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

 


Budget surplus should have been $4 billion

Budget surplus should have been $4 billion

Democrats for Social Credit finance spokesman Chris Leitch has attacked this week’s budget and its tiny surplus labelling its authors “criminally negligent”.

“Without a single extra dollar in tax revenue, user charges, or money from asset sales, the surplus should have been $4 billion”, Mr Leitch says.

“The Finance Minister and the Prime Minister are proposing to squander $3.6 billion of hard earned taxpayers money in the coming year on interest payments on borrowing - loans created out of thin air.”

The Bank of England confirmed last month in its quarterly bulletin that commercial banks create money out of thin air when they make loans.

The lengthy article on money creation says -

“One common misconception is that banks act simply as intermediaries, lending out the deposits that savers place with them.”

“…..rather than banks lending out deposits that are placed with them, the act of lending creates deposits. Commercial banks create money.”

“Of the two types of broad money, bank deposits make up the vast majority - 97% of the amount currently in circulation. And in the modern economy, those bank deposits are mostly created by commercial banks themselves.”

(Bank of England Quarterly Bulletin Q1 2014)

Our own Reserve Bank has said the same –

“Therefore around three percent of M3 is created by the Reserve Bank (currency and primary liquidity), with the remainder being created by commercial banks.”

(Reserve Bank letter 1 September 1994).

The budget cut around $700 million from departments such as Police, Ministry of Justice, Corrections, Customs, and Environment and Conservation while instead providing a direct line of corporate welfare to the banks through interest payments.

Instead of John Key’s government getting its funding from the Reserve Bank at no interest, it is paying interest on loans created out of thin air, a ludicrous situation which shows the Finance Minister is either incompetent or ignorant of the facts.

Either means he is not fit to be Minister of Finance.

ENDS


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Asylum: Dunne Accepts Hundreds Of Postcards On Refugee Categories

Minister Peter Dunne today accepted over 800 postcards calling for convention refugees to have the same entitlements as quota refugees... The campaign has been run with ActionStation together with LUSH Cosmetics, with postcards being signed in stores around New Zealand. More>>

ALSO:

Reshuffle: PM Announces Changes To Ministerial Portfolios

Prime Minister Bill English today announced the appointment of Gerry Brownlee as Minister of Foreign Affairs, Nathan Guy as Minister of Civil Defence, Nikki Kaye as Minister of Education and Mark Mitchell as Minister of Defence. More>>

ALSO:

Q+A Transcript: CTU Call For 'National Standards' On Wages

‘If you look at countries who do better than us, who pay wages better, who have more competitive industries, more successful economies, they have systems where there are national standards.’ More>>

ALSO:

Energy: Greens Launch Plan For Cheaper And Cleaner Electricity

$112 million for winter warm-up payments to help low-income households cover their power bills • setting a goal for 100 percent renewable electricity by 2030 (in average hydrological conditions) • an investigation into the electricity wholesale market. More>>

ALSO:

Health Workers Respond: People's Mental Health Report Released

The People's Mental Health Review reinforces a recent YesWeCare.nz survey of 6,000 health workers, which found nine in 10 believe they don't have the staff or resources to deliver the care Kiwis need when they need it. More>>

ALSO:

More Mental Health:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news