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The Guardian Political Review Produced by the New Zealand Democratic Party for social credit Inc. Issue No.57

Spring 2009



The Guardian Political Review

Issue 57, Spring 2009

Produced by Guardian Publishing on behalf of the N.Z. Democratic Party for social credit, PO Box 18-907, New Brighton, Christchurch 8641 Tel/Fax: 07 829 5157. Email:


Editor: Tony Cardy, 26 Warren Street, Oamaru 9400. Tel/Fax: 03 434 5523. E-mail: Web:


The future beckons

“In this  dynamic  creation,  our  beautiful  blue/green planet  of  gift  and  ceaseless  creativity,  there  are  no orthodoxies;  differences  of  approach  are  to  be embraced  and  encouraged.    May  bright  ideas  and persistent  commitment  affect  all  the  deliberations.”  (p24)

causing poverty,  famine  and  continuous  war.    We  are the  guardians  of  a  truth  so  profound  it  is  not  an  option to  back  down  under  threat  or  ridicule.”    The  next  step “is  for  us  to  share  our  vision  with  coming  generations. The  future  beckons.”(p6)

This greeting  from  Rev  Canon  Peter  Challen  set  the scene  for  the  recent  DSC  Conference.    Vice  president Katherine  Ransom  reports:  “Delegates  worked  hard  at deliberation,  discussion  and  decision‐making,  accepting the  challenge  of  looking  forward.”  (p4)

The world  is  experiencing  a  period  of  deep  social, environmental  and  economic  change,  says  leader Stephnie  de  Ruyter:  “This  is  an  exciting  time  of transition  during  which  the  structural  flaws  inherent  in our  century‐old  industrial  society  have  become  blatantly apparent.”   

In the  words  of  Party  president  Neville  Aitchison: “We  are  engaged  in  a  struggle  that  can  free  the  world of  senseless  debt.  These  are  extraordinary  times,  and we face an extraordinary challenge.”(p5) Deputy  leader  John  Pemberton  agrees:  “The  whole world  is  heavily  burdened  with  compounding  debt,

It is  a  time  that  offers  the  opportunity  to  “lead  the way  towards  the  establishment  of  a  vibrant,  diverse,

dynamic, robustly  democratic society.”(p3) The future  beckons.

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Guardian Political Review, Issue 57, 2009 - Page 2

1 - Front Cover

13 - Health - Fluoridation

2 - Editorial

14 - Comment - Dairy Industry

3 - Leader's Message

15 - Media (3) + Adrian Bayly

4 - Conference Report

16 - Newsroom

5 - President's Speech

17 - How To Be A Billionaire

6 - Deputy Leader's Speech

18 - Reviews

7 - DSC News

19 - Whitmill's World (1)

8 - Guardian Website

20 - Whitmill's World (2)

9 - Media (1)

21 - News Bites (1)

10 - Letters

22 - News Bites (2)

11 - Time For Tobin

23 - DSC Membership

12 - Media (2)

24 - Back cover - Rev Canon Peter Challen


The Future  Is  Ours By  Stephnie  de  Ruyter Leader,  Democrats  for  social  credit

The establishment  of  a  vibrant,  diverse, dynamic, robustly democratic society

‘The agony of letting  go of  the past  is outweighed by the promise  of the  future’ –  Alvin Toffler The  world  is  experiencing  a  period of  deep social, environmental  and  economic  change.  This  is an exciting  time  of  transition during  which the structural  flaws  inherent in  our century‐old industrial  society have  become blatantly  apparent. 

Contrary to  recent claims  that the  recession is over,  the  Bank  of International  Settlements, which is  the  central  bank  for  the world’s  central banks, issued a  warning in  its quarterly  statement released last  month  that  the  economic  recovery  is  an illusion and  we can  expect future  crises. No  surprises there. Ultimately,  efforts to  restore and  preserve an unworkable past  represent a  rear‐guard action which  will  only  serve  to  postpone  the inevitable collapse  of  an  unsustainable  system.

New Zealand  is  not  immune to  these changes, displaying  evidence  of  significant  shifts in  family life, in  business,  in  technology,  culture  and  values. We The  global  financial  crisis  offers  a  real opportunity are experiencing  a major  transformation in  the way for  creative  restructuring.  The case  for introducing we  work,  play,  think,  and live. monetary reform has never been  stronger because it  is  increasingly  understood,  worldwide, that New  Zealand’s, and  the world’s,  leaders are nothing  can  truly change  until the  financial system grappling  and  fumbling  with  the  issues  thrown  up is  changed.  There  exists  an  understanding  that  it is by  such  fundamental  shifts,  and  many  nations are socially  and morally  unacceptable for  any sovereign looking  to  the  United  States  to  show  the  vision  and nation’s  financial  system  to  be  owned  and operated leadership  essential  to  making  a  smooth  transition by  overseas  interests.  Democrats for  Social Credit to a 21st century society.  Unfortunately, the actions advocates  public  ownership  of  the  institution  with taken  by  the  US  in  response  to  the  crisis  of the the power  to create,  issue and  cancel New financial system on  which last  century’s “prosperity” Zealand’s  money  supply, in  the public  interest, to was  based,  indicate  a  lack  of vision  and leadership serve  the  public  good,  as  the  only  sustainable way by  that  country’s  leaders.  Instead  of rising  to meet to  deliver economic  democracy, and  social and the  challenge  with imagination  and courage,  the US environmental  justice.  government  has  fought  tooth  and  nail  to  prop  up the  failing  debt‐based financial  system. After  all, it Social credit monetary reformers in  New Zealand is  a system  which has  generated unimaginable can,  and  must,  lead  the way  towards the wealth  for  a  lucky  few.  By  25  September 2009, establishment of  a vibrant,  diverse, dynamic, stimulus  pledges  amounted  to  a  terrifying  US$11.6 robustly  democratic  society.  The  DSC is  a distinctive trillion.  The  injection  of  such  vast  sums  over  a  19 political presence with recognisable  alternatives and month  period  must  surely  be  the  most rapid clearly‐expressed  solutions.  expansion  of  debt  ever.  This  course  of  action  will not  prove  to  have  been  a  recipe  for success. New  Zealand’s  future  is  ours  to  invent.

Guardian Political Review - Issue 57, 2009 - Page 3

Looking forward DSC Annual Conference, Christchurch, 4th - 6th September 2009 A report by Katherine Ransom, DSC Vice-President Photos Stephnie de Ruyter

The DSC  Annual  Conference,  planned  as  a ‘policy  conference’,  ran  a  bit  longer  this year.  There  were  policy  remits  in  plenty, covering  areas including  finance, disability,  research and  leisure.  As  a break  from  the dutiful  discussion  of remits,  we  had  two fascinating  guest speakers  and numerous  items  for soapbox.

Region and  supported  by  Disability Spokesman  Ron  Harsant  were  also  passed. Ron  called  for  a  new  Disability  section  to  be added  to  the  policy register,  similar  to sections  for  Youth and  Women’s  Affairs. Some  existing  policy was  deleted  as redundant  due  to existing  legislation. Other  policy  remits were  not  carried  by conference,  some from  being  overtaken President  Neville by  previous  remits Aitchison,  Leader passed.  Two  remits Stephnie  de  Ruyter on  gambling  met  with and  Deputy  Leader DSC president, Neville Aitchison, congratulates John  Pemberton  set Margaret Hook on her Life Membershhip award practical  objections, although  conference the  tone  for  the appreciated  the  intent  and  acknowledged  the conference  by  calling  for  fresh  ideas  and  a serious  problem  gambling represents. focus  on  the  future.  As  Finance  Spokesman,

John Pemberton  continued  that  tone  by proposing  finance  policy  remits  which  called for  a  deconstruction  and  renaming  of  the Reserve  Bank  into  three  independent  bodies: the  New  Zealand  Monetary  Authority (NZMA),  Infrastructure  New  Zealand  (INZ) and  the  Prudential  Regulation  Authority  of New  Zealand  (PRANZ).  Conference  passed these  finance  remits  with  comfortable majorities. Policy  remits  proposed  by  the  Northern

Economic researcher  Lowell  Manning  gave an  address  to  conference  titled  ‘The  Ripple Starts  Here’.  He  compared  the  narrow focussed,  greedbased  doctrines  of  orthodox economists  to  the  symptoms  of  autism.  This keeps  ordinary  people,  who  are  able  to empathise  and  communicate  with  others, from  understanding  economic  theories. Lowell  warned  of  the  negative,  fear generating  messages  that  came  from media such  as  newspapers  and  television.  He  urged

listeners to  access  alternative  forms  of  media via  the  internet  to  find  positive  reports.  He added  that  an  overload  of  information  does not  improve  decision  making,  and  can  have the  opposite  effect. Webmaster  Martyn  Cook,  who  is responsible  for  designing  the  DSC  website and  the  newly  launched  Guardian  website, gave  a  fascinating  talk  on  new  information technology.  He  was  impressed  by  the ‘connectedness’  of  conference  delegates,  a high  proportion  of  whom  are  internet  savvy and  using  broadband.  Martyn  spoke  of  ‘Web

Mary Acheson (right) and Dawn McIntosh enjoy a light moment in the proceedings

2.0’, the  latest,  interactive  phase  of communication.  He  showed  how  the  DSC website  largely  provided  information,  acting as  a  oneway,  firstphase  portal,  although  it was  fully  capable  of  being  interactive  and only  needed  someone  to manage discussions. A  special  event  enlivened  conference dinner:  the  awarding  of  Life  Membership  to Margaret  Hook,  who  has  had  a  long  history of  service  and  involvement  with  DSC, including  work  with  Bruce  Beetham,  Vern Cracknel,  and  other  illustrious  past  leaders. Margaret,  who  is  currently  party  membership secretary,  accepted  the  Life  Membership  pin from  President  Neville  Aitchison,  and  told the  story  of  her  career  in  DSC  in  an  after‐ dinner  talk.

Decisions, decisions! Waitaki candidate Hessel van Wieren compares thoughts with Margaret Cook (centre), Carl Payne (right) and Colin Weatherall (left) Guardian Political Review, Issue 57, 2009 - Page 4

Conference comprised  many  regulars,  a few  who  had  not  appeared  for  a  while,  and a  handful  of  new  faces.  All  the  delegates worked  hard  at  deliberation,  discussion  and decision‐making,  accepting  the  challenge  of looking  forward.

The tramp of marching feet By Neville Aitchison President  Democrats  for  social  credit Extract  from  speech  to  2009  Conference

We are engaged  in a  struggle that can free the world of senseless debt. These are extraordinary times,  and we face an extraordinary  challenge. If  ever  there  was  a need  for the economic solutions that  social credit presages,  then  it  is  now. No  role in history  could be  more difficult  or more important.   We  stand for  freedom. That is  our conviction  for ourselves,  and one we  seek to  bring to  others. No‐one should think otherwise. We stand for social, economic and environmental  justice.   This  Party was born of economic revolution and remains committed to ensuring  the road is  closed  to  economic  despotism.   As a nation  we  persist with  strategies that were  considered  flawed even  in the lifetime  of  those who  developed them 300 years ago.    What is  the point  of persisting with a money  mechanism that  had  its origins  in  a  period  of  time that  predates electricity, the motor‐car, aeroplanes, penicillin, the steam engine  or gun powder? In an era  where technology has  enhanced our  ability  to  produce more  than we  need or  can use,  we stick like lemmings  to the  concept of periodically  throwing  ourselves over  the economic  cliff.  There  is  no  single simple  policy which meets this  challenge.   Experience has taught us that no one change,  or series of changes,  resolves the  puzzle.  It  is  time for  us to  change up  a gear, concentrate our powers and go  for the prize.    Napoleon Bonaparte said, “When you have  resolved to  fight a  battle, collect your forces.   Dispense  with nothing.   A single  battalion sometimes  decides the day.” Let  me  tell you  about two  battles in the  same  week with  vastly different outcomes. The  first  is  the battle  of Isandlwana. The British Expeditionary Force under Lord Chelmsford advanced into Zululand in January 1879 with banners flying, completely confident of their  ability to defeat the  armies of  the Zulu  Chief, King Cetewayo.  After  three days  of marching Guardian Political Review, Issue 57, 2009 - Page 5

the army stopped  to rest. Violating  one of  the first principles  of  warfare “Never  divide  your forces in  the face  of the enemy”.   Lord Chelmsford took 1600 men  with him on  a day's  march from the  main  camp in response  to  a  report of an encounter by British troops  with  a  large Zulu force.   Zulu  spies had been watching the British army  from  the  hills and "Mass together and concentrate your fire" relaying observations back then  did  what?   He ordered  his fleet to the King. The  Zulus attacked. burned in the harbour so there  could be The  British force  of 1800  men at no turning back.   To  convey to  his men Isandlwana was quickly overwhelmed that  this  was  literally all  or nothing! and wiped  out.   Only 55  men survived. I  am asking  the Party  to accept  a firm They had dispersed  their forces, commitment to  a united course of spreading them  over a  wide area, action.    A  course  that  will last  for a completely giving up their  ability to concentrate and counter the Zulu forces. number of years and have  a significant It  was  the worst  defeat ever  inflicted on cost.  But  will have  significant payback at  the  next  election.   If  we are  to go an  army  of the  British Army  of the only half  way, or  reduce our  sights in British Empire by  indigenous forces. the face of difficulty, in my  judgement it A week  later, the  Zulu army, would  be  better  not  to embark  at all.    emboldened by the victory, set  out to There  is  no point  in awaiting  the rainy wipe  out the  mission station  and trading day; the storm  is upon  us and  the rain post  at  Rorke’s Drift.   The  Battle of has  come.    There  will  never be  a greater Rorke’s Drift  lasted two  days.   The 140 opportunity in  our lifetimes. enlisted  men and  officers held  off wave after wave of attack by more  than 4000 We  must  take  some  risks.    Better to Zulu  warriors.    At the  end of  the battle, attempt  the perfect  swan dive,  even if the Zulus retreated back  into their that delivers  a monumental  belly flop, homeland. than to  step timidly  off the  diving board holding our noses. What was the difference between these two  battles that  took place  in the We have significant assets.  Our policy same  week?    The  soldiers  at  Rorke’s is  an  asset.    Democrats for  social credit Drift  were able  to mass  together and are committed to  recovering effective concentrate their fire throughout the control of New Zealand’s economic two days.   At Isandlwana,  the Zulus affairs and establishing greater economic were able  to defeat  the British  using the independence.  Our  Leader  is  an  asset. power of concentration. A significant one. In 1519, Capitan Hernando Cortes and Our  greatest asset  in this  struggle is a  small  army left  the Spanish  held island you, the members of the  Democrats for of  Cuba and  set out  on one  of the social  credit.    Your  willingness  to pay greatest conquests in the history  of the the  price  for  these programmes  – to world. Cortes  was going  to accomplish understand and accept a long struggle. his goals no matter  the consequences. To  fight  for  what we  know to  be right. He  put  to death  some of  those who This  fight for  freedom marches  in the opposed him, got himself appointed name  of  all who  have gone  before us. Capitan‐General  in order  to get  out from The famous  tramp of  marching feet. under Diego Velazquez's authority, and

