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".

 

Napoleon"When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes… Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.”

Napoleon Bonaparte, Emperor of France, 1815

How to protect our economy from the next GFC (Global Financial Crisis)

The New Zealand financial system is approaching crisis point due to its crippling level of private debt, which is now more than 90% of our GDP. It is now ten years on from the collapse of Lehmans Brothers in September 2008 and the start of the Global Financial Crisis and not much has changed.

Positive Money New Zealand is seeking to secure our financial future by launching a petition to give the Reserve Bank of New Zealand the exclusive ability to issue all New Zealand money, whether notes, coins, or electronic. Money issued by the Reserve Bank would be called Sovereign Money.

Our current debt-based financial system has 97% of our money supply created by private banks at the click of a button to finance loans and mortgages. Our Reserve Bank has been relegated to issuing just 3% of our money in the form of notes and coins.

Privately owned banks create money "ex nihilo" (from nothing) lending this created money to you and me with interest added. This new money is pumped into housing ensuring the cost rises out of proportion to the rest of the economy. It is how banks make huge profits with most of that money going overseas, keeping the New Zealand economy on its knees.

More people must get into debt than repay their debt for our economy to grow in a debt-based money system. Making things worse, when bank loans are repaid, the money is destroyed and can't be lent out again. The money was created from nothing and when repaid it returns to nothing.

This system of debt-based money is unsustainable. As the former governor of the Bank of England pronounced in 2010 "Of all the many ways of organising banking, the worst is the one we have today".

With the Reserve Bank creating all of our money, new money could be used to fund infrastructure projects. The money would stay in circulation, rather than being destroyed upon repayment. This is not a new idea. In 1936, after the first great depression, our Reserve Bank injected millions of pounds into our economy for infrastructure projects enabling the building of thousands of state houses. "


The election advertisement 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 dollars 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 banks 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.

By modernising our banking system by having the Reserve Bank issue all of our currency debt-free, we will have a financial system that has been proven to work rather than one that fails every 10 to 15 years.

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

 

 

 

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