A major Government investigation into housing affordability reached this conclusion:
“With deregulation in the early 1990s improving banks’ access to an under-leveraged household sector and perceptions that mortgage lending is ‘as safe as houses’, the expansion of the banking sector into the home lending market was a natural development. In large part, this explains the ready availability of money for housing, which, in turn, most likely contributed to surges in house prices in the mid-1990s and mid-2000s.”
NZ Productivity Commission: Housing affordability inquiry, March 2012, p53 (emphasis ours)
About Positive Money NZ
Help us to change this flawed system. Positive Money NZ is an independent, non-profit group advocating for monetary reform in New Zealand. Our patron is Bryan Gould and we are part of a global movement of organisations campaigning to change the way money is created so that money serves society.
This isn’t new. We’ve been here before.
Foreign bankers used to control New Zealand’s money … until 1934 when we took back control.
Believe it or not, before 1934 New Zealand’s monetary policy was directed from the United Kingdom and our money was issued by various private banks.
In 1934, in the midst of the Great Depression, the Reserve Bank of New Zealand was created through an act of Parliament. This brought control of money and monetary policy to New Zealand and gave the Reserve Bank the monopoly to issue all New Zealand currency.
Initially partly privately owned, the Bank was nationalised in 1935 by a newly elected Labour government which also gave it authority to underwrite loans to the government.
The government used this power to support its massive State house-building programme and provide loans for industry development. This began the ‘cradle to grave’ welfare state, providing health care, education, a universal pension, and ushered in our most prosperous period.
The private banks are back in control of the money-printing machine. It’s time again to take back control.
Help us to achieve real change in our money system and make sure that it works for the public good not just for private profits.
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