Russel Norman – New Zealand Green Party Co-leader - made headlines this week – 19 June 2013 Greens-U-turn-wont-quiet-John Key - for doing a public backflip on looking into alternative ideas to what is currently said to be “Generally accepted worldwide best practice monetary policy” – and New Zealand media - in the main - painted him as a loser.
Russel Norman already having displayed a sense of growing environmental and social injustice - had “come out” - asking hard questions of the current money system orthodoxy after his 21 Feb 2013 International Finance Agreement Amendment Bill third reading - now law - in which Russel Norman admitted to having only recently gained an understanding of just how New Zealand money supply originates and under what terms and conditions;
https://www.parliament.nz/en/pb/hansard-debates/rhr/document/51HansD_20151112_00000020/international-finance-agreements-amendment-bill-third
Russel Norman;
"The other thing that comes out of, I think, the IMF that surprises a lot of people is when the IMF says things like most of the money that is generated is generated by the private banks. Most of us, I think—and I was certainly one of these people, until reading IMF papers—always assume that the Government created the money. That is just because I actually did not follow it closely enough, whereas the IMF is very clear that it is the private banks that create most of the money. What the IMF—or, at least, some of the researchers within the IMF—is now saying is that the Government should use its ability to create money, so that there is some publicly created money as well as the privately created money, most of which is created by the private banks.
This, of course, is a pretty radical proposition, and the IMF, in putting forward this proposition, has certainly been shaking the policy debates around monetary policy all over the world, except in New Zealand, of course, where we are kind of locked into some weird backwater where the Government does not want to have a debate around any of this kind of stuff. But if you read the international literature, it is pretty good."
Russel Norman already having displayed a sense of growing environmental and social injustice - had “come out” - asking hard questions of the current money system orthodoxy after his 21 Feb 2013 International Finance Agreement Amendment Bill third reading - now law - in which Russel Norman admitted to having only recently gained an understanding of just how New Zealand money supply originates and under what terms and conditions;
https://www.parliament.nz/en/pb/hansard-debates/rhr/document/51HansD_20151112_00000020/international-finance-agreements-amendment-bill-third
Russel Norman;
"The other thing that comes out of, I think, the IMF that surprises a lot of people is when the IMF says things like most of the money that is generated is generated by the private banks. Most of us, I think—and I was certainly one of these people, until reading IMF papers—always assume that the Government created the money. That is just because I actually did not follow it closely enough, whereas the IMF is very clear that it is the private banks that create most of the money. What the IMF—or, at least, some of the researchers within the IMF—is now saying is that the Government should use its ability to create money, so that there is some publicly created money as well as the privately created money, most of which is created by the private banks.
This, of course, is a pretty radical proposition, and the IMF, in putting forward this proposition, has certainly been shaking the policy debates around monetary policy all over the world, except in New Zealand, of course, where we are kind of locked into some weird backwater where the Government does not want to have a debate around any of this kind of stuff. But if you read the international literature, it is pretty good."
end quote
I myself was very disappointed that Russel Norman it seemed – after all was said and done – had “come out” before having done sufficient personal research to defend the subject when attacked in public by proponents of the current system - despite how far the debate has moved internationally at the very highest levels of the international supply side of money – about the pyramid aspects of it. But I do not concur with those making comment that anyone admitting such a lack of knowledge of monetary matters so late in the piece should be the leader of any political party.
I say this because there are already plenty of so-called public representatives who have a full knowledge of the pyramid aspects of New Zealands money system arrangements - that have - for various reasons - chosen to make it very much an officially sanctioned cover up that does not take to much looking to prove.
New Zealand Prime Minister and former international investment banker John Key -17 November 2012;
“Our (Govt) debt to GDP levels by then will top at just under 30 percent, in other words, um, we'll be relatively lowly indebted compared to countries like America and Europe, but I put it to you we are a small open economy, we have high levels of private sector debt, we, mum and dad, have borrowed that debt effectively from foreigners because their local bank has sourced that from foreigners.”
“Our (Govt) debt to GDP levels by then will top at just under 30 percent, in other words, um, we'll be relatively lowly indebted compared to countries like America and Europe, but I put it to you we are a small open economy, we have high levels of private sector debt, we, mum and dad, have borrowed that debt effectively from foreigners because their local bank has sourced that from foreigners.”
end quote
Private corporations now govern America by buying influence over political process. Read this 31 May 2013 New Zealand Parliamentary report to understand how these influences pass down due to the fact that what currently circulates as our entire money supply originates as loans owed to those very same foreign corporations;
http://www.parliament.nz/en-NZ/PB/SC/Documents/Reports/b/4/2/50DBSCH_SCR5862_1-Public-Finance-Fiscal-Responsibility-Amendment-Bill.htm
"The Act does not mention monetary policy. The majority of us understand that in doing so, the bill aims to ensure that governments take explicit note of the fact that fiscal policy and monetary policy are interdependent; and that different fiscal strategies can prompt different monetary policy responses."
