Q3 - Social Credit Association

"The Social Credit Association aims to put in place
an economic system that works for people and the planet"  
Chris Leitch - President
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Will the use of an interest free overdraft from the Reserve Bank cause inflation?

No,the use of this overdraft money from the Reserve Bank will replace the  use of an overdraft facility or loan previously sourced from a private banking institution.

Present interest rates will be reduced drastically. This cost that contributes significantly to rising prices will have less effect.

Money will only be issued relative to production and to raw materials and labour available.

We will set up an authority free of political control to ensure that the money supply is balanced against available goods and services, so that demand inflation can not occur.

Inflation is not always the simple process of too much money chasing too few goods. Other factors can push prices up, e.g. a rise in oil prices, or interest rates.

Les Hunter (Courage To Change - 2002) compared inflation with the volume of  money as a proportion of gross production in the seventies which showed  clearly that the credit squeeze to reduce the money volume was accompanied by increased inflation.

As the money supply dropped from over 30 % to below 15%, price rises rose from about 4% to about 15%. Anyone can verify these figures from official publications. It seems the economists never have.
 We aim to encourage real competition between banks; we will supply the nation's need for money, from a very efficient and cost effective source.
The pressure on real inflation will be reduced as the lower cost of borrowing will see reduced pressure on taxes and rates.
© Copyright 2020   NZ Social Credit Association
Authorised by Anne Leitch, Secretary ,42 Reyburn House Lane, Whangarei
If you want
 - Better Housing           - More Say
 - Better Roads         - Lower Rates
 - Better Health Care     - Less Tax
 - Better Education  - Clean Rivers
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