National’s Debt Comments A Losing Strategy
National’s response to the government loosening of it's debt target shows it has learnt nothing from it's 9 years in government or it's electoral defeat.
The budget's fiscal responsibility rules are a false constraint, manufactured mainly to keep the financial pariahs of the money markets happy. They have little to do with the needs of people in the real economy.
National’s finance spokesperson Amy Adam's has proven that she's far more interested in pleasing the markets than in housing kiwis, providing people with decent health care, making sure pensioners live without fear of being robbed, or ensuring children get a good education.
Finance Minister Grant Robertson should now go one step further and access funding from the Reserve Bank at zero interest as provided for in the Public Finance Act.
Section 47 of the act gives him the power to borrow from whatever source he chooses provided it's in the public interest.
Accessing funds from the Reserve Bank at zero interest would fit that requirement perfectly, and cut to shreds the $6 billion in taxpayer’s money currently squandered paying interest on loans from the private sector.
An interest-free debt owed to oneself that is rolled over from year to year is effectively void -- a debt "jubilee."
Japan currently funds 49% of government borrowing directly from its own central bank and there's absolutely no reason why New Zealand could not do the same.
Amy Adam's would be better to adopt the stance of the 3rd wise monkey rather than reminding people about her party's dismal performance in providing services that people desperately needed.
Continuing down the road she is going will simply remind people about why they should no longer support National.