Guardian Issue 59

The Guardian Political Review Produced by the New Zealand Democratic Party for social credit Inc. Issue No.59

Spring 2010

ISSN1176-614X

A better future for New Zealand, for humanity and for the Earth

ALSO IN THIS ISSUE:

Conned! - the Emissions Trading Scheme Our Proud Heritage - how it all began Health Bureaucracy - theoretical nonsense All Shook Up!

-

the conference that nearly wasn't

PLUS NEWS, REVIEWS, FEATURES & MORE

The Guardian Political Review

Issue 59, Spring 2010

Produced by Guardian Publishing on behalf of the N.Z. Democratic Party for social credit, PO Box 5164, Waikiwi, Invercargill 9843 Tel/Fax: 07 829 5157. Email: democrats@democrats.org.nz

Website: www.democrats.org.nz

Editor: Tony Cardy, 26 Warren Street, Oamaru 9400. Tel/Fax: 03 434 5523. E-mail: editor@guardian.org.nz Web: www.guardian.org.nz

EDITORIAL A whole lotta shakin’

Jerry Lee Lewis‘ rocking number is appropriate for the Christchurch 2010 DSC Conference.

The Conference theme of ‘New Economics’ calls for a ‘seismic shift’ away from failed financial ideology to a modern system. One that would yield a prosperous, secure future.

Stephnie de Ruyter said the solution is simple: “Democrats for social credit policies would revitalize the New Zealand economy whilst reducing debt, creating employment and stimulating domestic industry”.

In this issue Heather Marion Smith draws attention to one

aspect of DSC policy: the Financial Transaction Tax – also known as ‘The Robin Hood Tax’ ‐ pointing out that “we social creditors have been aiming our arrows straight for nearly three decades”.

Colin Whitmill adds another metaphor: “People sinking in a sea of debt may look for a lifeboat which can rescue them.

And the DSC would be that lifeboat.”

John Pemberton sums up: “We must be ready to show the way to a better future for New Zealand, for humanity and for the Earth.”

The Guardian Political Review is available on-line at www.guardian.org.nz Visitors to the site will be able to browse through this and previous issues of our frontline publication. Your feedback on presentation, ease of navigation and functionality is invited.

CONTENTS

4

5

1 - Front Cover

15 - Our Heritage

2 - Editorial

16 - Reviews (1)

3 - Leader's Message

17 - Reviews (2) 13

4 - John Pemberton + Executive List

18 - World News

5 - Conference Report

19 - Environment + Fluoride

6 - John Clarke

20 - Diary of Adrian Bayly

7 - David Tranter

15

8 - Letters

22 - Whitmill's World (1)

9 - Comment

23 - Whitmill's World (2)

10 - Obituaries 6

12

21 - Steve Baron + Colin Weatherall

11 - John Rawson - ETS

24 - Ellen Brown + Colin Whitmill 24

25 - News Bites (1)

12 - Media World

26 - News Bites (2)

13 - Media New Zealand (1)

27 - News Bites (3)

14 - Media New Zealand (2)

Guardian Political Review, Issue 59, 2010 - Page 2

26

28 - Back cover

The solution is simple

By Stephnie de Ruyter Leader, Democrats for social credit

In the wake of the financial crisis and the debt increased by a staggering 512%. recession which followed, monetary reformers are This high level of borrowing has led to calls for planning for change, and charting a course to the establishment of a bond bank – a financial ensure a smooth transition from the outdated agency that could raise finance for local authorities current financial system model to a modern system direct from overseas lenders. of new economics.

Apparently, the problem Members of the DSC would revitalise the New Zealand economy is that local authorities Democrats for Social Credit whilst reducing debt, creating employment, believe that they are (DSC) Party in New Zealand and stimulating domestic industry paying too much for the are working hard to play money they borrow: they their part in that process. want access to cheaper money.

