Social Credit is accusing the Australian owned banks of crying ‘wolf’ over the Reserve Bank’s proposals for banks to hold higher capital ratios.
Party leader Chris Leitch says any extra costs involved in the higher capital ratios should not be passed on to consumers nor should they hurt the economy.
Adrian Orr and the Reserve Bank should not be put off by threats from the banks or from John Key who is acting in the best interests of the bank he is chairman of, not in the interests of New Zealand.
It should be remembered that every single loan a bank grants to a borrower is created by the bank out of thin air. Banks don’t lend money people have deposited with them. They create new money in the process of lending.
This was confirmed by the Bank of England in two reports it produced in 2014 as well as the German Central Bank, and our own Reserve Bank. The Bank of England report noted “Whenever a bank makes a loan it simultaneously creates a matching deposit in the borrower’s bank account thereby creating new money.”
This ‘licence to print money’ has seen substantial year on year profit increases by the four big overseas owned banks which saw them pull 5.1 billion out of the New Zealand economy last year – four times more profit than the ten largest companies on the New Zealand stock exchange.
The banks are huge money making machines that can well withstand the higher capital ratios the Reserve Bank is proposing without the need to pass any additional costs on to bank customers.
Any moves by the big banks to do so should be met by the Reserve Bank directly creating funds to either support government spending on infrastructure, or re-establish a State Advances Corporation to lend to first home buyers at rates below those offered by the banks.
Banks already have the ability to skim money out of depositors’ accounts should a banking crisis eventuate. The Reserve Bank’s move to make them increase their capital reserves should make such action much less likely.
The banks have had it too good for too long and the move by the Reserve Bank is a breath of fresh air to rein them in.
We have been forced to have a bank account for our pays and other matters like receiving a benefit this is wrong the banks have so much information about us all and they have shown particularly westpac they will hand you private information over as they did with Nicky Hager at the drop of a police hat they don’t need a warrant
Not any more , Michelle. You’ve still made a good point about the info of ours which they hold – what we’re spending, and where, and what on, and bearing in mind the Dirty Politics which streamed from John Key’s office, with him now heading a big bank, if I were doing something dodgy or questionable, or even just embarrassing, I’d be looking at blurring my tracks or changing banks if I thought that they had anything on me. Suddenly, they are no longer just anonymous spread sheet producers – and nor are we.
What a disgusting country this is. Let me count the ways (NB not exhaustive) we’re INSTITUTIONALLY GOUGED
– the foreign imperials suck 5 billy out of the country as
– you pay half your salary on exorbitant rent or a sadistic mortgage
– as you get extorted over a barrel for groceries while
– your actual purchasing power is ideologically sabotaged by punitive tax on petrol (to bully you into electrics),
– same goes for the tobacco
– or shortly the alcohol or,
– whatever is ideologically targeted for bullying treatment next
Your money will be sabotaged for ideologically based conditioning reasons by a mealy mouthed shill coven of collabs, ulterior scientists, sell outs and elevated insipids worming around a rancid pyramid. Call an exterminator FFS, it’s infested. And it’s worse than Termites
” re-establish a State Advances Corporation to lend to first home buyers at rates below those offered by the banks.”
Now what would be wrong with that, if we had a government vaguely interested in helping people get into their first home. It would in short order transfer to the building industry and all would flow from there. The inflated prices would not have such an impact if interest rates were nearly nil and repayments set at a manageable schedule.
D J S
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