Taxpayers Being Fleeced Of $3 Billion
Yesterday’s release of the latest KPMG Financial Institutions Performance Survey review shows New Zealand taxpayers are being fleeced of more than $3 billion dollars annually.
Bank profits for the last 12 months have reached Everest proportions with an average 7.5 percent net profit increase over the previous year to $5.2 billion dollars.
The three Chinese banks operating in New Zealand had enormous profit increases with the Bank of China lifting its profit by 73.6 per cent, China Construction Bank by 138 per cent and Industrial and Commercial bank of China by 139 per cent.
Just like the rarified heights of Everest, much of those profits result from interest on lending money that the banks create out of thin air with a couple of computer keystrokes.
A report released in April 2014 by the Bank of England says banks do not lend money deposited with them by savers, but instead they create new money every time they make a loan simply by data entry in the borrower’s account.
The report states -
“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.”
This is backed up by New Zealand’s own Reserve Bank which states “by far the largest share
of money is created by private sector institutions (banks)”.
If the Reserve Bank took back its power to create our money a significant amount of those bank profits would instead go to the government to be spent on health, education, infrastructure and housing rather than going to rich overseas investors.