We know that New Zealand can have a The solution is simple, and obvious: instead of prosperous, secure future if we navigate our way borrowing from overseas lenders, local authorities through the social, environmental, and economic ought to be able to obtain low interest loans or challenges facing us in the early part of this grants from our own central bank, the Reserve century.

Bank of New Zealand.

It is imperative that our financial system is The DSC’s argument for direct government updated and that creative solutions are devised. It funding of infrastructure using lines of credit from is essential that we retain the right to make our RBNZ is persuasive. It would revitalise the New own decisions as a nation but to do that our Zealand economy whilst reducing debt, creating economic sovereignty must be protected. employment, and stimulating domestic industry.

Better still, it would relieve ratepayers of the heavy Our ability to behave independently in a global burden of interest‐bearing debt repayment. environment largely depends on our level of financial independence.

Ultimately, it is completely unacceptable for Realistically, it is difficult to enjoy any meaningful foreigners to own and control New Zealand’s money supply. degree of independence when we are $243 billion in debt to overseas interests, and when our Our freedom to choose, our right to make our government is borrowing $240 million each week to own decisions, and the financial independence upon deliver on election year promises. which our nation’s future prosperity depends, can be achieved only if New Zealanders own and New Zealand’s level of indebtedness is neatly control our money supply. illustrated by examining local authority debt. Local That is the cornerstone policy of the programme bodies owed $1.85 billion in 2000. By 2009 of new economics proposed by the Democrats for borrowing had increased to $5.23 billion.

Social Credit.

The debt of some councils increased by more It is the means by which our economic than 500% during that time: Dunedin City Council debt increased by 436% and Waitakere City Council sovereignty can be secured.

Guardian Political Review - Issue 59, 2010 - Page 3

Our Journey

By John Pemberton (Deputy leader Democrats for social credit) Address to DSC 2010 Conference (edited extract)

We have been a political party since 1954 ‐ a journey of 56 years.

Our message, however, had earlier beginnings ‐ when the monetisation of a country’s assets, the establishment of a national credit authority, the payment of a national dividend and the mechanism of a compensated or just price, caught the imagination of thousands of New Zealanders after listening to Major Clifford Hugh Douglas during his speaking tour in January 1934.

New Zealanders took to social credit’s visionary solutions ‐ social credit spread like wildfire.

Including this period of time our monetary reform journey to date is about 76 A better future for New Zealand, years. for humanity and for the Earth Our journey has had successes: the privately owned Reserve Bank was taken into public ownership; Reserve Bank credit was successfully used to fund a major state housing programme and other infrastructure requirements; a Reserve Bank overdraft facility was made available to the New Zealand Dairy Board to facilitate the immediate $NZ payment to farmers for their production.

Today we need to be equally visionary.

Our messages, whether they be about green initiatives, social justice, education, or health, all need to be about the ideal: whatever is physically and technically possible, environmentally friendly, socially beneficial, where manpower and resources are available, the financial resources are also available.

Our messages need to use the language of energy, vitality, and a desire to change those things which are harming our people and our planet.

We must not allow ourselves to drop the baton. Our dreams and visions of what is possible need to be shared.

We must be ready to show the way to a better future for New Zealand, for humanity and for the Earth.

Democrats for social credit Executive Contacts Leadership: Leader Stephnie de Ruyter PO Box 5164, Waikiwi, Invercargill 9843 Ph/Fax; 03 215 7170 Mobile 027 442 4434 Email: democrats@democrats.org.nz Email: s.deruyter@callsouth.net.nz Deputy Leader John Pemberton PO Box 402, Matamata 3440 Ph 07 888 8564 Mobile 021 716 895 Email: iohn.pemberton@democrats.orq.nz Email: pemberi@slinqshot.co.nz Website: http://www.iohnpemberton.co.nz Biog: http://monetarviustice.blogspot.com Executive: Party President David Wilson PO Box 60, Paparoa 0543, Northland Ph 09 431 7004 Fax 09 431 8615 Mobile: 027 494 7862 Email: david.wilson@democrats.org.nz Vice-president Katherine Ransom PO Box 402, Matamata 3440 Ph 07 888 8564 Mobile 027 471 6891 Email: katherine.ransom@democrats.orq.nz Email: katransom@siinqshot.co.nz Blog: http://katherineransom.bioqspot.com Northern & North Shore Regions John Rawson Lookout Hill, No. 8 R.D., Whangarei 0178 Ph 09 438 9265 Emafi: iohn.rawson@democrats.org.nz Email: iohngrawson@hotmail.com

