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"Funny Money" is a term that would best describe the stupidity of our government borrowing the money it needs from overseas owned private financial institutions when it could access it from the country's central bank (the Reserve Bank), which it owns.
This means that $4,500,000,000 of taxpayer money every year goes to pay interest when it could go towards things that benefit Kiwis - like better health care, housing the homeless, fixing child poverty, better education, building houses, roads, and sewage plants, etc.
Social Credit is committed to changing that, and putting in place a financial system that really works for New Zealanders and the planet.
Latest
Local Govt Funding Submission
February 2019
Tax Working Group
Report Like
Cold Porridge
Banks Create
Money
says Brian Gaynor
- NZ Herald
The report of Michael Cullen's tax working group will be about as innovative and forward looking as a bowl of yesterday's cold porridge.
It will be as complicated to work through, and the recommendations will leave as unpleasant an after-taste for the vast majority of New Zealanders.
The innovations it could have shone the way on, like the scrapping of GST at 15% and the introduction of a financial transaction tax at under 1% will be sadly missing.
A FTT would automatically haul into the net the likes of Google and Facebook, along with a raft of speculative fancy financial transactions that currently escape GST.
The irony is that the working group will have cost taxpayers several million dollars to propose a more complex tax system that will extract more money out of their pockets and benefit only accountants and tax lawyers.

Over the last 30 years local councils have seen significantly increased demands being placed on their funding, organisational, and service delivery capabilities.
Councils have been able to increase rates and charges to fund some of those requirements, but that is being constrained due to the country’s aging population, with more ratepayers on fixed incomes, and due to the fact that New Zealand is operating a low wage economy, meaning the majority of wage earners are already living with household budgets under stress.
Many councils have joined the Local Government Funding Agency in an effort to obtain better borrowing rates. The LGFA website says ‘We provide investors with a new source of securities rated at AA+ by international credit ratings agencies’. Ratepayers expect the money they pay to go towards providing services in their area, not to be the source of a significant contribution to the development of Capital Markets for wealthy investors.
Already over $800 million dollars of taxpayers money is spent every year on paying interest on council borrowing.
There is however another funding option that has not been investigated by local government New Zealand or by individual councils.
 
We've said, since the 1920's, that banks create money - they don't lend  money people deposit with them.
We've been called cranks, and "the funny  money' party.
Now, yet another one of NZ's leading economic commentators, Brian Gaynor, says the same thing.
'As with most other modern economies, notes and coins created by central banks comprise only a small proportion of the total.'
'Banks create money by lending to individuals who immediately place these borrowings on deposit.'
'Central banks have been reluctant to highlight the banking sector's  money creation activities but this silence was broken in 2014 by two  studies from the Bank of England, the UK central bank.'
We were right all along.
We'll reign the banks in.



THE MORE THINGS CHANGE . . .
Thoughts about Waitangi Day by Gloria Bruni channelling historian Michael King

In 1832 James Busby was appointed the first British Resident in New Zealand.

Under directions from his immediate boss, the Governor of New South Wales, his brief was to protect “well disposed” settlers and traders, prevent exploitation of Maori by Europeans and outrages against them. He was given no means of enforcement and came in time to be called, 'Man O'war without guns'.  (In 2019 - Border protection? Protection for contract labourers?)

Busby was also told to encourage Maori to embrace a “more settled form of government” - nation building. That would make a foundation for having a flag - something New   Zealand trading vessels felt the need of.

So Busby called a flag meeting. 22 chiefs, who had no input to flag designs, were asked to pick one best option of three flags flying over Waitangi.  (Sort of a flying-flag referendum). They chose what officials then called “Flag of Independent Tribes of New Zealand”.

Busby marked the occasion with pomp, a 21-gun salute and a slap-up elegant lunch for the gathered Europeans. Cold porridge for the Maori dignitaries, which they were obliged to eat with their fingers.

To a second contrived “ceremony” Busby invited the original 22 chiefs and a few more.  This time they were asked to sign a document they'd never seen – “A Declaration of the Independence of New Zealand”.  It was then officially declared to represent the “Confederation of United Tribes” (Like the united Nga Pui?)

This effort was aimed at knobelling French adventurer and wanna-be colony developer, Charles de Thierry.  Another caldron of cold porridge rewarded the Maori chiefs.

