Credit Crunch sees “Money-Power” in fewer hands

Armageddon is upon us – not as we dreamed of, where the hero finally rides in, takes over the world and rules for a 1000 years of peace and plenty - but where a few anti heroes (the big banks) ride in and gobble up the smaller fry. They plead poverty and cry ‘bail us out or no more loans’. The craven Government capitulates, borrows billions of dollars at the expense of taxpayers, and relieves the bankers of their toxic loans. The Money-Power has now tightened its grasp on the world. In the short term the money taps will not flow so freely, but the rate of debt growth will escalate as the compounding effect of higher interest rates kicks in. So what are the options? How will Cullen or English manage the financial tsunami when it hits New Zealand? We know that unfettered finance capitalism of the Rogernomics and Ruthanasia variety totally failed. We can be pretty sure the Keynesian approach of governments running deficits – pumping the economy with more and more tax payer funded debt will also fail. No nation on earth has managed to create a stable industrial economy. Neither those in positions of power nor their advisors know what is wrong, and they certainly don’t know what to do. The solution is to fill the gap between incomes and prices – not with interest bearing debt – but with a dividend to all citizens. This can only come from a publicly owned money supply and a production-based – not speculative – monetary system. The 1000 years of peace and plenty could become a reality if we stood tall - established a New Zealand Monetary Authority, used it to replace the debt-infected money supply of the old economy with a transfusion of the life blood our economy needs - New Zealand dollars uninfected by compounding interest. Instead of the power of the few it would be the power of the many.