Media Release

Friday 27th July 2007

You are a good economy, but I’m going to smack you anyway

“Bollard tells us ‘The New Zealand economy is running strong,’” says John Pemberton, Democrats for social credit Finance Spokesman. “We are recording continued big increases in international commodity prices, he tells us. This is very good news for New Zealand, but Bollard still delivers a backhander.”

“The Reserve Bank Governor knows the New Zealand dollar has reached very high levels recently. He knows that this level of the currency has been hurting exports and yet he continues to ‘smack’exporters with higher interest rates and ultimately high exchange rates.”

“Bollard is pitiful” says Pemberton. “His comments that: ‘New Zealanders have been showing early signs of moderating their borrowing’ is but a forlorn hope. Our escalating debt figures over many decades are testament to that.”

“He is even more pathetic when he says ‘…we think the four successive OCR increases… will be sufficient to contain inflation.’ A man in his position should know - not think - that the only monetary tool he has will work.”

“It is time for Alan Bollard to say it as it is – no double talk,” says Pemberton. “Under our current financial system, growth, hard work, successful exporters, high wages, lower taxes, lower interest rates, low exchange rates, and expenditure on badly needed social and environmental infrastructure are all inflation causing actions and need to be stopped; and he’ll keep raising interest rates until they do.”

“The Labour Government and the National Party have all the right words to use about achieving our nation’s dreams, but like Bollard they are caught in the same financial trap. The foundation of all their policies have flawed monetary and fiscal tools which lead to debt, inflation and a nation with shattered dreams.”

“I would advise the Reserve Bank Governor and Michael Cullen, as they hold the levers of power, to read very carefully ‘The future monetary policy framework’ submission made by the Democrats for social credit.”

“With DSC monetary policy, we can have sustainable prosperity without being smacked for it.”

ENDS

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