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Photo credit Matt Lamers


Photo credit Matt Lamers

No choice haircuts

Whanganui Chronicle - June 26th 

(LINK to media cutting  Whanganui Chronicle 6th July 2019)

Disappointing news for anyone who prefers to choose their own haircut  style.

Sorry! You won’t be able to choose either a short back-and-sides or just a trim if your bank finds itself in trouble and needs to help itself to some of your deposits to tide it over.

This OBR (Open Banking Resolution) has been available for some years – with no protest from our politicians.  

Just as there was no protest  from any of them when in 2007 the Reserve Bank arranged a $5 billion credit-line to help the big systemic banks through their liquidity crisis. (Ref: Reserve Bank Bulletin, Vol. 74, No 2 , June 2011).  

Yet, Social Credit calls for a similar tool to be used for essential public projects have always been rejected by both Labour and National led governments.

Commenting on Finance Minister Grant Robertson’s proposed scheme to protect savings, Social Credit Leader, Chris Leitch, said the best way to minimise  commercial bank exposure to risk is for our own central RBNZ to issue most of the nation’s money supply – as it is legally permitted to do.

No haircuts needed, however fashionable.

Heather  Marion Smith - Whanganui

Taxpayers will be banks’ deposit insurance scheme backstop

(LINK to media cutting Westport News 26 June 2019)

Westport News - June 26th 

The bank deposit insurance scheme just announced by government is no more then a licence for banks to create even more money out of thin air than they already do and be less responsible about who they lend it to, knowing the taxpayer will bail them out if they get it wrong.

Taxpayers and bank customers will end up footing the bill for the new scheme as banks will pass on additional costs in their lending rates and taxpayers will be the final backstop for any bad bank decisions.

Banks already have the right to take money out of depositors’ accounts to bail themselves out should they get into financial trouble.

Why should banks which are, in the main, overseas owned corporate businesses, get bailed out for bad decisions when no such largess applies to other major New Zealand businesses like Fisher & Paykel Healthcare,  A2 milk, or Westland Milk Products.

The big four Australian based banks pulled six billion dollars in profit out of the pockets of New Zealanders last year and those profits continue to increase every year.

Those profits should be funding the banks’ own retail deposit scheme.

The Bank of England, the German Central Bank, and our own Reserve Bank, confirm that our money supply is created by banks out of thin air when they lend to customers.

The Reserve Bank (the country's central bank) should take over some of that money supply creation and use those funds for government and local body projects, to reduce the exposure of the commercial banks.

Jack Collin - Westport

Simple solution to child poverty (LINK to media cutting - ODT)

ODT - 24th June 2019
Immediately replace GST with a Financial Transactions Tax (FTT). Replacing GST with a FTT, at less than one quarter of one percent (25 cents in every $100), on all withdrawals from bank accounts would give workers across the board a substantial increase in their purchasing power. It would generate roughly the same amount in tax revenue as GST currently does, but with a substantial amount coming from the speculative sector of the economy.
That raft of financial transactions such as credit default swaps, debt securities, convertible and exchangeable bonds, currency trading, derivatives etc, currently avoid paying GST.
It would significantly benefit smaller businesses as people would have more money in their pockets.
Additionally businesses would be relieved of the burden of accounting for GST, filing
returns and audits.
It will be very simple for the banking system to implement FTT and very difficult for anyone to avoid paying it.
Banks would deduct the tax automatically, in the same way they already withdraw their
own account fees and RWT, and would remit it directly to the IRD.
The removal of GST would contribute to a reduction in child poverty by putting more
money in the hands of low paid New Zealanders, who currently pay tax far out of
proportion to their incomes.

Bob Warren - Dunedin

Ready for rail already !

Gisborne Herald - June 24th 

Forgive my complete cynicism when I heard Shane Jones disclose recently his prerequisite for getting the Gisborne end of the rail line restored: “Show me a business case” he declared, thus exposing his failure to distinguish between commercial and environmental criteria for public expenditure.

Rail infrastructure should be classed as a public good, qualifying for eco-nomic central bank nil-interest funding. As Social Credit affirmed in our submission to Gisborne District Council’s Spatial Plan last April: “The argument for restoring rail is overwhelmingly environmental.”

Good news that the Gisborne Herald poll shows continuing popular support for rail restoration — but we should worry that the BERL report is not due for another three or four months.

Strange that this should follow closely on the report due late August from the Parliamentary Select Committee on Shane Jones’s proposed NZ Infrastructure Commission.

With very little publicity, the first reading for the necessary legislation — designed to encourage more private investment in our infrastructure — was endorsed enthusiastically by all parties. Should this expensive commission be established, there would be more delays while yet another report is issued from another team of talking heads.

What’s the game, Shane Jones?

Heather  Marion Smith - Whanganui

Thinking of ways to reduce inequality is paramount

(LINK to media cutting - ODT 20th June 2019)

Otago Daily Times - June 20th 

People are just going to have to get used to an increasingly changing world that is going to change life on earth for humankind and other species which are going to suffer and die off.

It is paramount vast inequality in wealth and poverty are addressed. However, we are fortunate as New Zealanders to have a social welfare system.

As a species we are complex one that competes for survival through competition and altruistic means.

Our financial system is changing for good or ill and new policies are being toyed with such as a Universal Basic Income. It is heart warming to see Labour deliver a "wellbeing Budget".

However, gross domestic product does not work as it depends on continual economic growth for finite resources and jobs are being displaced through automation and new technology for good or ill.

We must remember, as we reflect on celebrating National Volunteer Week, the good we can do by swapping goods and services through means such as time banking. We need money, but inequality could be minimised by bringing about some of these changes as a society and by being caring individuals.

Tom McAlpine - North East Valley

Time for a sovereign rural bank

Christchurch Press - June 19th 

Farm debt is brought about by the insidious” creep” of upward costs that cannot, unlike most other non-primary industries, be passed on to the consumer.

If there is one thing that all governments are “gun-shy” of at the polls it is price rises of the basics be they of milk. meat, grains, horticulture/viticulture origin i.e.=food.

Add to that the buying/bargaining power of the mainly offshore owned corporates in the so-called “free-market” and the only way primary producers  can compensate is to increase production by turning to “factory” farming and water being available, without which all primary production is a seasonal gamble.

Both require huge capital investment finance which, since the mid 80s means the cartels of now overseas privately owned banks, whose sovereign power has reduced the NZ government to a ‘cowed dog’ chasing its tail, filling the void.

To illustrate;  when I opened my grape/wine production in 1986 I owed Treasury $10,000 (Excise tax) before I could sell the product of 4 ha. If I was still in the “game” that 4 ha would of grapes would owe Treasury around $ 50,000 to be paid before it can be marketed!

There are now around 1200 ha of grapes grown in the Waipara Valley, the annual production from which pays Treasury around $20 million/year, a pittance of which returns to the area and don’t forget GST!

Is it any wonder that the NZ wine industry/vineyards are now approx. 80% owned by offshore investors/profit bleeders! Our farms and forests are heading the same way.

It is way past time that NZ re-established its own, sovereign Rural Bank.

John McCaskey - Waipara

Auckland's Climate Change Emergency Declaration

Christchurch Press - June 11th 

People are excited because Auckland has produced a Climate Change Emergency Declaration.

These are good words.

However NOTHING will change until money is allocated from the Reserve Bank at no interest for projects that are needed (as the first Labour Government did to build the State Houses back in the 1930’s).

