2015 Budget Should Have Cut Welfare Payments

Rather than fiddling with the country’s one serious savings scheme, or pissing off overseas travellers with a nonsense exit and entry levy, the government should have made major cuts to a special class of welfare payments, according to Democrats for Social Credit Deputy Leader and Finance Spokesperson, Chris Leitch.

Doing so could have seen this budget contain a surplus and real, not promised, tax cuts.

Currently the government pays $12 million per day, seven days per week, in a direct line of corporate welfare to banks and financial institutions, that create the money it borrows out of thin air.

Both the Bank of England and New Zealand’s Reserve Bank confirm that 97 percent of their nation’s money supply is computer-generated figures, created by private commercial banks and financial institutions out of thin air when they make loans.

A large chunk of that is what the government borrows and the 4.5 billion dollars shelled out to those corporates each year in interest payments on that thin air is totally unnecessary.

An International Monetary Fund report, and a report published two months ago by the Icelandic government both state that “Allowing the Government to issue money directly at zero interest (through the Reserve Bank), rather than borrowing that same money from banks at interest, would lead to a reduction in the interest burden on government finances and to a dramatic reduction of (net) government debt”

There is nothing wrong with banks creating money within sensible limits, but governments could finance their own operations without going into debt. By borrowing from their own central bank at no interest they could save taxpayers money that should go instead to fund investment in infrastructure and in business, environmental protection and clean-up, an efficient health system, and good education.

Instead the government funds corporate welfare, sells off prime land and important strategic assets, promotes the overseas takeover of New Zealand businesses, invites exploitation of our natural resources at the cost of our native flora and fauna, and puts out the welcome mat to any wealthy overseas individual willing to buy up more of the country.

It’s nonsensical, and its time they started looking after the future of New Zealanders.

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