Guardian Political Review, Issue 59, 2010 - Page 4

Auckland Region Neville Aitchison PO Box 113126, Newmarket, Auckland 1149 Mobile: 021 987 338 Email: neville.aitchison@democrats.orq.nz Waikato Region Les Port, c/o 19 Argyle St, Claudelands,Hamilton 3216 Mobile 021 725 791 Email: les.port@democrats.org.nz Email: ldport@rocketmail.com Eastern Region Barry Pulford 17 Caernarvon Drive, Flaxmere, Hastings 4120 Ph 06 879 9497 Mobile 027 288 5658 Email: barry.pulford@democrats.org.nz Western Region Heather M. Smith 14 Broughton St, Wanganui East 4500 Ph/Fax 06 343 3038 Email: heather.smith@democrats.org. nz Email: heathermsmith@slingshot.co.nz Wellington Region Mary Weddell 57 Shakespeare Ave, Upper Hutt 5018 Ph 04 971 7143 Fax 04 914 2405 Mobile 021 701 598 Email: mary.weddell@dernocrats,org.nz Email: weddell@paradise.net.nz Canterbury/West Coast-Tasman Regions Bob Fox 14 Charles St, Rangiora 7400 Ph 03 313 6774 Email: bob.fox@democrats.org.nz Email: foxhole@clear.net.nz

Southern Region Bob Warren 1 Highcliff Rd, Andersons Bay, Dunedin 9013 Ph 03 454 3235 Email: bob.warren@democrats.org..nz Email: pabo@paradise.net.nz Party Secretary Peter Ferguson 2a Hampton Terrace, Matamata 3400 Mobile 027 243 7365 Email: peter_ferquson@xtra.co.nz Ex Officio Positions: 'Guardian Political Review' Editor Tony Cardy 26 Warren Street, Oamaru 9400 Ph/Fax: 03 434 5523 Email: editor@guardian.org.nz Email: cardy@callsouth.net.nz Website: http://www.guardian.org.nz Secretarial Support Margaret Hook 393 Marychurch Rd, No. 4 R.D., Hamilton 3284 Ph 07 829 5157 Email: nzdp.inc@xtra.co.nz Committee Convenors: Finance Committee Ken Goodhue PO Box 6028, Otaika, Whangarei 0147 Ph: 09 430 3826 Email: kenandvalerie@xtra.co.nz Policy Committee Allen Cookson 230 Glentui-Bennetts Rd, Oxford 7471 Ph 03 312 4057 Email: asimco@actrix.co.nz Constitution Committee Neville Aitchison (refer Auckland Region entry)

A Seismic Event!

DSC Conference 2010 A report by Katherine Ransom, DSC Conference 2010 almost didn’t happen.

In early September, conference delegates waited with bated breath to hear whether the DSC conference would go ahead.

The 7.1 magnitude earthquake on 4 September that shook Christchurch left members wondering if the conference venue was still standing. Fortunately hotels and other accommoda‐ tion were a priority for safety inspections. The Elms Hotel was soon granted a ‘green certificate’, and our conference could proceed as planned.

The AGM on Friday night, 10 September, included many bereavements, and several messages of encouragement from absent members and friends. At the adoption of the Standing Orders, President Neville Aitchison asked that debate be guided by the ‘Smith Doctrine’ (prohibiting beginning sentences with ‘Everybody knows...’) and the ‘Fitchett Instruction’ (prohibiting use of the phrase ‘There is no doubt’).