Until the Council and Government gets its head around that, all that talk fest is wasted.

It doesn’t matter if you are a Neo Liberal on a bike, in an EV or a SUV, climate will continue to change for the worse until there is reform of our financial system.

With Reserve Bank credit – money spent straight into the economy – change would start to happen immediately.

Plastic recycling factories built in our country, research into nil waste industries, subsidies for electric vehicles, electric buses brought into service immediately, commuter rail etc.

What we need to combat climate change is a financial plan and all else would follow.

Mary Grant - Christchurch

Teachers deserve better

Christchurch Press - May 28th 

The large teachers and supporters strike on Wednesday will achieve nothing.

Teachers are angry and frustrated and deserve better of course.

They would do more for their cause to pressure the Government to use Reserve Bank Credit to fund their pay rise now ... IT can be done and was done in the past when the State Houses were built and got New Zealand out of the Depression in the 1930s.  

Paying over 16.million dollars a DAY in interest payments on loans to overseas banks is the basic problem .

This money could be used to pay support staff for teachers. 

Mary Grant - Christchurch

Wasted health dollars

Christchurch Press - April 2nd 

On TV ONE news, April 2nd  I was shocked to see the plight of St Johns.

Forced to rattle buckets because of a shortfall of $65 million in funds for the year.

$65 million dollars is ONLY 4 days worth of what we as taxpayers pay in interest payments alone because the Government borrows from mostly overseas banks.

Health Minister David Clark’s inadequate response “There are a lot of calls on the health dollar".

So why is the Government giving it to commercial banks ?

It's a no brainer that we go to a bank that doesn’t cost us .

Such a bank is the country’s central bank (the Reserve Bank).

Any competent Government with the people's welfare at heart should fund the Health Budget from the Reserve Bank, our country’s central bank.


Mary Grant - Christchurch

There's life in our economy

Whanganui Chronicle - March 29th 

Just as well D. Partner of Eastown (29 Mar) is not a veterinary surgeon. He would be pronouncing living things dead when they are actually exhibiting distinct signs of recovery.

D. Partner may prefer not to know, but he is being outnumbered by enquirers who want the facts about our macro-economy and want them now - before we are hit defenseless by another recession.

Social Credit claims are based on information found in the public domain, not on dogmatic neo-liberal assumptions e.g. the one which asserts that the public sector can be funded only from private sources at interest, when there is absolutely nothing in legislation demanding this.  

In conversation with a senior Treasury economist I put it to him that if it were okay for our Reserve Bank to provide a five-billion dollar credit line to the big systemic banks during he 2007-09 crisis, surely it's good enough to finance our essential public infrastructures in a similar fashion.

He not only agreed but was proud  to tell me that he was responsible for inviting Prof. Steve Keene, a leading monetary reform economist, to New Zealand, especially to talk to his staff.  Anyone noticed lately how Treasury-speak is less about beancounting and more about "well-being" ?

D. Partner's negative attitude could change. Meantime I thank him for the challenge.


Heather Smith - Whanganui


Credit ratings not needed

Whanganui Chronicle - March 26th 

Fiona Donne (March 22) reminds us of the rising costs of power bills, food, home maintenance and emergencies — making life "very difficult for many people", concluding that "no one seems to have an answer".

A sad observation, as there are indeed practical, legal and ethical answers available right now, just needing the political will to implement them.

Pity our MPs still cling to the neo-liberal notion that sovereign governments need to balance the annual budget preferably posting a monetary surplus — this to please and placate the Wall St credit rating agencies. Actually, sovereign governments do not need credit ratings as they are empowered to fund government deficits with their own currencies.

So no need for rising taxes and rates as our essential public infrastructures (public health/education/railroads/ water supplies etc) can be Crown-funded without interest charges.

Sound like Social Credit? Sure does — but these views are being adopted and developed by several of the world's leading economic thinkers. The public is entitled to know.


Heather Smith - Whanganui


Reserve Bank

ODT - March 7th 2019

Peter Lyons is quite correct (Opinion ODT, 5/3/19) when he states private banks create money out of nothing, when they make loans and mortgages to borrowers.

He is also correct when he says, “notes and coins only make up a small percentage (about 2%) of our total money supply. What Peter Lyons omits to say, but may imply, is the government borrowing from private banks amount to over $75 billion and that we, the tax payer, are paying interest at over $12 million per day. This is criminal.

This money could go a long way in assisting our cash strapped DHBs, our teachers / schools and new infrastructure etc.

He also doesn’t mention, but may imply that the Reserve Bank should become the sole supplier of all new money into the system and that private trading banks should act as agents only, to the Reserve Bank.

And another thing, local body debt stands at $12 billion with interests payments of $1.4 million per day. That is a lot of ratepayer money which could be used on core Council responsibilities.

The government needs to act now to take control of our financial system, on behalf of all the people of New Zealand.

Ironically, Social Credit is the only political party that has, since 1953, been continually promoting our publicly owned Reserve Bank to be the sole issuer of debt-free money into our financial system.

Bob Warren - Dunedin

Reserve Bank

Northern Advocate - February 25th 

Comment (23.2.19) on the functions of the Reserve Bank, is a powerful example of how the public can be mislead without actually departing from the truth.

“Money is created.  The central bank is given the monopoly right monopoly to print money.”

Absolutely true for the printing of notes, (and casting of coinage) which, however, form about three percent of our money supply.

The definition of money in circulation agreed by all involved in the Royal Commission  Report, 1956, including Bankers and senior Economists, is “notes and coins in circulation and demand deposits with the financial institutions.”

The commercial trading banks have the monopoly to create this last electronic component, bank credit money, i.e. the other near ninety seven percent of our money.

Our massive national and private debts could not have arisen from any other process.


John Rawson - Whangarei

Smoke screen

Northern Advocate - February 22nd 

The back and forth of late between politicians on adding tax or removing tax is simply a smoke screen to hide their failure to address the real issue - that our nation's monetary system is inherently broken. 
There is no need for a Capital Gains Tax, which would harm small businesses, farmers, and ordinary Kiwis just as GST does now. GST for that matter, should be scrapped.
If NZ was to introduce a Financial Transactions Tax (at a much lower rate than the 15% of GST) the Googles and  Facebooks the govt is now trying to pull into the tax net would automatically have to pay their fair share.
If, as Social Credit suggests, the govt stopped spending $4.6 billion taxpayer dollars every year on interest on its loans from overseas owned financial institutions and instead used the Reserve Bank to finance projects, as was done in the 1930s to build 40,000 state homes, it would  have the funding it needs without additional taxes being imposed on hard working Kiwis. They would get to keep more of their hard earned cash.
If our current politicians will not tackle this problem then its time to elect those who will be brave enough to do so.


Callan Neylon - Waipu


More hot air

Gisborne Herald - February 21st 

Shane Jones has admitted it.  The country has AIDS - an Accelerating Infrastructure Deficit Syndrome - or, in his own words: "an unprecedented infrastructure deficit".

What to do?

Set up yet another so-called "independent" New Zealand Infrastructure Commission (Te Waihanga) - with another task-force of highly-paid advisors who will obligingly delay any real progress until their report is lodged and discussed at length.

Those of us urging the restoration of Gisborne-Napier rail-freight and passenger services ought to take heart from the new Commission being charged with recommending policies for a "low emissions economy".

Well, this is what the Rail Action Group has been urging for the last seven years, with only dismissive governmental responses.

The millions about to be allocated to this commission could readily fund rail repairs.

