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The Reserve Bank of New Zealand

New Zealand's Central Reserve Bank is STATE owned. Despite that, instead of being used for the benefit of its owners, the people of New Zealand, successive Governments have:
  • Allowed the foreign-owned trading banks to create and issue nearly all of the nation's money supply and claim it as their own. Notes and coins make up less than three percent of the money in circulation. Ninety seven percent of our money supply is on loan to us at interest from those banks.
  • Actively encouraged banks to charge "rental" for this money at some of the highest interest rates in the developed world.
  • Used high interest rates as a blunt lever to control inflation, while agreeing to exclude the resultant costs from the Price Index, so that their cost-inflationary effects do not allow pensions and awards to compensate for these.
  • Deliberately used interest rate fluctuations to maintain an unemployed "pool" of about four percent of the workforce in order to hold down wage rates.
  • Failed to use this nation's own money for non-commercial infrastructural works at either national or local level, so that interest charges double or treble the costs of non-commercial projects.
  • Developed a skill-deficient, low wage economy.

A Democrat for social credit (DSC) Government will:

  • Claim back the right to control the creation of our nation's money, so that it works for New Zealanders rather than the shareholders of foreign multinationals.

  • Employ a system of accurate national accounting, by a non-political independent body of the status of the Judiciary, to determine accurately the monetary needs of the New Zealand economy. This will avoid either demand inflation or deflation, and will ensure less dependence on debt to buy the goods and services we all need for the standard of living we justly deserve.

  • Deliver interest-free funding from the Reserve Bank for local and central government assets, thus reducing debt by eliminating the interest component of the loan. These measures will enable permanent long term tax reductions.

  • Guarantee a tax free income sufficient to live in dignity for all New Zealand citizens. As our economy recovers sufficiently from present and past mismanagement.

Comments

Anonymous said…
Hi John,

I hadn’t thought about where money comes from before. Either you have it or you don’t, right? And if you don’t, you have to borrow. Where it comes from is not something most people think about, and maybe we should.

One thing worries me about your plan, though. If the Government takes over creating money, won’t it make the Government too powerful?

Just a thought.

Katy Bess
John Pemberton said…
Hi Katy Bess

I acknowledge your worry about governments having too much power, but private corporations holding this power as they do currently, is an even greater worry.

Having our money supply in the hands of faceless shareholders (In New Zealand’s case these are overseas shareholders) is far more dangerous.

At least with governments they are elected by the people and we have the opportunity to remove them if necessary.

I am also a supporter of Binding Citizen Intitated Referenda which would give voters even greater power to participate in decision making.

I also make the point that a non-political independent body would determine accurately the monetary needs of our economy.
Anonymous said…
Hi -question this basic income sounds great but how is to be paid for - dont we get taxed enough these days -heck with increase in price in petrol/ desiel so has the GST intake gone up -hows a person suppose to meet all these demands on my near fixed income.

Pauline
John Pemberton said…
Hi Pauline,

Whoever decides to implement the Universal Basic Income would know where the money was coming from and would have sought electoral approval for the proposal.

Taxation is one option, but I favour a mixture of options:

1. Utilising the current amount collected by taxation to fund the current welfare system plus the savings made in getting rid of the bureaucratic administration costs of the current system.

2. By a non-inflationary issue of the public credit from a Publicly owned Reserve/Central Bank.

3. By the receipt of dividends from ownership of shares of publicly owned and in some cases privately owned ventures.

As the benefits, are realised from the implementation of the policies out lined in the above post, our debt servicing costs for infrastructure debts are reduced, the funding shortfalls for health and education systems have been caught up with and even the improved health and well-being of us all, will see less calls made on our tax dollars.