The future beckons By John Pemberton Deputy  leader  Democrats  for  social  credit Extract  from  speech  to  2009  Conference The  basic  global  problem  is  that  the world’s  money  supply  is  created,  owned  and controlled  by  commercial  financial institutions  and  lent  into  the  system  at interest.  The  interest  is  not  created, requiring  more  borrowing,  resulting  in  ever increasing,  compounding  debt. The  whole  world  is  heavily  burdened  with compounding  debt.  It  causes deepening poverty,  famine  and  in  the  last  few  decades, continuous  war.  Compounding  debt  is  the underlying  cause  of  regular  and  more frequent  boom/bust  cycles,  increasingly severe  recessions  and  the  misery  and  loss suffered  by  business  and  small  investors.  In  Western  countries,  compounding  debt causes  ‘deindustrialisation’    the  shifting  of the  manufacturing  sector  off  shore  to countries  with  few  labour  laws  and  no environmental  compliances.  It  leaves  behind unstable  economies,  and  a  growing, lowskilled  work  force. Compounding  debt  takes  the  wealth created  by  people’s  work  and  delivers  it  into the  hands  of  nonproductive  bank  sharehold‐ ers  and  speculators.  It  widens  the  gap between  the  rich  and  the  rest  of  us.  Compounding  debt causes  stagnant wage levels,  rising  prices  and  failing  business.  It contributes  to  family  breakdown,  community dysfunction  and  national  unease. Compounding  debt  causes  poverty, inflation  and  unemployment.  It  promotes poor  nutrition,  poor  health  and  inadequate housing.  Compounding  debt  fosters  racism, sexism  and  other  forms  of  exclusion.  It breeds  a  savage,  dog‐eat‐dog society. Compounding  debt  drives  people  to gambling,  drug  abuse,  crime  and  violence.  It is  a  recipe  for  depression,  despair  and suicide. Compounding  debt  deflects business income  from  sustainable  production methods.  It  pollutes  our  water,  air  and  earth through  poorly  regulated,  profit‐driven activities.  It  destroys  rainforest  and  other fragile  ecosystems,  for  the  increasing production  and  unstable  prices  of  cash  crops. Compounding  debt  forces cashstrapped governments,  local  bodies  and  individuals  to treat  urgent  environmental  problems  as unaffordable  ‘side  issues’.  Compounding  debt  causes  commoditisa‐ tion  of  resources  that  were  once  public utilities:  power,  water,  and  especially  money. It  causes  commoditisation  of  social  essentials that  were  once  investments  in  the  well  being

Guardian Political Review, Issue 57, 2009 - Page 6

and future  of  the  people:  housing,  health, public  transport      and  education. This  is  the  state  of  New  Zealand  in  the 21st Century. As fast as the ice caps melt, the debt  mountain  grows  faster.  What  are  we going  to  do  about  it? This  party  has  a  proud  history  of  pushing ideas  well  ahead  of  their  time. The  tools  we  have  developed  to  reform the  economy  are  more  relevant  in  the  21st Century  than  ever  before.  Using  an  economic  tool  box  for  New Zealand,  we  can  provide  a  basic  Kiwi  income for  every  resident  in  the  country.  An  income that  is  not  tied  to  working  hours,  or  to  a dole  for  not  working,  or  to  a  handout  for being  a  solo  parent.  An  income  for  every person  that  derives  from  ownership, inheritance  and  residency,  as  of  right. 

"share our vision" This toolbox  of  reform  mechanisms  can transfer  the  wealth  out  of  the  pockets  of  the moneylenders  and  back  to  the  families  and businesses  of  New  Zealand.  Why  would  we want  to  hide  the  strengths  and  convictions that  have  helped  us  survive  for  so  long? We  work  for  environmental,  social  and economic  justice.  We  work  for  quality  of  life and  a  standard  of  living  that  is  shared  by  all, including  those  who  come  after  us. We  are  the  guardians  of  a  truth  so profound  it  is  not  an  option  to  back  down under  threat  or  ridicule.  It  is  not  an  option to  compromise  with  injustice.  It  is  not  an option  to  give  up. There  are  five  basic  monetary  reform tools  that  we  can  utilise  to  transform  New Zealand  into  a  showcase  of  sustainable prosperity    that  will  be  the  envy  of  the world. The  first  tool is  interest‐free  lending,  set up  as  a  revolving  credit  facility  or  overdraft through  a  public  utility.  This  tool  has  been employed  successfully  in  the  past,  but  never in  a  modern  New  Zealand  economic environment.  It  is  designed  to  replace  the current  inefficient  sources  of  money  with  a cheaper,  more  efficient  source. The  second  tool is  the  creation  of  new money  debt‐free.  This  money  will  be  spent into  the  system,  increasing  the  money  supply without  increasing  the  debt.  This  tool  is designed  to  help  fund  social  investment  such as  a  free  health  system,  free  education  and  a basic  income  programme.

The third  tool is  a  Financial  Transactions Tax,  known  as  FTT.  The  primary  function  of this  tax  is  to  discourage  speculation.  FTT  will also  remove  compliance  costs  for  business, and  could  help  to  balance  the  government budget.  As  a  first  step  FTT  will  gradually  replace GST.  Any  further  replacements  to  the  tax system  will  be  done  progressively  and  with due  caution.  The  fourth  tool is  the  Foreign  Transfer Surcharge    FTS.  Again,  this  tax  is  primarily  to stop  speculative  currency  trading.  Any revenue  gathered  by  FTS  will  go  toward retiring  overseas  debt,  restoring  the  balance of  trade  or  reducing  domestic  taxes. The  fifth  tool is  the  use  of  a  repayment term  instead  of  an  interest  rate  to  control demand  inflation.  The  commercial  banks  will be  required  to  manage  the average repayment  term  of  their  loan  portfolios,  as directed  by  the  central  bank  public  utility,  for the  good  of  the  people  of  New  Zealand. Unlike  the  current  debt‐based  financial system,  these  tools  are  not  designed  to  ‘run the  country’.  They  are  designed  to  manage  a money  supply  so  that  people can  own  and run  the  country.  These  tools  are  designed  to empower  people  through  income,  health, skills  and  opportunity. They  will  free  people  from  the  tyranny  of compounding  debt  and  give  them  an economy  that  works  for  them  instead  of  the system  we  have  now  that  makes  us  tenants in  our  own  land. The  toolbox  is  designed  to  be  utilised  in the 21st Century. Technologies exist that make  these  tools  easy  to  implement  and difficult  to  evade  or  defraud.  And  it  is through  these  new  technologies  ‐  internet, mobile  phones  and  other  global  communica‐ tions  ‐  that  we  will  reach  a  younger audience. These  are  the  business  people  of the future,  who  need  to  know  that  there  exists an  alternative  financial  system  that  allows the  economy  to  work  for  them.  This  younger generation  surrounds  itself  with  constantly emerging  technology  and  electronics communication  systems. With  a  toolbox  well  suited  for  the electronic  age,  the  next  step  is  for  us  to embrace  modern  communications,  ourselves, in  order  to  share  our  vision  with  coming generations. The  future  beckons.

DSC NEWS Democrats for social credit

Democrats for Social Credit leader, Stephnie de Ruyter, and southern region chairman Bob Warren at the opening this week of the party's new regional office, information centre and book exchange, in Moray Place, Dunedin Caption and photo The Otago Daily Times 11/9/09

"A great  day" The  Official  Opening  of  the  Dunedin  DSC  information  centre  and  book  exchange  took  place on  the  10th  September  2009. Bob  Warren  as  Chairperson  for  the  Southern  Region,  welcomed  all  attending.  These included  Party  Leader,  Stephnie  de  Ruyter,  members  of  the  Press,  and  special  guest,  Joe Radich  from  Invercargill. In  his  welcome  speech,  Bob  referred  to  this  as  a  great  day  for  DSC  in  Dunedin  as  "this enterprise  is  all  about  education,  awareness,  and  raising  the  profile  of  the  party  in  Dunedin".  Leader  Stephnie  gave  a  heartening  address,  thanking  the  local  members  for  their  initiative in  helping  the  Party  with  this  activity.

Yes, it's our financial system that is used to help  New  Zealanders  go  through  their  days, their  weeks,  their  years,  their  lives,  learning and  living,  playing  and  resting,  buying  and selling,  working  and  saving,  spending  and enjoying,  loving  and  grieving. It's  there  to  help  us  all.    It  should  belong  to  us  all.  From a colour leaflet produced by the Democrats for social credit. Copies available from PO Box 18 907 Christchurch 8641 email

"Share our expertise" Presentation to  Wanganui  DC  on  Draft  1O‐year  Plan  by  Heather  Marion  Smith,  B.A.,  Dip.  Soc.Sci.(Econ),  DSC  Western Region  president, 26/5/09 "A  diet  of  debt  is  not  sustainable" ‐  Rt  Hon  John  Key,  P.M. A  change  of  government  and  the  appointment of  a  new  Minister  for  Local  Government  prompt  us to  challenge  some  of  the  assumptions  in  your draft  plan: A. That  borrowing  for  public  capital  works  must must  be  funded  by  private  investors.    Servicing

Heather Marion Smith leaving  the Council building  after presenting  her submission, accompanied by  Lowell Manning.   

Photo by  Colin Whitmill,  who also  attended

Guardian Political Review, Issue 57, 2009 - Page 7

debt at  compound  interest  is  in  direct  conflict  with The  Hon  Rodney  Hide's  rate‐capping  Bill  will  do the  requirement  in  the  Local  Government  Act nothing  to  reduce  the  rising  debt  servicing  and (20O2)  that  the  four  well‐beings  (i.e.  social, proportionate  increases  in  the  GST  facing  your economic,  environmental,  cultural)  be  sustainable. Council.  Councillors  are  urged  to  consider  other Attached  is  an  extract  from  the  Public  Finance  Act points  of  view  before  arriving  at  any  decision (1989)  which  permits  Crown  borrowing  from  any We  in  Democrats  for  social  credit are  pleased source,  therefore  including  our  sovereign  Bank,  the to  have  this  opportunity  to  share  our  expertise Reserve  Bank  of  New  Zealand.  The  RBNZ  has with  you. proven  its  capacity  for  issuing  credit‐lines  by coming  to  the  aid  of  the  major banks  when  their  liquidity  was endangered,  so  is  fully  able  to open  credit‐lines  at  nil  or  very low  interest  to  local  bodies. Recycle  ‐ with  a message B. That  intergenerational equity  is  achieved  by  loading debt  servicing  onto  future generations.  Spreading  the payment  of  the  principal  over  a medium  to  long‐term  period  is accept‐able  but  the  compound interest  component  of  rates  is both  unethical  and  unnecessary. It  amounts  to  stealing  from  the future  as  a  way  of  providing steady  returns  to  private brokers  and  bank  shareholders.

Self‐adhesive labels, allowing  envelopes  to  be  re‐used (as  this)  are  now  available  from  the  addresses  below: Actual size 5½" x 3½" (14 x 9 cms)

Price per  pkt  (250)  $25  +  $5  post Order  from  DSC  Invercargill  Branch, c/o  M.  Cook,  230  Crawford  Street, Invercargill    021  022  12120 or  C.  Payne,  76  Paterson  Street, Invercargill 03 215 7664 on line now - check it out! The site has already had thousands of hits worldwide - including from the UK, USA, Canada & Australia


Democrats for social credit Leadership: Leader Stephnie de Ruyter PO Box 18 907, New Brighton, Christchurch 8641 Ph/Fax 03 352 4588 Mobile 027 442 4434, Email: Deputy Leader John Pemberton PO Box 402, Matamata 3440 Ph 07 888 8564 Mobile 021 716 895, Email: Website: Blog: Executive: Party President Neville Aitchison Suite 321, 63 Remuera Road, Newmarket, Auckland 1050. Ph 09 522 1300, Mobile 027 522 2743 Email:

Executive Contact List

Auckland Regiion C/o Neville Aitchison (refer Party President entry above)

Southern Region Bob Warren, 1 Highcliff Road, Andersons Bay, Dunedin 9013. Ph: 03 454 3235 Email:

Waikato Region

Party Secretary Peter Ferguson 7 Totara Psrk, Whakatane 3210 Mobile 027 243 7365 Email:

Ron Harsant 1 Carey Street, Hamilton 3200 Ph 07 847 8041 Email: Eastern Region John Pemberton PO Box 402, Matamata 3440 Ph 07 888 8564 Mobile 021 716 895 Email: Website: Blog: Western Region Heather M. Smith 14 Broughton St, Wanganui East 4500 Ph/Fax 06 343 3038 Email:

Vice-president Katherine Ransom, PO Box 402 Matamata 3440 Ph 07 888 8564 Mobile 027 471 6891 Email: Blog:

Wellington Region Mary Weddell 57 Shakespeare Ave, Upper Hutt 5018 Ph 04 971 7143 Fax 04 914 2405 Mobile 021 701 598 Email:

Northern & North Shore Regions John Rawson Lookout Hill, No. 8 RD, Whangarei 0178 Ph 09 438 9265. Email

CanterburyWest Coast/Tasman Region Ray Palmer 57 East Belt, Rangiora 7400 Ph 03 313 8513 Fax 03 313 8583 Email:

Guardian Political Review, Issue 57, 2009 - Page 8

Ex Officio Positions ‘Guardian’ Editor Tony Cardy, 26 Warren Street, Oamaru 9400. Ph/Fax: 03 434 5523 Email: Website: http://www, Secretarial Support Margaret Hook 393 Marychurch Rd, No. 4 R.D., Hamilton 3284 Ph 07 829 5157 Email: Committee Conveners Finance Committee David Wilson PO Box 60 Paparoa 0543 Ph 09 431 7004 Fax 09 431 8615 Email: Policy Committee Allen Cookson 230 Glentui-Bennetts Road, Oxford 7471 Ph 03 312 4057 Email Constitution Committee Neville Aitchison (refer President's entry for details)


Come back, men in cardies - what is wrong with the electricity industry By Katherine Ransom (DSC vice‐president) From NZ Listener 27/6/09

Clearly what  is  wrong  with  the  electricity  industry  and  indeed  the economy  (is)  enormous  financial  power  propped  up  by  wrong‐ headed  political  ideology. In  the  old  days,  there  were  public  utilities,  maintained  by government  departments  for  the  benefit  of  all.  Even  some  of  our money  supply  (Housing  Corporation,  Rural  Bank)  was  created  by  the Reserve  Bank  as  a  public  utility.  Prosperity  ensued,  as  most individuals  and  levels  of  the  productive  sector  could  own  property and  carry  on  business  supported  by  the  affordable  and  reliable essential  infrastructure. Since  the  neoliberal  economic  revolution  that  claimed  to  herald an  age  of  individual  prosperity,  the  notion  of  essential  infrastructure has  been  discredited.  Everything,  including  labour,  is  now  regarded as  a  commodity,  exploitable  for  private  profit. However,  under  the  new  god,  Market  Forces,  only  a  few individuals  have  benefited.  Cycles  of  boom  and  bust  happen  more frequently  and  more  severely,  the  productive  sector  has  been  gutted or  moved  offshore,  individual  debt  level  is  at  an  all‐time  high,  wages have  stagnated,  prices  keep  rising  and  fully  a  quarter  of  our  children live  below  the  poverty  line,  innocent  victims  of  a  commoditised economy. The  fundamental  difference  between  the  old  Electricity Department  and  the  "electricity  as  commodity"  model  is  clear:  on the  one  hand,  Geoff  Robinson  writes  of  a  mandate  to  supply  a

public utility  at  a  cost  that  funded  forward  planning  and  mainte‐ nance  of  infrastructure  but  not  bloated  executive  salaries, advertising  campaigns  or  rebranding  exercises;  on  the  other, Professor  Andy  Philpott  uses  economic  double‐speak  and  personal put‐downs  to  defend  an  unjust,  inefficient,  profit‐driven  industry, while  politicians  continue  to  talk  and  prices  continue  to  rise. Come  back,  men  in  cardies. 

