Magic Money Tree

24 March 2020

From Chris Leitch, Social Credit Leader

In 2018, nurses went through a prolonged series of strikes in order to get better
wages and conditions and an additional 500 nurses employed to reduce the shortage and consequent stress on existing nursing staff. That deal worth an estimated $520 million dollars is not due for completion until August this year.
It took five offers from the government and DHB's before agreement was finally
reached. Nurses were repeatedly told there was no more money.
In January 2019 3300 junior doctors started 5 rounds of strike action to address
issues around fatigue, good patient care and training, and under-staffing. That was finally resolved in August.
Now, we're expecting them and the nurses to be on the frontline of dealing with a
virus crisis that will get worse before it gets better and where our health services
across the board are seriously under-funded.
In July last year after months of stoppages teachers were finally offered a $1.2 billion deal which will not be completed until July next year. Along the way, Education Minister Chris Hipkins told them “These are really good offers, and the government will not be increasing the total amount”.
In December, thousands of workers on the minimum wage where given an increase equivalent in value to half a cup of coffee per hour - due to take effect on April 1st this year.
In all cases “there is no more money” was the mantra rolled out numerous times
with each new offer.
The previous National government had clamped a lid firmly on wage increases,
which raises the question why anybody in any of those sectors of the economy
would ever want to vote National, but the new Labour coalition government became stuck with the problem.
For years there have been hundreds homeless, living in cars sheds and on the
streets, and thousands of people on benefits and low-wage workers, struggled from week to week to put food on the table for their families. National again were the culprits, having made savage cuts to benefits under Ruth Richardson, sold off
thousands of state houses under John Key, and chose to pretend that such problems didn't exist, but Labour haven’t significantly addressed those issues.
People in those situations are not much better off nearly three years after the
Labour coalition were elected, although it is fair to say that some of the homeless
are being put up in motels.
Yet this week, in the face of a virus crisis that will have dramatic effects on business and workers, the government have miraculously come up with about $20 billion dollars overnight and there's more to come yet - even though supposedly just a few months ago there 'was no more money'.

Former British Prime Minister Theresa May said 'we have to stop thinking there's a magic money tree'.
Suddenly, not only in New Zealand, but in Australia, in the UK, in the US, and in
almost every developed country throughout the world, magic money trees have
miraculously appeared.
Money has materialised out of thin air, and governments are splashing it about with gay abandon.
It’s come courtesy of those country's Central Banks - something which Social
Crediters have long proclaimed was possible, despite years of jibes about funny
money and $21 notes.
But where did the central banks get it from?
Social Crediters know that creation of money is done every day by commercial banks when they make ‘loans’ – a sleight of hand book-keeping exercise now done on bank computer terminals.
Many reputable authorities know it too and have published the fact – the Bank of
England, the German Central Bank, our own Reserve Bank, to name a few. Many
economists and economic writers and commentators do too – although most are too scared to say so. See more about that here - http://tellmemore.org.nz/index.html
Commercial banks don’t lend money people have deposited with them, yet former BNZ chief economist Tony Alexander speaking on Newstalk ZB on March 24th talked about banks having more money to ‘push out the door’.
Central banks don’t ‘get’ money from anywhere. They don’t need to. Their job
ultimately is to create it, in a similar way to the commercial banks, but backed by the wealth of the country rather than by value of the house or other asset you pledge to your bank.
As long as there is un-used capacity in the economy the central bank can create
money without inflation being a concern – as the actions of the Reserve Bank in the last few days have confirmed. It’s going to create $30 billion in new digital money to purchase government bonds from financial institutions that currently own them.
Raf Manji, former investment banker and Christchurch City Councillor finance
chairman, wrote this about Central Bank Quantitative Easing (money creation that
has been going on in other countries for years) in an opinion piece on the same day as Tony Alexander’s comment on radio.

https://www.interest.co.nz/opinion/104209/raf-manji-urges-rbnz-not-make-
mistake-previous-overseas-qe-programmes-focusing

“All the new central bank money that went into the secondary market to buy
government bonds and a whole range of other securities, ended up being redirected into financial markets.”
“What the NZ’s 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. The RBNZ can and should still support the secondary bond market but it should not make the mistake of previous international Quantitative Easing programmes, and focus entirely on supporting the financial markets.”
Thanks Raf - We agree. That’s Social Credit.
Proved right at last !

 

Authorised by Anne Leitch, Secretary, 42 Reyburn House Lane, Whangarei

secretary@socialcredit.nz

Copyright Social Credit Party 2019