By changing the way we issue our money we can dramatically improve the quality of life for all Kiwis.
Currently the Reserve Bank issues our notes and coins that make up less than 3% of our money supply while private banks create the other 97% by way of loans and mortgages. That money is then used for internet banking and EFTPOS transactions.
Our financial Policy will have our Reserve Bank issue all of our money supply and the profits from that money creation will remain in New Zealand, for the benefit of all New Zealand. The New Zealand economy will thrive.
Our Reserve Bank did issue digital currency during the recent Covid-19 crisis, but unfortunately most of that money went to the Australian owned banks and not to the people who really needed it. Our policy will correct that.
Rather than providing funding to financial institutions, a better (and proven way) of stimulating investment and injecting money into the economy is to have our Reserve Bank buy Government bonds directly from the Treasury for use in infrastructure projects and direct fiscal stimulus. This approach should appeal to every Kiwi, irrespective of which part of the political divide they occupy.
The direct purchase of Government bonds by the Reserve Bank is being done to great effect in Japan, China and Canada and means that the money will stay in New Zealand for the benefit of New Zealanders rather than being used by financial institutions to pay bonuses for top management, predatory buying up of companies that have fallen on hard times or simply disappearing overseas.
“Businesses in the real economy have been asked to prepare for the worst while financial institutions are receiving money that they do not require. Better to put that money where it is needed most – in the hands of struggling Kiwis,”
Our Reserve Bank issue all of our money supply through the direct purchase of Government Bonds and the profits from that money creation will remain in New Zealand, for the benefit of all New Zealand. The New Zealand economy will thrive.