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Government Pays Out Counterfeiters
5 Aug 2018
Chris Leitch

The government has put paying out counterfeiters ahead of children’s education and health care on its list of priorities.

With a nurses strike already having disrupted hospitals and a teachers strike looming those priorities urgently need to change.

According to Mervyn King, former governor of the Bank of England, “When banks extend loans to customers, they create money by crediting their customer’s accounts”.

This is backed up by former governor of the Bank of Canada, Graham Towers - “Each and every time a bank makes a loan, new bank credit is created – brand new money”.

And by local commentator Bernard Hickey – “at the moment, it is private banks that print money. They invent money out of nothing whenever they lend”.

So if banks are creating new money out of thin air, just like counterfeiters do, then why is the government paying four thousand five hundred million dollars every year in interest on counterfeit loans, then claiming there’s no money for teachers and nurses?

An International Monetary Fund report recommends the government should source those loans from the Reserve Bank, which it owns, at no interest.

If the Prime Minister really wants “to foster a kinder, more caring  society” it’s time to put her money (or rather taxpayer’s money) where her mouth is.

That means putting a decent education for our children and world class health care for the elderly, the sick and the injured, ahead of massive profits for overseas owned counterfeiting banks.

Teachers, doctors, police, nurses, IRD staff and other public servants need  better pay, more staff and support, and better facilities if they’re  going to be able to play their part in creating that “caring society”.

The National Party created the uncaring society we have today.

The Labour, NZ First, Greens coalition has the chance to prove their economic policy is not the same as National’s and to use that $4.5  billion in wasted interest to turn that uncaring society around.

IMF Report Conclusions

IMF Full Report

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