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".

 

Leo Tolstoy“Money is a new form of slavery, and distinguishable from the old simply by the fact that it is impersonal – that there is no human relation between master and slave.”

Leo Tolstoy, Russian writer

Our petition

We have launched a petition to parliament asking the House of Representatives to inquire into giving the Reserve Bank of New Zealand the sole ability to issue all New Zealand money, whether notes, coins, or electronic. Our Taranaki spokesperson Stuart Bramhall put her name to the petition as only individuals can initiate a parliamentary petition.

The petition will be a platform to educate people on the unsustainable nature of the current financial system and will inform them of our sovereign money alternative.

As we are using the parliamentary platform, the petition will ensure that a select committee be convened to consider the proposal. This will be a further opportunity to educate people, especially those on the select committee.

Followers of Positive Money New Zealand will be familiar with the problems of our current financial systems and the benefits of our Sovereign Money solution and the following is for those new to the conversation. After reading the content below we encourage you to sign the petition and browse the rest of this website.

Under our current debt-based system:

  • Private banks create 97% of our money supply, from thin air and lend that created money to you and I at compounding interest.
  • As the banks have a profit motive, they put most of that created money into housing which is low risk and provides them with a high return. This pushes up the cost of housing and starves the productive sector (where goods and services are bought and sold and people employed) of capital.
  • When loans to the banks are repaid the money is not able to be lent out again and is destroyed. The money was created from nothing and when repaid it returns to nothing. More people must get into debt than repay their debt for our economy to grow and this is unsustainable.
  • Because more people must get into debt than get out of debt, this fuels the growth imperative. The economy must grow to survive, and that requires more debt. The former governor of the Bank of England Sir Mervyn King said in 2010 “Of all the many ways of organising banking, the worst is the one we have today”.
  • Private banks make huge profits from money creation, five billion dollars in 2017, with most of that money going overseas. That creates a huge hole in our economy.
  • The Government borrows money from the banks to fund infrastructure projects such as roads, schools and hospitals paying five billion dollars a year in interest payments alone, when it does not need to.

Under the sovereign money solution:

  • The Reserve Bank would create all of our money supply with an independent Monetary Policy Committee deciding how much money would be created.
  • The newly created money would be spent into the economy for infrastructure projects and housing saving billions of tax dollars.

    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. It proved to be highly successful and allowed for the creation of the welfare state.



  • There would be a place for banks, but they would no longer be able to create money. They would need to get the money from those willing to invest. Their profits would be reduced to a sustainable level.
  • Money from loans, once repaid, would be available to be loaned out again. This would reduce the growth imperative and our economy would grow organically.
  • The cost of housing would stabilise over time as banks could only lend out what they had on deposit.
  • The Reserve Bank would provide money to the banks to lend for the productive economy. This will allow the productive economy to grow and take on more staff. More tax would be paid.
  • Taxation moneys that had previously been earmarked for infrastructure projects would be available to address child poverty, inequality, mental health issues and homelessness. Alternatively taxes could be reduced.

An IMF discussion paper titled The Chicago Plan Revisited, endorsed an approach similar to our petition. Issued in 2014, the paper said that bank’s ability to create money ex nihilo (out of nothing) created instability through boom and bust cycles. In addition, it said there was the possibility of runs on the bank as the banks liabilities exceeded the amount of available credit.

According to the IMF discussion paper, 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.

With a sovereign money solution, we will have a sustainable financial system that cares for society and provides a future for the people of New Zealand free from the crippling effects of too much debt. Please take the time to sign the petition.

 

 

 

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