Press release 15 June 2018
MONEY WEEK - WEAK ON WHAT IS REALLY GOING ON
Positive Money New Zealand, a not for profit enterprise advocating a change to our banking and monetary system is dismayed at the lack of information being circulated about money during money week.
In a week that saw the Swiss go to the polls to vote on a referendum to decide who issues their money, our money week had a business as usual tone about it.
There was no mention that 98% of our money is created “ex-nihilo” (from nothing) by private banks and then lent out at compounding interest to you and me.
There was no mention that for our money supply to grow, more people need to get in debt than pay off their debt, and this is unsustainable.
There was no mention of the $4 billion dollars in profit that disappeared over the Tasman last year in repatriated bank profits. This creates a huge hole in our economy. Students are detained at our airports if they try to leave the country with a student loan debt, but $4 billion disappears each year and no one bats an eye.
There was no mention of New Zealand’s combined debt passing half a trillion dollars at the end of 2017 and our level of private debt approaching that of Spain.
On the flip side, there was no mention of the Governments ability to create money to get us out of the huge financial hole we are in. It was done in 1936 by the first Labour Government and it can again.
The Reserve Bank can fund roading projects, rather than raise fuel taxes. There is no need to take even more money from the long-suffering public as the Government, via the Reserve Bank and the Treasury can issue the required funding for our highways.
We can build schools, hospitals and housing and the freed-up tax money can be used to bring down our high levels of child poverty, inequality, homelessness and address the chronic underfunding of our mental health system.
According to an IMF discussion paper titled The Chicago Plan Revisited, issued in 2014, a system where the central Bank (our Reserve Bank) issued the currency would smooth out the boom and bust cycles, eliminate runs on the bank and dramatically reduce both public and private debt. In addition, it would provide productivity gains of 10% and steady state inflation dropping to zero.
Don Richards, the National Spokesperson for Positive Money says “we do not need to confine thousands of our citizens to a miserable existence while the Finance Minister tries to achieve a budget surplus”. A surplus means that the Government takes more out of the economy in taxes than it returns in spending and will only make a bad situation worse.
It is time that we had a serious conversation about our money and this years “money week” conversation falls well short of that.
For information, contact Don Richards National Spokesperson for Positive Money New Zealand
Email address hm firstname.lastname@example.org
Cell: 0274 778 147