And there is the indisputable fact that our Reserve Bank is empowered to issue credits for that purpose.

Low emissions? Or more hot air from another team of talking heads?


Heather Smith - Whanganui


Transport woes (LINK to media cutting)

Northern Advocate - February 21st 

We should thank Byron Grainger-Jones for stating an obvious, from a visitor’s viewpoint, solution to our transport problems. Believe me, should war break out and such a service be needed for its purpose, it would be up and running in a few months.

What he seems not to realise is that this is a debt-corrupted country, fast losing many of its valuable assets and unable to maintain others.

A local firm used to send fertilizer to a large part of the North Island, but the means to do this were withdrawn. There is a long history here in the North of rolling-stock being taken away and used to plug gaps in more lucrative runs “down country”.

Years ago we had such a railcar service.  Railways also had Road Services designed to move passengers to and from railhead, but here it was also used on longer runs in competition with the railcar. The railcar was badly maintained and its roof leaked during rain. When custom fell off, it went south and was refurbished for “better” lines.

Also, funds that could have been used for track maintenance were siphoned off to pay interest on unnecessary debt. The present track is unsafe for passenger traffic and reputed to be traversed with some apprehension by staff operating goods services.

This is just one of many problems in this country that can never be overcome without reform of our present dysfunctional money system.


John Rawson - Whangarei


Banks create money

NZ Herald - February 12th 

Brain Gaynor in his opinion piece (Herald Sat 9th Feb) has let the cat out of the bag. Banks create money.

That’s how they make their vast profits.

He also mentions the small percentage of money issued by the Reserve Bank.

Social Creditors have tried to get this message across for almost a century.

They have been ridiculed for daring to suggest the use of Reserve Bank credit at an administrative charge of 1% for public works. However the original Labour government financed the State Advances Corp through the Reserve Bank to build the early state houses. The Reserve Bank also financed the very successful NZ Dairy Board at 1%.

So why don’t present day finance ministers make a better use of the Reserve Bank instead of going cap in hand to trading banks, and getting the government and councils ever deeper into unrepayable debt?

This question can be answered by asking another question. Why are so many former politicians including prime ministers and finance ministers now on the boards of banks?

Cushy jobs for their loyalty to the all-powerful banks, not to their country.


Clark James - New Lynn

Wish list funding (LINK to media cutting)

Northern Advocate - January 14th 

Many words have been written in the past week (and for months) about a four lane highway, or lack of it.
Some vitally important words have been missing however.
The region's leaders, from the MP for Whangarei, the mayor, the regional council chairman, and others, have made copious media statements and numerous representations to government with what is essentially a wish list - good as it may be.

I have one too. A new car to replace my 12 year old one. A new boat to replace the one I don't have yet. A new washing machine and dryer.
Trouble is, I need to find the money to make my wish list come true.
What's glaringly missing from the war of words emanating from our leaders is just that. Where's the money going to come from?
Would they have the government tax us more? Would they have the Chinese come and build it and charge us interest on the money they use to do so (essentially more tax)?

Perhaps they want the money to be taken from some other important project in another part of the country.
They would be more likely to succeed with their wish list if they could provide a solution for the “where’s the money going to come from” question.
Interestingly, it's been put in front of them all numerous times, but they choose to ignore it.

Japan is funding nearly 50% of its government borrowing from its own central bank, at no interest and no cost to taxpayers.

New Zealand used the same concept in the 1930’s to build 40,000 state houses (Phil Twyford take note).
Our leaders are letting us down in their representations to government by not including this funding solution that could see not only a four lane highway from Whangarei to Ruakaka put in place, but one the whole length of Northland’s main route. They might even consider including a much improved rail corridor in their proposals as well.

And it could be done right now, without costing ratepayers or taxpayers a single cent. 


Chris Leitch - Whangarei


Inflation truths (LINK to media cutting)

Northern Advocate - January12th 

For the information of David Seymour, there was a time when our first Labour government was applying policies similar to those of Social Credit and there were four unemployed people in New Zealand. Their names were known to the Minister of Finance.

The basic wage then probably bought more than our present one.

This shows what can be done, as opposed to his unfounded claims.

Nor was there any great inflationary trend.  A handle of beer, for example, cost six pence (five cents) some years after that.

Inflation of prices became a problem after misguided economists started to use faulty methods to try to prevent it.

Nobody can deny that “wage inflation” could increase prices, but it is hypocritical to claim, as most economists do, that inflation of interest rates or taxes will not have the same effects.  They also add comparable costs to the industrial process.

Why should it be “evil” to give a fair income to those who produce, but “good” to give more to those with enough spare money to invest? Or to those with the ability to manufacture money out of nothing?

Does this correspondent also agree with handing over our sovereignty and our assets to international business corporations through agreements such as TPPA?  And the ridiculous “trickle down” effect?


John Rawson - Whangarei


Patriotic banking (LINK to media cutting)

Northland Age - January 8th 

Kiwis should make a New Year’s resolution to move their bank accounts to Kiwibank, or one of the other wholly owned New Zealand banks, said Social Credit Leader Chris Leitch.

New Year is the ideal time for Kiwis to display some patriotism, and get themselves out of the clutches of the overseas owned banks.

The big four Aussie owned banks dragged over $5,128 million in profit out of the back pockets of Kiwis last year – four times more profit than the 10 largest companies on the NZ Stock Exchange.

Those profits have increased substantially over the past few years, proving the banks are huge money-making machines that ship the majority of it offshore to their Australian and US owners creating a major drain on the New Zealand economy.

Most of the profit was made by the banks charging fees and interest on money they didn’t have - money created on their computer keyboards at the time of the loan.

The idea that banks lend out money people deposit with them is a myth, a fact confirmed by Mervyn King, Governor of the Bank of England from 2003 to 2013 in a recent speech “When banks extend loans to their customers they create money by crediting their customer’s account”.

Had even a quarter of that massive profit gone instead to Kiwibank, through Kiwis having moved their accounts last year, dividends to the Government would have provided over a billion dollars extra for health care, and education.

The Government should take a lead by swapping its own borrowing to Kiwibank, rather than seeking money from the Aussie big four or other overseas-owned financial institutions as it currently does.

If it had any backbone it would instruct Kiwibank to marginally lower their lending rates and slightly increase their deposit rates as an incentive for people to make the switch.

This in turn would provide some real competition for the Aussie banks and benefit all New Zealanders through better borrowing and deposit rates.

That extra money in people’s pockets would further boost the New Zealand economy.

It’s time Kiwis stopped propping up the Aussie economy and supported their own by switching their accounts this New Year.


Chris Leitch - Whangarei


Jobs should be plentiful (LINK to media cutting)

Northern Advocate - December 16th 

I must agree with Chris Leitch’s comments (14 Dec.)  on archaic comments from an IMF source.

Why, with population growth increasing demand, should there be any need for a recession?  

Why, when modern methods allow vastly more production from fewer workers, should anyone go short of essential welfare?  

Yes, this places demand on the environment, but starving people to death is not the way to fix that problem.  The birth rate drops in wealthy countries, not impoverished ones.

It should be noted that problems in many “third world” countries, particularly in Africa, have stemmed from the terms of loans made by the IMF.   

To cover interest on loans, diversion of food-producing land to supplying cheap raw materials for big business enterprises has aggravated the effects of drought conditions.   

National assets have been lost to “colonisation” by big financial interests.  

