Orr challenged to provide evidence
28 May 2020
From Chris Leitch, Social Credit Leader
Social Credit leader Chris Leitch is calling for Reserve Bank governor Adrian Orr to produce the specifics on why he claims current legislation governing the Bank would prohibit it from “money financing” - creating money to finance emergency Government borrowing.
In an interview with Stuff reporter Thomas Coughlan today, Mr Orr said “Currently, I wouldn’t be able to do it - it would be outside our legislation”.
Mr Orr is effectively saying that the present economic merry-go-round of buying and selling bonds, that is saddling taxpayers with massive additional debt and interest payments, and generating bigger profits for the overseas shareholders of banks and other financial institutions, is more important than implementing a source of funding for the government’s rescue package that could have provided debt-free, zero-interest money with no cost to taxpayers.
The $60 billion dollars the Reserve Bank is creating proves that such a source of money is available and re-directing it straight to the government would have been easier than flicking the points on a railway system and sending a train down a different track.
Mr Orr should also detail why he claims that creating $60 billion to direct finance the government will get us “back to high inflation uncertainty and all of the costs that central bank independence has helped remove”, yet creating $60 billion for the bond dealers and banks to play with won’t do so.
The supposed taboo on the Central Bank creating money has now conclusively been consigned to the wastebasket.
The supposed taboo on it doing so in order to finance the crisis spending of the government should go the same way because it is based on ‘convention’ rather than fact.
Mr Orr needs to either get on with doing so, or prove conclusively why he can’t.