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an economic system that works for people and the planet"  
Chris Leitch - President
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Social Credit is not Funny Money !
"Funny Money" is a term that would best describe the stupidity of our government and councils borrowing the money they need from overseas owned private financial institutions when they could access it from the country's central bank (the Reserve Bank), which the Government owns.
Currently $5,000,000,000 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, fully funding St Johns Ambulance, etc.
Locally, economists like Dr Geoff Bertram, Ganesh Nana, Raf Manji, Shamubeel Equab, and Jordi Gali and commentators like Bernard Hickey, and Bryan Gould are recommending that approach to help the country through the current Covid 19 crisis, and internationally that approach is being recommended.
Social Credit is committed to changing that, and putting in place a financial system that really works for New Zealanders and the planet.
Here's what could be done with that $5 Billion every year


Reserve Bank increasing kiwis debts & bank profits
 
Recent actions by the Reserve Bank and the Government will facilitate a massive transfer of wealth from citizens to the country’s banks, increasing bank profits beyond $6 billion this year.
Meanwhile kiwis are being saddled with massive additional debt and interest payments.
The Bank is buying Government Bonds (public debt) from banks and swapping it for cash – so that the banks can on-lend.
Reserve Bank governor Adrian Orr's comment that the bank would consider ‘unconventional tools’ like buying government bonds, would come as a shock to the governors of the central banks in Canada, Japan and China.
Finance Ministers in those countries have accessed funding from their central banks at zero interest for years.
The Bank of Japan has purchased approximately 50 per cent of government issued bonds, and the Chinese central bank has funded the bulk of China’s massive international Belt and Road infrastructure programme as well as regularly buying government bonds - US$151 billion in February alone.
Canada’s central bank purchases approximately 20 percent of government bonds issued every year on a regular basis.
If the NZ government financed its borrowing through the Reserve Bank it could save taxpayers $5 billion every year - money saved on interest payments on the borrowing it does from commercial banks and other financial institutions.
That $5 billion could then be spent on health services, solving the housing crisis by building rent to own homes, providing free dental care, or a multitude of other possibilities.
Currently government is effectively taking $5 billion off taxpayers every year and giving it to overseas bank shareholders and investors.
Central banks buying government bonds used to be a common occurrence. The first Labour government financed the building of thousands of state houses with Reserve Bank money.
The Commonwealth Bank (Australia’s central bank at the time) supplied the Australian government with funding for major infrastructure development.  
Commercial banks create money every time they grant a loan – to individuals to buy houses, to businesses, or to the government.
This has been confirmed by leading figures in the banking industry like Mervyn King, former governor of the Bank of England, and Graham Towers, former governor of the Bank of Canada, as well as local commentators like Bernard Hickey, Bryan Gaynor, Raf Manji, Shamubeel Equab, and Bryan Gould.
The country’s central bank, the Reserve Bank, also has that power, so if it’s good enough for Canada, Japan, and China, then Grant Robertson should be using it to benefit New Zealanders.

LATEST
Bernard Hickey recommends using Social Credit economic policy
 
In May last year Treasury suggested the government and the Reserve Bank might have to consider ‘unconventional tools’ like Quantitative Easing and helicopter money, both of which are similar to Social Credit economic ideas.
The Reserve Bank this week announced that it was preparing to undertake QE, and today on National Radio, economic commentator and Newsroom Pro editor Bernard Hickey claimed the government needed to introduce a modified version of helicopter money – using the Reserve Bank to fund a Universal Basic Income, similar to National Superannuation, for all citizens.
Social Credit terms its concept a national dividend - under normal circumstances a payment to every citizen to replace income lost by the advancement of computerised workplaces and artificial intelligence (driverless taxis, robots as carers, automated factories).
Under today’s extreme circumstances it could be used, as Bernard Hickey recommends, as a short term measure to replace income lost through job losses, workplace closures, and business failures, ensuring that people have money to put food on the table, pay their bills, and keep the economy ticking over, to avert an even worse economic collapse.
The European Central Bank has just announced it will be doing $150 billion Euros of QE immediately, buying government bonds from banks and pension funds.
Our Reserve Bank could go one step further and purchase newly issued government bonds directly, rather than existing bonds from banks, to provide the government with a source of debt-free, zero-interest money at no cost to taxpayers to fund a basic income as part of the economic rescue package.
Using that method, taxpayers will not have to pick up the long term tab for billions in interest payments and the repayment of the debt which under standard QE simply provides bigger profits for the overseas shareholders of banks and other financial institutions.
Central banks buying government bonds directly is a common occurrence in Canada, Japan and China.
The Commonwealth Bank (Australia’s central bank at the time) supplied the Australian government with funding for major infrastructure development.  
The first Labour government financed the building of thousands of state houses with Reserve Bank money.
Social Credit’s economic policies are now in demand, and we’re ready to assist the government in its efforts to help New Zealanders through the current crisis and to build a better long term future for Kiwis.
Ideological purity costing taxpayer billions
 
Over the coming decades taxpayers will spent billions of dollars paying off the government’s economic rescue package because the Reserve Bank and the Government don’t want to ”blur the lines between fiscal and monetary policy” according to RBNZ’s assistant governor, Christian Hawkesby.
 
That means funding of the rescue package will be done through an economic merry-go-round that will see a massive transfer of wealth from citizens to the mainly overseas shareholders of the country’s banks and investment funds.
 
The result will be kiwis saddled with massive additional debt and interest payments when it could have cost nothing – freeing up tax dollars to be spent on health, education, housing and infrastructure.
 
The Reserve Bank could directly fund the $52 billion package without incurring any cost to taxpayers – something called for in recent days by former Senior Lecturer at the School of Economics and Finance at Victoria University Dr Geoff Bertram.
 
That call has been echoed by economists Raf Manji and Shamubeel Eaqub and economics commentators Bernard Hickey and Bryan  Gould.
 
“This is not wild radicalism. It is mainstream, even conservative, economics,” according to Dr Bertram.
 
The Bank of England has just announced it will directly fund some of the British Government’s rescue package and there’s no bar on our Reserve Bank doing the same.
 
Instead the government is borrowing that $52 billion dollars through the sale of bonds to banks and other financial entities and investors. Those purchasers buying the newly issued government bonds are the very same people who are now flush with funds because the Reserve Bank is spending $30 billion dollars to buy from them bonds they previously held.
 
Those wealthy investors will make a substantial profit from ‘clipping the ticket’ on both transactions, and taxpayers will foot the bill.
 
$5 billion dollars of taxpayers money already goes every year to pay interest on existing government debt – money that could be spent on health services, solving the housing crisis by building rent to own homes, providing free dental care, or a multitude of other possibilities.
 
Finance Minister Grant Robertson wants to add even more to that figure. “New Zealand is in a position to continue to be able to take on debt’, he is quoted as saying.
 
The self imposed appearance of the Reserve Bank not directly financing the Government is sheer economic madness in these unprecedented times.


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Authorised by Anne Leitch, Secretary ,42 Reyburn House Lane, Whangarei
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