Spokesmen from this organisation should be looking at their own failings, not providing suicidal advice to unintelligent politicians.
The last Great Depression was only fully conquered by conjuring up global warfare, so that governments were forced to borrow heavily.  Under the system existing then, that and that alone could provide plentiful employment and prosperity.

Unfortunately, at least part of the profession of Economics seems to be dominated still by a lunatic fringe that have never learned from these events.


John Rawson - Whangarei

Creating a recession (LINK to media cutting)

Northern Advocate - December 14th 

How interesting that we are getting more and more “dire warnings” about imminent business recession from sources like the International Monetary Fund, along with advice to governments that would actually hasten this result.

If a government sticks to advice like “balanced budgets” and “fiscal responsibility” for any length of time, its nation will drop into recession, a fact recognised by a growing number of orthodox economists.

A secondary effect will be that private debt will grow to the stage where businesses no longer have the confidence to borrow to increase production, thus accelerating the downturn.

As pointed out by the founder of Social Credit, C.H.Douglas, the question that should always be asked in situations like this is “Who stands to benefit?”

A recession certainly won’t benefit the great mass of people who lose their livelihood, and their homes, and who in many cases will be reduced to starvation in a world that can’t sell its production of foodstuffs.

It would though, enable big business, particularly those with ready access to money created out of nothing, like banks, to take over smaller failing concerns - action that would result in a greater prevalence of monopolies.

Present “neo-liberal” theories are aimed at taking power away from elected governments and passing it to giant international corporations.

A major recession, promoted from false advice, would give an immense boost to this trend.


Chris Leitch - Whangarei


Let's restore 'gift economy' (LINK to media cutting)

Gisborne  Herald - December 8th 

We Kiwis are a generous bunch.

We help each other in times of crisis.

We shop madly for Christmas presents. And, without too much protest, we 'donated' over $5 billion to the Aussie banks last financial year.

Not exactly gift-giving - more like enforced tribute.

Sadly our current cohort of MPs continue to endorse this kind of giving.

What is ironical is that, with all the emphasis in this Tairawhiti region on promoting our indigenous Maori culture, there has been no attempt to recognise that in pre-financial-imperialism times a gift-economy was the common practice.

Apart from food and items needed for current consumption, infrastructures and taonga such as great waka were gifted to the next generation.

No imposing on our mokopuna the burden of usurious debt-servicing to foreign creditors.

Lately there has been talk of establishing a “Maori Bank”. Great idea - if this means a step toward restoring a “gift economy” paradigm as the basis for all our transactions. It is a blessing that, as a sovereign nation, we have the legal power to employ the mechanisms in our state-owned Reserve Bank to make it a reality.

The PM’s popular slogan: 'Let’s do this!' ought to apply here. What a wonderful gift that would be.


Heather Marion Smith - Gisborne


Reserve Bank funding (LINK to media cutting)

Hawke's Bay Today - November 17th 

The consultation on how to fund Napier port is, like talkback radio, impossible to correlate and thereby gives the council the facility to ignore the submissions in favour of advice from vested interests.

To sell a half share in a thriving business may be in the best interests of potential purchases but decidedly not for Hawke's Bay ratepayers.

In a few years the same issue would recur, leading to a further sale or higher rates.

Instead, as we monetary reformers have been saying for many years, the council should  be joining others to petition the Government to make funds available through the country's central bank as recommended in a 2012 report from the International Monetary Fund.

Reserve Bank funding could be provided add a nominal interest charge, with repayments matched by the income an expanded port would provide.

As it happens, the government has already signed off on interest free loans of $158 million for Tauranga, $339 million for Auckland, and $181 million for Hamilton, the money coming from taxes or borrowing.

If the money was sourced from the Reserve Bank the result would be a "fit for purpose" port that would assist with the expansion of economic activity in the region at no cost to ratepayers or taxpayers.

So there is a better way to proceed, that does not require selling our assets and does not require borrowing money from overseas banks, which in any case have invented that loan for no cost to themselves whatever.


Dick Ryan - Havelock North


Credit creation (LINK to media cutting)

NZ Herald - November 16th 

Tim Hazledine stated in his article; "We don't save enough to finance all our mortgage debt internally.”

This is a common misconception even amongst academics.

However it is very important to make the distinction: banks are not intermediaries.

Case in point, the Bank of England says, “The majority of money in the modern economy is created by commercial banks making loans, and, “Banks do not act simply as intermediaries, lending out deposits that savers place with them”.

It is time that the actual function of banks was understood properly.

Our entire money supply is loaned from banks except for our notes and coins.

We should be taught this clearly in universities, then we can have a proper conversation about whether this is the best way to structure our affairs.

Do we want the big four Australian banks to continue to drain as much as they do (a few billion dollars each year) out of our economy to them?

We need to come from a place of knowledge to make better decisions about whether we should change the law so that banking works as it is erroneously taught now, where banks are truly only intermediaries.


Amanda Vickers - Waikanae

Fear interest rate rise (LINK to media cutting)

Northern Advocate - October 19th 

Tuesday’s editorial said we shouldn’t fear a rise in interest rates.


We most certainly should, if only because of the dangerous misconceptions of most economists about the relationship between interest and inflation.

Inflation is measured as “rising costs”, so that’s what it is.  No more no less.

It can have two causes:

Too much money in circulation resulting in too much demand, which economists almost always accept as the sole cause, and,

Increasing costs in the manufacturing to retail stream which must be charged into prices.

An additional dollar cost at the manufacturing level is compounded by successive steps on the way to shop shelves. At every stage the effect on prices is greater than the increase in interest rates.

So we can get a spiral. Increase interest rates; prices rise.  Blame it on “too much money” and increase rates more; prices rise higher still. And so on.

Economists never appear to recognise this compounding effect, except when workers want better pay.

Why can’t they see the obvious trend that putting up interest rates causes?

Is it because they think business people are “exploiters” who should really absorb the extra charges?

And who benefits?  Well, bank revenues increase for a start!

It might be instructive to guess where the funding for most schools of economics comes from.

Instructive too, to know that the “Nobel” prize in economics is funded by a Swedish Bank, not the organisation founded by Alfred Nobel.


Chris Leitch - Whangarei


DHB's Underfunding

Whanganui Chronicle - October 19th 

Tuesday’s editorial on health board debt hit the nail squarely on the head.

"If it costs more than some person in a suit thought it would, it doesn't mean we're overspending, it means your stupid guess was wrong".

What it didn’t address however, is where the extra money could come from.

It would it have to come from government - taxpayers actually. So that means more tax (no thanks we’re taxed enough), or be taken from some other area of government expenditure – education? roading? pensions?????


The first port of call should be the interest on government borrowing, which already consumes $4,700,000,000 ($4.7 billion) dollars every year.

That taxpayers money, supposedly going to pay for public services, is actually going to pay interest to overseas owned financial institutions the government borrows from.

Why so, when the government owns a bank it could borrow from without paying interest?

The Reserve Bank (the country’s central bank) funded government expenditure in Michael Joseph Savage’s time. Forty thousand houses were built with money from that source.

It’s a solution Social Credit has long promoted.

It’s now being backed by establishment heavyweights such as Professor Richard Werner, Director of the Centre for Banking at the University of Southampton, Adair Turner, former chairman of Britain’s Financial Services Authority, and Max Kumhof, Senior Research Advisor in the Research Hub of the Bank of England, to name just a few.

Even NZ’s own Bernard Hickey, who wrote “Isn't it better for our Government to be borrowing from its own central bank than from foreign banks and pension funds?”

