NACT is crowing about lower interest rates. But the economy still sucks. Why?
Because what matters isn’t the price of money; it’s where money comes from, how much is created, and what it’s used for. It’s more mysterious than sex, for the uninitiated.
Right now, 97% of New Zealand’s money is created by private banks – mostly Australian-owned. (Kiwibank is not allowed to compete meaningfully)
The government currently only creates about 3% of new money into the economy.
Only 3%.
Isn’t that interesting?
(According to Muldoon, Nz govts traditionally created 5-7% annually increasing to 20% in election years. But that was back in the days when we built stuff ourselves. Singapore invests about 20% of GDP in itself each year)
So what happens to the 97% of privately created money? Does it go towards fixing our two hundred billion dollar infrastructure deficit?
No.
Does it go to fund our essential services?
No.
Does it go to help develop strategic industries or resources?
No.
Instead, it largely gets lent – at compound interest – to people buying second-hand houses, not building new homes, infrastructure, innovation, or public goods. That’s not investment. That’s deadweight speculation. It creates asset price inflation and bleeds the country dry, because the interest on those loans flows offshore into the vaults of Aussie bank shareholders. We get a sugar rush of rising house prices, but at the cost of pricing ourselves out of the market; and raising the costs of living and business.
I repeat. Private banks create money for free. By simply putting digits in the bank account you have with them. Then they charge you compounding interest, which they then bleed from the nation and export to Australia. In fact they bleed a globally significant pound of flesh from us.
If you’re wondering why your wages don’t buy what they used to, why we can’t afford ferries, hospitals, or school lunches – this is the reason. Because we are being bled.
We’ve outsourced money creation to the private sector, and their goal isn’t nation-building. It’s profit-maximising. That’s the racket. ‘Markets’ if permitted to, will exploit you. This should not come as a surprise to anyone. Why has the ‘the market’ not developed our economy? Because ‘the market’ is focussed on sucking profits out of our economy. It’s easier to extract monopoly rents than it is to invest.
Hence the racketeers, whether they be big pharma, central bankers, or commercial banks, control their markets and protect their monopolies. They do this by telling us lies, and propagating their lies through their mouthpieces in politics, academia, and media.
Professor Richard Werner, author of “Princes of the Yen”, has exposed this clearly. His documentary is essential viewing – as is his recent interview with Tucker Carlson: Watch here.
So is the excellent film Finding the Money, which breaks the taboo about sovereign currency creation and how governments can fund what matters. *If they want to serve the nation*
Its truly remarkable how this movie reveals the ignorance of the worlds economic ‘experts’. These men somehow don’t know where money comes from. They drank a kool aid that says banks don’t do anything in the economy. It’s mind blowing.
Think about it. Normal people know that everyone owes money to the banks. So why do economists not understand where money comes from? Today, it’s basically their job to not know. That’s why it’s a mystery for most of us. Because we are lied to. We are mistaught. We are captured by the market.
But the truth still exists.
Even the Reserve Bank admits it:
Point 6 of the RAFIMP review says it directly: we can issue money to fix “market failure”.
But we don’t. Instead, despite multiple market failures in energy, housing, water, infrastructure, etc, Nzs politicians are suffocating us of essential investment.
Why? Because it’s most profitable for the banks to control the market. Thats market forces for you. It’s not rocket science.
It’s fraud.
When I met economist Brad Olsen at fieldays he was delighted to talk economics with me, until I pulled out the RBNZ documents. Then he ran like a thief. He moved pretty fast for a big guy.
Ditto the national party MPs next to my stand. But they couldn’t run. So they literally just ignored me and pretended neither I nor the rbnz documents existed. Then they got me kicked out of Fieldays.
I was left with the feeling that the national party is a greater danger to Nz than any other gang of thieves. Knowledge is power. Any leaders who lie about fundamentals should lose power.
If we want a functioning economy, we need to take back control of money creation – and use it to build homes, hospitals, clean energy, and opportunity. Not inflate house prices for bank profits and foreign investors. It’s predatory.
Tell your friends. Tell your whānau. Tell your workmates. Watch “finding the money”, listen to prof werner and tucker.
This country is being looted by design.
The only thing missing is the public demanding a better one.
Let’s invest in ourselves, instead of dropping our pants for Australians.
You know it makes sense. Spread the word. Nz has the power to make itself wealthier. That no politician wants to do so suggests a profound ignorance, incompetence, cowardice or corruption. Politicians can only rule with our consent. Let’s stop consenting to being looted.
Remember, Christopher Luxon got booed by netball mums yesterday. Was it because he torpedoed their pay equity? That quite simply could have been paid for and should have been paid for?
He got off lightly. If people understood how severely our nation was being shafted by NACT he could expect much worse.
Nb. A plague on all parties who refuse to talk public investment through low cost sovereign money. A plague on all parties who enable the bankster racket.
Watch prof werner
And Prof Kelton
Follow the money. Find the money.
Let’s Fund our nation. Let’s improve things.
It’s time
Tadhg Stopford is a Historian and Teacher. Join him at www.thehempfoundation.org.nz. Support change by purchasing at www.tigerdrops.co.nz
Good article. Can you get an interview on BHN or Bombers show to explain fiat currency. Good examples are WW2, the GFC and COVID – where did the money come from?
Was it the collapsing private sector paying more taxes and buying government bonds that provided the funding the government needed?
In each case a reserve bank created the money as an entry on a balance sheet at the reserve bank and transferred this to private sector institutions via commercial banks. All commercial banks are agents of the state and subsidiary to the reserve bank.
They are a key part of the monetary system and have requirements and constraints set by the reserve bank that ensure a stable money supply when the private sector goes under.
Reserve banks are like shock absorbers – they can soak up the impact of the private sector hitting an unseen pothole at high speed. Provide liquidity literally out of thin air.
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