News

September 2018 Release of our petition to have the Reserve Bank issue our money along with an opinion piece.

June Press release on the swiss referendum. Despite the campaign of confusion and fear run by opponents, 25% voted for the Sovereign Money Initiative.

April The AustralianRoyal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry is coming up with some serious wrongdoing by the banks and financial institutions

May 2017 Positive Money New Zealand issued a press release seeking clarity from the Reserve Bank on how our money is created. They still refer to intermediation by the banks, which is not how our banking system works.

5th November 2016 An article in The Guardian newspaper in England argued that abolishing debt-based currency holds the secret to getting our system off its addiction to growth.

5th September 2016 KPMG released a report, commissioned by the Prime Minister of Iceland, titled "Money Issuance" The report looked at money created by the Government.

28 March 2016 Bryan Gould agreed to be our Patron. Bryan is a respected commentator on economic matters, an author, academic and Companion of the New Zealand Order of Merit.

14 October 2015 The Finance Commission of the Dutch parliament discussed monetary reform.

22 November. The British parliament debated money creation last week, for the first time in 170 years. There was cross-party support for a proposal to set up a monetary commission

23 September. A new generation of young people, dubbed ''property orphans'' may be destined to be renters for life.

17 September. The Bank of International Settlements (BIS), the bank used by central banks, confirmed New Zealand houses are among the most "unaffordable" in the world compared to people's incomes.

25th April 2014 "Strip private banks of their power to create money": says the Financial Times' chief economics commentator Martin Wolf, who endorses Positive Money's proposals for reform

15th March 2014 - In a historic move The Bank of England quarterly bulletin explains how money is created. Whenever a bank makes a loan, it creates a deposit in the borrower's bank account, thereby creating new money. The bank says that this differs from the story found in some economics textbooks.

16th August 2013. The retiring head of the Financial Markets Authority apologised for the mistakes made saying "You were let down".

 

“The banks do create money. They have been doing it for a long time, but they didn’t realise it, and they did not admit it. Very few did. You will find it in all sorts of documents, financial textbooks, etc. But in the intervening years, and we must be perfectly frank about these things, there has been a development of thought, until today I doubt very much whether you would get many prominent bankers to attempt to deny that banks create it.”

H W White, Chairman of the Associated Banks of New Zealand, to the New Zealand Monetary Commission, 1955.

Opinion piece 27 June 2018

Plenty of money for nurses’ pay claims

With nurses set to strike over their pay claims and teachers likely to follow there is some sympathy for their plight, but the common belief is that there is no money to pay them.

Nothing can be further from the truth as there is more than enough money if our Labour government followed the lead set by the first Labour Government in 1936.

Michael Joseph Savage’s Government used Reserve Bank Credit to finance the construction of state houses and vital infrastructure which injected millions of pounds into the economy and enabled New Zealand to emerge from the Great Depression sooner than most countries.

The Hansard record (page 157) of the parliamentary debate that introduced the legislation had the following quote from our then Prime Minister: “I was accused by the previous speaker of saying, during the election campaign, that we were going to increase wages, pensions, and the like. I plead guilty, and I want to know from the right honourable gentleman what else is worth living for?”

The election advertisement below from the 1930s could almost apply to the current day as the then Labour Government built thousands of state houses with Reserve Bank Credit.

No need for our Minister Twyford to look overseas for funding for the current KiwiBuild programme as there is interest free money available right here and now.

Returning to the 1930s, the injection of Government money into the economy put money in people’s pockets and freed up tax money to finance a Social Welfare system that became the envy of the world. Such a thing was unthinkable a mere three years prior to the introduction of the legislation.

While things have certainly changed since the 1930s, an IMF discussion paper titled The Chicago Plan Revisited, issued in 2014 endorsed a similar approach to that taken by our first Labour government. In fact, it went even further.

The IMF paper said that 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 would drop to zero.

We do not need to restrict the legitimate pay claims of our civil servants. All that needs to be done is repeat what worked before and enable our Reserve Bank to issue credit for housing and infrastructure projects. This will free up tax money for other purposes including providing our civil servants with a proper wage and stemming the tide of those leaving our shores in search of decent pay.

For information, contact Don Richards National Spokesperson for Positive Money New Zealand

Email address hm info@positivemoney.org.nz

Cell: 0274 778 147

Phone wk: 07 307 1158

Phone hm: 07 307 9366

ENDS

 

 

 

MoST Content Management V3.0.6838