Media questions for RBNZ Governor Adrian Orr. 6 Apr 2024. Dollar Purchasing Power Decline, Thomas Hoenig
"Adrian, one of the reasons I'm sending these communications...is so there is a public record..."
Emailed 6 April 2024.1
Dear Adrian
I recommend you, your senior staff, the Treasury, and the Finance Minister sit down together and watch this interview with Thomas Hoenig, former CEO of the Kansas City Fed, former voting member of the FOMC, former director of the FDIC, and now a Distinguished Senior Fellow at the Mercatus Center.
If you aren't already reading his views they can be found here.
https://substack.com/profile/131926993-thomas-hoenig
Veteran Federal Reserve Exec Thomas Hoenig Warns We're On A Trajectory For Crisis
Hoenig
admits the Federal Reserve has experienced substantial “mission creep” since its creation
criticizes the Federal Reserve for pandering to various interests
says our fiscal policy is a runaway disaster
is very worried about the current stability of the banking system (and this from a former Director of the FDIC!)
emphasises the importance of reducing debt growth…to avoid a full-blown crisis scenario in the future.
predicts the purchasing power of the US dollar (and other world fiat currencies) will continue to decline due to current policies
admits there is a lack of a “discipline” to money creation
suggests investing time in reading history and biographies as a valuable way to learn about leadership and gain insights into what strategies works and which don't.
Personally I'd happily replace the words "Federal Reserve" with "RBNZ," and I would ask your views on all of Hoenig's statements. But I wont. Just two questions today on Hoenig's comments expressed as point 6 above.
QUESTION:
Does the RBNZ agree with Thomas Hoenig's view that the NZD will continue to decline due to current policies? If so, decline against what? Commodities?
[though Hoenig is specifically referring to U.S. policy, NZ is not vastly different, just the scale is smaller]
The NZD has been getting hammered against a whole basket of commodities recently. Energy, metals, agricultural products...yet the last research piece published by the RBNZ was in 2011.
QUESTION:
Does this research piece reflect the RBNZ's latest thinking on the consequences of commodity prices on monetary policy?
If not please supply me with any research, documentation, speeches etc. done by the RBNZ since 2011 on the subject of commodity prices and monetary policy. I've had a look and can't find anything relevant.
Adrian, one of the reasons I'm sending these communications and questions to you, and publishing them, is so there is a public record that you were advised.
You can’t say "we didn't know, it was all a black swan which we couldn't possibly see" or some such. No excuses this time.
When this currency finally collapses, and people are looking around stunned wondering what the hell just happened, you and your "we print money and people believe it, touch wood" will be exposed for what it is.
Eyes will turn laser focused towards the direction where blame lies.
And bankers will not be able to shift responsibility. Like they did in 1914, 1920, the 1930s, 1940s, 1960s, 1970s, 1980s, 2000s...
Kind regards
See also:
…
