Skip to main content

“You’ve got to remember - Banks Create Credit”

“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 time to take the ‘trick’ out of confidence. It’s time to take the power to create the nation’s money supply back into the hands of a publicly owned credit authority, for the good of all New Zealand citizens.

Comments

Post a Comment

Popular posts from this blog

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. Fa...
9 comments
Read more

Show Me the “Monetary Reform” David Cunliffe!

Show Me the “Monetary Reform” David Cunliffe! Following Phil Goff’s release of Labour’s Finance Manifesto today, David Cunliffe has said in a New Zealand Labour Party press release : “Labour is backing the drive for more high value exports with monetary reform ...” I challenge David Cunliffe, Labour’s Finance Spokesperson, to front up and explain what he means by the term ‘monetary reform’. If he means replacing toxic debt-based commercial bank credit with social credit, as the sole means of money coming into existence and continuing to exist – issued in the public interest, to serve the common good - then I would endorse his definition. And if he accepts that it’s crazy for our government to borrow from foreign lenders, with interest, when we could use the publicly-owned Reserve Bank of New Zealand as an independent statutory monetary authority with the sole power to create, issue, and cancel New Zealand’s money, then I applaud his endeavours. But if Mr. Cunliffe thinks ‘mo...
2 comments
Read more

Raise super age, doctors say, and spend up on kids

New Zealand Herald 8 July 2011 has the above as the lead headline on page 2. The article continues with " Generous pensions wrong while children are living in poverty, medical trio say". New Zealanders are locked into a "them or us" mentality, instead of a "If we can afford it for them, we can afford it for us as well". Logic suggests that if New Zealanders desire particular outcomes i.e. to provide super to those over 65 years and to spend up on kids health or on any other desired outcome, then the financial system should enable those outcomes to be financially possible - subject only to the availability of people with the necessary skills, technology, resources and that all projects are also environmentally sustainable.
Post a Comment
Read more