We can have more funding for health, without the need to take more money out of taxpayer’s pockets.

I just needs politicians with the will to make it happen.


Kellee Bartlett - Whanganui


Public credit without interest

Whanganui Chronicle - October 19th 

Thank you for your recent interview with the new Leader of the Social Credit Party, Chris Leitch.

There  is growing interest in the idea of public credit without heavy interest  demands.

For example, eminent New Zealander, Bryan Gould, has called  for using Reserve Bank credit to fund the current government's  Provincial Development Fund. He also attributes the housing crisis in  Auckland with the private banks gladly providing the funds with compound  interest for the rising cost of houses.

The  state of North Dakota has had a public state bank for over a century  now, and during the 2008 Great Recession, the state was hardly touched  by the financial collapse.

The city of Los Angeles has a charter  amendment that could establish a public bank in LA.

Putting Los  Angeles' finance in public hands with no compounding interest could save  as much as $170 million in interest in a year, more money than it spend  on road maintenance.

Instead of nurses and  teachers going on strike for poor wages and lack of support services,  funding for these essential services could come from the publicly owned  Reserve Bank with no interest charged, only a small administrative fee.

At present each year $6 billion in taxpayers' money goes to pay  compound interest when it could go to pay essential services.

With much of public services in debt, it is time to think outside the box to new ways of funding legitimate services.


Donna Mummery - Whanganui


Dam burst (LINK to media cutting)

Northern Advocate - October 18th 

Your cartoonist’s depiction of a market trend was impressive, but based on the good old orthodox economist’s superstition that the market is itself a living entity with unfathomable reasons for its behavior.

The truth is much simpler.

Social Credit points out that industry does not pay out enough wages, salaries etc. to cover all the costs built into the prices of its products.

Many economists now recognise, without realising that they agree with this analysis, that governments should put into circulation more money than they take in taxes.

“Balanced” government budgets result in increased private debt and, if this is continued, recession.

This is why prosperity now follows war or preparation for it, when governments are forced to borrow heavily.

Otherwise, the economy relies for its health on growth. Growth depends on business confidence to borrow, which controls how much banks can lend.

High debt levels reduce confidence, resulting in a downturn in the economy, causing less confidence and so on.

A side effect is that, as businesses become less prosperous they are open to takeover.

This explains the growth of our increasingly big conglomerates and monopolies.

In this, small investors are competing with large banks that can create money to purchase assets. (Report of N Z Royal Commission on Monetary{etc.} systems, 1956.)

Similar pressures can be put on governments, as shown by recent propaganda that we should sell more of our national assets.

When the downturn does come, it is unlikely to be from a crack in the whole wall.

More likely from special little doors in the structure, only visible to and operated by big business with the right key - which is their monopoly of the right to manufacture our money and claim it as their own.


John Rawson - Whangarei


Use our own currency (LINK to media cutting)

Whanganui Chronicle - October 18th 

I hope your columnist, Kate Stewart, is sitting down when she reads this - as I have some good news for her, incredible as it may first seem.

"Ideally, monies allocated for the like of health and education would be bottomless", wrote Kate in a recent article.

Well, this ideal is more practical than most folk realise. Not a bottomless money bag for those "obscene pay packets" and  the bureaucratic wastefulness she describes but one containing enough for our social and environmental needs - not too much and not too little (the "Goldilocks" principle).

Recently an Australian apolitical group ( asked the Reserve Bank of Australia" Can the RBA ever, under any circumstances, run outof Australian dollars?" The answer must be the shortest official answer on record. It was: No. What is more, the same answer would be the response from our own Reserve Bank.

Indeed I have been personally assured by a former top Treasury official that our RBNZ has the power to credit-fund our public needs.

Sadly Finance Minister, Grant Robertson, announced earlier this year, at a bank-sponsored breakfast meeting, that he intends running a budget surplus - a promise enthusiastically approved by Moodys of New York.

Means the private owners of our government debt securities can relax under the assurance they will continue to profit - knowing they have first call on government revenues. The demands of public health and education would continue to have much lower priority.

Monetary sovereign governments can actually run deficits for necessary spending - and can lawfully balance the books using their own currency.

Kate can now have that glass of bubbly - as long as it's Kiwi-made.


Heather Marion Smith - Gisborne


Port development finance (LINK to media cutting)

Hawke's Bay Today - October 11th 

Four Port options? There is a fifth possibly beyond the  comprehension of both local and national politicians.

The use of public  credit via our own Reserve Bank at nominal interest to finance port  development will enhance the returns to the HB economy, retain 100%  public ownership and ensure port company profits do not go out of the  area (or country). 

The mechanism first used by the Labour  government of 1935-49 to build state housing and largely neglected  (except for a time for seasonal finance for farmers marketing  organisations) ever since.


Simple on a Soapbox(1963)  by John A Lee at p54 records in July 1962 then leader of the Labour  Party, the Rt.Hon.Walter Nash said "... consistent with the needs of a  sound economy, the State should create and use credit at the cost of  issue for purposes of approved capital development". This principle was  still there in the Labour 1975 manifesto.

Reflecting on  the diffidence of the old guard of that first Labour government, Lee  comments "thus 27 years too late, Nash accepted the policy on which  Labour was elected in 1935". Walter had been finance minister in that  government. 

Commenting to Nash's great grandson (the now  Hon.Stuart) at one of his periodic street corner meetings last year I  suggested the use of Reserve Bank credit as the answer to the port  expansion dilemma.

My contribution was greeted with a vacant stare and  then back to his agenda.

Hello! Anybody home?


John Smith - Napier

Lack of tax foresight (LINK to media cutting)

Northern Advocate - September 25th 

The interim report of the Tax Working Group is a huge let down for New Zealand.   

It contains stale ideas, lacks vision, and has all the appearances of a National Party tax policy.   

The recommendations, if implemented, would hit farmers, small business and ordinary Kiwis working hard to get ahead the most, without addressing the likes of money market manipulators and speculators.   

There is no indication that a submission from Social Credit on replacing GST with a Financial Transaction Tax was even considered.   

FTT at around 0.25 percent would result in a saving of $14.75 in every $100 resulting in more money for spending by lower paid Kiwi's and more income for businesses.   

Such a small tax would dramatically reduce the cost of items, but not reduce government revenue because the new tax would catch things that GST doesn't, such as currency, bond, and derivatives trading.   

Now that's an idea that does have vision, and an even handed approach.


Callan Neylon - Waipu

Taxation Group Report A Major Disappointment (LINK to media cutting)

Westport News - September 24th 

The report of Michael Cullen’s Taxation Working Group is a major disappointment.

It is bereft of innovative ideas, signals increasing bureaucracy, and is a regurgitation of outdated tax concepts.

Rather than focussing its attention on speculators, money market manipulators, and those who make money from non-productive sources, it has recommended that small businesses, farmers, and ordinary Kiwi’s trying to get ahead should be hit with yet more tax.

Cullen’s recommendations are exactly what we would have expected from a National Party working group that was intent on protecting the privileged position of its biggest campaign donors.

There is no indication that our submission to the working group that GST should be scrapped and replaced with a Financial Transactions Tax was even considered.

Replacing GST with a transactions tax at less than a quarter of one percent (25 cents in every hundred dollars) on all withdrawals from bank accounts would give workers across the board a substantial increase in purchasing power.

It would generate roughly the same in tax revenue as GST, but with a substantial amount coming from the speculative sector of the economy.

