulousain could not sell their sausages in Paris.

The context for his remark is the negotiation between the UK and the EU over the application of the Brexit treaty to Northern Ireland.

Readers might recall our suggestion at the beginning of the year that the trade arrangements might prove a “charter for squabbling”. Perhaps that was too optimistic.

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Govt goes into partnership (again), this time to better deal with young Maori offenders

Our Beehive bulletin

Has anyone been keeping tabs on the number of race-based “partnerships” established by the Ardern government?

Another one popped up today, proudly announced by Children’s Minister Kelvin Davis. It’s an “innovative’ as well as new Youth Justice residence “designed in partnership with Māori” to provide “prevention, healing, and rehabilitation services for both young people and their families.

It was one of three new posts on The Beehive website since Point of Order last checked on what our Ministers are doing.

The others are

  • An accounting for what is being accomplished under the Construction Skills Action Plan (it has delivered early on its overall target of supporting an additional 4,000 people into construction-related education and employment, says Minister for Building and Construction Poto Williams).
  • Prime Minister Jacinda Ardern’s expression of New Zealand’s sorrow at the death of His Royal Highness The Prince Philip, Duke of Edinburgh.

Ardern noted that The Duke of Edinburgh held several New Zealand honours and appointments.  She mentioned some of his NZ gongs along with some of the organisations – more than 780, the press statement said – of which he was patron or a member. Continue reading “Govt goes into partnership (again), this time to better deal with young Maori offenders”

No need to worry; the consensus says inflation isn’t going to be a problem

Ever since the 2008 financial crisis, pessimists have been saying we are due a global inflation surge. So far they’ve been wrong. The world’s economies, particularly the rich ones, have sucked up fiscal and monetary stimulus and the biggest official concern has usually been that the inflation rate is too low.

But even a stopped clock eventually shows the right time.  Given Covid-induced monetary and fiscal overdrive, might the worriers finally be proved right?

Continue reading “No need to worry; the consensus says inflation isn’t going to be a problem”

Everyone has a different Covid reality. That could be important

The role of chance in politics is often underrated.  The impact of Covid in different countries might illustrate this.

Take New Zealand and the UK, for example.  It’s difficult to think of a time when the mood in each country – to the extent that such a thing can actually be gauged – has been so divergent.

Continue reading “Everyone has a different Covid reality. That could be important”

Vaccine politics look like normal politics – just more extreme

Point of Order has been consistent in anticipating an irritable post-Brexit relationship between Britain and the EU.  But who would have thought vaccine politics would develop as a major flashpoint, let alone a possible relationship breaker?

Even hyper-critical Brits have had to acknowledge that the UK government is a leader in the global vaccination rollout.  And as more background information seeps into the public arena, the British government’s decisiveness in supporting vaccine development, committing early to contracts and driving mass vaccination is looking better and better.

But the same comparisons spell political danger for European politicians. Co-ordination by the EU appears to have resulted in slowness: slowness in making commitments, in tweaking the production process and in approving the product.

Continue reading “Vaccine politics look like normal politics – just more extreme”

Boris Johnson: the man who saved Europe?

This year has seen some spectacular political victories: Jacinda Ardern in NZ’s election and now Boris’s post-Brexit trade treaty with the EU. But having secured a triumph, the risk is in resting on the laurels, when one should be looking to exploit to the full.

And Boris’s victory does look comprehensive. His critics alternated between saying he would never get a deal or it would be a very bad one. In fact, he has achieved his main objectives of rolling over the existing tariff-and-quota-free trade terms and securing recognition of the UK’s sovereign equality in managing the ongoing relationship.

Continue reading “Boris Johnson: the man who saved Europe?”

Covid vaccine is important but it’s only a beginning

Never let a crisis go to waste, said Rahm Emanuel, President Obama’s first Chief of Staff.  In the Covid-stricken northern hemisphere, some people have taken the message to heart.

The mood feels different from in the first wave.  Despite London moving into tier three measures, the volume of traffic is consistent with many people having adapted to new conditions.  The roll-out of the UK’s vaccination programme indicates a clearer direction and sense of urgency from the British government.  There is now a path, with the possibility of rapid improvement.

Continue reading “Covid vaccine is important but it’s only a beginning”

Can the world economy continue to float on a cushion of debt?

Monetary policy is difficult.

Economist Scott Sumner describes in his blog how the thinking of an intellectual giant like John Maynard Keynes evolved through three distinct phases in the 1920s and 30s.  As the man himself is reputed to have said “When the facts change, I change my mind.  What do you do?”.  Sumner then argues that the thinking of the economics profession repeated pretty much the same pattern of evolution over the last decades of the twentieth century.  

It makes a persuasive case for intellectual humility in general, and in monetary policy in particular.  Even more so in unusual times.  The forcefulness and fluency of experts can conceal the fact that they are testing new ideas when they make policy.

Continue reading “Can the world economy continue to float on a cushion of debt?”