http://www.parliament.nz/en-NZ/PB/SC/Documents/Reports/b/4/2/50DBSCH_SCR5862_1-Public-Finance-Fiscal-Responsibility-Amendment-Bill.htm
"The Act does not mention monetary policy. The majority of us understand that in doing so, the bill aims to ensure that governments take explicit note of the fact that fiscal policy and monetary policy are interdependent; and that different fiscal strategies can prompt different monetary policy responses."
end quote
Its become apparent from official documents that the reason our so-called public representatives don't tell us we are being governed under conditions of receivership by foreign creditors is because quote "The majority of us understand" - Well I say New Zealand wider society are far more suffering an officially sanctioned cover up by parliament than any fully informed resignation to what is economic slavery by way of predatory lending from institutions who knew it was never mathematically repayable from the day it was issued.
This is not only evident in the above mentioned report - but throughout the parliamentary debate regards International Monetary Fund(IMF) regulations becoming automatic New Zealand law without passing through NZ parliament for debate;
http://www.parliament.nz/en-NZ/PB/Legislation/Bills/d/f/f/00DBHOH_BILL11131_1-International-Finance-Agreements-Amendment-Bill.htm
http://www.parliament.nz/en-NZ/PB/Legislation/Bills/d/f/f/00DBHOH_BILL11131_1-International-Finance-Agreements-Amendment-Bill.htm
Hon BILL ENGLISH: “I intend to move that the bill be referred to the Finance and Expenditure Committee. Our commitments to the IMF are effectively premiums to an insurance policy against damage to our economy from an unstable world....... New Zealand has already agreed to these changes, and adopting the International Finance Agreements Amendment Bill simply puts that agreement into practice......The bill also creates a regulation-making power in the principal Act so that further updates to the articles can be made by regulation. This power will simplify the process by which New Zealand meets its obligations. Once changes to the articles are agreed to by the requisite majority of members of the international financial institutions, New Zealand will be bound by the amendments, which means that we are required to bring our domestic legislation into line with our international obligations.”
Hon DAVID PARKER (Labour) : “I rise to speak to this bill, the International Finance Agreements Amendment Bill, on behalf of the Labour Party. The Labour Party will be supporting this bill to the Finance and Expenditure Committee. The Labour Party supports the function of the International Monetary Fund and the International Bank for Reconstruction and Development, and broadly agrees with the Minister of Finance that these are good institutions that assist the conduct of international economic affairs in a way that benefits New Zealand as well as other countries......I think New Zealanders will have more confidence in our participation in these international fora if they think that Governments are being transparent about changes to those international agreements and the effect of those changes on New Zealand. There is already enough suspicion out there as to the effect of international agreements. We breed further suspicion if we are not open and transparent about changes to those rules......For those reasons, amongst others, the Labour Party opposes future changes to this legislation by way of the statutory regulation-making power that this amendment Act creates. We believe that future amendments ought to come back to this Parliament. If we look back in the history, it has not been an onerous task for New Zealand to amend this legislation through annual amendments or anything like that. It is relatively rare that we have amendments to this International Finance Agreements Act, which dates back to 1975. “
Hon DAVID PARKER (Labour) : “I rise to speak to this bill, the International Finance Agreements Amendment Bill, on behalf of the Labour Party. The Labour Party will be supporting this bill to the Finance and Expenditure Committee. The Labour Party supports the function of the International Monetary Fund and the International Bank for Reconstruction and Development, and broadly agrees with the Minister of Finance that these are good institutions that assist the conduct of international economic affairs in a way that benefits New Zealand as well as other countries......I think New Zealanders will have more confidence in our participation in these international fora if they think that Governments are being transparent about changes to those international agreements and the effect of those changes on New Zealand. There is already enough suspicion out there as to the effect of international agreements. We breed further suspicion if we are not open and transparent about changes to those rules......For those reasons, amongst others, the Labour Party opposes future changes to this legislation by way of the statutory regulation-making power that this amendment Act creates. We believe that future amendments ought to come back to this Parliament. If we look back in the history, it has not been an onerous task for New Zealand to amend this legislation through annual amendments or anything like that. It is relatively rare that we have amendments to this International Finance Agreements Act, which dates back to 1975. “
end quotes
You will note that immediately Russel Norman broached the control of the issuance of money subject - most every other New Zealand political party Economic Executive – all of who are - in the main - foreign financial institution higher educated - immediately attacked Russel in the most vicious way as a 'fringe nutter' preaching 'voodoo economics' - this despite Brazil, Russia, India, China, Japan, Argentina etc currently practicing public credit creation and every Anglo-Saxon nation in the past - at which times they enjoyed no better equitable prosperity - having issued 'sovereign dollars' free of private banker interest & fees to fund their primary economic base of necessities of life to be supplied as a public service at the cheapest possible cost.
