News

May 2017 Positive Money New Zealand issued a press release seeking clarity from the Reserve Bank on how our money is created.  They still refer to intermediation by the banks, which is not how our banking system works.

5th November 2016 An article in The Guardian newspaper in England argued that abolishing debt-based currency holds the secret to getting our system off its addiction to growth.

5th September 2016 KPMG released a report, commissioned by the Prime Minister of Iceland, titled "Money Issuance" The report looked at money created by the Government.

28 March 2016 Bryan Gould has agreed to be the Patron for Positive Money New Zealand.

Bryan is a respected commentator on economic matters, an author, academic and Companion of the New Zealand Order of Merit.

31 October 2015 A monetary reform group in Switzerland has enough signatures for a referendum on who creates their money supply.

14 October 2015 The Finance Commission of the Dutch parliament discussed monetary reform.

31 March 2015. The Telegraph in London reports on the Icelandic governments plan to have their central bank issue their money supply and calls it a radical plan.

22 November. The British parliament debated money creation last week, for the first time in 170 years. There was cross-party support for a proposal to set up a monetary commission

23 September. A new generation of young people, dubbed ''property orphans'' may be destined to be renters for life.

17 September. The Bank of International Settlements (BIS), the bank used by central banks, confirmed New Zealand houses are among the most "unaffordable" in the world compared to people's incomes.

6 September. Bruce Bisset of Hawkes Bay today reveals the true story behind the so called Rock Star economy.

25th April 2014 "Strip private banks of their power to create money”: says the Financial Times’ chief economics commentator Martin Wolf, who endorses Positive Money’s proposals for reform

15th March 2014 - In a historic move The Bank of England quarterly bulletin explains how money is created. Whenever a bank makes a loan, it creates a deposit in the borrower’s bank account, thereby creating new money. The bank says that this differs from the story found in some economics textbooks.

16th August 2013. The retiring head of the Financial Markets Authority apologised for the mistakes made saying “You were let down”.

 

Leo Tolstoy“Money is a new form of slavery, and distinguishable from the old simply by the fact that it is impersonal – that there is no human relation between master and slave.”

Leo Tolstoy, Russian writer

National debts and deficits

The business model that banks use is so unstable that it has to be propped up by the taxpayer.

Taxpayer support ends up increasing the national debt for two reasons.

Because the system is so unstable, it regularly triggers recessions. This means that fewer people are working, less taxes are paid and as a result the government has to borrow more just to avoid slashing a huge amount of government services.

The government cannot keep increasing the national debt forever - at some point people will start to question whether the government can repay, trigging a 'sovereign debt crisis' which can potentially bankrupt a country's government.

New Zealand’s national debt currently stands at a little over $183bn, which is almost $42 000 per citizen. There is no way this debt will ever be repaid unless we fundamentally restructure our economy. Should the government even try to pay back this debt the level of services it would have to cut would mean that thousands of people would be thrown into unemployment, and would need to find other jobs.

All these people will require unemployment benefits whilst they look for jobs, and, should they find jobs, they will be paid with money created as debt, should the economy grow (read, indebt itself) enough to facilitate this. As the only end result of allowing banks to continue creating money in this way is another financial crisis, the end result of cutting services and paying back the national debt will only be an even bigger financial crisis, leading to an even bigger national debt.

 

 

 

 

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