Cut spending or increase inflation

Spending and Debt = Inflation.

Reduction in spending and Debt = Recession

Creation of Debt = Growth

Govt like rising property prices as people regear there properties at the new value and then spend those funds into the economy thus boosting the economy and jobs.

However once peak asset prices have occurred the govt will change policy to correct over priced assets that time frame is usually 3 to 5 year to get back to trend in the mean time a lot of people go bankrupt.

Have we reached peak asset prices = Yes

What is the choice.

Gerald Mullaney

14 August 2025

The choice may well be to rebalance the economy away from gambling and speculation to real production of goods and services where incomes are related to what a person or country produces.

Spending cuts leads to a decrease in spending by govt and the consumer, it also may lead to a recession as growth in the real world depends on debt.

Govt have used debt govt and private to stimulate the economy thus this creates inflation

We have witnessed since 2016 America printing 26 Trillion to keep the USA out of recession and possibly the world this lead to a huge inflation in everything but mainly in assets.

This caused real estate to go up approx. 100% 2016 to 2021

These asset prices are not sustainable hence in 2025 some areas in NZ have decreased in value by up to -25%

Yes things are peaking population is declining therefore a rebalance is on the way and social welfare is in the sights.

If you bought 2021 there is the very possibility one will lose funds.

Get working or get dying.