The 2010 Conference was small, with several factors contributing to this: the tight economic climate, the expressed intention of many members to save their pennies for the 2011 conference and campaign, and the absence of several delegates due to illness. However, small numbers didn’t preclude a lot of work being done over the course of the weekend.

Various items were presented on Saturday 11 September, including Margaret Cook’s ‘What is STV and how does it work?’ which refreshed us all for next year’s campaign for electoral reform. David Wilson presented John Rawson’s excellent paper ‘Our Environment’. ‘Canterbury Water’ from Hessel van Weiren was somewhat overshadowed by the uncertainty of the earthquake’s effect on aquifers.

Meanwhile, aftershocks continued throughout the day and weekend. The Elms Hotel filled up with groups from other venues, and the dining room was almost always full at mealtimes.

Soapbox sessions included a Local Territorial Authority (LTA) banking proposal from Heather M. Smith, a talk on communications by Allen Cookson, Bob Warren’s experiences with the Dunedin City Council and a rousing call for action

Vice-president, Democrats for social credit

from Colin Whitmill, the President of NZDSCLMA (NZ Democrats for social credit Life Members' Association). John Ring gave an ominous overview of trade agreements leading to the selling of Kiwi land and assets to foreign interests.

Conference heard a report from the leadership team, outlining plans, materials, media support and budget for the 2011 general election. There will be a coordination of effort in the Southern Region, with the Leader standing in her home electorate of Invercargill, and candidates in each of the other electorates, supported by list candidates. The rest of the country will not be ignored, with all electorates encouraged to field candidates. The overarching campaign theme is New Economics, with general headings of income security, ‘It’s our money’, ECOnomics and electoral reform.

Election of officers also occurred on Saturday. Stephnie de Ruyter continues as Party Leader, John Pemberton as Deputy Leader and Katherine Ransom as Vice President. Neville Aitchison declined to stand again, and David Wilson was elected President unopposed. Stephnie thanked Neville for his work over the last six years, valuing his wit, urbanity and clear unbiased chairmanship.

Sunday 12 September continued with Policy Remits regarding repeal of Section 59 of the Crimes Act. One remit was passed supporting the repeal, but another calling for parenting education programmes was not, as DSC already has policy on this. A remit calling for empowering LTA to run local currencies sparked a lively discussion before being passed.

Neville gave a moving soapbox on the effects of domestic violence on children, and Malcolm Murchie discussed the need for communities to be prepared for impending crises ‐ oil, water, food and power.

The conference closed on a positive note, undismayed by further seismic activity, although one of the strongest aftershocks of the weekend occurred at the end of the Executive meeting, at about 5:30. By the time the last delegates departed Monday morning, 13 September, Canterbury had endured over 800 quakes. At this writing, the count is up to 1069 and still rising.

New DSC president David Wilson (left) with DSC Life Member Colin Whitmill from the UK

Guardian Political Review - Issue 59, 2018 - Page 5

World Collapse Explained in 3 minutes Featuring John Clarke From Australian TV – posted on You Tube

"Sell everything immediately"

Interviewer to ‘Roger’ (alias John Clarke): What do you do, Roger?

John Clarke: I’m a financial consultant I: Your special subject tonight is the economies of the European Community, How much does Greece owe, Roger?

JC: 367 billion dollars.

I: Correct. And who do they owe it to?

JC: What was the answer to the previous question? The question was: how can broke economies lend money to other broke economies who haven’t got any money because they can’t pay back the money the broke economy lent to the other broke economy and shouldn’t have lent it to them in the first place because the broke economy cannot pay it back?

JC: Mostly to the other European economies.

I: You’re wasting valuable time, Roger. How much does Spain owe to Italy?

I: Correct. How much does Ireland owe?

JC: 41 billion dollars. But where are they going to get it?

JC: 865 billion.

I: Correct. But what does Italy owe to Spain?

I: Correct. And who do they owe it to?

JC: 27 billion. But they haven’t got it. They’re broke.

JC: Other European economies mostly.