Policy R  0996‐7;  The  wholesale  energy  market  will  be  managed  through  a single  selling  desk  operated  by  the  Ministry  of  Energy  under  a  national sustainable  energy  plan.    It  will  buy  all  energy  entering  the  national  grid  at  a uniform  rate  adjusted  for  scheduled  factors  relating  to  resource  sustainability and  pollution  created  in  the  generation  process.

Cardinal says credit crisis has killed capitalism The leader of the Roman Catholic Church in England and Wales has declared that capitalism is dead because of the credit crunch The leader of the Roman Catholic Church in England and Wales has declared that capitalism is dead because of the credit crunch. Cardinal Cormac Murphy O'Connor made the claim at a fund-raising dinner. The Cardinal's remarks will be interpreted as a signal that the entire economic order has collapsed. He said it in a room packed with some of the richest and most influential Catholics in the land. Last month the Cardinal issued a statement on the economic crisis which said: "Religious leaders are not normally economists, however, they cannot ignore the damaging human consequences of the rise and fall of economic indicators. Behind the gloomy headlines are cities, neighbourhoods, families, individuals deeply affected by the economic breakdown; and the hardest hit will be the poor: those already struggling to survive. Christians have a paramount concern for the poor. This "preferential option for the poor" is a constant theme in Catholic social teaching". Leading bishops in the Church of England have launched a withering attack on the Government, questioning the morality of its policies. Five of the Church’s most senior figures said the Government now presided over a country suffering from family breakdown, an unhealthy reliance on debt and a growing divide between rich and poor. The Rt Rev Guardian Political Review, Issue 57, 2009 - Page 9

Nigel McCulloch, the Bishop of Manchester, said: “The Government believes that money can answer all of the problems and has encouraged greed and a love of money that the Bible says is the root of all evil. It is morally corrupt because it encourages people to get into a lifestyle of believing they can always get what they want.’’ Daily Telegraph (UK) 5/1/09

"The Government believes that money can answer all of the problems and has encouraged greed and a love of money that the Bible says is the root of all evil"


WE HAVE MAIL FUNNY, PECULIAR Everyone(?)  believes  that  the  present financial  system  is  the  'best'  and  has  to  be preserved  at  all  costs.    It  is  funny  (peculiar) how  many  people  have  been  duped  into believing  this,  even  the  poor  on  the  street. At  all  costs  this  attitude  must  be preserved.  So  politicians  are  encouraged  to believe  in  the  system,  as  they  are  the  first line  of  defence  in  the  preservation  of  the public  and  ordinary  people's  belief  in  a system  which  is  out  of  date  and  totally  open to  fraud. The  things  that  have  happened  over  the last  12  ‐  18  months  have  shown  this,  and  yet Obama  and  all  the  other  leaders  believe  that bailing  out  the  various  institutions  instead  of letting  them  go  bankrupt  is  best.  The  tiny  island  of  Guernsey*  shows otherwise,  since  1817  ‐  yes  1817  ‐  and  no one  takes  any  notice.       Ray  Lodge,  Oxford *  See    the  booklet:  'The  Guernsey  Experiment', available  from  Guardian  Publishing  (c/o  DSC).

GREETINGS FROM THE OUTBACK       The  age‐old  debate  amongst  DSC  members as  to  whether  we  should  concentrate entirely  on  matters  economic  misses  a  major point,  in  my  humble  opinion.  Let  us,  for  discussion's  sake,  envisage a scenario  whereby  a  DSC‐type  economic system  was  installed  world‐wide.  Sure,  it would  solve  a  lot  of  problems  but,  consider as  one  example,  the  post‐1993  corporatisa‐ tion  of  health  management  in  New  Zealand whereby  legions  of  fools  in  suits  now  impose absurd  management  agendas  on a generation  of lifelong  health  professionals.  This  has  alienated  innumerable  previously dedicated  professionals  many  of  whom  have gone  private  or  entirely  abandoned  health  as their  career.  How  will  the  transformation  of the  economic  system  as  we  wish  it  change that  scenario? After  18  years  of  immersing  myself  in health  issues  I  cannot  see  how  fixing  the money  system  will  turn  around  the  huge disillusionment  amongst  the  real  health workers  who  are,  on  a  massive  scale,  being ruled  by  ill‐qualified,  incompetent,  career ladder  climbers  whose  ignorance  is  only exceeded  by  their  arrogance. Similarly  in  areas  like  education.    A  very thoughtful  book  discussion  on  Ozzie  national radio  recently  summed  up  much  of  what is happening  world‐wide.  The  book  is  called, 'This  little  kiddy  went  to  market;  The corporate  capture  of  childhood'. It  seems  to  me  the  human  values essential to  a  civilised  society  are  being  corporatised out  of  existence  for  the  benefit  of  those  at the  top  of  the  heap.  Sure,  we  must  sort  out the  money  system  ‐  but  without  equally massive  changes  in  society's  attitudes in many  other  areas  that  won't  solve  our problems.

For any  political  party  to  make  a significant  impact  on  the  public  ‐  and  the polls  ‐  they  should  put  forward  a  range  of policies  to  cover  the  public's  main  interests.      David  Tranter,  Queensland (Edited  extract  from  message  to  DSC  Conference)

WE HOLD  THESE  TRUTHS Many  thanks  for  sending  me  your  great magazine  as  well  as  the  gratifying  review. Please  check  out  my  new  website  at and  my  new  book  from  Tendril  Press,  We Hold  These  Truths:  The  Hope  of  Monetary Reform.       Richard  C.  Cook,  U.S.A. See  Review  page  in  this  issue

VERY REVEALING I  must  thank  you  for  kindly  sending  me  a complimentary  copy  of  your  "Autumn"  (our "springtime"  here)  2009  issue  of  The Guardian  Political  Review.     The  article  about  the  fight  over fluoridation  featuring  Olive  McRae  was  very revealing‐‐‐probably  more  than  the  editors  of the  Otago  Daily  Times realize.  Thank  you, too,  for  publishing  the  letter  I  sent  to  you last  year. Your  comments  and  articles  in  this  issue on  the  economic  mess  much  of  the  world  is in  struck  a  vibrant  chord  with  me. Albert  W.  Burgstahler,  U.S.A. Editor,  Fluoride  Journal http://www.fluorideresearch

DAYLIGHT SAVING Once  again,  we  have  had  to  put  the  clocks forward  one  hour.    In  West  Australia  the government  has  just  banned  daylight saving, following  a  state‐wide  referendum  which showed  a  majority  opposed  the  practice. New  Zealand  already  has  an  additional half‐hour  added  permanently,  in  addition  to the  alteration  imposed  by  Daylight  Saving. So  why  not  compromise  by  advancing  the clocks  a  further  half‐hour  ‐  and  then  leave the  time  changing  alone  for  ever  and  ever?    On  September  27,  aged‐care  home residents  all  around  the  country  were  woken up  an  hour  earlier  to  have  their  breakfast  ‐ and  they’re  not  ready.    How  ridiculous  is that?    My  mother,  being  one  of  them,  is nearly  90  and  it  makes  a  long  day. So  let’s  add  half  an  hour  on  a  permanent basis  and  stop  the  time  changing  once  and for  all.     Keith  Clapham,  Ruakaka

MAD TRADE With  the  demise  of  NZ  First,  New  Zealand now  has  no  real  opposition  Party.    Labour supports  the  same  disastrous  economic ideology  as  National,  and the  Greens  prefer sucking  up  to  the  main  Parties  to  fighting them.    However,  to  command  some  public attention,  Democrats  for  social  credit  would have  to  start  thinking  like  an  alternative government  and  talk  about  more  than  just money.   

Guardian Political Review, Issue 57, 2009 - Page 10

In The  Press (11/3/09),  under  the  heading "Mad  Trade",  I  said:  "Nobody  is  saying  that loans  to  finance  worsening  trade  deficits  are essentially  unrepayable  and  therefore  bad loans.    It  follows  that  free  trade  agreement may  be  a  cause  of  the  crisis.    They  promote uncontrolled  and  unbalanced  trade,  what  I call  mad  trade." An  article  in  The  Guardian  Weekly (1/05/09)  also  sees  "big  trade  deficits"  as being  part  of  the  problem.  It  is  basic common  sense  that  only  balanced  trade, with  the  controls  needed  to  achieve  it,  is sustainable  in  the  long  run.    New  Zealand's crisis  results  from  the  fact  that  most  local production  has  been  closed  down  by  the mad  pursuit  of  "uncontrolled  &  unbalanced trade".  We  need  to  advocate  a  return  to  balanced trade,  keeping  out  non‐essential  imports  and reviving  local  industry.    Social  credit  could help  in  re‐financing  local  production.          Mark    Sadler,  Christchurch 

WHO'S IN  CHARGE? Just  a  note  to  thank  you  for  another  issue of  the  "Guardian".  It  always  has interesting  stuff  in  it.  I  rather  liked  the Queen's  comments  on  the  current financial  crisis.  Makes  you  wonder  who's  in charge  here! I  had  an  article  published  recently  in  MC2, organ  of  Mensa  Canada  Society,  please  feel free  to  make  use  of  it.       Martin  Hattersley,  Edmonton,  Canada. Editor's  note:    The  article,  “Myths  we  can  do without”,  commences:  "Sing  a  song  of  plenty,  a  planet  full  of fools, Everybody  starving  by  sound  financial rules; The  shops  were  full  of  good  things,  the factories  likewise  ‐ The  Banker  shut  his  books  and  said  'We must  economize'."

CAUGHT IN  A SCAM Over  my  lifetime,  the  purchasing  power  of the  dollar  (formerly  10  shillings)  has deteriorated  from  100  cents  to  about  half  a cent. Now,  who  do  you  think  was  responsible for  the  deteriorating  value  of  our  money? We've  had  about  40  years  of  National government  and  35  years  of  Labour government.  They  will  each  point  a  finger  at the  other  ‐  and  they'll  both  be  right.  They have  been  caught  in  a  scam  they  don't understand:  debt  and  credit.       Geoff  Church,  Kerikeri See  feature  'Inflation  is  out  of  control'  in  Issue  54.

Letters or emails should be sent to The Guardian Political Review, 26 Warren Street, Oamaru 9400, NZ. Tel/Fax: 03 434 5523. E-mail: The editor reserves the right to edit or abridge. The views expressed are not necessarily those of the editor or the NZ Democratic Party for social credit.

Stop speculation

A tax on financial speculation could help stabilize global markets and capture much-needed funds for global development

to stabilize exchange  rates. Wildly Fast‐moving, unregulated investment fluctuating rates p!ay havoc with has turned the global economy into a businesses dependent on foreign casino where big‐money speculators exchange as prices  and profits  move up search for instant profits. And damn and down, depending on the relative the consequences. A speculation tax value of the currencies  being used. that would put people ahead of profits Reduced exchange‐rate volatility means is urgently needed. that businesses would need  to spend So what is currency  speculation and less  money 'hedging' (buying currencies why  is  it   a  problem?  in anticipation of future price changes), The world  of international  finance has thus freeing up  capital for  investment in become  a  global casino  where investors new production.    seeking quick profits bet  huge sums around the  clock. Unlike  investments in The Tobin Tax deserves a fair hearing goods  or services,  speculators make Only widespread popular support and money  from money  alone. No  jobs are public pressure can ensure it created, no services  provided, no factories built and no widgets produced. How    would   the  Tobin Tax   benefit Investors play the bond and currency national governments? markets  profiting from  the minute‐to‐ It  is designed  to reduce  the power minute, hourly or daily fluctuations in financial markets  have to  determine the prices around the world. And  the game economic policies  of national is big ‐ $1.5 trillion ($1,500,000,000,000) governments.  Speculators  now have is traded every day,  95 per  cent of more  cash than  all the  world's central which is bet  on whether  currency values banks put together. Official global and  interest  rates  will  rise  or  fall. reserves  are  less  than  half  the  value of Traders make  money either  way and one day of global foreign‐exchange they thrive when markets  are highly turnover. Many countries are simply unstable. unable to protect their  currencies from As national economies  become more speculative attack. liberalized and integrated, future By cutting down on  the overall financial  crises  are  inevitable unless volume of foreign‐exchange transactions, changes are  made.  a  Tobin Tax  would mean  that central What  is the  Tobin Tax? banks would not  need as  much reserve money to defend their currency.  The tax In 1978 Nobe! Prize‐winning would  allow governments  the freedom economist James  Tobin proposed  that a to  act  in  the best  interests of  their own small  worldwide  tariff  (less  than  half of economic development, rather than one per  cent) be  levied by  all major being forced to shape  fiscal and countries on foreign‐exchange monetary policies according to demands transactions  in  order to  'throw some sand  in  the  wheels' of  speculative flows. of  fickle financial  markets.  The  tax  is  designed to  help stabilize How would the Tobin  Tax benefit exchange rates by reducing the volume people?  of speculation. And  it is  set deliberately By  making  crises  less likely,  the tax low  so  as  not  to  have an  adverse effect would help  avoid the  social devastation on  trade  in goods  and services  or long‐ that occurs in the  wake of  a financial term  investments.  crisis.  It could  also be  a significant How would a  Tobin Tax  benefit the source  of  global revenue.   The  Tobin Tax global economy? represents a rare opportunity to capture the enormous wealth of  an untaxed It could boost world trade  by helping Guardian Political Review, Issue 57, 2009 - Page 11

James Tobin

sector and redirect it towards  the public good. Won't speculators find ways to evade the  tax?  A  Tobin Tax  could be  difficult to evade, because currency transactions are tracked  electronically.   The tax would be easy to collect  through the computer systems that record each trade.  What is the biggest barrier  to the Tobin  Tax? It's  not technical  or administrative. It's  political.  The  tax  is  seen as  a threat by the financial community and has met with  stiff  resistance  by a  sector with massive  political  clout.  The  very  idea of putting people ahead of markets challenges the foundations of the current global economic model and those  who  control  it.  Who supports the Tobin Tax? The international trade union movement, the Canadian Parliament, the Finnish Government and  a growing number of academics and elected representatives.  !n  Brazil politicians recently launched the 'Parliamentary Front for the  Tobin Tax'.  And citizens' movements  for  a  Tobin  Tax  are active around the world, including CIDSE in Europe, Attac in France, the Halifax Initiative in Canada, KEPA in  Finland and War on  Want in  Britain. These  and other groups have established the Interna‐ tional  Tobin  Tax Network  to share information and co‐ordinate actions as they work to build public  and political support for  the tax. The  Tobin  Tax  deserves  a  fair hearing. Only widespread popular support and public pressure can  ensure it. By Robin Round     (extract from New Internationalist Jan/Feb 2000)

A ''Tobin' type tax is covered by the DSC Foreign Transfer Surcharge policy.


