3505 Porangahau Road
R.D. 4
Waipukurau, Central Hawkes Bay 4284
ph: 06 8555556
perfectg
You see, as our economy grows, providing more and more capital investment from profits, our money supply must grow more or less in line with the growth in capital. This relates to the supply and demand equation.
If the money supply grows faster than the capital base, we get inflation, and all the ills that accompany it; ie higher interest rates, more debt, and more poverty. Inflation defines a lowering- or drop in purchasing power- in the value of our money. This is particularly damaging to those on fixed incomes or fixed benefits; and generally helpful for those invested with passive income streams benefitting from higher interest and tax-free capital gains.
If recession or depression destroys a lot of money through bankruptcy, we get deflation. Deflation raises the purchasing power of money giving the rich more opportunity to profit in buying up the assets lost in bankruptcy at bargain basement prices.
Whichever way the value of money goes, those who own the money machines- either by law or by default- are always the ones who benefit.
For many years the banking system has been entrusted by government to create our money supply. Each year the NZ money supply increases by about $32 Billion, through the interest on debt added to existing debt. This is entirely captured by the banks, their shareholders, their depositors, and the major corporations.
In other words, that 5% of the population that has money to invest captures the entire benefits of economic growth, while the other 95% pay the price through increased prices caused by inflation, stagnant wages caused by unemployment competition, and un-repayable debt caused by interest added on to existing debt. Is it any wonder why the gap between the rich and the poor continues to widen?
The big winners belong to that elite group of international bankers, the top .001% who control the International Banking System, who create trillions in new money each year from the top down. Then there is the 4.999% that are enrolled in the benefits of capital, high interest returns, and speculative gains, who perhaps unknowingly support this banking scam simply for the benefits it provides for them personally.
It is likely to be this group that underpins and supports the present two party political system in New Zealand through their political donations, ownership of the media, and shareholdings in the major corporations. It is also this group that exercises major lobbying success over government; by the very fact of the $100 Billion that government owes to this class of individuals. The debtor is slave to the creditor; so government has become a puppet manipulated by the rich, who have let themselves be manipulated by the elite super-rich international bankers through the Fractional Reserve Banking System and the ‘money multiplier effect’ it creates. That rich, almost 5% of the population, are not likely to give up their favoured status without a rather heated argument; so let it begin here.
All that is needed in order to heal society is to replace inflationary income taxes, fuel taxes, and road user fees with a 15% GST on luxury purchases (including homes over $400,000) and on capital flight (money permanently leaving NZ). The rich now controlling government will be given the special carrot of NO INCOME TAXES. They CAN BE ENROLLED.
Workers will receive on average an extra $200 per week in take home pay; and benefit recipients will benefit only slightly less.
There will be much less need for small business persons to borrow more, more incentive to create wealth, and more opportunity for success in an expanding economy.
The most amazing benefit to society will occur as this de-facto cash injection into the economy will create a huge deflationary growth requiring government to create and issue $50 billion in new interest-free money to match the growth in the economy. This becomes the people’s own money machine which, when added onto the other government taxes and direct funding of $50 billion, then allows government to fund the National Dividend on top of all existing government services.
Call it Funny Money, Quantitative Easing, Deficit Spending, Social Credit, or Monetary Reform- whatever you like. But the effect of it is taking the money machine away from the banks and giving it to the people where it belongs.
Bringing back to New Zealand the $50+ B stupidly invested offshore in the ACC and Super Funds will immediately allow full funding for the National Dividend as well recreating a new Housing Estate to house the homeless.
Copyright 2018 THE ASSOCIATION of SOVEREIGNZ. All rights reserved.
3505 Porangahau Road
R.D. 4
Waipukurau, Central Hawkes Bay 4284
ph: 06 8555556
perfectg