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

Gordon Campbell: On Journalism’s Future In The Era Of “Alternative Facts.”

Already, the White House has made it clear that the media are the new enemy that the new President’s supporters will be encouraged to unite against. (What else can they do now they don’t have Hillary Clinton to demonise any more?)

The fantastic phrase “alternative facts” coined by Trump spinmeister Kellyanne Conway captures the media strategy in a nutshell. More>>

 

PM's Press Conference: TPP, Trade And Minimum Wage

Prime Minister Bill English’s first official press conference of the year began with a warm welcome back from holidays. In relation to President Trump’s withdrawal from the TPP he expressed disappointment but hopes to negotiate a bilateral agreement with the US in the future. More>>

Employment: Minimum Wage To Increase To $15.75

The minimum wage will increase by 50 cents to $15.75 an hour on 1 April 2017... The starting-out and training hourly minimum wage rates will increase from $12.20 to $12.60 per hour, remaining at 80 per cent of the adult minimum wage.More>>

ALSO:

Housing: Sit-In Occupation To Stop Niki’s Eviction

The Tāmaki Redevelopment Company hopes to issue a Possession Order for 14 Taniwha Street, Glen Innes. This will give them the ability to forcibly evict Ioela ‘Niki’ Rauti who has lived at 14 Taniwha Street for 21 years... More>>

ALSO:

Gordon Campbell: On Bill English, Abroad

If David Cameron was the closest thing John Key had to a political mentor, their successors also share a whole lot in common. Theresa May and Bill English were both propelled into the top jobs as the result of unexpected resignations, and without much in the way of credible competition from their colleagues... More>>

ALSO:

Pike River: Labour Bill To Override Safety Act For Mine Entry

“Bill English has been hiding behind the legal excuse that any attempt to re-enter the mine to recover the bodies might place the mine’s owner, Solid Energy Limited, and its directors in breach of the Health and Safety at Work Act 2015." More>>

ALSO:

Gordon Campbell: On Populism And Labour 2017

For many people on the centre-left, populism is a dirty word, and a shorthand for the politics of bigotry. In this country, it has tended to be equated with the angry legions of New Zealand First. Who knew they were not just a reactionary spasm, but the wave of the future? More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news