Interest‐free loans  could  dam  civic  'money  leakage' The interest repayments on core Dunedin City Council debt over the next 10 years amount to $46 million, writes Cr LEAH MCBEY. This set her to wondering about the power of the Reserve Bank to offer interest‐free loans to local authorities. Leah McBey


t came  as  news  to  me  that  the Reserve Bank  had  the  power  to  offer interest‐ free  loans to  local authorities.

Nothing new  in  this,  I  was  assured.

The Labour  government  of  1935  offered low‐interest  loans,  through  the  Reserve  Bank for  state  housing  and  the  Dairy  Board. The  Reserve  Bank  source  said,  under  the current  legislation,  the  Government  could not  direct  the  hank  to  lend  to  anyone, including  the  Government  itself,  nor  could  it specify  the  terms  at  which  it should  lend. That  would  be  entirely  a  mat‐ter  for  the governor.  The  same  source  said  the  Minister  of Finance  could  have  consider‐able  influence with  the  governor  if  he  were  sympathetic  to the  suggestion  of  interest‐free  loans  to  local authorities,  or  they  might  legislate  to  give the  Government  more  power  in  this  matter. That  led  me  to  muse on  the  Crown’s willingness  to  encourage  the  Reserve  Bank to  offer  interest‐free  loans  to  local authorities,  as  part  of  its  regional  develop‐ ment  drive. Could  such  a  scheme  be  prefer‐able  to the  Government  handing  out  grants  to communities  for  regional  development?  Or could  it  be  part  of  a  range  of  supports  for local  authorities?  Since  the  bank  can  lend the  money  at  a  cheaper  rate  than  the  local body  can  borrow  on  its  own  account,  rates would  go  down. Dunedin  is  planning  to  borrow  a  further $47.5  million  in  the  next  10  years  and intends  to  repay  $68.5  million. However,  the  interest  repayments  on  core council  debt  over  10  years  amount  to  S46

million.   Replacing  existing  and  new  debt with  interest‐free  loans  would  cut  that  to near  zero,  relieving  the  citizens  of  a  very significant  rates  burden.  Averaged  over  that decade,  using  this  year's  rates  as  a  guide, that  would  mean  rates  could  be  cut  up  to 7%  a  year. To  get  an  idea  of  the  potential  sums involved  for  the  local  body  sector,  I  looked at  the  most  recent  annual  plans  of  nine  local authorities.  I  added  up  their  next  10  years' worth  of  borrowing,  their  repayment programmes  and  their  interest  payments. The  result  was  a  shock. The  fresh  borrowing  of  these  nine  local bodies  totalled  $897.3  million,  and  their repayments  over  the  next  10  years  totalled $656  million. But  the  aggregate  interest  paid  over  the next  10  years  was  projected  at  $751.4 million.  That  was,  of  course,  for  their  total debt,  not  just  for  the  new  borrowings. And  that  excluded  local  authorities  such  as the  Tauranga  District Council,  which  has  an  unusually  heavy borrowing  programme  of  $330  million  and an  equally  onerous  debt  repayment  plan  of $128  million. Given  that  these  figures  represent  only nine  of  over  70  local  bodies  in  New  Zealand, I  can  only  wonder  as  to  the  interest  being paid  by  the  whole  local‐body  sector  in  New Zealand. Are  we  talking  $1  billion  to  S2  billion  over 10  years?  That  is  a  very  large  amount  of money  passing  from  the  citizens  of  New Zealand  to  money‐lenders,  most  of  whom are  based overseas.

It is  a  generally  accepted  fact  that retaining  money  in  the  community  allows that  community  to  thrive  economically.  Most economic  development  initiatives  are designed  either  to  attract  more  money  into the  area,  or  to  retain  it  by  preventing businesses  from  leaving  and  taking  their payrolls  with  them. "Money  leakage"  is  a  major  threat  to  the economic  viability  of  communities.  Servicing  debt  is  an  invisible,  but significant,  form  of  money  leakage. If  the  Government  has  not  seriously considered  interest‐free  loans  to  local bodies,  now  is  surely  the  time,  given  the heavy  burden  of  infrastructure  upgrades  and the  requirements  to  raise  depreciation  year after  year  on  expanding assets. Orthodoxy  argues  that  interest‐free  loans would  be  inflationary,  Given  that,  across  the planet,  there  is  15  times  more  debt  than there  is  money  in  circulation  to  repay  it, there  is  an  extremely  strong  argument  to suggest  that  interest‐bearing  debt  is  far  more inflationary. The  drive  to  repay  debt  and  interest  is also  a  key  factor  in  environmental degradation.  The  health  of  the  environment is  one  of  the  most  pressing  concerns  of citizens  around  the  world,  and  is  now accepted  as  basic  to  the  very  survival  of human  beings.  Interest‐free  money  should  be seriously considered.  It  would  ease  the  rates  burden, retain  money  in  communities,  support regional  development  and  send  a  signal  to local  bodies  the  Crown  is  willing  to  be  a practical  partner.

The above  feature  was  published  in  the  Otago  Daily  Times  on 17  May 2001 The  following  Media statement  was released  on 5  November 2008  by DSC  leader Stephnie  de Ruyter

Reserve Bank  funding  the  only  sustainable  option The  Otago  Daily  Times (4.11.08)  reports  that ‘Interest  on  the  $92.8  million  the  Dunedin  City Council  plans  to  borrow  this  year  is  set  to  cost the  city  $9.5  million  a  year  for  the  next  20  years (totalling  $190  million).   More  is  expected  to  be borrowed  next  year.   The  capital  value  of Dunedin  city  will  be  used  as  security  for  the loans,  effectively  meaning  banks  could  place  a  claim  on  rates  income if  the  city  was  unable  to  meet  its  repayments.   The  council  will borrow  $45.8  million  to  be  repaid  over  20  years  at  7.5%,  and  $46.9 million  at  9%  on  an  interest‐only  basis.   The  gross  interest  expense will  represent  14.4%  of  total  rates  revenues.’ “This  indicates  that  funding  issues  are  driving  high  percentage rates  increases,  causing  hardship  to  many  ratepayers  and  stalling Guardian Political Review, Issue 57, 2009 - Page 12

necessary infrastructure  upgrades.  It  reflects  the  folly  of  the  present narrow  funding  mechanisms”  Ms  de  Ruyter  stated.  “Reserve  Bank  grants,  interest‐free  loans  and  low  interest  loans should  be  available  to  local  bodies  to  fund  infrastructure  projects. By  utilising  our  publicly‐owned  Reserve  Bank  of  New  Zealand, instead  of  borrowing  from  commercial  trading  banks,  our  country’s infrastructure  and  community  project  needs  could  be  met  without the  burden  of  interest‐bearing  debt.  We  would  then  pay  for  these projects  once,  not  two  or  three  times  over.  And  tomorrow’s ratepayers  would  no  longer  be  encumbered  with  servicing yesterday’s  debts”  she said. Ms  de  Ruyter  noted  that  this  was  an  example  of  applied  social credit.

HEALTH Skeletal fluorosis "The  build‐up  of  fluoride  in  bone  leads  to  a  well‐defined  disorder called  skeletal  fluorosis."  (2) "The  very  first  stages  of  skeletal  fluorosis  involves  the  laying  down of  bone,  bony  tissue,  in  tendons  and  ligaments  .  The  crystal  appetite which  makes  up  bone  can  irritate  tendons  and  ligament  sheaths."  (2) "The  earliest  signs  of  skeletal  fluorosis  are  vague  pains  in  the  small joints  of  the  hands  and  feet,  the  knee  joints  and  spine.  In  more advanced  cases  there  are  severe  pains  in  the  joints  and  back  and difficulty  in  walking."  (1) "Skeletal  Fluorosis  is  caused  by  ingesting  excessive  amounts  of fluoride  through  potable  water.    The  major  clinical  manifestations  are severe  pain  in  the  back  bone  (vertebral  column),  joints  and  pelvic girdle,  leading  to  stiffness  of  the  vertebral  column,  immobile  joints, terminating  in  a  gripping  condition."  (3) "Muscular  weakness,  extreme  tiredness,  joint  and  back  pains  , stiffness  .  .  .  are  characteristic  of  the  more  acute  type  of  fluoride toxcicity  but  are  bound  to  affect  some  people,  even  with  the  1 p.p.m.  in  fluoridated  water."  (4) "Levels  as  low  as  1  p.p.m.  are  producing  arthritic,  crippling, debilitating  symptoms  in  persons.  I  am  talking  about  osteoporosis, bone  stiffness,  back  joint  pain  and  stiffening  in  the  joints."  (4) "Recent  studies  show  that  fluoride  at  levels  as  low  as  1  p.p.m.  in the  drinking  water  give  rise  to  an  increase  in  the  urine  concentration of  certain  biological  chemicals  that  signal  the  breakdown  of  collagen. Collagen  serves  as  a  major  structural  component  of  skin,  ligaments, tendons,  muscles,  cartilage,  bones  and  teeth.    Fluoride‐induced collagen  damage  results  in  the  weakening  of  ligaments,  tendons  and muscles.  Irreversible  arthritis  and  stiffness  of  the  joints  be  expected." (5} "Side‐effects  that  can  result  from  the  daily  ingestion  of  the amount  of  fluoride  found  in  1  to  2  pints  of  artificially  fluoridated water  are  (amongst  others)  pain  and  aching  of  bones,  weakness  and stiffness."  (6) "When  fluoridation  lasted  longer,  other  complaints  became  more conspicuous.  They  were  arthritis‐like  pains,  especially  in  the  lower spine.    One  woman  became  more‐or‐less  crippled  and,  as  non‐

Oh, my aching back! fluoridated water  was  hard  to  come  by,  she  had  to  move  house  to  a non‐fluoridated  area  and  was  healed  within  a  month."  (7) "There  is  definite  evidence  that  fluoride  supplementation  creates a  greater  metabolic  requirement  for  calcium  in  humans.    If  fluoride administration  continues,  the  nett  result  will  be  osteomalacia."  {8} "Fluorides  are  violent  poisons  to  all  living  tissue  because  of  their precipitation  of  calcium.  Bones  become  hard  and  fragile."  (9) References. 1)  Professor  Douw  Stein.  2}  Dr.  Geoffrey  Smith  IDS,RCS.    3)  Professor  A.K. Sushsela.  4)  Professor  A.  Burgstahler.    5)  Dr.  Yiainouyiannis.    6)  U.S. Pharmacopeia. 7)  Dr.  B.C.  Moolenburgh  (Holland).  8)  National  Research Council  of  Canada.  9)  U.S.  Dispensary  24th  Edn.                                                    (Information from  the Pure  Water Journal)

Fluoridation contributes to $2 billion annual New Zealand health cost A new  study  shows  that  “arthritis”  alone costs  the  health  system  (i.e.  taxpayer)  $2 billion  per  year  (1.2%  GDP).  And  it  will  keep increasing  unless  something  is  done, according  to  the  authors. “But  much  ‘arthritis’  is  actually  misdiag‐ nosed  skeletal  fluorosis,  caused  by  over‐ exposure  to  fluoride  –  the  toxin  put  in  many of  NZ’s  water  supplies  ‐  according  to  the World  Health  Organisation.  Doctors  are  not trained  to  diagnose  this  in  NZ”  advises  Mark Atkin,  Fluoride  Action  Network  NZ’s  co‐ representative  on  the  Fluoridation‐free  NZ Coalition. The  first  sign  of  fluoride  poisoning  is dental  fluorosis  –  an  opacity  in  the  teeth ranging  from  white  to  dark  brown.  It  is caused  by  fluoride  toxicity  during  childhood. It  affects  twice  as  many  children  in fluoridated  communities  according  to  two recent  NZ  studies  –  around  30%,  instead  of the  10%  considered  acceptable  collateral damage  when  fluoridation  was  introduced. The  musculoskeletal  study’s  authors  point Guardian Political Review, Issue 57, 2009 - Page 13

out that  arthritis  is  considered  a  natural consequence  of  ageing,  hence  will  increase as  NZ’s  population  ages.  But  skeletal fluorosis  results  from  accumulated  exposure to  fluoride  throughout  life.  Half  of  all fluoride  swallowed  accumulates  in  the  bones.

Half of all fluoride swallowed accumulates in the bones “NZ has  been  fluoridated  for  40  years  now –  about  the  time  projected  for  developing first  signs  of  skeletal  fluorosis  at  the  level  of exposure  in  fluoridated  communities  (about 3  mg/day)”  points  out  Mr  Atkin,  adding “while  water  fluoridation  was  introduced  in the  belief  it  would  reduce  tooth  decay,  we now  know  fluoride  only  works  by  applying  it to  the  surface,  such  as  with  fluoride toothpaste.  The  latest  large  scale  study  in Australia  (in  2004)  showed  no  lasting  benefit from  fluoridation.  Conversely,  the  health risks,  come  from  swallowing  it.” In  2006  the  US  National  Research  Council

published its  comprehensive  report, identifying  significant  health  risks  from fluoride,  especially  to  certain  population groups.  Risks  began  at  the  level  of  exposure in  fluoridated  communities. “Class  action  law  suits  are  currently  being prepared  in  the  USA  and  Australia,  based  on current  scientific  knowledge  of  fluoridation’s harmful  effects  on  health”  advises  Mr  Atkin. “Meanwhile,  like  the  band  playing  on  the Titanic  as  it  sank,  the  Ministry  of  Health keeps  pushing  its  fluoridation  agenda  in  the false  belief  it  saves  half  a  filling  per  person." Fluoridation  Action  Network  NZ  26/8/09

"We oppose  compulsory  preventative  medication where  it  can  produce  undesirable  side  effects  or where  the  long‐term  benefit  is  or  becomes uncertain  (Policy  P14.C03.2.1).  The  individual's right  to  refuse  medication  takes  precedence  over the  health  care  workers  obligation  to  give  it  (Policy P14.A.05)."


