Media Release: New Zealand Banking Reform.
Finance Minister Michael Cullen is struggling to find the money to implement the Labour led government's program.
In yesterday’s budget Dr Cullen has just spent around $400 million on new initiatives. And, as we can see, $400 million
does not go far.
Michael Cullen has used the $400 million to "close the gaps, reduce the costs of tertiary study or provide relief for
New Zealand's most vulnerable households. "
New Zealand Banking Reform respectfully suggests that Michael Cullen look at the Reserve Bank figures of Money Supply..
He will see that New Zealand’s commercial banking sector increased the money supply by $6,065 million in 1999.
Have a look at http://www.reservebank.govt.nz/econ/c_tabc.htm.
If commercial banks do not have any qualms about "fiscal responsibility", how can the government?
Deputy Governor of the Reserve Bank Murray Sherwin has informed NZ Banking Reform that, "Money creation is a function of
the broader financial system."
If the banking system can create more than $6,000 million in one year, why can’t our government increase spending by any
more than $400 million?
New Zealand Banking Reform invites Dr Don Brash to explain to Michael Cullen, and the New Zealand people, how our
banking system increased the money supply by six billion dollars in 1999.
Dr Finlay Thompson, Member of NZ Banking Reform.
Ph 021 117 9149
To contact New Zealand Banking Reform:
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ENDS