Monetary Justice

The Reserve Bank Governor, Dr. Alan Bollard should not be so predictable. Every orthodox economist and their unthinking hangers-on, the media, had the one percent OCR drop sussed weeks ago. When it is obvious to thinking New Zealanders that the current financial meltdown has been caused by economic orthodoxy, then it should have been obvious to Bollard that orthodox solutions are bound to fail – at best a one percent drop is but another stop-gap measure. Bollard should have announced: ‘The Reserve Bank has established a credit facility for the Finance Minister to use on behalf of the Crown. This facility is of a similar nature to that recently established to assist Trading Bank liquidity but will be accessible at the cost of administration only - less than 1% interest. ‘The Government would be able to borrow from this facility to fund or refinance any of its current borrowing requirements. Funds would also be available for any of the Government’s proposed infrastructural developm

French President, Nicolas Sarkozy, got it right when he told the EU leaders at their 15 October 2008 Summit meeting ‘We need to found a new capitalism based on values that put finance at the service of companies and citizens and not the reverse'. DSC got it right decades ago when they established one of the tenets: ‘Systems should be made for people, not people for systems; any that fail to serve people should be reformed or discarded.’ It has been clear to us (DSC) that the orthodox financial system has never served companies or citizens; in fact quite the reverse has been the case. We have been but mere tokens in a game of monopoly, where the illusion of power and decision making was ours - but in reality the power lies with the Banks and we are the servants. DSC believes that any steps taken by governments to treat the immediate symptoms of the current financial crisis without attacking the roots of the disease will merely perpetuate the problem, while an opportunity for real

Growth - the only solution offered by the major players in New Zealand politics. The National Party in particular trot out their mantra " We have policies to get growth back into our economy". The DSC Plan for Financial reform details the mechanisms and tools to establish a just financial system. Once the plan is implemented many other serious issues which face our planet and our people can then be addressed. The following comments have been extracted from the DSC submission to the "Inquiry into the future monetary policy framework" - Issue IV. New Zealand economy’s capacity for non-inflationary growth and how it can be improved. Our reply: DSC believes that under the current financial system “non-inflationary growth” is impossible,as all growth is dependant on borrowed money which incurs interest, which must then be added into prices. Thus the price of money contributes to cost inflation. Whether the economy has been managed in a monetarist way or a fiscal way

Today the Democrats for social credit Leadership released a 7 point plan designed to establish the framework for a social credit economy in New Zealand. Leader Stephnie de Ruyter and Deputy Leader John Pemberton said the DSC Plan for Financial Reform offers a workable solution to the financial turmoil resulting from the global credit crisis. The following 7 point plan will reform the inherently unstable financial system. This is achieved by replacing toxic debt-based commercial bank credit with social credit. The issue of social credit will be the sole means of money coming into existence and continuing to exist – and will be issued in the public interest, to serve the common good. 1. ‘Monetary Authority New Zealand (MANZ)’ will be established as the only institution with the power to create, issue, and cancel New Zealand’s money. 2. Trading Banks will become licenced agents of MANZ. Trading Banks will only be able to advance to their customers that money which has been made availa

“You’ve got to remember – banks create credit, they lend it to companies and that creates growth.” - John Key, Leader of the National Party, on Television New Zealand Breakfast programme, 9 October 2008. John Key, on national television, has admitted to the people of New Zealand the truth about money which social crediters have known for decades. Where are the howls of derision from the Labour pack? Where are the cries of ‘funny money’? Only a thundering silence, because to deny that banks create credit is to deny the very existence of the global financial meltdown. No longer can politicians, money market managers and economists hide behind the claim that banks only lend other people’s savings. John Key has naively let the cat out of the bag, and we thank him for that. The Leader of the Opposition is perfectly right. Banks create credit out of thin air, lend it to companies and charge interest for the privilege. The entire world economy is based on this one confidence trick. It’s

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