What is happening to the farming industry of New Zealand? by Ken Goodhue


hen I  was  a  young  man  in  New Zealand  some  fifty  years  ago,  it was  accepted  that  a  young  person could  aspire  to  eventually  own  his  own  farm one  day.  if  he  set  his  mind  to  it.  True,  he would  have  had  to  work  hard,  and  save capital  for  some  time,  but  it  was  considered a  very  feasible  aspiration  to  have.  I  would now  ask,  is  this  as  real  an  aspiration  to  have in  today's  farming  industry?  Do  the  people working  in  the  farming  industry  today, believe  they  have  the  same  opportunities  to own  a  farm  in  their  lifetime.  I  would  very much  doubt  it,  and  these  are  some  of  my reasons. In  days  past,  the  educational  institutes mainly  trained  people  to  manage  farms  that belonged  to  them,  or  those  that  wanted  to do  agriculture  research.  Today,  I  notice  the emphasis  is  on  being  trained  to  manage  a farm.  This  has  come  about  thorough  the development  of  the  corporate  farm,  which  I believe  has  been  driven  by  the  banking industry  in  New  Zealand.  This  new  direction can  have  major  effects  on  the  farming industry  in  New  Zealand,  and  could eventually  put  the  control  of  New  Zealand land  in  the  hands  of  large  overseas companies.  At  present  overseas  nationals must  get  permission  to  purchase  agricultural land  as  individuals,  but  there  is  no  restriction on  them  owning  shares  in  a  land  owning company. This  can  affect  the  New  Zealand  economy in  various  ways  as  has  happened  in  other countries  throughout  the  world.  The  local government  can  lose  control  on  what  is produced.  Much  of  the  the  profits  can  be taken  at  the  point  of  sale,  and  therefore deny  the  country  of  origin,  of  the  taxes  for infrastructure  used  at  point  of  production. Also  the  local  labour  is  often  forced  to accept  a  very  low  wage,  which  further impacts  on  the  local  economy. The  forests  of  New  Zealand  are  being

Guardian Political Review, Issue 57, 2009 - Page 14

bought up  by  overseas  interests,  and  much of  the  produce  is  being  shipped  out  of  this country  as  logs.  I  believe  that  many  of  these companies  are  not  interested  in  further processing  these  logs  in  New  Zealand,  when it  is  possible.  This  denies  the  local  labour  of income,  and  the  government  of  extra revenue.  As  the  shift  of  ownership  has  been taking  place,  there  has  been  the  gradual decline  of  research  in  forestry,  which  at  the beginning  of  the  1980s,  New  Zealand  was  up with  world  leaders. There  is  at  present  a  strong  move  in  the sheep  industry  to  resume  the  export  of  live sheep  to  the  Middle  East;  it  is  being  driven by  the  owners  of  a  large  property  where Saudi  Arabian  Awassi  sheep  are  reared  in  the Hawkes  Bay.  It  is  interesting  that  the  owners of  this  property  should  happen  to  be  Saudi Arabians.  If  they  are  successful  in  getting  the local  sheep  farmer's  support,  and  this venture  goes  ahead, how  long  will  the  good prices  last,  and  how  long  before  they  buy  up more  land  and  it  becomes  a  closed  shop.  At the  end  of  the  day,  all  that  New  Zealand may  get  out  of  the  exercise,  is  the  wages  for the  employees  that  are  required  to  attend  to the  sheep  before  they are  shipped. Because, rest  assured,  the  real  profits  will  be  taken  at the  point  of  sale,  Saudi  Arabia. The  biggest  prize  at  present  in  New Zealand's  primary  industry,  is  the  dairy industry.  The  grand  prize  of  the  dairy industry,  is  the  last  major  cooperative company  left  in  New  Zealand,  Fonterra. I  sometimes  think  that  the  dairy  farmers  of New  Zealand  do  not  always  appreciate  what a  priceless  asset  they  possess.  If  the  farmers of  New  Zealand  allow  any  form  of  corporate structure  to  creep  into  this  company,  I believe  they  will  lose  the  engine  of  the  dairy industry  in  this  country.  If  anyone  doubts these  words,  I  would  suggest  they  look  south to  what  has  happened  to  farmers  who  broke away  from  Fonterra  to  set  up  their  own

plant. The  Russian  company  Nutrilek  is  in  the process  of  making  a  complete  take‐over  of the  South  Canterbury‐based  New  Zealand Dairies  Ltd.  The  other  company  that  is making  strides  in  Canterbury  is  the  dairy processor  Synlait,  of  which  a  Japanese shareholder,  Mitsui,  holds  a  23  per  cent shareholding.  It  has  been  recorded  that  of the  80,000  cows  which  supply  the  company, 15,000  are  owned  by  the  company.  As  the company  consolidates  at  a  latter  stage,  will some  of  the  present  independent suppliers be  squeezed out? It  is  also  interesting  that  another  dairy company,  Waikato‐based  Open  Country Cheese  Company,  has  been  taken  over Open Country  Dairy  Limited,  of  which  Affco  New Zealand  is  a  major  shareholder.  It  has  also been  recorded  that  Olan  International,  a large  multinational  company  based  in Singapore,  has  purchased  a  shareholding  of at  least  24.75  per  cent  of  Open  Country Dairy  Limited.  Olan  International  is  a  global trader  in  a  wide  variety  of  food  products world‐wide. It  should  be  noted,  that  most  of  the  dairy companies  that  have  been  set  up  to compete  with  Fonterra,  since  the  deregula‐ tion  of  the  dairy  industry,  are  in  areas  that have  a  high  concentration  of  dairy  cows.  This means  that  the  cost  of  milk  collection  is  low. compared  with  a  more  extended  area  of collection,  such  as  Fonterra  has  in  the northern  parts  of  the  North  Island.  The Westland  Dairy  Co‐op  would  have  the  same problems  on  the  west  coast  of  the  South Island. The  dairy  farmers  are  also  now  coming under  financial  pressure  due  to  the  world wide  recession.  This  is  now  putting  further pressure  on  Fonterra  as  farmers  are withdrawing  their  milk  supply  to  capitalize on  their  Fonterra  shareholding.  And,  even  if the  return  on  their  milk  supply  is  not  as  high from  the  independent  manufacturers,  they can  use  the  money  they  get  for  their Fonterra  shares  to  pay  down  debt.  This  has two  downsides  for  Fonterra.  It  causes  a  drop in  their  throughput,  and  puts  pressure  on the  capital  structure  of  the  cooperative.  I believe  all  pastoral  farmers  of  New  Zealand should  take  time  to  consider  what  is happening  to  their  industry,  and  take  action before  it  is  too  late. E  K  Goodhue,  P  O  Box  6028,  Otaika,  Whangarei 0147.  Email:  (09)430.826 Ken  Goodhue  was  DSC  2008  Whangarei  candidate.

Policy R0473:  That  we  will  promote  private individual, family or  co‐operative ownership  of New Zealand  agricultural  land,  and  (R0448):  That  mar‐ keting  will  be  done  by  the  most  efficient  means available  to  New  Zealanders.


Economic Moonwalking

For all the free market make-overs, asset sales and privatisation. Reserve Bank and Fiscal Responsibility Acts, tax cuts, laissez-faire monetary strategy and financial deregulation, we have gone backwards

By Finlay Macdonald (extract from Sunday Star-Times 19/7/09)


or those readers who missed John Key's speech  last  week  about  New  Zealand's economy,  here's  a  quick  summary: Blah  blah blah  productivity  blah  blah  blah  growth  blah blah  blah  internationally  competitive  blah blah  blah  OECD  blah  blah  blah  business environment  blah  blah  blah  create  the  right conditions  blah  blah  blah... Actually,  this  precis  gives  the  impression of  greater  substance  than  the  speech deserves.  It  was  another  party  political broadcast  on  behalf  of  economic  orthodoxy, laden  with  the  usual  jeremiads  about  our woeful  economic  performance  and  bullet point  platitudes  masquerading  as  policy initiatives. Nine  months  into  this  government's  first

The Diary of Adrian Bayly Nelson-based Adrian Bayly keeps a close eye on the political scene

30 May  2009 ‐  WHOPPING  DEFICIT

The current  National  government  has posted  a  whopping  $9.3  billion  deficit  –  and it  will  be  2016,  two  elections  from  now, before  it  posts  another  surplus  –  depending on  when  the  Global  Recession  ends. Finance  Minister,  Hon  Bill  English,  said  the country  was  grappling  with  the  need  to  rein in  debt.  He  has  suspended  payments  to  the NZ  Super  Fund  for  ten  years  and  is  going  to borrow  $34  billion  over  the  next  4  years  to help  cushion  the  blow  for  the  70,000 workers  about  to  join  the  dole  queue. The  fact  is  that  the  government  debt  is still  being  forced  up  to  levels  not  seen  since the  1990s.    The  government  would  do  better to  issue  Reserve  Bank  credit  at  nil  rate  of interest  into  circulation,  rather  than  borrow it  from  banks  and  pay  interest.  Guardian Political Review, Issue 57, 2009 - Page 15

term we  might  be  forgiven  for  expecting  a little  more.  But  it  is  all  we'll  ever  get  from politicians  who  are  capable  of  identifying  the problems  but  prevented  by  ideology  and intellectual  timidity  from  offering  honest analysis  of  the  causes  and  therefore  real solutions. The  trouble  is,  without  meaningful  reform of  the  fundamental  economic  conditions  that have  created  and  sustained  this  fantasy,  New Zealanders  can  only  ever  be  expected  to behave  in  predictable  ways.

We can't  save  because  we're  already borrowing  just  to  maintain  a  static  standard of  living.  John  Key  isn't  a  financial  illiterate...but  he can't  keep  waffling  about  the  effects  of fundamental  economic  failure  without  at least  opening  up  for  discussion  their fundamental causes. The  silence  is  deafening.   

Our foreign‐owned  banks  have  used  the hot  money  gushing  through  their  coffers.

But for  all  the  free  market  make‐overs, asset  sales  and  privatisation.  Reserve  Bank and  Fiscal  Responsibility  Acts,  tax  cuts, laissez‐faire  monetary  strategy  and  financial deregulation,  we  have  gone  backwards.

17 June  2009 –  WHAT  IS  NEEDED

8 September 2009 ‐  A  CHALLENGE

Nelson City  Council’s  debt  of  $85.7  million will  rise  to  $169  million  in  2013‐4,

In a  letter  printed  in  The  Nelson  Mail (31.8.09),  Don  Steele  wrote:

The Council  raised  a  loan  of  $25  million  in the  early  2000s  to  fund  a  water  filtration plant  –  to  be  paid  back  over  the  next  40 years.    Now  the  new  Council  wants  to  build a  performing  arts  centre  and  a  millennium conference  centre  in  Nelson.    They  want  to borrow  $32  million  to  fund  it,  paid  back  over another  40  years  –  and  suspend  loan repayments  over  the  next  5  years  in  order  to keep  rate  rises  down.

In the Sunday  Star‐Times (23/8/09): "Addicted  to  healthcare  ‐  could  alarming costs  bankrupt  us?" is  the  heading  over  the reports;  "Health:  New  Zealand's  untreated addiction" ‐  capital  investment  specialists who  claim  the  cost  of  health  is  "taking  over".

What is  needed  is  DSC’s  ‘Community Credit’?  policy  –  Reserve  Bank  credit  at  nil  to low  interest  rates  to  replace  the  Council’s interest‐bearing  debt  issue  by  banks.    This would  ease  the  burden  on  ratepayers  with projects  being  paid  for  once  only,  rather than  several  times  over  by  current  and future  ratepayers. 3 September 2009 –  DEBT  BONDAGE

Student tertiary  education  debt  has  now reached  $10.5  billion  and  is  forecast  to  climb to  $14  billion  by  2015. National  and  Labour  are  still  committed  to putting  tertiary  students  into  debt  bondage for  the  foreseeable  future,  rather  than  go back  to  bursaries  and  taxpayer  funding.

It warns  that  the  Government's  $12  billion a  year  health  budget,  at  the  current  rate  of growth,  will  blow  out  to  $45  billion  by  2026. Don  Steele  added:  "I  would  challenge  any capital  investments  specialists,  economists, accountants,  or  government  economic advisers  to  solve  the  problem  without  the election  of  a  financial  reform  government." 9 September  2009 –    BIG  COMEDOWN

Will Jim  Anderton  stand  again  in  2011? My  guess  is  that  he  will  finish  his  current term  and  retire  at  the  2011  election.    His Progressive  Party  is  now  being  merged  with the  Labour  Party,  so  he  can  exit  it.  There  is  no  reason  to  hang  around  in Opposition  as  he  is  no  longer  in  government and  Labour  leaders  Helen  Clark  and  Michael Cullen  have  quit  parliament  ‐  it’?s  too  big  a comedown  after  years  in  power.

- extracts from the nation's press

same time  as  the  last  Election,  and  the politicians  are  able  to  ignore  its  result. I  suggest  electors  watch  very  carefully  any Bill  “to  prevent  confusing  referenda”.    My bet  is  that  it  will  contain  a  further  attack  on what  democracy  remains  in  the  system. Meanwhile,  let’s  push  hard  for  binding referendums,  at  both  central  and  local government level.       John  G  Rawson,  Northern  Advocate 20/6/09

GIANT LEAP BACKWARDS Turkeys  don't  vote  for  an  early  Christmas. So  why  would  Kiwis?    Because  Christmas  it will  most  assuredly  be  if  National's  promised referendum  on  the  electoral  system  sees  the ditching  of  MMP.    Christmas  that  is  for  the two  major  parties.  No  longer  shackled  by  coalitions  or minority  government,  National  and  Labour will  struggle  to  suppress  their  glee  at  being gifted  a  return  to  the  good  old  days  (for them)  of  first‐past‐the‐post  manufactured, revolving‐door  elected  dictatorships.  No  doubt  those  wanting  a  return  to  those dark  ages  will  seductively  offer  up  the supplementary  member  system.  It  might  look like  a  compromise.  It  is  not  a  compromise.  It is  nothing  short  of  snake  oil  elixir.  Had  last  year's  election  been  fought  under that  system  with  a  Parliament  made  up  of  90 constituency  seats  and  30  list  seats,  National would  have  won  67  of  them,  compared  with its  current  58.  That  party  would  have  had  an absolute  majority  of  14  seats  with  just  under 45%  of  the  vote.  The  Greens'  current entitlement  of  nine  seats,  would  have  been slashed  to  just  two.  So  much  for proportionality.    Losing  MMP  would  be  a  giant  leap backwards.       John  Armstrong,  NZ  Herald 12/9/09

BINDING REFERENDUMS How  interesting  is  the  wave  of  propa‐ ganda  relating  to  the  coming  referendum, with  the  two  old  Parties  acting  in  the  same accord  they  normally  reserve  for  increases  in Members’  salaries.  Not  even  any  sham debate  and  personalities  in  this  one. Obviously,  they  are  scared  stiff  of  the growing  demand  for  binding citizen‐initiated referendums. The  tight  two‐party  state  is  not  an essential  part  of  the  Westminster  democratic system.    In  fact,  it  is  corrupt,  allowing policies  to  be  decided  behind  closed  doors  in Caucus  rather  than  on  the  floor  of  the debating  chamber.  It  allows,  for  example,  for influence  by  outside  organisations  that supply  Party  funds. This  referendum  is  perfectly  clear.  The  law allows  for  criminalisation  of  good  people.  It relies  on  police  interpretation  to  function properly,  which  is  a  most  dangerous precedent.  If  it  has  done  anything  at  all  to provide  its  avowed  intent,  little  evidence  is visible.  Any  “waste  of  money”  is  occasioned  by two  factors:  it  could  have  been  held  at  the

