This speech from David Cunliffe was stirring stuff apart from absolutely every good idea within it will never be able to add up to any real long-term good due to the one thing that New Zealand Labour Party used to know, but now leave out. That being, that sustainable equal economic opportunity can only come from predistribution of capital at the point of origination and not the dismally failing redistribution via taxation after that point. For those in Labour that want to learn the subverted very founding ideals of Labour that are even more needed today for the very same reasons, please read on; International Labor Movement and New Zealand Labour Party very founding ideals of at cost motive public central banking as opposed too profit motive private owned central banking. Michael Joseph Savages who went on to become the first New Zealand Independent Labour Party Prime Minister 1935-40) said in his 1920 maiden speech to Parliament; “The Government should create a state bank , and use the public credit for the public good as an alternative to borrowing overseas” 1933 New Zealand Labour Party manifesto wanted the state to be sole authority for the issue of credit and currency. 1935 New Zealand Labour MP John A Lee wrote The Labour Party affirmed that the government should have the sole right over the issue and control of new credit Tom Skinner of the (New Zealand) Federation of Labour said in his 1981 book – Man To Man – Michael Savage explained the State housing scheme to him as such; Pg 45 – “I was with Joe on one occasion when he began chatting about the ramifications of the Governments State Housing Scheme. He told me … how the construction of those houses created assets in a productive way. The Government created the money through the Reserve Bank at a moderate rate of interest to cover the contract price, which paid for materials, tradesmen’s wages, the purchase and development of the land and all the other essentials required to finish the house. On completion the house was transferred from the Housing Division of the public works department to the State Advances Corporation – in effect from one department to another. The corporation was the renting agency responsible for selecting the tenants, collecting rents and maintaining the house and the property. The philosophy was that as the money was created for productive purposes no loss could occur if it were not repaid from one department to another. Meanwhile, during construction, tradesmen had been paid wages which had been spent and absorbed into the economy. But it was solid money backed by the creation of assets. People had been kept fully employed while the government built homes for the people. Tom Skinner; “While Joe spoke I began suddenly to grasp the Labour philosophy related to the creation of credit. It set me off thinking about money and what it meant to the economy. The Government, figuratively speaking, could rub a state house debt out of the books because a building stood in its place. But money created by the banks in order to gain profits in the form of interest was the other side of the coin. It was unproductive, inflationary creation of money if unmatched by equivalent goods and services…..” “I have read and believe that monetary mismanagement is the greatest evil of our time. It breeds injustice, increased costs and, as the root cause of inflation, it diminishes the value of our money. Governments should carry out their pre-election promises and take the necessary steps to reform the monetary system. It can be done only by making the State the sole authority for the issue of currency and credit….. unfortunately, in this area politicians seem to be abysmally ignorant of elementary financial and economic truths.” From The Cradle To The Grave – A biography of Michael Joseph Savage (First New Zealand Labour Party Prime Minister 1935-1940) by Barry Gustafson 1986; Pg 198-9 The National Opposition (1936) was astonished by the use of Reserve Bank credit for housing, which disregarded traditional principles of budget finance. Forbes (George Forbes ex Prime Minister 1930-5 Great Depression era) admitted confidentially to Stewart (William Downie Stewart Jnr – Finance Advisor); “This places them in a unique position, the houses after erection carry no interest on capital cost, and for instance a thousand pound house can be let for 5s per week and be a financial success. The millennium seems to have arrived and it makes one wonder why we had to struggle in the bog, when there was such an easy way out of our troubles, houses, after being built with the highest paid workers in the world, at the lowest cost heard of, makes our policy of orthodox finance seem almost prehistoric.” 1954 Labour Party manifesto stated Labour will take immediate and effective to ensure that the state will become the sole authority for the issuance of credit and currency. The public credit will be used to the fullest extent compatible with the public good In July 1962 the leader of the Labour Party, the Rt. Hon. W. Nash, made a lengthy statement in which he said; “Consistent with the needs of a sound economy, the State should create and use credit at the cost of issue for purposes of approved capital development. We are satisfied that the use of Reserve Bank Credit, within the limits set out is not only justified, but has already contributed much towards the Nation’s economic well-being.” John A Lee said in his 1963 book - Simple On A Soap Box – “Thus, 27 years too late, Nash accepted the policy on which Labour was elected in 1935.” 