Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search

 

Eco-Economy: An Appeal to our Bankers.

ECO-ECONOMY IS A FREE SCOOP EMAILER CANVASSING ALTERNATIVE ECONOMIC VIEWPOINTS... CONTRIBUTIONS ARE INVITED...
---> FOR FREE DAILY SCOOPS & LOOPS BY EMAIL - CLICK HERE
http://www.scoop.co.nz/cgi-bin/newsagent/new_user.cgi?form=home
--> TO CHANGE NEWSAGENT OPTIONS - CLICK HERE
http://www.scoop.co.nz/cgi-bin/newsagent/mail_control.cgi

Eco-Economy: An Appeal to our Bankers


By Dr Finlay Thompson

This is an appeal to New Zealand Bankers, not those "big market" bankers, those international elitist bankers. I appeal to the corner banker, who probably lost his job when an ATM was installed.

Help us! New Zealand is being stolen and you can help us. The "crime" has been institutionalized, and is happening every day right under our noses. Consider one common example, a standard bank procedure - establishing a house mortgage.

A house is sold for $150,000.

The Seller, after retiring an existing $50,000 mortgage, walks away with a cool $100,000 cash. After spending $50,000 on a holiday, he comes home and buys another house with the other $50,000 as a deposit.

The Buyer, who has recently returned home, invests $50,000 and now has a house and a $100,000 mortgage. (he keeps reminding himself that the house is worth $150 grand!)

At this point everyone is winning, even the bank.

Before the sale the bank kept ownership papers for the house as security for a $50,000 mortgage and charged $4000 a year in interest (8 percent). Afterwards they still have the papers but now they get $8000 a year on a $100,000 mortgage.

Ah, but they do have to pay interest to the people who deposited the extra $100,000, probably about $5000 (5 percent) per annum. And who was looking to deposit $100,000 extra cash that particular day?

Oh yeah, the Seller deposited $100,000 and took off to Europe. After visiting relatives and skiing in Austria, he came home and invested $50,000 in a house. $50,000 went back into the bank.

What about New Zealand? Before the sale we were paying $4000 each year for the use of a house and $50,000 bank credit that circulated through our bank accounts as money. Now we pay $8000 each year for the same house but now $100,000 cash is "out and about".

But where did the extra $50 thousand come from? And where is it now?

$50,000 dollars, after the Seller exchanged it for pounds and shillings, found its way into the hands of Michael Fay who lives in Zurich and earns at least 25 million NZ dollars each year as interest on the more than $500 million he has "in the bank". If it wasn't Michael Fay, it could have been any of our "creditors". New Zealand sends more than $6 billion overseas each year as the "Balance of Payments" deficit, or maybe we should say "the imbalance of payments deceit!"

Reserve Bank figures show that the amount of NZ dollars "in the bank" has doubled in the last ten years, increasing by $50 billion. More than $1.4 million is created each day.

Where did that money come from? Who created it? Murray Sherwin, Deputy Governor of the Reserve Bank put it like this:

"Money creation is a function of the broader financial system. The loans made by one bank may become a deposit at another bank, and thus underpin a further loan."

Banks create our money by lending it to us! As we speculate with the houses we live in the real winners are our foreign creditors. They are being allowed to create money out of nothing which is a very profitable business. We are being tricked into paying more and more rent for our own land!

This is an appeal to New Zealand Bankers, whoever you are. Our country is being robbed, however we can stop this crime if we act together. In solidarity, I appeal to our bankers,

1) to stop ignoring the problem,

2) to stop all private, commercial and foreign banks from creating our money,

3) and to explain to the NZ people what is happening.

We are being used in a confidence trick of historical proportions. Aotearoa is a rich and beautiful land, unique in the world. We are people who should have hope and faith in a prosperous future that is ours.

Finlay Thompson, New Zealand Banking Reform,

contact: NZ_Banking_Reform@egroups.com or Ph: 021 117 9149


© Scoop Media

 
 
 
Top Scoops Headlines

 

27-29 Sept: Social Enterprise World Forum Live Blog

1600+ delegates from more than 45 countries have came together to share wisdom, build networks and discuss how to create a more sustainable future using social enterprise as a vehicle. Attending the Forum were social enterprise practitioners, social entrepreneurs, policy makers, community leaders, investors, activists, academics and more from across the globe... More>>

HiveMind Report: A Universal Basic Income For Aotearoa NZ

Results from this HiveMind suggests that an overwhelming majority of Kiwis believe that due to changing circumstances and inefficiencies in the current system, we need a better system to take care of welfare of struggling members in our society. More>>

ALSO:

Scoop Hivemind: Medical Cannabis - Co-Creating A Policy For Aotearoa

Welcome to the fourth and final HiveMind for Scoop’s Opening the Election campaign for 2017. This HiveMind explores the question: what would a fair, humane and safe Medical Cannabis policy look like for Aotearoa, NZ in 2018? More>>

ALSO:

Lyndon Hood: Notes On National’s Election Campaign, In Poem Form

Nationyl’s bitumen-ing / As they du du / Seed groweth / River floweth / Then ‘dozer drives thru / Highway ensu. More>>