A change to the current debt-based monetary system could well see the costs for taxpayers to be less, to fund a basic income to all, than the cost of the current welfare system.
Anonymous said…
Hi John.
How much of the interest charged by trading banks is a profit?
Is the 9%-10% charged by banks kept by them or is most paid to depositors or to the Reserve Bank?
Also, I read that if all debts were repaid there would me no more money.
So what would happen to the money I have in my savings account?
Thanks
Steve
Anonymous said…
Hi fellow DSC members and fellow commoners,
For the last ten years I have been studying the history of the impact of money upon human development and have a level 3 certificate in public sector knowledge of NZ. My young family and I returned 3 years ago from a ten year stint in Australia. Until recently I was feeling rather lonely sussing out the monetary reform situation in NZ, not realising that the Social Credit party any longer existed. But when I did finally come across your website under the new name of Democrats for Social Credit, My spirits lifted and I no longer feel quite so lonely or slightly insane, as it can sometimes feel, knowing of an almost in comprehendible terrible thing that most poor buggers have not an inkling of. I received the two issues of The Guardian Political Review and my moral was lifted even further, wow there is quite a number of studied individuals on monetary matters in NZ, what a most informative instrument. I have been participating in the public forum on the website, what a wonderful release, talking to people not having to begin from scratch, risking ridicule. As usual when discussing international monetary policy with those with a knowledge of it, there are those that believe the game is already up, that those at the centre of the scam now have to much power and control of information to ever be challenged and the common peoples slide back to serfdom in caste class systems is inevitable.
I don’t belong to this group, but I do however believe that in sporting terms we are one minute into five minutes of injury time needing to score twice, 2 sets down facing match point in the 3rd, the game is not over but we are in urgency, some serious composure and focus is required, or the writing will, in very short time, be on the wall. I will now put forward my evidence for amicable debate as to why I believe this is so. We know that the individual banks, privately owned by intermarried old money family empires, widely known collectively as the international central banking network, operate behind their fronts, the Bank of International Settlements, United Nations, International Monetary Fund and World Bank, US Federal Reserve, Bank of England, in fact every central bank of every nation, it is widely known, that for hundreds of years now they have had the power to create massive amounts of counterfeit money out of fresh air, then loan it out to all in sundry at interest. (http://www.xat.org/xat/moneyhistory.html , http://www.imfsite.org/reform/meltzer.html , http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/EXTARCHIVES/0,,contentMDK:20059608~pagePK:36726~piPK:36092~theSitePK:29506,00.html, These websites put it in plain language, if you, as I were, are not yet convinced, please Google all the terms and go deep, I wager you will find as I did, the weight of evidence is to much to deny. ). They then use these ill gotten proceeds of crime to buy everything and everyone via their subsidiary trans-national corporations, of which a central banks subsidiary can be found as controlling stakeholder of most any of the worlds largest monopolising conglomerates. So they not only scam the central banking system, but hold controlling stakes, via subsidiary corporations, of most all commercial and investment banks on the planet, not to mention most every countries utilities of necessity. Understanding this and what is known as Fractional Prudential Reserve Banking is crucial to understanding the overall enslavement by debt plot. Fractional Prudential Reserve Banking are banking regulations created by the crooked central bankers which means a bank only has to retain on hand roughly 10% of deposits it takes in, what they call capital adequacy requirements, and can loan the 90% back into society at interest. When to many depositors of a commercial bank come in at once wishing to draw out their money, the bank does not have it, so has to turn to the central bankers for an injection of their counterfeit currency to meet its obligations or be exposed for the hoax that it is. Thus what is known is the “business cycle” is little more than the commercial and investment banks, subsidiaries of the central banks filling economies up with more loans than they can physically ever repay, when society has that much debt it starts to fail to be able to make its payments, it drops the commercial banks below their capital adequacy requirements, thus requiring injections of counterfeit cash from their bosses, the central banks. They at the same time increase interest rates, claiming it is the country and its populations poor fiscal management that has caused its predicament, also foreclosing and selling cheaply, normally to colluding commerce elite, any assets the poor commoners had their phoney loans secured against, they then begin the process all over again, every time gaining more houses, more farms, more of a nations necessities, more total control. Thus I put it to you that the shear quantities of counterfeit money they are now producing has far exceeded any time in recorded history ( http://www.iii.co.uk/news/?type=reutersnews&articleid=MTFH86615_2007-08-10_15-49-09_L10195866&feed=Bus&action=article, http://www.telegraph.co.uk/opinion/main.jhtml?xml=/opinion/2007/11/16/do1601.xml, http://business.timesonline.co.uk/tol/business/economics/article3041123.ece, once again if you disbelieve, Google till your hearts content, I wager the weight of evidence is just to great to ignore) I for these reasons put it to you, that unless a concerted international alliance of monetary reform occurs in the very near future, you can forget Custer’s last stand, it may well be the commoners last stand, only he didn’t fire a shot, and he paid for the arms of his enemy.

Iain
sffp said…
Hi John,
The Doctors strike got me thinking and I created the following advertisement that you may find useful.

Try Something Different

Have Courage to Change

Credit creation for NZ people instead of Debt creation for private banking

Under this regime it would be possible to:

1 Retain the majority of Doctors in NZ

2 Retain the majority of manufacturing businesses in NZ

3 Provide a livable Basic Income to every New Zealander (abolishing benefits)

4 Create all infrastructure free of debt

5 Enable a huge reduction in crime

6 Enable rate reductions through interest free loans for development

7 Enabling a resurgence in standard of living.

20% of the vote going to Democrats For Social Credit, would achieve outstanding results. It is possible! There is nothing to loose.

Give it a Try
John Pemberton said…
Hi Steve,a belated response to part one of your comment.

The net interest margin made by the BNZ year ended Sep 2007 was 2.39% (The difference between interest paid and received). That was just over $1.2 billion.

At Dec 2007 total registered banks,in NZ, earned $25.250 billion interest (An average of $5,961 per New Zealander) and spent $19.090 billion (An average of $4,507 per New Zealander). We get a net amount of $6.160 billion (An average of $1,454 per New Zealander). It should be noted that the "per New Zealander" figures are averages. A large number of us pay a huge amount of interest, whether with our own loans or as consumers paying the debt servicing of others through the prices they charge. Those that receive the larger amount of interest are certainly smaller in number. A large transfer of wealth does occurr from those who have little to those who have a lot more.

Part two to follow ...
John Pemberton said…
Hi Steve, a response to part 2 of your comment.

Just some of NZ debts as at Dec 2007, that I have listed on my web site (See "Debt and Other Data" page),come to $404.425 billion. New Zealand's total money supply at the same date was only $199.481 billion ( only $4.087 billion of that was available in notes and coins - 2.05%)

Simple maths shows that there is more debt than their is "money" to clear it.

Part 3 to follow ...

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