Russel Norman made clear his views again - and clearly had not yet buckled - in this 27 May 2013 article;
http://publiccreditorbust.blogspot.co.nz/2013/06/new-zealand-green-party-join.html
"In the debate around monetary policy, it is often forgotten that the default position is that the private banks create most of the money and lead the increase in the monetary supply. They then charge interest to the users of the money that they have created......The debate should be: what constraints should apply to the private creation of money given the banks’ irresponsible behaviour in the past; and should the public institutions be expanding money supply as a policy tool, to what extent, and to what purpose? Should the state be allowed to also increase the money supply for public purposes such as refilling the Natural Disaster Fund and to see what effect it can have on reducing the very damaging high NZ dollar?
The answers to these questions aren’t black and white but for my pick I think we need to restrain the banks lending into the housing bubble and use a trial public creation of money to restock the Natural Disaster Fund – both to be prepared for future disasters and to see what impact it would have on the dollar.
It is of course difficult to have a rational conversation around these issues in the current political context (ie Key’s scaremongering) but it is an important conversation for rational adults to have. We do have an out of control current account deficit and if we want to be masters of our own destiny we need to change policy settings as under Key’s plan our deficit and debt increase dramatically."
end quote
What is made clear from Russel Norman's musings of our current money supply being 'partly funded offshore' is that he does not yet fully comprehend just how it works - and is very poor at being able to articulate the various forms of monetary easing - those that only favour the private bankers and those that dont.
Russel Norman made clear his views again - and clearly had not yet buckled - in this 27 May 2013 article;
http://publiccreditorbust.blogspot.co.nz/2013/06/new-zealand-green-party-join.html
"In the debate around monetary policy, it is often forgotten that the default position is that the private banks create most of the money and lead the increase in the monetary supply. They then charge interest to the users of the money that they have created......The debate should be: what constraints should apply to the private creation of money given the banks’ irresponsible behaviour in the past; and should the public institutions be expanding money supply as a policy tool, to what extent, and to what purpose? Should the state be allowed to also increase the money supply for public purposes such as refilling the Natural Disaster Fund and to see what effect it can have on reducing the very damaging high NZ dollar?
The answers to these questions aren’t black and white but for my pick I think we need to restrain the banks lending into the housing bubble and use a trial public creation of money to restock the Natural Disaster Fund – both to be prepared for future disasters and to see what impact it would have on the dollar.
It is of course difficult to have a rational conversation around these issues in the current political context (ie Key’s scaremongering) but it is an important conversation for rational adults to have. We do have an out of control current account deficit and if we want to be masters of our own destiny we need to change policy settings as under Key’s plan our deficit and debt increase dramatically."
end quote
What is made clear from Russel Norman's musings of our current money supply being 'partly funded offshore' is that he does not yet fully comprehend just how it works - and is very poor at being able to articulate the various forms of monetary easing - those that only favour the private bankers and those that dont.
New Zealand mainstream media senior editors have let New Zealand down no less than Russel Norman who they set out to ridicule.
TV3 Patrick Gower & TV1 Corin Dann just might be the highest paid clowns in New Zealand's economic circus! Radio New Zealand Jim Mora - I am quessing one of the lowest paid clowns - knows who the ring master is - but chooses to sweep it under the carpet?
New Zealand Prime Minister and former international investment banker John Key 17 November 2012;
“Our (Govt) debt to GDP levels by then will top at just under 30 percent, in other words, um, we'll be relatively lowly indebted compared to countries like America and Europe, but I put it to you we are a small open economy, we have high levels of private sector debt, we, mum and dad have borrowed that debt effectively from foreigners because their local bank has sourced that from foreigners.”
TV3 Patrick Gower;
"The Prime Minister lost use of one of his favourite political weapons today, thanks to a policy U-turn by the Greens over printing money to improve the exchange rate."
"Known as 'quantitative easing', it's been done by some of the world's big economies."
http://www.3news.co.nz/Greens-U-turn-wont-quiet-Key/tabid/1607/articleID/302045/Default.aspx
TV1 Corin Dann;
"It is after all exactly the policy that's been used by the US Central bank for the last couple of years to prevent deflation and keep the US economy afloat."
http://tvnz.co.nz/politics-news/corin-dann-greens-had-drop-money-printing-5469780
RNZ Jim Mora;
"Banks have ended up in the position, as Bernard Hickey has said a time or two on the panel, where they have the franchise on the creation of money"
http://publiccreditorbust.blogspot.co.nz/2013/03/westpac-new-zealand-senior-economist.html
You lazy fools - its not 'exactly' the same at all - you have the same problem in reporting on this matter as Russel Norman did trying to sell it as policy - you have not done you research - because if you had you would discover the truth is not hard to find - as documented beyond any reasonable doubt in my research here;
http://publiccreditorbust.blogspot.co.nz/2013/04/universal-public-credit-public-policy.html
What dictates if Quantitative Easing benefits your nation or only private bankers - is if the money trail of your central bank traces back to your public institutions being the lender of last resort or if your public institutions have contracted out that privilege and become just a conduit of the international private banking network.