That raft of financial transactions such as credit default swaps, debt securities, convertible and exchangeable bonds, currency trading, derivatives etc, currently avoid the GST net.

It would significantly benefit smaller businesses as people would have more money in their pockets.

Additionally businesses would be relieved of the burden of accounting for GST, filing returns, and audits.

The recent introduction of GST to on-line purchases is complicated and messy and will produce minimal tax revenue, whereas transactions tax is simple and would immediately put Kiwi retailers on an even footing with all overseas sellers.

It will be very simple for the banking system to implement FTT, and very difficult for anyone to avoid payment.

Banks would deduct the tax automatically in the same way they already withdraw their own account fees and Resident Withholding Tax, and remit it straight to the IRD.

The removal of GST would also contribute to a reduction in child poverty by putting more money in the hands of lower paid New Zealanders who currently pay tax far out of proportion to their incomes.


Jack Collin - Westport


Thinner Blue Line (LINK to media cutting)

Northern Advocate - September 14th

Last week police officers overwhelmingly rejected a pay rise offer of 2% per year for three years.

They’ve endured 0% to 1% increases since the GFC.  Numbers are falling, risky duty increasing, cost of living (especially in Auckland) increasing. They start on $60,000 and within months of graduation are dodging bullets. There's no pay for overtime or proper recognition of shift work.  

Police are supposed to take comfort from the recently announced 1,500 increase in numbers. Northland's share, 87, would indeed relieve the strain locally, IF it happens.

The Police Minister now says it may take 5 years (instead of the original 3) to fulfil that promise. Over-worked and under heavy stress, too many current officers are disillusioned and leaving the force. Too few prospective recruits are inspired to join up.

National's Chris Bishop accused the government of “raising expectations”, hence the police reluctance to settle for less.

Treasury advised any increase in officers was a bad idea because more officers making more arrests would require more expensive prison space. Treasury seems unaware that good cops, face to face with the community, generally results in fewer crimes, fewer arrests and a smaller prison population.

National and Treasury are saying there’s no money so let’s ignore the problem.  

Why not shift some of the $5 billion currently spent on loan interest to provide adequate resources for the problem solvers.  I know using the Reserve Bank is a Social Credit policy.

But I’m sure the police wouldn’t care whose policy it was – so long as it got them the resources they so desperately need.


Gloria Bruni - Kiripaka


Nada to Shane Jones

Northern Advocate - August 31st

The likelihood of success of a Shane Jones visit to the Reserve Bank stopping the Aussie owned banks closing branches in the provinces is zilch, nada.

I would be easier to get vehicle engines to run on water. That would at least save us a bundle on climate change costs, and fuel costs, by allowing us to fill up from our own rainwater tanks, easing the overloading on storm-water infrastructure.

While he’s right that the Aussie banks extract nearly $5 billion in profit each year from the pockets of Kiwis and export it overseas, he would be better off talking to his cabinet colleagues about getting Kiwibank to take over where those banks close up shop.

Even better would be if he convinced the government to do its own banking with Kiwibank instead of with the Aussies.

But the really big win from Mr Jones’ talk with the Reserve Bank would be if he could convince it to become the source of funds for the government, as Social Credit suggests.

That would free up the $4.7 billion in interest paid every year on government borrowing – taxpayer money that could be used for much needed spending on health, education and building infrastructure.

That, Shane, would be something worth making a noise about.


Chris Leitch - Whangarei

Replace GST with FTT (LINK to media cutting)

Sunlive News - August 31st

The government could head off the avalanche of wage claims that is coming at them like a runaway freight train by scrapping GST and replacing it with a financial transactions tax.

The wage claims, have the potential to wreck the economy by increasing inflation.        

Private sector employers will likewise be under pressure to raise wages, increasing their costs.

Replacing the 15 per cent GST with a financial transactions tax of a quarter of one percent (25 cents in every hundred dollars) on all withdrawals from bank accounts would give workers across the board a substantial increase in purchasing power greater than they would get from wage rises.

It would generate a similar revenue as GST for government, but with a substantial amount coming from the speculative sector of the economy.

Additionally businesses would be relieved of the burden of accounting for GST, filing returns, and audits.               

It will be very simple for the banking system to implement FTT, and very difficult for anyone to avoid payment.

Replacing GST with an FTT would put more money in the hands of lower paid New Zealanders who currently pay tax far out of proportion to their incomes.               

It would be fitting that Labour, the party that first introduced GST and unleashed the neo-liberal economic experiment on the country were the ones that finally scrap it.

Tracey Livingston, Whakamarama

Building assets not selling them (LINK to media cutting)

NZ Herald - August 21st

Upon reading Fran O’Sullivan’s piece on selling down crown assets to fund infrastructure, I took a long hard look at the calendar.

No, I decided, it’s not April fools day, it’s actually August.

Might as well have been though, because here’s the logical conclusion to her argument.

So we sell down assets to fund infrastructure. As we’ve seen with the National government sell-offs she mentioned, prices have risen – an extra “tax”, on, for example, power consumers (here read all of us!).

Previously we were funding profits to government for spending on health, education, etc, but now we’re funding profits for corporate owners.

Government income has therefore dropped so it’s now forced to borrow more or tax more to do those things – costing us again.

But, infrastructure funding sorted for now.

Great!  ……..until we need more.

So let’s sell off some more assets.

Oops, sorry, we’ve sold all we have.

Now what?

We might be forced to look at what the Japanese government has been doing for several years, and what the first Labour government did in 1936 – source funding from the country’s central bank.

In Michael Joseph Savage’s case it allowed the building of 40,000 state houses at no cost to the government or the public, and in Japan’s case it has slashed its interest payments by half – money being spent instead on its citizens. In both cases, building assets not selling them.

Some might call it Social Credit, but most would say it’s common sense.


Chris Leitch, Whangarei


Better methods than 1080 (LINK to media cutting)  

Gisborne Herald - August 21st

Forest and Bird Gisborne branch chairman  Grant Vincent (August 18 letter) needs to learn what the “eco” in  economics stands for. It’s from a Greek source meaning “good  housekeeping”, ie the wise use of resources. It does not mean kowtowing  to neo-liberal nonsense such as National’s Fiscal Responsibility Act  (1994) designed to gear budgets to artificial debt levels just to please  Wall Street’s credit-rating firms.

Pity Finance Minister Grant Robertson  is so devoted to that legislation. No wonder the Department of  Conservation is severely underfunded and finds aerial drops of 1080 as  “most effective”. Too bad about collateral damage.

Accusing anti-1080 protestors of being  influenced by pseudo-science is an affront from someone who calls on  pseudo-economic notions to support his defence of 1080. A sovereign  government does not need credit-ratings and can fully fund in its own  currency what is socially and eco-logically good for the nation. There  are better methods than 1080 drops available for pest control. The  Government just needs the political will to use them.

Heather Smith - Gisborne

Trucks off road (LINK to media cutting)

Northern Advocate - August 18th

News that the hauling industry is in distress over another 500 trucks pulled off the road shouldn't really surprise us. Their towing connections had not been properly inspected and no driver wants a loose logging trailer rolling down on them!  Only half the 1,500 trucks recalled in April are back in business. One unhappy manager of a transport company estimated lost business is costing him $10,000 a day.  The cost of re-certifying one tow connection is aprox. $1,000. These are losses the industry expects Government to help cover.  Ouch!

