One of the things not mentioned in the media is that the length and depth of a recession/depression is in direct relationship to the level of debt preceding it, historically. Debt levels in New Zealand, on an individual level and corporate level are higher than they've ever been, much higher than in the early 1930's

Also, with the moves in the last 30 years to offshore much of our manufacturing, much of the profit generated in the NZ economy gets sent offshore instead of circulating in our own economy. That means our risks are greater than they've ever been and our ability to ride out those risks is more limited than ever.

Prepare for a very hard landing that lasts for at least 10 years, probably longer.

Charles Drace
Socrates Fund Management