Monetary Justice

This election is about debt. A stampeding bull elephant, the debt-fuelled world economic crisis, is about to stomp on New Zealand. We have escaped serious damage so far because of the relatively simple nature of our lending practices. But the bull elephant is getting closer. At the end of March 2008, this country’s total debt was at least $492.6 billion. On average, that’s a debt of $115,937 per man, woman and child in New Zealand. A family of four shoulders a debt burden of almost $500,000, and it is going to go higher. This figure includes personal debt, and the debt we service indirectly through taxes, rates and the price of goods and services. Debt is an issue that ought to be hard to ignore. And yet it is ignored. One major party talks about ‘trust’ and another one about ‘a fresh approach’ this election, while the media have a feeding frenzy over a minor party’s alleged financial peccadilloes. No-one is talking about the charging bull elephant, except for the damage he is doi...

Despite significant further turbulence in the US and global financial markets, Reserve Bank Governor Alan Bollard says the New Zealand banking system remains sound. Yeah, right! The New Zealand banking system is so sound, the Reserve Bank is gearing up a further back stop, just in case the financial pandemic reaches our shores. Yet the RBNZ medication may be too late - the contagion has already reached many of our finance companies. The current world economy, which most New Zealand banks and financial institutions are very much a part of, has suffered high fevers of speculation, money supply obesity and a paralysing inflation rate that is already damaging people’s lives and families. Overseas back-stops and bail-outs are at the expense of ordinary people, and do nothing more than provide life-support for a diseased financial system that ought to be allowed to die. It’s medical chart should say Do not resuscitate. New Zealand has the opportunity to thrive in a healthy economy that h...