John Key, possibly the most able statesman this country has ever had, could see the writing on the wall. Remember, Key is a successful trader and once a trader always a trader.
He came into politics when we were down, he has built the economy up again (with a lot of debt too); he has looked at the changing issues and anti-globalisation and the political issues in the US and realised his chances of success for another term were changing and given he is a trader, it was time to go. "Buy low, sell high". He also has "bigger fish to fry" and is probably looking at an international post.
Digging down a bit on what is making the public uneasy, it is clear that the majority feel they are lacking control of their lives.
They feel that excess immigration is threatening their lifestyle. They feel that we have sold too much of our real estate to foreign interests.
They feel uneasy with the few getting very rich as they feel poor. They feel all the health and safety regulations are an infringement on their rights and lives.
They feel ripped off by very high charges levied by expensive professionals; eg: how long do they have to save to get a tooth crowned (for $1,200)?
You can hear Don's interview with The Country's Jamie Mackay in the audio clip below:
Farmers may feel companies are not acting in their best interests and feel uneasy as a result. They may feel the banking system and the law around their property rights are not fair either.
So, having put all that out there, what is going to happen? Always remember the wealthy are the minority and the poor are the majority.
I think it is about 80:20 poor to rich. The public will vote for change and they have the majority remember. Their vote may not be logical or in the country's best interest, but vote they will in an anti-establishment way.
It may be the demise of the present government, even though it may not be in our nation's best interests. It is really a vote against globalisation and control and the shift in wealth away from majority.
We will see the borders close, protectionism come in and the world economy slow. Those countries with nothing to sell will falter. New Zealand as a net exporter of food and commodities should fare well but it could be a rough ride. So brace yourself. Tidy up your own financial position and get some available cash stored away.
Be prepared for protest and change!
Like it or lump it.
Disclaimer - These are the opinions of Don Fraser of Fraser Farm Finance. Any decisions made should not be based on this article alone and appropriate professional assistance should be sought.
Don Fraser is the Principal of Fraser Farm Finance and a consultant to the Farming Industry.
Contact him on 0800 777 675 or 021 777 675
A disclosure document is available on request.
