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

 


Democrats for Social Credit rejects failed policy

13 March 2014

DSC rejects failed policy

Reserve Bank governor Graeme Wheeler has rolled out a tired, outdated, failed policy with today’s announcement of a .25 percent increase in the official cash rate, says Democrats for Social Credit Deputy Leader and Finance Spokesman, Chris Leitch today.

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.

At a time when the country’s economy is finally starting to drag itself out of the doldrums, he is doing his best to strangle it and send it plunging back into recession.

Higher interest rates won’t help struggling families trying to pay off a mortgage.

Higher interest rates won’t help young couples trying to buy their first house.

Higher interest rates won’t help workers on low wage levels because the increases will be passed on by businesses into higher prices.

Higher interest rates won’t help small businesses running on overdraft finance, and will likely see more of them filing for bankruptcy.

Higher interest rates will help the Australian owned banks who will see already obscene profits skyrocket, and wealthy investors, mainly overseas, who will gain greater returns.

Mr Wheeler should look overseas at more creative solutions, and 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 rather than 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

 

Parliament Today:

The Kids: OECD Report Shows Huge Impact Of Poverty On Education

A new report from the OECD has again highlighted the negative effects of poverty, showing that disadvantaged children in New Zealand are more than six times more likely to underachieve in maths than children from wealthier homes. More>>

ALSO:

Pacific: NZ Pledges $500,000 To Help Address Zika

“With the Zika virus now confirmed in a number of Pacific countries, New Zealand is committed to helping limit the impact and spread of the virus in the region,” says Mr McCully. “New Zealand will provide $250,000 as a contribution to the WHO to implement the Pacific Zika Action Plan, and a further $250,000 to enable countries in the region to respond rapidly if required." More>>

ALSO:

Labour: Police Commissioner 'Doesn’t Get Force Needs'

The Police Commissioner has let down the public and his own force by insisting the police have what they need despite it taking a year to solve a burglary and overwhelming number of officers saying they are under-resourced, says Labour’s Police spokesman Stuart Nash. More>>

ALSO:

Gordon Campbell: On The US Pressure To Expand Our Role In Iraq

Foreign news services are being more forthcoming about what the “next 12 months” will entail – essentially, the defence ministers will be under US pressure to increase their “training” role preparatory to an assault on the city of Mosul in northern Iraq. More>>

ALSO:

Parliament Restarts: Prime Minister’s Statement

Our policy agenda and legislative programme will reflect the Government’s four priorities: • to responsibly manage the Government’s finances • to build a more competitive and productive economy • to deliver better public services to New Zealanders, an • to support the rebuilding of Christchurch. More>>

ALSO:

NZEI Survey Report: Special Needs Students Missing Out

The survey revealed that around 16 percent of students were on schools’ special needs registers, but nearly 90 percent of schools’ special needs coordinators did not believe there was adequate support for students and their learning... More>>

ALSO:

Interim Report: Waitangi Tribunal On Ture Whenua Legislation

Labour on Proposed changes to Maori land rules: “To have Treaty Negotiations Minister Chris Finlayson dismiss findings as ‘bizarre’ is totally disingenuous and disrespectful. What’s bizarre is Maori Development Minister Te Ururoa Flavell stubbornly pushing through this Bill before the Waitangi Tribunal has even completed its report..." More>>

ALSO:

Spy Update: Appointment Of GCSB Acting Director

GCSB Chief Legal Advisor Lisa Fong will become the Acting Director of the Government Communications Security Bureau (GCSB) from 15 February 2016, Minister Responsible for the GCSB Christopher Finlayson announced today. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news