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

 


DSC lodges complaint over grossly inaccurate TVNZ news item

14 July 2014

DSC lodges complaint over grossly inaccurate TVNZ news item

“A section of TVNZ’s 6pm news bulletin last Thursday about bank profits was a disgraceful piece of inaccurate and misleading reporting,” Democrats for Social Credit (DSC) Leader, Stephnie de Ruyter, said today. The piece has prompted a complaint to the Broadcasting Standards Authority and the Online Media Standards Authority.

The latter part of the item purported to show how banks make the majority of their profit by taking in money from depositors and lending it out at higher interest to borrowers.

“Not only was the graphic portrayal and accompanying commentary misleading but it was so grossly inaccurate as to call into question the competency of the programme’s producer and the Head of TVNZ News and Current Affairs.

“Banks do not make their profit by taking in money from depositors and lending it out at higher interest to borrowers. In fact they lend out money created out of thin.

“It’s not as if that fact is unknown. And recent reports have highlighted that fact even more.

“In August 2012 the International Monetary Fund published a report titled “The Chicago Plan Revisited.” The report got wide coverage in newspapers and other media.

“On page 11 it clearly states “private banks are almost fully in control of the money creation process.”

“On page 9 it states ”A realistic model needs to reflect the fact that under the present system banks do not have to wait for depositors to appear and make funds available before they can on-lend, or intermediate, those funds. Rather, they create their own funds, deposits, in the act of lending. This fact can be verified in the description of the money creation system in many central bank statements.”

“The Bank of England in its quarterly bulletin for the first quarter of this year confirms this - “the majority of money in the modern economy is created by commercial banks making loans. Money creation in practice differs from some popular misconceptions — banks do not act simply as intermediaries, lending out deposits that savers place with them, and nor do they ‘multiply up’ central bank money to create new loans and deposits.”

“And the Reserve Bank of New Zealand (Bulletin, Vol. 71, No. 1, March 2008) states “In a modern economy, money can be created either by the central bank (the Reserve Bank, in New Zealand’s case) or by private sector institutions – in practice, mostly registered banks. In practice, by far the largest share of money – 80 percent or more, …is created by private sector institutions (banks).”

“In almost every statement it has issued on economic matters in the past 12 months, the Democrats for social credit party has quoted these reports and has provided the links to them.

“TVNZ’s own Seven Sharp Programme in April 2013 featured the IMF report, and economist Shamubeel Eaqub - quote “This is what you learn in first year economics at university, this is how banks work and there is no great mystery to it” and former London banker Raf Manji – quote “the primary cause of the financial crisis was the fact the authorities had not restrained the ability of the private banks to issue and create the money supply”.

“TVNZ should apologise for its inaccurate reporting and devote at least the same amount of time, at prime news time, to a description of the truth – how banks make the majority of their a profit by creating money out of thin air and lending it to house buyers and businesses.”

The IMF report can be found here:- https://www.imf.org/external/pubs/ft/wp/2012/wp12202.pdf

The Bank of England Q1 Bulletin can be found here:-
http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q102.pdf

Reserve Bank of New Zealand (Bulletin, Vol. 71, No. 1, March 2008) can be found here:-
http://www.rbnz.govt.nz/research_and_publications/reserve_bank_bulletin/2008/2008mar71_1lawrence.pdf

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

More Evidence - Scoop Press Conference Recordings:
PM's Post-Cab Presser 8/8/11
"at that point [Tucker] told me he'd release it ..."

Hager Revelations: Inquiry Into NZSIS Release Of Goff Docs

The Inspector-General of Intelligence and Security (IGIS), Cheryl Gwyn, announced she would be instituting an inquiry concerning allegations that the New Zealand Security Intelligence Service (NZSIS) might have released official information to Mr Cameron Slater, regarding briefings provided to the then Leader of the Opposition, for political purposes...

“I am satisfied there is a sufficient public interest justifying the commencement of an own-motion inquiry into the substance of the issues raised with my Office,” said Ms Gwyn. More>>

Goff: Director’s Letter Contradicts Key’s Claims

At yesterday’s media standup, when asked on the topic John Key said ‘I wasn’t told’...
“In a letter dated November 2011 former SIS director Warren Tucker states three times that ‘in accordance with the usual practice of keeping the minister informed’ the Prime Minister had been told. More>>


 

Parliament Today:

Schools, PPTA Sign Up: Primary Teachers And Principals Vote Down Govt Plan

Teachers and principals have voted overwhelmingly against the Government’s controversial “Investing in Educational Success” policy, including proposed highly-paid principal and teacher roles. More>>

ALSO:

Gordon Campbell: On The Usual Round Of Mud Slinging And Name-Calling

This week gave an interesting example of how hard it is to untangle the reality from the slanging matches. The issue that emerged early this week could hardly be more important. Does the government intend to cut spending in health, education and on the environment if re-elected, or not? More>>

Earlier:

Electionresults.co.nz: National and NZ First Rise in Roy Morgan Poll

National has bounced back in the latest Roy Morgan Poll but the big winner has been New Zealand First who rise to their highest level of support since September 2013. More>>

ALSO:

Fish Pun Warning: By Hoki! It’s Labour’s Fisheries Policy

A Labour Government will protect the iconic Kiwi tradition of fishing by improving access to the coast, protecting the rights of recreational fishers and reviewing snapper restrictions, Labour’s Fisheries spokesperson Damien O’Connor says. More>>

ALSO:

It's Official: Governor General Gives Direction To Conduct Election

The Governor General has signed the writ directing the Electoral Commission to conduct the General Election on 20 September 2014. This is the formal authority to run the 2014 election, and enables candidate nominations to open tomorrow Thursday 21 August 2014. More>>

Gordon Campbell: No More Mr Nice Guy

When future historians seek to identify the exact moment when the prime ministerial career of John Key hit the downward slope, they may well point to Key’s interview yesterday with Guyon Espiner on RNZ’s Morning Report. More>>

ALSO:

Dirty (Politics) Weekend: Collins’ Admission Reason For Key To Act

"Despite claiming that the evidence about her in Nicky Hager's book was ‘false’ Judith Collins has now been forced to admit that she did send information about a Ministerial Services staff member to Cameron Slater for him to use in a baseless smear campaign. More>>

ALSO:

Potential Disasters: Underground Coal Fire On Denniston Plateau

Forest & Bird says one or more coal fires have broken out beneath the Denniston Plateau, and that the Department of Conservation (DOC) must stop Bathurst Resources’ preparatory mining work going on there until the fire or fires are extinguished. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news