Guardian Political Review, Issue 57, 2009 - Page 16

THE PLAIN FACT The  plain  fact  is  that  Private  Banks  create credit  out  of  nothing,  charge  interest  on  it, and  pocket  the  profits;  $11.7B  last  year. Mr  Anderton  claims  he  championed  the ‘People’s  Bank’  i.e.  Kiwi  Bank.    The  real ‘People’s’  Bank  is  the  Reserve  Bank  of  New Zealand. Kiwi  Bank  operates  exactly  the  same  way as  the  big  four  Australian  owned  banks. It  does  NOT  lend  its  customer’s  deposits; it  creates  all  loans  and  overdrafts  out  of nothing,  but  does  charge  fractionally  less interest.      Its  profits  do  stop  here  in  New Zealand.    That  is  the  only  difference. To  stop  this  nonsense  of  obscene  profit making  by  the  Australian  Private  Banks,  the Government  of  the  day  needs  to  change  the 1989  Reserve  Bank  Act  and  return  the ownership  of  the  money  creation  system back  to  the  people  of  New  Zealand.    Only then  can  we  start  to  enjoy  a  debt‐free economy. Bob  Warren, Chairman,  Southern  Region Democrats  for  Social  Credit. Otago  Daily  Times 17/8/09

DEBT FINANCING One  thing  that  has  become  very  clear  in the  Nelson  city  and  Tasman  district  councils' recently  completed  10‐year  planning  exercise is  "debt  financing"  of  infrastructure  projects. My  rates  and  valuations  have  doubled  in  the 10  years  since  I've  been  back  in  Nelson. Nelson's  debt  is  expected  to  triple  from $56.8  million  this  year  to  $170.5  million  in 2013‐14.  The  Tasman  District  Council's  debt is  expected  to  increase  two‐and‐a‐half  times between  now  and  2019  (from  $108.5  million to  $276.4  million). The  councils  think  this  debt  is  low,  when expressed  as  a  debt‐equity  ratio  (liabilities  v assets).  Well,  the  Nelson  City  Council  wants to  help  us  by  suspending  principal repayments  for  the  next  five  years  to  ease the  burden  on  ratepayers,  while  going  on  a big  spend‐up  on  borrowed  money. When  the  world's  economies  are  facing  a recession,  huge  debts,  bankruptcies  and rising  unemployment,  the  councils  should  be biting  the  bullet  and  exercising  restraint,  like others. A  Social  Credit  government  could  help local  bodies  with  Reserve  Bank  credit  at  0‐3 per  cent  interest.  View  their  webpage  and  their  policy  on community  credit  and  local  government.           Adrian  Bayly,    Nelson  Mail 3/7/09

ANTI‐FLUORIDE ACTION  GROWS Campaigners  signalled  the  start  of  a renewed  bid  to  rid  Hamilton  of  water fluoridation  yesterday  by  hanging  a  banner from  the  Totara  Dr  overbridge  in  Te  Rapa.  The  banner  visible  to  thousands  of Wairere  Dr  motorists  was  hung  by  members of  a  group  called  Health  Freedom  New Zealand. A  Waikato  branch  spokeswoman,  Robyn Hembry,  acknowledged  it  was  the  start  of  a co‐ordinated  campaign.  "Health  Freedom  New  Zealand  is  the philosophy  for  us  to  choose  what  we  eat ourselves.  Fluoride  is  not  a  choice  issue.  We are  being  medicated  through  our  water supply." Mrs  Hembry  said  the  opposition  was  more organised  than  three  years  ago  when  the  city voted  in  a  referendum  on  the  issue. She  cited  a  2006  American  Dental Association  warning  that  babies'  formula should  not  be  made  up  with  fluoridated water.    "In  the  light  of  this,  is  Hamilton  City Council  prepared  to  offer  water  that  is  not fluoridated?" Mrs  Hembry  also  raised  a  European  Court ruling  a  few  years  ago  which  she  said  stated that  fluoridated  water  must  be  treated  as  a medicine  and  cannot  be  used  to  prepare foods. She  said  it  was  relevant  because  British local  authorities  had  started  trying  to  enforce this  ruling  and  were  putting  money  into  the cause. "If  this  gets  ratified  more  widely  then  New Zealand  exporters  would  have  to  look  very seriously  at  it." The  issue  arose  earlier  this  month  when city  councillor  Dave  Macpherson  led  an effort  to  get  water  fluoridation  debated  by the  council.  He  failed  in  his  attempt  but  six of  the  13  members  of  council  were supportive  of  his  views. If  in  the  next  few  months  he  can  get support  from  one  more  councillor  he  could get  rid  of  water  fluoridation.       Geoff  Taylor,  Waikato  Times 23/06/2009

REFRESHING READING In  a  speech  in  1945,  General  Douglas MacArthur  said,  "If  we  do  not  devise  some greater  and  more  equitable  system, Armageddon  will  be  at  our  door."  This  aptly describes  the  financial  crisis  today. At  the  moment,  the  people  do  not  seem to  want  to  know  what  the  real  cause  of  the money  system's  failure  is  ‐  and  certainly  the overseas‐controlled  media  do  not  want  us  to find  out  ‐  but  thankfully  we  still  have  one independent  major  newspaper  left  in  New Zealand  —  the  Otago  Daily  Times.  It  made  refreshing  reading  to  see  your unbiased  comments  on  the  financial alternatives  put  forward  by  the  Democrats for  Social  Credit  in  your  editorial  .           Colin  Weatherall,  Otago  Daily  Times 10/12/08

How to be a Billionaire By Stan Fitchett This article originally appeared in The Guardian Political Review, Issue 45, 2004. It remains extremely relevant today.

Creating money  is  a respectable  and legal way  to  get  very  wealthy. All  you  need  is  a  bank  ‐  and  four  million Kiwis  silly  enough  to  let  you  do  it. Up  to  about  20  years  ago  ‐  except  for  the home  mortgage  ‐  we  tended  to  save  the money  we  needed  before  we  spent  it.  But Roger  Douglas  removed  controls  over  the banking  industry  in  the  1980s,  and  as  a result,  we  are  racking  up  debt  like  there  is no  tomorrow. In  1982  New  Zealand  households  owed  an average  of  half  their  yearly  after‐tax  income ‐  and  that  debt  included  their  home mortgage. But  in  the  20  years  since  Roger  Douglas removed  controls  on  the  banking  industry, household  indebtedness  has  risen  to  130  per cent  of  net  annual  income.  In  the  12  months to  last  November  our  average  debt  increased by  an  additional  $11,000  for  a  four‐person family "Debt  is  fantastic"  enthused  Westpac's chief  economist  Brendan  O'Donovan  (The Press,  24/1/04).  Working  for  one  of Australasia's  biggest  debt  merchants,  he would  say  that,  wouldn't  he? And  he  appears  to  believe  the  old  fairy tale  that  banks  only  lend  the  money  other people  have  in  their  deposits  and  saving accounts.  What  is  surprising  is  that  most people  haven't  figured  out  for  themselves that  this  is  nonsense. In  the  12  months  to  May  2002,  for example,  the  Reserve  Bank's  statistics  reveal that  New  Zealand's  total  money  supply increased  by  $18,527  million  dollars.  That was  an  average  of  fifty  million dollars  a  day ‐  seven  days  a  week. And  where  did  all  this  new  money  come from? I  wrote  to  the  Reserve  Bank  and  asked, "Is it  correct  that  the  Reserve  Bank  creates only  notes  and  coins  which  comprise  about three  per  cent  of  the  total  M3  money  supply while  commercial  banks  create  the  other  97 per  cent?" Isabelle  Sin,  the  Reserve  Bank's  Economic Analyst,  replied;  "Basically  you  are  quite correct  ...97  per  cent  of  money  is  credit, created  by  the  banking  system." This  meant  97  per  cent  of  the  $18,527 million  increase  in  New  Zealand's  money supply  in  just  12  months  was  created  by  the commercial  banks  ‐  mainly  foreign‐owned. A  lot  of  that  bank‐created  credit  was borrowed  by  a  Government  that  already  has a  bank  of  its  own,  which  could  create  money in  exactly  the  same  way  as  the  foreign‐ owned  banks  do  ‐  and  save  millions  of  your dollars  in  interest. Suggest  that  today  and  you  are  iikely  to Guardian Political Review, Issue 57, 2009 - Page 17

be ridiculed  and  told  it  would  cause  runaway inflation. But  a  lot  of  people  don't  know  their  own history,  and  don't  know  how  New  Zealand recovered  from  the  Great  Depression  of  the 1930s  faster  than  other  country  in  the World. We  achieved  that  because  a  group  of people  with  little  formal  education  but  a  lot of  common  sense  won  the  1935  Election. During  that  campaign,  Labour  leader  M.J. Savage  said  in  Christchurch: 'Today,  when  money  had  to  be  obtained for  public  works,  it  was  borrowed,  and interest  was  paid  on  it  for  ever.  The  ideal was  that  people  should  be,able  to  utilise their  own  credit  system  and  complete  public works  without  incurring  public  debt.  " The  book  'State  Housing  in  New  Zealand' published  by  the  Ministry  of  Works  in  1949, (p.7),  explains  how  we  did  it  ‐  without causing  runaway  inflation. "Reserve  Bank  Credit:  To  finance  its comprehensive  proposals,  the  Government adopted  the  somewhat  unusual  course  of using  Reserve  Bank  credit,  thus  recognizing that  the  most  important  factor  in  housing costs  is  the  price  of  money  ‐  interest  is  the heaviest  portion  in  the  composition  of rent....  This  action  showed...  it  was  possible for  the  State  to  use  the  country's  credit  in creating  new  assets  for  the  country." The  first  22  State  houses  were  finished  in 1937.  By  1949  ‐  when  that  book  was published  ‐  33,768  had  been  built.  A  Sot  of those  over‐educated  experts  who  now ridicuie  the  suggestion  that  the  government could  create  money,  grew  up  in  houses  thaf were  paid  for  with  money  created  by  the New  Zealand  Reserve  Bank. In  December  2002  I  went  to  see  Wolfgang Rosenberg  who  was  formerly  Reader  of Economics  at  University  of  Canterbury,  I  read to  him  the  section  in  'State  Housing  in  New Zealand' which  explained  how  the  First Labour  Government used  Reserve Bank credit  to  finance  the  programme.  And  then  I asked  him  if  there  is  any  reason  why  we can't  do  the  same  thing  today,  instead  of borrowing  at  high  interest  for  community assets  and  public  works. "There  is  no  reason  whatever,"  he  replied. "No,  I'm  quite  sure.  As  long  as  you  keep  it within  reason.  For  important  public  works such  as  sewage  and  housing,  there  is  no reason  why  it  cannot  be  done  by  the Reserve  Bank." I  also  quoted  the  statistics  which  showed that  in  the  12  months  to  May  2002  the amount  of  money  in  circulation  grew  by 18.527  billion  dollars  ‐  an  increase  of  16.8 per  cent  ‐  while  average  wages  rose  by  just two  per  cent.

As the  Reserve  Bank  explained  in  its letter,  "...  97  per  cent  of  money  is  credit, created  by  the  banking  system,"  so  I  asked Mr  Rosenberg,  "  Why  can't  the  government create  money  like  the  private  banks  do  and save  all  the  interest?" "That's  quite  right",  he  said,  "If  the Reserve  Bank  created  $100  million  for  new houses  it  wouid  result  in  $100  million  in  new deposits  in  banks,  (Bank  credit)  is  simply new!y  created  money. Next  I  asked  Mr  Rosenberg  if  the  Govern‐ ment  created  money,  would  it  cause inflation? "Now,"  he  replied,  '"you  say  ‐  quite  rightly ‐there  was  an  18  billion  dollar  increase  in  the money  supply  in  one  year,  so  why  do  you think  your  100  million  dollars  (of  Reserve Bank  credit)  would  make  any  difference?" Of  course  it  wouldn't  make  any  difference to  inflation  but  it  would  make  a  lot difference  to  all  those  people  who  have  to rent  because  they  can't  save  enough  for  the deposit  to  buy  their  own  homes. And  it  would  make  a  lot  of  difference  to the  average  New  Zealand  household whose "...  debt‐to‐income  ratio  has  doubled  since 1990."  ('Daze  of  Debt',  The  Press,  24/1/34). It  would  also  make  a  difference  to  the profits  of  the  commercial  banks  which  now have  a  monopoly  over  the  creation  and  issue of  money.    But  as  none  of  the  major  political parties  show  any  interest  in  the  rocketing debt  problem,  banking  is  still  the  easiest  way to  become  a  billionaire. (End)

DSC believes  unequivocally  in  the  need  to recover  effective  control  of  New  Zealand's economic  affairs  and  establish  greater political  independence;  the  need  to  secure the  beneficial  use  of  credit  and  currency  to each  citizen. It  promotes  a  process  to  regain  New Zealand's  financial  sovereignty  by  gradually reducing  the  use  of  private  interest‐bearing debt  as  a  means  of  funding  economic activity.


We Hold  These  Truths:  The  Hope  of  Monetary  Reform By  Richard C  Cook 

Reviewed by Mike  Whitney (USA)

Richard Cook’s  new  book,  We  Hold  These Truths:  The  Hope  of  Monetary  Reform is  a book  for  people  who  want  to  understand  the current  crisis  without  getting  bogged  down in  hand‐wringing  and  negativity.  It’s  a blueprint  for  removing  the  gangrenous  parts of  the  financial  system  and  for  establishing  a dividend‐based  system  that better  serves the public  interest.    Cook  cuts  through  the  nonsense  and reveals  the  root  cause  of  today’s  economic crisis:  a  privatized  credit  system  gone haywire.  This  is  first‐class  analysis  from  a prescient  reformer  whose  message  is  just now  catching  fire.  While  the  pundits  are  still hung  up  on  subprime  mortgages  and  toxic assets,  Cook  has  peeled  the  cover  off  our deeply‐flawed  monetary system  and exposed the  rot  within.  This  is  where  the  change needs  to begin. We  Hold  These  Truths is  a  timely  book that  challenges  conventional  thinking  about credit  and  the  role  of  banks.  As  the  author points  out,  “In  a  system  where  the  banks have  a  monopoly  on  the  issuance  of  credit, they  inevitably  become  the  most  powerful entity  in  the  economy  and  therefore  the most  powerful  politically  as  well.”  Cook’s observations  are  particularly  relevant  today, now  that  many  of  the  same  people  who pushed  for  deregulation  during  the  Clinton and  Bush  administrations  have been appointed  as  key  members  of  Obama’s economics  team.  It’s  clear  that  Wall  Street has  further  tightened  its  grip  on  Washington even  while  it  continues  to  wreak  havoc  on the  financial  system.  It’s  no  wonder  Thomas Jefferson  concluded  that,  “Banking establishments  are  more  dangerous than standing armies.”

