Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Graeme Wheeler’s out of touch

Media Release

Monday 3rd February 2014

Graeme Wheeler’s out of touch

Reserve Bank governor Graeme Wheeler has sounded the death knell to the country’s weak economic recovery by foreshadowing a lift in the OCR in the very near future, Democrats for Social Credit Leader Stephnie de Ruyter said in an address to a party meeting in Petone yesterday.

His plan to use higher interest rates as the only tool in an effort to hold down any increase in inflation proves that he is out of touch with modern economic thinking.

The move is akin to a prehistoric caveman wielding a large club to beat a mouse into submission, she said.

At a time when the country’s economy is starting to drag itself out of the doldrums, he is proposing to increase interest rates and send it plunging back into recession.

Higher interest rates will be passed on by businesses into higher prices, with the only winners being the Australian owned banks who will see already obscene profits skyrocket through bigger margins.

Mr Wheeler should take a lead from the Federal Reserve, and central banks in Europe, Japan, China, and numerous other countries, and use the Reserve Bank he heads to provide low interest loans for local and central government infrastructure projects.

Such action would result in significant job growth and put real money in the hands of consumers to fund increased retail sales rather than them being funded by credit card debt.

Despite dire predictions by economists, and the scare tactics of politicians over many years, increases in the money supply implemented by overseas central banks have not flowed into higher inflation, rather they have resulted in the reverse.

A recent report by the International Monetary Fund backs up this approach.

It’s time Mr Wheeler dragged our central bank into the 21st century and started using its capability as it should be used.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Werewolf: John Pilger, And Making War On China

In July, the New Zealand Defence Force is scheduled to join the latest round of Talisman Sabre, a huge training exercise that Australia carries out biennially in conjunction with all four arms of the US military.

Last time around in 2015, New Zealand contributed 650 personnel, 45 vehicles and two of our $NZ771 million dollar fleet of NH90 helicopters to this regional war game.

What’s weird is that Talisman Sabre is actually a rehearsal for an assault on China and its ability to defend itself. More>>

ALSO:

 
 

Urban Planning Report: Momentum Grows To Replace The RMA

A major new report from the Productivity Commission lays the foundation for action on the growing political consensus that the Resource Management Act and associated laws are failing both cities and the natural environment and need a complete rewrite. More>>

ALSO:

Vaping: Quitline Supports Decision To Legalise Nicotine E-Cigarettes

Today Associate Minister of Health, Hon Nicky Wagner has announced that Government are taking the proactive step of legalising nicotine e-cigarettes, a move which Quitline is pleased to hear and support wholeheartedly. More>>

ALSO:

Gordon Campbell: On The Labour/Greens Deal (And The NZDF)

If Labour and the Greens were hoping their Budget Responsibility Rules (BRR) agreement would foster an unlikely alliance then hey… mission accomplished! Because it isn’t every day that Sue Bradford, the CTU and Matthew Hooton speak with one voice, as happened yesterday. More>>

ALSO:

Until After The Election: Extension Of Report-Back Date For Havelock North Inquiry

Attorney-General Christopher Finlayson announced today that the report-back date for the independent Inquiry into Havelock North Drinking-Water has been extended at the request of the Inquiry’s Panel. More>>

ALSO:

Little Heading For Court: Apology Over Donation/Hotel Contract Claims Not Accepted

Today I want to publicly apologise unreservedly to Mr Hagaman for any hurt, embarrassment or adverse reflection on his reputation which may have resulted from my various media statements. I have offered that apology to the Hagamans. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news