ADVANCE New Zealand
A new economic design for our political future
MEDIA RELEASE

Date: Monday, 17 September 2007

Helen Clark Questioned on ‘Reality Economics’.

Our political leaders have an increasingly strange concept of economics when they support an emissions trading scheme benefiting speculative investors at the expense of wage and salary earners.

Increasing tax on fuel and electricity to fund the new carbon credit market will provide additional momentum to price inflation by adding further cost to production and distribution. It will also lead directly to further increases in interest rates as our Reverse Bank pushes up the official cash rate to ‘control’the inflation generated by higher fuel charges.

All the Government is offering those on low and fixed incomes is a half baked taxpayer funded loan scheme to retrofit a few buildings with insulation and solar hot water. The grasp of the PM on what real economics is all about is revealed by her remark that she “hopes” the scheme will be interest free.

30 years ago Social Credit had an extensive proposal for energy self sufficiency which featured a raft of energy saving measures including upgrading all buildings from Cape Reinga to Stewart Island. The funding for that was to be provided free of interest by using a mechanism owned and operated by a credit authority, set up specifically to pay for our countries infrastructural investment – including energy conservation.

And to pre-empt the defenders of the current chaos riddled economic orthodoxy who will say it can’t be done, just ask Helen Clark to explain what mechanism is being used to create the interest bearing ‘money’ which is being shovelled into the vaults of failing financial institutions around the world.

The basic structure of the two mechanisms are similar with the notable exception being that while the old debt mechanism is operated to maximise the returns to its private owners, the new credit authority would belong to the taxpayers and the extensive beneficial outcomes would be directed toward a better deal for them. Simple eh!

ENDS

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