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We'll put in place
an economic system
that's better for people
and the planet
Chris Leitch - Leader
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Our Position
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LATEST PRESS RELEASES
Economic Policy
$20 billion annually funded from the Reserve Bank
"If this government is serious – and it should be - about supporting economic activity and avoiding deflation by a massive fiscal spending package, financing its package by issuing money in the current circumstances has impeccable support from mainstream economic thinking. The govt should not continue to be prisoners of outmoded, arch-conservative political doctrines."
"What the Reserve Bank needs to do now is to make clear that it can and will purchase government bonds directly from the Treasury at 0%. These funds should be used to fund the current and forthcoming economic support packages. This new money must go directly into the economy, and not slosh about the banking system."
Paul Keating, former Australian Treasurer, and Prime Minister.
Australia’s Reserve Bank should buy govt bonds directly from Treasury instead of on the secondary market. In a letter he criticised Australian Reserve Bank officials for lacking the courage to break with economic orthodoxy and to allow monetary financing of deficit spending.
Experts say
"Stop borrowing".
"Use the Reserve Bank
to fund the govt directly"
"Use New Zealand's
own bank
to fund the Covid19
rescue package"
"The government can borrow from the Reserve Bank. To be technical it's literally borrowing from itself. We just should not close off any [options] just because somebody told us 30 years ago that it was bad."
"I don’t see why we don’t jump straight to the RBNZ buying bonds from Treasury direct.
"It’s a question of how long do you wait until you get there,” he said, noting that as govts around the world issue bonds to pay for COVID-19, central banks will have to step in and buy these bonds."
"There's no reason why you don't get the Reserve Bank to effectively print the money and lend it to the government, just as the Reserve Bank did in 1935, when it lent money to the govt to build state houses."
If the bank was going to continue printing money, this should be used to buy more Govt debt [directly] to finance things like building homes and infrastructure
These experts want Government to 'direct fund' the economic rescue package from the Reserve Bank
The Reserve Bank has created around $60 billion in new money
in the past 2 years. It's gone to commercial banks and rich investors.
Meanwhile the government will be borrowing up to $204 billion by 2024.
$5 billion every year of your taxes will be paying interest
- providing big profits for bank shareholders and wealthy investors.
The government could access funds direct from the Reserve Bank
at no cost to taxpayers (as recommended by the experts above),
rather than through private sector borrowing.
Your taxes should go into hospitals, schools, poverty reduction,
housing, and infrastructure where they belong.
******************************
Reserve Bank bond sales the ultimate in madness
Having gone halfway to economic madness with its purchase of $53 billion in government bonds (IOUs for government borrowing) from the country’s commercial banks and financial institutions through its Large Scale Asset Purchase programme, the Reserve Bank has now gone the whole hog and decided to sell those bonds to the New Zealand Debt Management Office, a branch of the Treasury which manages the government’s borrowing, which sold those bonds to the commercial banks and financial institutions in the first place.
So the government is going to borrow from other banks and financial institutions so that it can purchase its own debt (bonds/IOUs) from its own bank (Reserve Bank) and pay a higher interest rate than what it’s paying to its own bank now.
Not only that, but the interest the government has been paying to the Reserve Bank generated profits for the Bank which it pays to the government as the owner of the bank. The borrowing was effectively costing taxpayers zero.
That won’t be the case when the government borrows from the commercial banks to buy the bonds the Reserve Bank is selling back to the DMO.
The new borrowing will cost taxpayers plenty.
Social Credit Key Principles
Businesses owned by Kiwis, employing Kiwis, benefitting Kiwis, looking after our environment
Control of New Zealand's economic affairs recovered and greater political and international independence
With increasing automation, incomes maintained so that all may share the benefits, not just those at the top
Systems and an economy that serve people, not big corporates, overseas owners, and speculators
Every year government wastes $5,000,000,000 of taxpayer's money
paying interest on its borrowing
when that $5 billion could go into things that benefit New Zealanders.
$14 million every day, wasted because the government won't access funds from New Zealand's own bank (the Reserve Bank) at no interest.
Instead it funnels your money into the profits of foreign owned lenders.
We've been right all along about banks creating money. We'll restore that right to the Reserve Bank.
These experts (and many others) say banks create money out of thin air with a few computer keystrokes when they make loans.
Yet our government and councils borrow that 'funny money'. They also source funds from other overseas owned institutions.
"Banks create their own funds, deposits, in the act of lending. This can be verified in many central bank statements"
Michael Kumhof
Senior Research Advisor
Bank of England
Here's what could be done with that $5 Billion every year
if the government simply used its own bank !
We will restore the right of the nation to create
its own money for much needed public expenditure,
using New Zealand’s own bank (the Reserve Bank)
Adam is joining Social Credit.
Find out why in 60 seconds
These people joined Social Credit.
Read why here
I'm Callan Neylon - I'm very concerned about New Zealand's future both for me and for other people my age. I'm working for Social Credit because they’re the only party that has innovative, forward thinking economic and
environmental policies that will provide the best future for the youth of today and generations to come.
Callan Neylon
Young Social Credit member
Chris Leitch
Leader
Social Credit has always been way ahead of its time with its ideas, in particular the use of the country's Central Bank - the Reserve Bank - to fund much of the country's development. This concept is being supported internationally by economists, economics professors, world leading financial journalists and a growing body of NZ commentators. Banks like Westpac, ANZ, BNZ, and ASB currently produce 98 percent of the country's money supply when they make loans, creating that money out of thin air. This allows them to generate massive profits which are taken out of the country, adding to our overseas debt. Social Credit would reduce their ability to create so much debt and ensure the creation of our money supply was used to benefit all New Zealanders. We urge you to look at our other innovative, forward looking policies.
Social Credit policy was way ahead of its time in 1973 and still is!
Support our efforts to create a better New Zealand
for all New Zealanders and for the planet.