New Zealand's 180 engineering certifiers ensure that all truck towing connections are strong and safe.  The Government, as the Transport Agency, has 'kept costs down' for years by employing only one auditor to oversee those certifiers, ensuring they do their important job properly. Transport industry voices complained that a single auditor was inadequate.  Now chickens have expensively come home to roost; two certifiers have been discovered to have wrongly certified 2,000 trucks. NOW the Transport Agency (under a new government) is recruiting 3 more auditors and 2 engineers. 

Unpack this and you find a National Government pretending to be 'business-friendly' by keeping taxes down.  But real business sense knows that penny pinching is expensive.  Deferring maintenance is expensive. Scrimping on bio-security is expensive.  Any farmer, dairy-owner or house holder wouldrecognise that as a recipe for running New Zealand Inc. into the ground.

Whangarei and Northland have been spared business disruption from the missing trucks-- in part because companies like Mainfreight use rail and coastal shipping to spread risk. Northland's dozen professional certifiers are under no shadows.  But we will not be spared the cost of trucking companies' legitimate damages claims against the Government. Like PSA and Micoplasma bovis-- these are losses caused by a National Government failing to govern responsibly.

They had the option of raising taxes to cover their legitimate costs.  Better still they could have chosen to slash our $4.5 billion annual interest bill by using the Reserve Bank-- as Social Credit continues to advise.  But they did neither.

If the business community is feeling nervous now, they need to face up to the very un-businesslike management they supported for the last nine years. Perhaps they should have been more nervous and more vocal while it was happening.


Gloria Bruni - Kiripaka

A ban here, conversation and review there (LINK to media cutting)

Gisborne Herald - August 18th

Can’t agree with Murray Ferris claiming that the campaign against single use plastic bags is based on a “myth” – but he is correct in stating that the whole business is serving as a convenient diversion for a government passing off conversations and reviews as active policy.

In addition to the mental health, Tomorrows Schools, local government and the other 100-plus reviews, we now have one called Trade For All aimed at softening criticism of new trade negotiations

The one we Socreds find particularly ironic is the current review of the Reserve Bank's role in our economy.

Back in 1989 the Lange government yielded to foreign financial influences that the Reserve Bank of NZ should be independent - independent that is of political interference.

Having passed an amendment in 1936 precisely so the Savage government could indeed exert political influence for the public good, this new act was really a vote of no confidence in the ability of our parliamentary representatives to make wise democratic decisions on our behalf when it comes to matters financial.

No wonder financial bills are no longer required to go before select committees.

Wonder when other diversions are being dreamed up by our MPs and their overpaid advisers.


Heather Smith - Gisborne


A bit right to the left of Social Credit (LINK to media cutting)

Northern Advocate - August 16th
Once again Marie Kaire (13.8) was so right on this topic, but her side comments were not quite up to her usual standard.

Salaries these days are not paid in cash that could fit into a bucket, but by nil-volume computer-generated impulses manufactured in the banking system by use of a keyboard.

Sure, our talking heads on TV always represent money by wads of notes, but probably that is just an example of their level of intelligence, or perhaps a deliberate wish to fool people.  Such money is almost insignificant, representing about three percent only of our money supply. Probably less in practice because a lot of that is likely to be bound up in the drug trade.

And she could give the good-ole-Nats a break occasionally. Our present dive into economic neoliberalism (neocolonialism by big business) was started by a certain gentleman of the so-called Left who claimed to know everything about money but didn’t even know banks create it.

Is the moral such that Enzed should stop vacillating between two almost identical regimes labelled “Left” and ”Right” to fool people?  

To give serious thought to progressing forward with Social Credit?


John Rawson, Whangarei

Questions over MP's copter stand (LINK to media cutting)

Northern Advocate - August 14th

In an article last week about the re-organisation of the country’s rescue helicopter services, Whangarei MP Shane Reti is quoted as saying “Retaining the Northland Rescue helicopter service and its management in the region is vital”.

Question: Why then did your National Government initiate the review and open up tenders to outside and overseas providers?

Question: As the likely health minister had National won the last election, did you vote against the proposal, and if not why not?

Last year NEST wanted to purchase new modern aircraft, and went to the NRC for loan funding at lower than commercial interest rates so its funds could be used to provide better rescue services, not pay interest to banks.

Question: Did you step in and offer to lobby your colleague the finance minister for funding from the Reserve Bank at no interest? If not why not?

You’ve heard about the concept numerous times. Have you investigated it?

If not why not?

Crying over the fact that the horses have bolted, when you opened the gate in the first place, doesn’t cut it for me.


Chris Leitch, Whangarei

School shouldn't have to lose staff (LINK to media cutting)

Northern Advocate - August 2nd

This morning's news tells us that Whangarei charter school, Te Kapehu Whetu, has been approved to move into the state school system as a Special Character school. No doubt their acceptance by the Education gurus is based on their stunning success –achieving the 2nd highest UE passrate in Northland, above the NZ average.

But now they will receive less money for support staff.  Why should moving to our state system mean they have to lose staff who have been instrumental in their success?  Staff who handle administrative details, mentoring, pastoral care, participation in non-teaching activities, leaving teachers free to concentrate on their subject matter, developing courses and programs—teaching!

Raewyn Tipene, CE of the school said their support staff were the heart of their success. And why wouldn't they be?

I want to know why the  Dept of Education does not learn from TKW's success and provide additional funding to ALL schools – or at least lower decile ones-- for TKE levels of support staff?

If the answer is money – we all need to ask Govt when they are going to stop throwing away millions of dollars daily on interest payments.  Interest on loans for projects they could fund interest-free, as Social Credit proposes -- through the Reserve Bank.


Gloria Bruni, Ngunguru


Rules Imposed On Councils Reflect A Loss Of Democracy

North Canterbury News, July 26th 

Hurunui Mayor Winton Dalley's opinion piece, ("Demands Draconian”, North Canterbury News, July 19th) regarding rules imposed on our councils illustrate the loss of democracy that has crept in like some insidious disease over the past three decades.

Even the architect of the supposed “reforms", Sir Geoffrey Palmer voiced his exasperation in 2013: “There seems to me in our present situation an inability to pursue long-term vision for the country over time and to assess how we are doing and make adjustments."

He continued "The system of governence seems increasingly concentrated on the short term .. . The domination of public debate by trivia and political pyrotechnics has become debilitating."

Being of the progressive/growth pre-Rogermomics generation, I feel any anniversary to celebrate the last three decades can be calculated by the number of jobs created to build nothing.

I note Environment Canterbury has another100 employees to cope with “water issues".

How much better would it be if those 100 were machine operators cleaning out our neglected rivers instead of moving paper around the office.

Mayor Dalley signals that this "expensive time consuming compulsory cycle" engineered by Wellington apparatchiks should "be reversed to give more local autonomy".

It is worth remembering that what is now the Hurunui District Council was once four county councils - Amuri, Cheviot, Waipara, and Kowhai - and, by contrast to today's mess, they were super- efficient!

It is worth remembering the Upton Sinciair quote: “It is difficult to get a man to understand something when his salary depends on his not understanding it“.

If you remember the television series Yes Minister, you’ve got it!

SirGeoffrey again; “There is a long road ahead (full of pot holes?) for New Zealand on Iocal government reform, followed by too many councils and too many officials, too many plans, too little infrastructure, too much wasted money and too little vision. "

I suggest we are mired in a cycle of waste.

To question everything is important, for knowledge is power and ignorance is enslavement.

When we accept power without questioning, we forfeit the power to control our own lives - it is a creeping paralysis happening now!