A few years further on, with Edward Gibbon Wakefield making his own moves as a colony-developer and Busby moaning to London about “the accumulating evils of permanent anarchy”, the British Government sent William Hobson to establish a British Colony in New   Zealand. Hobson had to stop in Australia to be sworn in as Lieutenant Governor of New South Wales.

The plan being that New   Zealand would be a NSW dependency.  While there Hobson chose a handful of men to form the nucleus of a Civil Service. Nearly all proved unsuited for their respective tasks.  (Sounds like the new Government cabinet.)

Hobson arrived at Waitangi and considered the site suitable for the various ceremonies he would need to organise. Pages 157 – 167 of Michael King's History of New Zealand details the rushing, mistranslating, occasional misleading, and frequent bungling which produced the Treaty in four days! (Like rushed law making today.)

King begins that section with an observation about naming the treaty for the river Waitangi: 'waters of lamentation'

It would turn out to be an appropriate label to attach to the treaty signed in the vicinity in February 1840. While the treaty was in part a product of  the most benevolent instincts of British humanitarianism, and those who signed it on 6 February had the highest possible hope for benign outcomes, the document would turn out to be the most contentious and problematic ingredient in New Zealand's national life.”

Not least because, in general, we know so very little about it.


Kiwis Should Move Their Accounts to a NZ Owned Bank
Media Release 01.01.2019
Chris Leitch, Leader
Kiwis should make a New Year’s resolution to move their bank accounts to Kiwibank, or one of the other wholly owned New Zealand banks, said Social Credit Leader Chris Leitch.
The big four Aussie owned banks dragged over $5,128 million in profit out of the back pockets of Kiwis last year – four times more profit than the 10 largest companies on the NZ Stock Exchange.
Those profits have increased substantially over the past few years, proving the banks are huge money-making machines who ship the majority of it offshore to their Australian and US owners.
Most of the profit was made by the banks charging fees and interest on money they didn’t have - money created on their computer keyboards at the time of the loan.
The idea that banks lend out money people deposit with them is a myth, a fact confirmed by Mervyn King, Governor of the Bank of England from 2003 to 2013.
Had even a quarter of that massive profit gone instead to Kiwibank, dividends to the Government would have provided over a billion dollars extra for health care, and education.
National Hypocrites Over Surf Lifesaving Funding
Media Release 23.12.2018
Chris Leitch, Leader
The National Party’s launch of a petition calling for government funding for surf lifesavers is one of the most hypocritical actions by a political party in recent memory.
National had nine years in government during which it could have done exactly what the petition is calling for, but it didn’t.
Instead it was the biggest slasher of funding ever, to numerous organisations that provided much needed community services.
In 2016 District Health Board budgets were cut by $138 million, meaning psychological services in Canterbury faced cuts from $1.6 million to $200,000, while trauma counselling was halved to $400,000.
Also in 2016 they cut $7.3 million for Parents as First Teachers, and operational grants for public schools were frozen. In 2009 $13 million was cut from adult community education, and a 2017 study showed cuts of $260 million per year for preschool childcare and education since 2010.
National denied there was a housing crisis while selling off thousands of state houses, and extracted $664 million in dividends over seven years from Housing NZ that could have been spent on new houses, all while immigration was running at record levels exceeding 70,000 per year.
The government should access its funding from the central bank and free up $4.5 billion per year for lifesavers and a host of other groups, along with hospitals, and schools.
Govt Should Invest in Waste to Energy Plant
Media Release 13.11.2018
Chris Leitch, Leader
The Government should invest in building a waste to energy plant south of Auckland.
Landfills are the least preferable option for rubbish disposal, and with new technologies, waste to energy plants have the potential to be carbon negative.
In addition the government should pass legislation requiring at least 60% of waste to be re-processed by 2025 rather than being dumped into landfills.
A planned new rubbish dump site in the Dome Valley will cover 1000 hectares and, in addition to being a blot on the landscape, will waste an enormous resource that could be turned into profit.
While the vast majority of waste collected in New Zealand goes into rubbish dumps, waste to energy plants like those in Norway recycle a much greater amount of usable material from the waste stream, and what is left is burnt at very high temperatures and turned into energy.


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Social Credit NZ
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