The obvious joke, which was followed by laughter from what sounded like the politicians in the room, comes at a time when New Zealanders are struggling with the cost of high inflation and borrowers are experiencing a tripling in interest rates.
A 26-second clip of the livestreamed comment has been shared by thousands on X (Twitter) and viewed at least 400,000 times.
It’s especially being eaten up by Bitcoiners, who believe the traditional monetary system ruled by central banks should crumble, not least because of their inability to read inflation in recent years.
Orr’s comment played directly into their diamond hands.
Popular posts of the clip wrote, “He said the quiet part out loud” and, “They literally make fun of us”.
Some incorrectly assumed it was an artificial intelligence-produced deep fake video of the Governor.
But what Orr said is true. That is how the central bank works.
It’s also true that he’s against cryptocurrencies.
In response to a question about digital currencies by Committee chair Stuart Smith, Orr said he was “critically concerned” about their impact on the financial system and possible shift away from fiat currencies like the United States dollar.
“What is advertised on the tin is not what is in the tin for these purported alternatives to central bank cash.
“A Bitcoin, it’s neither a means of exchange, it’s not a store of value or it’s not a unit of account. Yet people try to use it as that.
“It is not at all a substitute for, not even a complement to, central bank money, fiat currency.”
On behalf of the New Zealand Government, Smith said, “we agree with that”.
The market may not.
The price of Bitcoin hit US$50,000 ($82,494) this week, its highest price in two years, following the launch of a number of Bitcoin spot price exchange-traded funds.
Perhaps that’s why Orr felt the need to fight for fiat.
His answer continued as he explained why the likes of the New Zealand dollar was superior, saying it’s because it’s supported by a Government balance sheet and tax system, and an independent central bank.
“The best thing we can do is be as transparent and blunt as we can.”
That’s the point those sharing this short clip offshore may be missing; Orr is so clear he’s almost see-through. He has a sense of humour and he’s not afraid to use it.
But, he should know better than to joke about printing money, as he himself has admitted his team did not get the reaction to inflation entirely right.
For the record, Orr’s colleagues smirked at his comment but did not seem to open their mouths with laughter.
Probably because they’re used to their boss’ personality.
Madison Reidy is the host of the NZ Herald’s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.