Come on people, our lives begin to end the day we become silent about things that matter.


John McCaskey, Waipara

Political System Open To Lobbyists

Northern Advocate - July 20th

While agreeing with Callan Neylon's comments (Letters,July19), l believe the situation is complex.

My political experience leads me to believe that all or our political parties. with the possible exception of Act, are mainly composed of good well-meaning people, dedicated to serving their country.

So how, in the 1980's, did one that aspires to be the best, come to wreck the egalitanan society it once built and to destroy an excellent apprentice system so that we are still suffering from a shortage of skilled people?

We have a tight adversarial two party system where policy is not decided by debate in the House but in party caucuses behind closed doors.

This set-up provides an open invitation to influence from big business lobbyists bearing party funds.

Our financial system is complex. Its intricacies are concealed deliberately and it is a fact that people tend to become emotionally disturbed when they encounter something about money that conflicts with their previous ideas.

Many MPs have professional training and have a justifed trust of experts within their own profession,which they carry over to the corrupted field of macroeconomics, which uses a first-year text that propagates untruths to students and which has a fake bank-funded ‘Nobel Prize‘ to encourage persistence of outdated ideas. (I can back the first wlth quotes and the second can be checked readily on the net).

There appears also to be a propaganda campalgn deslgned to reduce trust in our elected representat1ves, aimed at favouring wllllng prlvatlsatlon of as many or our assets as possible.

All told, there appears to be only one way out of thls mess.

Election to Parliament of people with the knowledge and determinatlon to fix it.


John G Rawson, Whangarei


What Economic Disaster?

Northern Advocate - July 20th

Keith Hartley lauds the National government’s financial prowess for New Zealand having survived “two very severe financial events” – the Global Financial Crisis and Christchurch earthquake.

While people suffered (and still are) from the earthquake, surely the massive influx of money from insurance payments benefited the economy?

And the reconstruction provided hundreds of jobs, massive sales for building supply companies, engineering firms, earthworks and roading contractors etc.

Wouldn’t that have brought large amounts of PAYE, GST, and company tax into government coffers?

Hardly the disaster for the economy Mr Hartley proclaims.

Had National been such gold plated economic managers, they wouldn’t have been so soft on insurance companies meeting their responsibilities (some people have still not been paid out).

Nor would the rebuild have been delayed by a drastic shortage of qualified builders, plumbers and other tradesmen – a direct result of policies that reduced trades and apprenticeship training.

Under our crazy system, a disaster like Christchurch actually increases GDP and makes economic figures look better.

Mr Hartley appears somewhat confused about economic issues.


Jeremy Steptowe , Ngunguru

Social Credit survived test of time (LINK to media cutting)

Sunlive News - July 20th

The demise of the Opportunities Party is another example of a rich entrepreneur having “a go” at politics without any real commitment to a philosophy or core policy.

Gareth Morgan joins a long list of similar people who thought money was going to buy them an easy road into parliament and who gave up when the going got tough.

Bob Jones and Colin Craig were others.

They were, as his party name suggested, “opportunists”, who promised much and didn’t deliver.

There was no solid foundation that people could commit to, that would make them contribute time and money at great personal cost over many years.

While Social Credit hasn’t had rich donors and corporate backing that would have allowed it to buy media time and tour the country like Mr Morgan, it has survived the test of time.

It has done so because of its commitment to reforming the money system to deliver a better life for people – particularly middle and low income earners – rather than bankers, money manipulators, and corporates.

First formed in 1953 it has proved it has stickability and commitment to principle and that’s a rare quality in New Zealand politics.

In doing so it has proved Bob Jones wrong.

His taunts about “Skodas and crimplene suits” have come back to haunt him.

Skodas are now a luxury vehicle, and monetary reform is gaining support internationally from economists, professors and commentators.


Tracey Livingston, Whakamarama


Time For Monetary Change (LINK to media cutting)

Northern Advocate - July 18th
I find it difficult to understand why successive governments lament the lack of available funding, yet make no attempt to reform the monetary system in a way that would provide it

There seems to be no willpower amongst parliamentarians to do so, despite ample evidence of how it could be done.
Continuing to borrow billions from private banks is just exacerbating the problem.

I was shocked to learn that the government pays roughly $4.5 billion dollars in interest on loans to private banks every year. 
The Government should be utilizing the Reserve Bank to create the necessary credit for public spending. 
Instead of repetitively trying the same old stuff and hoping for a different result how about we strive for a change and get some results we can be proud of?


Callan Neylon - One Tree Point


Eyes Opened To Money Creation (LINK to media cutting)

Northern Advocate - July 17th

Economic commentator Bernard Hickey said that “money is invented out of nowhere by private banks.”

That opened my eyes. I thought our money supply came from the government.

But apparently I was wrong. Hickey should know.

“It is private banks that print money. They invent money out of nothing whenever they lend,” he went on to say [on Radio Live].


And then they have the gall to charge us interest on ‘money they invent out of nothing’ sufficient for our Aussie owned banks to make $5 billion dollars in profit after tax last year.

Hickey called it “the dirty little secret of international finance.”

Perhaps it’s time for the creation of new money to go back to where most of us think it happens – with the government.


Gloria Bruni, Whangarei


Sick Policy Affects Health

Gisborne Herald - July 14th

Winston Peters and David Clark must stop telling fibs about funding.

Just because nursing is a female-dominated profession, that’s no excuse for fobbing them off with financial falsehoods about “no more money on the table” or budget constraints.

As Social Credit leader Chris Leitch has pointed out in his message to the nurses union, money would be found immediately should the government be drawn into a war.

He advised that our central Reserve Bank has the powers to issue suflicient funds for what is needed - without having to borrow from overseas banks.

What is diabolical is the way our DHBs are required to pay out multi-millions of dollars to service the 8 percent capital charge.

This on top of servicing other private debt.

How can such a sick policy apply to public health?

Both the Govemment and the unions need to front up to this question.


Heather Smith, Gisborne


Bemused By Money

The Listener - June 9th 

Chris Leitch (letters May 26) argues for Reserve Bank funding for infrastructure.

Sounds like Social Credit’s “Funny Money” financial policy.

Apparently, it’s come of age.

Since the global financial crisis of 2008, central banks in Europe, Britain, China, Japan and the USA have been pumping new money flat out into their economies.

Currently the European Central Bank is doing it at the rate of $35 billion Euros per month.

They all call it quantitative easing – a fancy term for what is just money creation.

In reality it’s Social Credit, except they contend the recipients should be infrastructure, health, education, etc, not banks, bonds, and currency speculators.

And despite what the doom merchants proclaimed – not a whisk of inflation to be seen.

If money creation is a viable option for the rest of the world, then why not here?


Gregor Weston, Pukekohe


Paying For Infrastructure

The Listener - May 26th

The May 12th editorial, “No pain, no gain” reckons we are economically literate enough to know that", one way or another, we all pay for infrastructure.”

It then canvasses  public- private partnerships and government debt, both of which have the added cost of a profit for the lenders of the money.

By all means pay the builders of the infrastructure, but there are other sources for the finance - a bank we own for one.

The Reserve Bank, has in the past provided finance for such things, with minimal interest charged, and with profit going back to its shareholders – us – by way of government ownership of the bank.

Fourty thousand houses were built by the first Labour government using this mechanism.

As the Ministry of Works report of 1949 states “This action showed ….that it was possible for the State to use the country’s credit in creating new assets for the country”.

Chris Leitch, Whangarei

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