Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

US bailout mocks Nat plan to sell Kiwibank

23 September 2008 Media Statement


US bailout mocks Nat plan to sell Kiwibank

The socialisation of a trillion New Zealand dollars worth of the financial sector in the United States is further proof the value of the public sector being involved in the financial sector, Progressive leader and Kiwibank champion Jim Anderton said today.

"If anyone still believes the public sector has no role in banking, let them now say the US government should have let the financial system there collapse.

"This episode makes a mockery of National's plan to sell Kiwibank 'eventually.'

"Even in the home of free markets, a hands-off banking system has failed.
The alternative to the Bush administration's nationalisation of banking securities would have been to let the market sort out the crisis. Not even the free market barons of Wall Street could tolerate that.

As one commentator said,

"[A] Republican administration has decided that the only way to keep the American economy alive is to have the federal government take the reins of some of the largest financial institutions in the world. There is a term in political philosophy to describe a government takeover of a critical industry: That term is socialism. The government is telling us that capital and credit markets cannot, for several reasons, solve the current crisis on their own—only the federal government and its massive taxpayer base have the authority and the resources to solve it. That is state socialism: the philosophy preached by the founders of the Second International, by the radical wing of the American labor movement, through the formation of the Soviet Union and its satellites, and now by Henry Paulson."
[James Ledbetter, Slate Big Money magazine, http://www.thebigmoney.com/articles/judgments/2008/09/21/henry-paulson-socialist]

Jim Anderton said the involvement of the American government to rescue the financial system there was the last nail in the coffin for those in New Zealand who have argued that the state has no role in banking.

"The 'hands-off' approach led to a crisis in the United States, and if it had continued the crisis would have spread globally.

"One reason I championed Kiwibank was that we were the only developed country in the world that owned virtually none of our financial sector. That left us even more vulnerable to financial shocks.

"The United States government acted because the consequences of leaving the market to its own devices would have been disastrous. The idealogues who want Kiwibank sold, including Bill English, couldn't have been more emphatically proven wrong."


ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice.

Evidently, the National government is similarly desperate for anything that might discredit or derail the Ardern juggernaut, even if that means throwing Internal Affairs Minister Peter Dunne under a bus More>>

 

Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>

ALSO:

Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>

ALSO:

Treaty: Agreement In Principle Signed With Moriori

“The Crown acknowledges Moriori was left virtually landless from 1870, hindering its cultural, social and economic development. The Crown also acknowledges its contribution to the myths that the people of Moriori were racially inferior and became extinct." More>>

ALSO:

Susan Devoy: Call For Inquiry Into State Abuse Reaches UN

Race Relations Commissioner Dame Susan Devoy is in Geneva and has asked a United Nations committee to urge the New Zealand government to initiate an inquiry into the physical and sexual abuse of children and disabled people held in state institutions. More>>

ALSO:

(Not National): Cross-Party Agreement On Pike River Re-Entry

The commitment was signed this afternoon by the leaders of Labour, United Future, The Maori Party, and the Green Party and, together with the earlier commitment by New Zealand First, means that there is now a Parliamentary majority behind the families’ fight for truth and justice. More>>

ALSO:

Earlier:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election