Cook’s strong  suit  is  taking  complex economic  ideas  and  breaking  them  down  for his  readers;  he  writes  for  the  non‐economists as  well  as  the  experts.  He  devotes  a  fair  bit of  the  book  to  explaining  the  fundamental mismatch  between  what  the  country produces  and  its  net  earnings.  This  gap between  GDP  and  purchasing  power  can  only be  filled  through  the  issuance  of  credit.  The problem  is,  that  as  borrowing  increases,  the ballooning  debt  becomes  more  unmanage‐ able  and  the  system  begins  to  teeter.  Wall Street’s  reckless  expansion  of  credit simulated  prosperity  (and  a  credit‐stimulated false  prosperity)  for  nearly  a  decade;  but when  the  bubble  burst,  the  financial  system collapsed,  creating  the  present  meltdown. Cook  believes  that  a  National  Dividend  – which  would  come  in  the  form  of  a  check from  the  government  to  every  man,  woman and  child  in  America  –  could  make  up  for  the loss  in  purchasing  power  and  maintain economic  stability.  This  is  not  “pie‐in‐the‐ sky”  liberalism,  but  a  reasonable  proposal designed  to  stimulate  business  activity  and avoid  disruptive  recessions.   He  also advocates  public  control  of  credit: community‐run  investment  banks  which operate  as  public  utilities  and  provide  low interest  loans  to  consumers  and  businesses. These  ideas  were  implemented  during  the Great  Depression  via  the  Reconstruction Finance  Corporation  (RFC)  and  the  Home Owners  Loan  Corporation  (HOLC)  They  were successful  programs  that  helped  build America’s  middle  class  while  seizing  control of  the  mortgage  industry  from  Wall  Street speculators. Cook  also  supports  a  basic  income guarantee  for  every  American  regardless  of whether  they  work  or  not.  This  is  a  defining issue  that  should  be  debated  in  terms  of  the value  we  place  on  human  dignity.  Doesn’t everyone  deserves  a  minimal  standard of living?  The  last  time  Congress  considered such  an  initiative  was  Nixon’s  Family Assistance  Act  of  1970.  The  “reverse  income

Putting An Old Head on Young Shoulders By  Steve  Baron Introduction by  Steve  Baron: As  our  children  grow  up  and  venture  out  in  to  the  big  wide world,  we  often  wonder  if  they  are  fully  equipped  to  cope.  They  think  they  are  six  feet  tall  and  bullet  proof,  but  the trouble  is  they  don't  even  know  what  they  don't  know.  Of  course  they  rarely  take  advice  from  their  parents.  We  are just  silly  old  buggers  who  aren't  with  it,  if  you  know  what  I  mean. There  is  an  old  saying,  "You  can't  put  an  old  head  on  young shoulders".  Guardian Political Review, Issue 57, 2009 - Page 18

tax” was  voted  down  by  a  coalition  of southern  Democrats  who  opposed  it  mainly on  racial  grounds.   Senator  George McGovern  who  supported  the  bill  said  that “it  would  have  provided  a  basic  underpinning of  income  for  all  Americans.”  Income guarantees  are  stimulative  and  help  maintain demand.  They  are  good  for  the  economy  and demonstrate  the  nation’s  commitment  to provide  for  those  who  are  most  in  need. We  Hold  These  Truths is  a  book  for  people who  want  to  understand  the  current  crisis without  getting  bogged  down  in  hand‐ wringing  and  negativity.  It’s  a  blueprint  for removing  the  gangrenous  parts  of the financial  system  and  for  establishing  a dividend‐based  system  that better  serves the public  interest.  Richard  Cook  has  presented the  ideas  that  are  likely  to  shape  the national  debate  on  monetary  reform  for years  to  come.  They  are  certainly  worth  our consideration.  It’s  a  great  read. Published  by  Tendril  Press.  Copies  available  from    Price  $US19.95+  post. 

Richard C. Cook was a NASA analyst who testified before the Presidential Commission on the demise of the Challenger shuttle disaster. His career included stints with the U.S. Civil Service Commission, the Food and Drug Administration, the Carter White House, and NASA, followed by 21 years with the U.S. Treasury Department. Now retired from government work, Cook has renewed his interest in monetary system reform.

I got  to  thinking  one  day  that  I  should  put  my  thoughts  and experiences  in  writing,  so  maybe  one  day  my  children  have something  to  refer  to  which  might  help  them  in  their  journey.  This  book  is  the  result  of  that  idea  along  with  feedback, comments  and  ideas  from  dozens  of  people  I  spoke  to,  friends, government  Ministers  and  MPs. Sometimes  it's  easier  for  your  children  to  take  advice  from other  people,  rather  than  their  own  parents.    I  hope  this  book helps. Published  by  Born  To  Win  Publishing.      Download  from    Steve  Baron  is  also author  of  'People  Power',  which  promotes  Binding  Citizens' Initiated  Referenda  ‐  a  DSC  policy.

Whitmill's World Colin J Whitmill reports from the U.K.

She or her advisers could have found out had they subscribed to the NZ Guardian Political Review. A quick scan through past issues of the NZ Guardian Political Review shows warnings given. June 1996 Root cause The root cause of this depression is our defective financial system which causes debt and interest on debt to grow faster than income and output. The economics profession is especially at fault. Instead of championing the necessary reforms ‘to make the world work for everyone with no one left out’ they chant the mindless mantra: “Trust the magic of the market and all will be well.”

MAKING BANKS SERVE MAJORITY NEEDS A paper has been written by a proponent of Social Capitalism, Robert Corfe, in which he outlines financial problems and suggests that events in history call for unimaginable change. The following are extracts from his proposals:Governments fearful of banks The complex economic system for sustaining the spheres of domestic life and work has hit the buffers, and there is no glib remedy for resolving the situation, although many may be obsessed by favourite panaceas which, whilst settling one problem, too often lead to the compounding of others. But governments are loathed to assume control of banks – and rightly so, for they have no expertise to propose desirable reform. They remain fearful and paralysed, and blinded by the mystique of the banks. They remain in awe of their power and so submissive to their will. It is not desirable that governments should own or control the central banks, or that they be "nationalised," but that instead they should be subjected to dirigiste authority, i.e. to an over-arching state authority as to their remit and constitution, and to intervention as need demands. Destructive policies The truth, of course, was that Thatcherism, shortly to be followed by Reaganism, set in motion – or at least, accelerated – policies which were to destroy the economic prospects of the Anglo-Saxon world. Those who praised the new politicoeconomic thinking were living in a fools' paradise, doomed eventually to inevitable destruction. Although the words of the powerful have always carried authority with the majority, we now live in an age when politicians have lost all credibility in their analysis of our present condition. But until yesterday, the very rich – and in particular, bankers and financiers succeeded in maintaining our trust – and this has included the trust of our politicians. Yet any analysis of the objective facts could have revealed to the intelligence of a child that our monetary system was hurtling towards a selfdestructive course. Banking system - its purpose If the banking system is to be reformed – or rather reconstituted, it is first necessary to look into the essence of its purpose. The underlying social function of banking is quite different from Guardian Political Review, Issue 57, 2009 - Page 19

that of any other business. It may even be questioned as to whether banking should properly be regarded as a business. Perhaps it should be regarded as a utility as gas, electricity, or water, and as these are no less essential than money, then why should the managers of the latter be granted the privilege of extortionate profits? The purpose of banking, on the other hand, is to facilitate the existence of a monetary system which assists the security, smooth efficiency, and profitability of the above. Its purpose should extend no further than that. Banking as a service not a business In transforming banking from a business into a service, to which all should have the right of access in the same way as water or electricity, the entire philosophy of its approach may be changed into that of a socially essential benefit. In this light the practicalities of setting aside the fractional reserve system, with its debt-fuelling manifestations, may be investigated with the aim of issuing interest free loans for public works and services, and possibly other projects, as currently advocated by the forwardlooking Ohio Congressman, Dennis Kucinich. The savings to the taxpayer through such a banking system would not only be enormous, but more significantly, would enable the muchneeded capitalisation of huge projects such as hospitals, old people's homes, medical research, schools, quality social housing, wind and tidal power plants, and dykes in protecting land masses from higher sea levels. The issue of interest free loans would be undertaken through necessary safeguards in ensuring that inflation could not follow in its wake. For these reasons it is therefore vital for the survival of all peoples on our planet, that banking systems be reconstituted in serving, firstly, home-based industries (irrespective of whether they be primary, secondary, or tertiary); and secondly, the mutual (i.e. the nonexploitative) needs of international trade. WHY DID NO ONE SEE THE CRASH COMING? Her Majesty Queen Elizabeth II at the end of 2008 expressed shock and was mystified as to why no one saw coming the recession/depression causing havoc in Britain, the USA and in some other countries.

The ‘powers that be’ are making the age-old mistake of attempting to defend the indefensible and contemptible instead of aiding humane adjustment. They may end up the biggest losers because of their folly. The late Professor John Hotson November 1995

April 1999 Unrepayable debt The world escaped from the throes of the depression as Keynesian deficit financing was adopted. But in choosing Keynesian, the world chose yet more debt and more banking. An economy’s tendency to recession would be countered by recourse to the national debt, the process by which governments supply money to the economy by creating it themselves - by allowing banks to create credit against the sale of government debt bonds. - the debt would be run up during a slump and paid back during a boom. Half a century of deficit financing, during which national debts around the globe have continually escalated, has shown the terror of Keynes’s monetary analysis . National debts are not cyclical - they are unrepayable. Michael Rowbotham The Independent newspaper London 12 February 1999

October 2000 Asset inflation The banks have a virtual monopoly over the creation of credit. Unless restricted in some way, they will create huge quantities of new money in the form of new lending, thereby creating money which does not really exist money which then feeds through into asset inflation, whereupon the inflated value of the assets becomes the justification for a new round of lending, credit creation and monetary expansion. Bryan Gould, then a British Labour MP, in a paper presented to a British employment forum in the early 1990’s.

Summer 2002 Bunch of dominoes US Corporate debt nearly doubled in the past five years [1997-2002] to $3.9 trillion. The burden threatens to send the nation into a prolonged recession. Moody’s Investor Research now says the nation is in worst credit stress since the Great Depression of the 1930’s . It’s a bunch of dominoes that could collapse says Mike Gasior, president of American Financial Services. Australian Economic Reform newsletter Nov-Dec 2002 (continued on next page)

(Whitmill's World continued)

as the common ground for their deliberations.

Spring 2003

Rodney has been extremely busy with various activities and demands upon his time. For a week prior to the Iranian election, Rodney was a guest of the Iranian state owned PressTV in Iran and made 16 broadcasts on economic matters.

Collapsing Credit Bubble The recently released Real World Economic Outlook released by the [London based] New Economics Foundation predicts that a giant credit bubble, created by central bankers and finance ministers, has now reached a “tipping point”. This point - at which the “bubble” of financial assets exceeds GDP by nine times - has triggered financial crisis elsewhere. On a global level, there is $100 trillion of debt outstanding, but only $33 trillion of income with which to pay those debts. When this credit bubble bursts, it will be middle class consumers that will first bear the brunt of the financial crash, because they have been actively encouraged in their borrowing by the financial deregulation policies of both central bankers and governments. Bankruptcy, losses, liabilities and personal anguish will extend some time into the future. The impact of a collapsing credit bubble will reverberate around the world From The coming first world debt crisis by Ann Pettifor 2003

CCMJ Christian Council for Monetary Justice members have been active in dialogue with Muslim moderates as they seek to discover how best they can make a contribution to the world crisis, which is increasingly understood to be a systemic dysfunction. Regular three day conferences have been held by Muslim scholars and business participants from 21 countries trying to bring together the Shia and Sunni factions in a new sense of common purpose. The first two days are for Muslim participants only, but on the third day, a Christian influence is added through CCMJ members. Chairman Canon Peter Challen, Professor Rodney Shakespeare and CCMJ vice chairman Simon Mouatt, lecturer in economics at Southampton University, usually attend for the CCMJ, and the set theme of response to the human condition, rather than of the defence of religious traditions. It was proposed and agreed at the June gathering that The Modern Universal Paradigm by Rodney be translated into Arabic and participants in the next such conference read it LONDON GLOBAL TABLE MOVES The London Global Table has moved its weekly venue for locals and international visitors to discuss monetary justice and associated matters. Starting off at the Global Cafe in Soho, it moved to the Friends Meeting House restaurant in Euston, but soon grew too big, with disadvantages for the caterers trying to fit in all patrons. The Friends provided alternative accommodation which was helpful, but not adequate for full exchanges of views. Early this year- 2009- a generous invitation to meet in the library of the London School of Economic Science was readily accepted and has proved to be more than adequate. It provides comfortable facilities and a freedom to talk and exchange news with no reservations about being overheard by or annoying others. The illustrations show the facade of the building and a few of the LGT participants in a committee room discussing relevant topics. Guardian Political Review, Issue 57, 2009 - Page 20

For those who have not yet read The Modern Universal Paradigm, obtain a copy* and don't miss out on the positive message it brings. * See Review in Issue 53. Copies available as a special offer to Guardian readers in New Zealand for a donation of $15 to Democrats for social credit, P.O. Box 18.907, New Brighton, Christchurch 8641

It pays to invest - in politicians The American Center for Responsive Politics has compiled some facts. Some twelve financial groups contributed $28.79 million to politicians' campaign expenses. They also spent $41,012,000 on lobbying US politicians. The return on this investment was that they received $230.8 BILLION from President Obama's bailout scheme. I wonder how much money banks in New Zealand paid the country's political parties. The Greens are wrong Vinod Khosla, one of the biggest investors in green technology in America has boldly, and perhaps logically, said The environmentalists are wrong. We don't need to use less energy. We need to find new solutions. [Sunday Times 30-3-09] Ownership of water brings record profits The Aussie banker, Macquarie, must be rubbing their hands with their Thames Water investment. Thames Water, despite the economic crisis, has announced record profits for the past year of $1,570 million and plans to increase water bills by 10.5% for this. After this year, prices are set to rise over the following four years by at least the inflation rate plus 7%. Yes, we have no bananas A letter writer to the Sunday Daily Telegraph [28-6-09] wrote Britain is now virtually bankrupt, swamped by immigration, dominated by the EU, education and health are choked with bureaucracy, and Parliament, gripped by greed, has lost control and is despised by the general public. Britain has become a banana republic without bananas.