QE occurs when even if interest rates are heading to zero the economy remains flat because society has no more compacity to borrow money into circulation - so the lender of last resort then simply gets to type some money into their computer and start directly buying distressed assets of all kinds out in the market as direct stimulus. If your central bank - as is the case in New Zealand - has just become a conduit for private banking institutions - the private banking institutions gain heaps for nothing - but if your money issuance trial leads to a public institution - such as in the case of Japan who's government is typing the money into their account and buying up distressed assets - it will internally re-balance your economy.
New Zealand Prime Minister and former international investment banker John Key 17 November 2012;
“Our (Govt) debt to GDP levels by then will top at just under 30 percent, in other words, um, we'll be relatively lowly indebted compared to countries like America and Europe, but I put it to you we are a small open economy, we have high levels of private sector debt, we, mum and dad have borrowed that debt effectively from foreigners because their local bank has sourced that from foreigners.”
TV3 Patrick Gower;
"The Prime Minister lost use of one of his favourite political weapons today, thanks to a policy U-turn by the Greens over printing money to improve the exchange rate."
"Known as 'quantitative easing', it's been done by some of the world's big economies."
http://www.3news.co.nz/Greens-U-turn-wont-quiet-Key/tabid/1607/articleID/302045/Default.aspx
TV1 Corin Dann;
"It is after all exactly the policy that's been used by the US Central bank for the last couple of years to prevent deflation and keep the US economy afloat."
http://tvnz.co.nz/politics-news/corin-dann-greens-had-drop-money-printing-5469780
RNZ Jim Mora;
"Banks have ended up in the position, as Bernard Hickey has said a time or two on the panel, where they have the franchise on the creation of money"
http://publiccreditorbust.blogspot.co.nz/2013/03/westpac-new-zealand-senior-economist.html
You lazy fools - its not 'exactly' the same at all - you have the same problem in reporting on this matter as Russel Norman did trying to sell it as policy - you have not done you research - because if you had you would discover the truth is not hard to find - as documented beyond any reasonable doubt in my research here;
http://publiccreditorbust.blogspot.co.nz/2013/04/universal-public-credit-public-policy.html
What dictates if Quantitative Easing benefits your nation or only private bankers - is if the money trail of your central bank traces back to your public institutions being the lender of last resort or if your public institutions have contracted out that privilege and become just a conduit of the international private banking network.
QE occurs when even if interest rates are heading to zero the economy remains flat because society has no more compacity to borrow money into circulation - so the lender of last resort then simply gets to type some money into their computer and start directly buying distressed assets of all kinds out in the market as direct stimulus. If your central bank - as is the case in New Zealand - has just become a conduit for private banking institutions - the private banking institutions gain heaps for nothing - but if your money issuance trial leads to a public institution - such as in the case of Japan who's government is typing the money into their account and buying up distressed assets - it will internally re-balance your economy.
Japan is now an enviable position it tries to play down for some very interesting reasons;
http://www.webofdebt.com/articles/mythjapan.php
Properly directed, the national debt becomes the spending money of the people. It stimulates demand, stimulating productivity. To keep the system stable and sustainable, the money just needs to come from the nation’s own government and its own people, and needs to return to the government and people.
The IMF is all good with what Japan is doing and what Greens were discussing;
http://www.nationmultimedia.com/breakingnews/IMF-backs-Japans-monetary-easing-30207337.html
Tokyo - "The International Monetary Fund on Friday endorsed the aggressive monetary easing measures taken by the Bank of Japan in April."
The issuance of Sovereign Public Credit - backed by the natural reserves of the nation - is not done to lower the exchange rate - but about addressing our ever increasing internal & external systemic inequities!
http://www.webofdebt.com/articles/mythjapan.php
Properly directed, the national debt becomes the spending money of the people. It stimulates demand, stimulating productivity. To keep the system stable and sustainable, the money just needs to come from the nation’s own government and its own people, and needs to return to the government and people.
The IMF is all good with what Japan is doing and what Greens were discussing;
http://www.nationmultimedia.com/breakingnews/IMF-backs-Japans-monetary-easing-30207337.html
Tokyo - "The International Monetary Fund on Friday endorsed the aggressive monetary easing measures taken by the Bank of Japan in April."
The issuance of Sovereign Public Credit - backed by the natural reserves of the nation - is not done to lower the exchange rate - but about addressing our ever increasing internal & external systemic inequities!
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