1964 Labour Party manifesto stated Labour believes that measures taken before credit is issued are more effective than restrictions afterwards. But New Zealand instead somehow ended up with this foreign controlled private pyramid scam; Former New Zealand Reserve Bank Governor 1988-2002 Don Brash has said; (Nov 1996 reply to information request letter to David Coote) Commercial bank deposits are created by banks’ lending. When a bank makes a loan, it will, in the first instance , deposit the proceeds to the borrowers account. Of course, the the borrower invariably raises funds to spend them, so the proceeds (deposit) typically will end up in a bank account of someone other than the borrower – often at another bank than that which made the loan. However, it remains that bank loan transactions ultimately lie behind the deposit balances that banks hold. By influencing interest rates, the Reserve Bank is able to influence the rate of growth in bank lending and hence the rate of (bank deposit) money growth. (Feb 2012)“ Every form of recognised money today is the obligation of some central bank” (April 2009 ) “Banking crises are not new of course – they have been a recurring feature of the economic landscape for many decades, indeed for centuries. There have been scores of banking crises even since 1945, though of course none with such far-reaching impact as the present one.” “There was also a failure to understand the complexity of, and risks involved in, many of the products which were widely traded in recent years. This failure was almost certainly widespread both in senior management and on bank boards.” Dr Alan Bollard Governor of the Reserve Bank of New Zealand 2002 - 2012. Excerpts from a book Alan Bollard published 1 Sept 2010; Crisis: One Central Bank Governor and the Global Financial Collapse Pg 20 Banking practices differ around the world, but we ensure ours meet international standards. These are set by a somewhat shadowy group called the Basel Committee on Banking Supervision. Comprised of representatives of large countries( not including New Zealand ), the group meets in Switzerland at the Bank of International Settlements (BIS). Pg 183 “In self-interest, banks may encourage New Zealanders to take on more debt than is good for them individually or deliver more external liability than is good for the country.” Pg 157 “Another governance worry related to the power and competence, or lack thereof, on the part of banks chief risk officers and risk committees. These officers assess the possible outcomes from any deal and decide whether the risks are acceptable under the banks mandated policies. We were now hearing about cases where risks had been miscalculated, procedures bypassed and officers overruled, all in the race for higher earnings.” John McDermott Deputy New Zealand Reserve Bank Governor said 5 May 2011; “The crisis had also prompted a revival of interest by central banks in money and credit, whereas in previous decades central banks had paid less attention to monetary and credit aggregates” “Overall, there has also been a recognition that credit growth over the past decade was excessive and a potential risk to financial stability given the build-up in leverage and rising asset prices that accompanied it. We are continuing to build our understanding of money and credit at the RBNZ, and its inter-relationship with both sectoral financial decision making and potential risks for the banking sector.” New Zealand Prime Minister and former international investment banker John Key 17 November 2012; “Our debt to GDP levels by then will top at just under 30 percent, in other words, um, well be relatively lowly indebted compared to countries like America and Europe, but I put it to you we are a small open economy, we have high levels of private sector debt, we, mum and dad have borrowed that debt effectively from foreigners because their local bank has sourced that from foreigners.” Mr. Alan R Holmes was Senior Vice President, Federal Reserve Bank of New York. Mr. Holmes had worked for 33 years at the Federal Reserve Bank of New York, where from 1965 to 1979 he was manager of the Federal Reserve System Open Market Account. In that position, he was responsible for the creation of money in the United States. Excerpt from 1969 speech – Operational Constraints On Stabilization of Money Supply; The idea of a regular injection of reserves-in some approaches at least-also suffers from a naive assumption that the banking system only expands loans after the System (or market factors) have put reserves in the banking system. In the real world, banks extend credit, creating deposits in the process, and look for the reserves later. In answer to a letter from Byron Dale in 1982 John M. Yetter Attorney-Advisor Dept. of the U. S. Treasury said; “Money that one borrower uses to pay interest on a loan has been created somewhere else in the economy by another loan.” publiccreditorbust.blogspot.co.nz/2013/04/universal-public-credit-public-policy.html Predistribution of equal economic opportunity with a state money system authority at the top of the wholesale credit supply pecking order is explained in this short video; An introduction to state banking - https://youtube/watch?v=xiYaEIwbwbg
Posted on: Thu, 14 Aug 2014 08:26:37 +0000
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