RBNZ needs social credit tools

“The Labour government needs to give the RBNZ more tools to deal with New Zealand ’s overheated economy. Social credit alternatives must be examined and made available to the governor of a restructured Reserve Bank” said DSC Leader, Stephnie de Ruyter.

“The practice of repeatedly, and predictably, increasing the OCR reflects the limitations of the RBNZ’s orthodox economic straightjacket. And Monday’s timid gesture of selling $1b kiwi dollars confirms that under the present rules Dr Bollard is powerless apply the practical, effective remedies necessary to cool and balance the economy. With trillions of units of electronic currency whistling around the global ether at any given moment, the impact of Dr Bollard’s sell-down can only be short-lived and inconsequential.

“The steps taken by the Reserve Bank to address inflation and consumer spending have resulted in higher interest rates, making the NZ dollar even more attractive to overseas investors. On the home front, interest rates continue to climb and exporters continue to struggle.

“The government must remove the ties that bind the RBNZ. Only a restructured Reserve Bank, empowered by social credit, can alter New Zealand’s present disastrous economic course” concluded Ms de Ruyter.

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