EVER PUNCHED A LEMON JELLY? If you have ever punched a lemon jelly, you will realise that it will wobble in response. However anyone punching a pot of porridge will receive little or no response. It was like that for me when I attended a session led by the Rev Canon Peter Challen at the Southern Regional conference of the British United Nations Association in late August 2009. His was a masterly exposition of threading facts and fears together before coming to a pivotal conclusion which could overcome them all. It was not the convincing way with words or the pleasant relaxing challenging way he put his case that left me admiring his effort. It was a combination of these and his self taught mastery of pertinent power presentation which provided, for me, a difficult to attain bench mark of cogent argument before a middle class audience of high average age seemingly comfortable in their own situation. Peter's address concentrated on enormous structural problems in the environment, corporation power and land and asset ownership and how were all interdependent. He condemned usury as in its basic term of using others. If one loved God and their neighbour, using others did not occur. He exemplified countries buying up/leasing land in the Ukraine, Cambodia, Africa and elsewhere (New Zealand?) as a new form of economic imperialism to ensure their own future food supply. It was a fundamental principle of being fully human that there should be a basic income for all. His illustrations of graphs showed how exponential growth was totally at odds with natural law. He warned that with such growth we were near the end of the earth's habitation it was a crisis of an order never known before. Vested interests were eroding our lives, but appreciation of the fierce urgency of now [Martin Luther King] was vital. Social disorder, environmental and structural problems required remedies. Effects had causes. And it was at the close of the address that Peter pointed to the cause - the debt based privately owned financial system. Leading into receiving questions, Peter asked how many knew how money was created. The porridge never moved. The first question, or rather statement, was that the system could not be changed as private pensions had to be generated out of the economy by the share market and by usury. Peter soon exposed the shallow thinking in the assertion by suggesting the proposal of Richard Murphy [see Guardian Political Review issue 53] that pension income could be achieved other than through the share market or the money-making money system of today. A bold enquirer asked what they could do to effect change. Peter's response was for people to keep asking questions and tell others that enough was enough. Mine would have been support or join the DSC! It was pleasing however to find someone paying to buy a copy of The Modern Universal Paradigm by Rodney Shakespeare for me to realise that perhaps some of those who had been silent had had their minds prised open a just a little bit. This brilliant talk was worthy of a far better response. [Colin J Whitmill]


NEWS BITES - hunting through the media jungle!

BUMBLE, STUMBLE & MUMBLE Labour, Greens and Jim Anderton form a new monetary investigation unit – bumble, stumble and mumble. It is now acknowledged by most experts that the driver of the global economic crisis was the ever expanding use of debt as money. Unfortunately, virtually all money in the world today is based on a mechanism of debt creation. Until that mechanism is changed or an alternative mechanism put in place, the debt based solutions being developed are ensuring another crisis will happen within the next decade. The opposition parties engaged in looking at the foundation of the NZ economy will find nothing because they are looking for solutions in the same environment that created the problems they seek to address. Ironically the only party who saw the crisis coming and are proposing an alternative to debt as money (Democrats for Social Credit) is having its annual conference in Christchurch on September 5-6th . Scoop 2/9/09 See Conference report in this issue

BAIL-OUT FRAUD The (US) government’s bail-out cash is giving rise to an astonishing number of new fraud and money laundering accusations. The complex nature of the bail-out program makes it “inherently vulnerable to fraud, waste and abuse, including significant issues relating to conflicts of interest facing fund managers, collusion between participants, and vulnerabilities to money laundering,” says an internal government report. The Daily Reckoning website 6/5/09

TIME FOR TOBIN In 1978 James Tobin, one of America's most celebrated economists, wrote an oft-cited paper advocating an international transfer tax on foreign-exchange transactions. Such a tax, he argued, could be designed to make short-term currency speculation less attractive without doing much harm to long-term international investment - in Keynes' words, to "mitigate the predominance of speculation over enterprise". The Economist, Nov.'93 See feature 'Time for Tobin' in this issue

THE FATAL ILLUSION Most of the people who produce the real wealth in the world are in debt and risk losing everything they have worked for to bankers who fabricate money out of mere promises to pay. The real economy is limited by the capacity of the planet. It cannot grow exponentially using debt to force it to. It is a fatal and unnatural illusion. It is systemically inevitable that the financial system will fail before the planet fails yet not without devastating consequences economically and environmentally. Rev Canon Peter Challen

Guardian Political Review, Issue 57, 2009 - Page 21

NEVER ANY COMMITMENT The provisions of s264 of the 1993 Electoral Act are very clear: Parliament was required to appoint a select committee after the second MMP election to…"consider whether there should be a further referendum on changes to the electoral system". There was never any commitment - formal, informal or implied - that a further referendum would be held. This review was undertaken in 2000; it failed to reach a consensus.

China’s economic policies are described as a curious mix of both Karl Marx and Adam Smith. And there remains the biggest contradiction of all: a relatively poor nation with an annual per capita income of just $US6000 (compared with $39,000 in the US) has for years allowed Americans to live well beyond their means by using its export earnings to buy US Treasury bonds. The International Monetary Fund forecasts in the three years from 2008 to 2010 China will, almost unbelievably, account for almost three-quarters of the world's economic growth. NZ Listener 3/10/09

Alan McRobie, NZ Listener 3/10/09

MISLEADING & UNTRUE? Fluoride Action Network Dunedin representative Olive McRae warned mothers in the Blueskin Bay area not to use the area's new fluoridated tap water to mix infant formula. "This is due to medication of the new water supply with silico-fluoride, a dangerous neurotoxin. Babies are at extreme risk of fluoride poisoning when they are exposed to fluoridated tap water". Public Health South medical officer, John Holmes, said there was no evidence fluoridated water used to reconstitute the formula has any harmful effects. Ministry of Health chief dental officer Robin Whyman said that infant formula is able to be reconstituted with fluoridated water. Otago Daily Times 6/6/09 Olive McRae was Democrats for social credit 2008 Dunedin South candidate .

YUAN WORLD CURRENCY? Chinese officials are preparing for the yuan to eventually become the world's dominant currency. Since last December, China has signed deals with six countries, including South Korea, Malaysia and most recently Argentina, for currency swaps that would inject Chinese money into foreign banking systems.That would allow foreign companies to make payments for Chinese exports in yuan, bypassing the dollar. Chinese and Western analysts say they can envision the yuan becoming the dominant currency by 2020. Los Angeles Times 13/4/09


Footnote: In November 2006, the American Dental Association recommended that infant formula NOT be made with fluoridated water.

WHEN - NOT IF A group of Hamilton city councillors are pushing for the removal of fluoride from the city's water Cr Dave Macpherson told councillors that even "blind Freddy" recognised it was a matter of when, not if, and he felt the time had come: "We know quite enough to make a decision now. It's an issue that isn't going to go away." Waikato Times 5/6/09

THE $57 BILLION QUESTION After the anthrax letter attacks of 2001, the Bush administration pledged $57 billion to keep the nation safe from bioterror. The FBI has now found that the anthrax letters that killed five Americans came from the US Army Medical Research Institute of Infectious Diseases. Los Angeles Times 3/8/09

FARMERS ON ' LIFE SUPPORT' A report by banker Macquarie Group says NZ agriculture “is on financial life support to cover debt servicing, operating and living expenses” as it grappled with the effects of $44 billion of compounding interest-bearing debt. Otago Daily Times 2/6/09

A recent media report that Chinese interests were doing due diligence on a number of dairy farms owned by the Crafar family should concern all of us. Our most valuable wealth generator is our dairy industry. If that gets sold off piecemeal, we will be little more than wage slaves in our own country - a nation of people living in very expensive houses, earning low wages and working for overseas owners. Economics lecturer Peter Lyons, Otago Daily Times 23/9/09

BE AFRAID, BE VERY AFRAID Be very afraid. The National/Act Government's moves to trample all over democracy by creating their own version of a Super City in Auckland have, rightly, caused alarm up and down the country. But much worse could still be to come. The Minister of Local Government, Rodney Hide, is proposing an even more radical shake-up which would see councils everywhere having their powers stripped back to the provision of core services only. One only has to go to the Act New Zealand website to see what they have planned for local government. Privatisation. Clearly, the agenda to corporatise local government in this country is well under way. Mr Hide slid into Parliament with barely 4% of the vote, and is now intent on forcing his will on us all. Penny Hulse, deputy mayor of Waitakere City, Otago Daily Times 16/6/09

IMPOTENT The most important issue concerning not only the Auckland area but New Zealand-wide has been overlooked by the government. Dr Michael Bassett's reforms of 1989 gave control of councils to the CEO and staffers. This was a deliberate shift by a Labour government and has caused mayhem ever since. The elected members are impotent as they do not have control. Ray Clarke, Sunday Star-Times 19/4/09

country derives from the production and exchange of goods and services. The buying and selling of existing houses adds little to this measure of national prosperity. It represents a transfer of wealth. Some of the country's future income will be given to the overseas lender in the form of interest and debt repayments. A country should pride itself on the affordability of houses for its citizens. They can then invest their savings in ventures that enhance the prosperity of the country through the production of saleable goods and services. Peter Lyons, Otago Daily Times 15/4/09 Peter Lyons teaches economics at St. Peters College in Epsom and has written several economics texts.


THE CRIPPLING BURDEN A new study shows New Zealand’s health sector is being crippled by a multi-billion dollar problem – muscle and joint (musculoskeletal) conditions – and the situation will worsen over the next 20 to 40 years. The study, Musculoskeletal Conditions in New Zealand, “The Crippling Burden” shows that musculoskeletal disorders are the leading cause of disability, affect one in four New Zealanders and are estimated to cost the country over $5.5 billion per year. Co-author, Kim Miles, comments: “With an ageing population, New Zealand is facing a crippling and increasing burden of musculoskeletal disorders. See feature article “Oh, my aching back!” in this issue

WISHFUL THINKING A group of “eminent economists” has written to Queen Elizabeth II in answer to her question “Why did nobody see it coming?" In it, they blame “financial wizards” who were guilty of “wishful thinking”, and that it was “principally a failure of the collective imagination to understand the risks to the system”. NZ Listener 22/8/09 See item in Whitmill’s World.

In referendums, Swiss voters favour basic health insurance covering complementary medicine Alternative treatments like homeopathy, psychotherapy and traditional Chinese medicine will in future be offered alongside conventional treatments, after 67 percent of those voting backed their use. Switzerland, made up of 26 cantons, has a long history of direct rule, with referendums taking place typically around three or four times a year at federal, cantonal and local level. They can be forced by citizens' or cantonal government petition and are also needed for changes to the constitution or to join crossborder organisations and communities. Better Democracy NZ 24/5/09

CLINICIANS NOT BUREAUCRATS The ministerial review of health, Meeting the Challenge, is a great dlsappointment. The review's top-down approach is a major limitation. How can we tackle any real health problem unless the clinicians own it? Far more important than having committees hidden in the bowels of hospital bureaucracies, or in Wellington, is that those who deal directly with patients work in and promote a safe environment. I trust our clinicians to supply good health care far more than I trust bureaucrats and managers.

    Brian  Easton,  NZ  Listener 26/9/09 DON'T WASTE A GOOD CRISIS

THE WEALTH OF NATIONS Adam Smith highlighted what makes countries wealthy in his book, An Inquiry into the Nature and Causes of the Wealth of Nations, published in 1776. He stated the wealth of a

questions about governments and markets provides us with an opportunity that must be taken. It is surely now clear that it is governments, not banks, that underpin our financial systems and our currencies; and if that is so, should we not recognise that banking and the creation of money and credit are public functions for which public accountability should be demanded? And should not the management of the economy be the first function of democratically accountable government and not subcontracted out to unaccountable bankers and officials? From The State Is Back. Back In Fashion, Back In Business, Back In Charge, by Bryan Gould. Foreign Control Watchdog, August 2009

JUST LIKE PARLIAMENT "There were motions, amendments, countermotions and amendments, squabbling, cackling, grinning, fooling, jeering and sundry other manifestations of vulgarity, stupidity, and mental imbecility, and the whole vanished like smoke, without leaving a trace behind." Report on the proceedings of the Presbyterian Synod of Otago, The Otago Daily Times 24/1/1872


Karearea, the native falcon, one of the world's fastest birds, has returned to Christchurch. "It's fantastic to see them," said Christchurch City Council Port Hills ranger Andrew Crossland. "They add a bit of class to the area. Everything is coming to life." Extract and photo from The Christchurch Press

Appropriately, this was published in the same period as the DSC Conference in Christchurch

As President Obama’s Chief of Staff, Rahm Emanuel, remarked, a good crisis should never be wasted. The fact that 30 years of global “free market” economics have not only culminated in recessionary crisis but have raised a wide range of yet more fundamental


Twenty years after he split with Labour, Jim Anderton has all but returned to the fold, with a deal allowing his activists to stand as Labour candidates and a promise to campaign "party vote Labour" in 2011. The Progressive Party is effectively standing aside at the next election and its members have been told they are free to join Labour. A spokesman said the Progressive Party would not run a candidate list at the 2011 election and would not campaign for the party vote.

Democrat delegates celebrate the Party's 2002 Conference decision to break away from the Progressive Party coalition and reclaim its identity under Stephnie de Ruyter's leadership. Guardian Political Review, Issue 57, 2009 - Page 22

In another signal his Progressive Party and Labour have all but merged, his key adviser, John Pagani has thrown his hat in the ring to replace Mike Smith as Labour Party secretary. Mr Anderton, who will be 73 by the next election, had not yet decided if he would stand in his Christchurch stronghold of Wigram, the seat he has held since 1984. Sources: The Nelson Mail and NZPA 25/7/09

Democrats for social credit


New Zealand based

Vacancies exist in all areas for those willing to join a dedicated team of people on a non-remunerative basis. The DSC aims to help ambitious businesses, and individual enterprises, in the fields of agriculture, industry, service and leisure to grow and become successful. We aim to help build a world class economy by moving from a debt based to a credit based financial system owned and operated by New Zealanders for New Zeaianders. The DSC intends to encourage innovation, to help people achieve their full potential, and to provide economic security for all throughout their lives. This is an opportunity at a time of great financial stress and challenge to help transform our economy, becoming the standard for others to follow. Successful applicants will have:   Conviction that fundamental change is necessary    Drive and ability to work with others to bring about change    Willingness to promote conceptual ideas & to think outside the box    Determination to succeed & confidence to see any perceived setbacks as surmountable challenges    Acceptance that the DSC is the only vehicle to provide for such structural financial change 

For further information visit:

Democrats for social credit I/We wish to join or renew my/our membership of the Democrats for social credit, which is an independent political party committed to the economic transformation of New Zealand. Please return this coupon with payment to: DEMOCRATS FOR SOCIAL CREDIT, P.O. BOX 18-907, NEW BRIGHTON, CHRISTCHURCH 8641 I/We enclose $10.00 (per person) to cover annual membership Cheques payable to Democrats for social credit

N.B. Membership includes all issues of The Guardian Political Review (Non members may obtain the Guardian for $8.00 p.a., including p & p. Send to Guardian Publishing, 26 Warren Street, Oamaru 9400)

Please complete the following: Name(s).....................................................................................Tel.....................................Fax/Email................................................ Address................................................................................................................................................................................................ Guardian Political Review, Issue 57, 2009 - Page 23


A message to Conference


from Rev Canon Peter Challen


UK Christian Council for Monetary Justice

Fellow pilgrims here in London, far off in miles, close on fellowship, and on the same trail of radical financial sanity, send our greetings and encouragement for that day. The small, brave enclaves of monetary reformers around the world value awareness of both each others' successes and of resilience in the face of so many obstacles. May bright ideas and persistent commitment affect all the deliberations and inspire the participants. A thought occurs to me that in this dynamic creation, our beautiful blue/green planet of gift and ceaseless creativity, there are no orthodoxies; differences of approach are to be embraced and encouraged, even if thought to be mistaken - as long as the underlying premise remains that we seek a medium of exchange in global housekeeping that works for everyone and protects the earth. Nothing less than such inclusive justice can keep us from the cliff's edge. Guardian Political Review, Issue 57, 2009 - Page 24

Guardian Issue 57  
Guardian Issue 57  

Spring 2009 issue of The Guardian