I: Correct. How much does Spain and Italy owe?

I: Correct. But how can they pay each other when neither of them has any money?

JC: One trillion dollars each.

JC: They’re going to get a bail out, aren’t they?

I: Correct. Who to?

JC: Mainly France, Britain and Germany.

I: Correct. But where’s the money coming from for the bail out?

I: And how are Germany, France and Britain going, Roger?

JC: That’s what I’m asking you!

JC: Well, they’re struggling a bit, aren’t they.

I: Correct. Why?

I: Correct. Why are people selling European currency and buying the dollar?

JC: Because they’ve lent all these vast amounts of money to other European economies that can’t possibly pay them back.

JC: Because the US economy is so much stronger than the European economy.

I: Correct. So what are they going to do?

I: Correct. Why is that, Roger?

JC: They’re going to bail them out.

JC: Because it’s owned by China.

I: Correct. Where are they getting the money to do that, Roger?

I: Correct. And very well done. After that round you’ve lost a million dollars.

JC: That’s a good question. I don’t know the answer to that one.

I: How much does Portugal owe?

JC: Hang on a minute. What was the answer to that earlier question?

I: Just keep answering the questions, Roger. Where does Portugal get the money it owes to Germany, if Germany can’t get back the money it lent to Italy?

Guardian Political Review, Issue 59 - Page 6

JC: I’ve lost a million dollars? I thought you said well done?

I: Yes, you’ve only lost a million dollars. That’s an extraordinary performance.

JC: Only lost a million dollars. And that’s quite good, is it?

I: Excellent.

JC: (To someone off‐camera) Sell everything immediately.

Quickly!

Sounds good to me!

By David Tranter

B.Ed.(Oxon),B.A. (Canty), DSC Health Spokesperson

or try another party that hasn't While events following the Australian elections may display been tainted by the Parliamentary many of the characteristics of a circus ‐ aided and abetted by processes of recent decades? a media hungry for a sensational headline ‐ they have also given what many consider to be a necessary shake‐up to the Quite apart from the current David Tranter tired old Tweedledum and Tweedledee processes of any rumpus, it is remarkable how much political system dominated by parties which have become all media coverage independent MPs get in Australia, raising too comfortable and self‐seeking. issues which the major parties don't want to know about.

Whether one agrees or not with the power currently held Why have New Zealanders given up thinking beyond the by a small number of independent MPs there is general square? There was a time when an occasional independent agreement that whatever else may happen the resulting did get into Parliament but it seems that today candidates government is going to have to give far more with with original thoughts are too much for attention than usual to the electorates they Kiwis to contemplate. represent, assuming of course that a On the Coast it's Tweedledum, Tweedledee stalemate hasn't sent voters back to the polls and Tweedlegreen ‐ as it is in other regions by the time this is published. where the third Tweedle may vary in label, but Such thoughts inevitably bring me back to the not in their lack of commitment to the people South Island West Coast which once voted in who voted them in.

MPs who stood up for the region ‐ unlike the Which brings me to DSC and its economic present trio of National, Labour and Green MPs policies which if implemented would remove who, in theory, have given the Coast huge financial burdens from New Zealanders' representation in Parliament many times that of shoulders, in addition to the DSC approach to other areas, especially when one considers that other issues. the Coast has only about half the population of Elie Wiesal: "refusal to Why shouldn't we, as a party, point to the other electorates. (The electorate is shared with accept things as they are" shake‐up for the old parties in Australia which the Tasman region). have been forced by the electorate to listen to those whom So, three resident MPs for about thirty thousand people ‐ they normally treat with contempt? Pie in the sky? Or another and what has happened? The usual empty blather from the case of "They can because they believe they can"? government and, in the words of one of my contacts, utter Elie Wiesal, a Holocaust survivor and Nobel Prize winner, uselessness from the other two as well. wrote that the decent society will "not be one in which all Surely the irrelevance of these MPs must start Coasters questions have been answered, but one in which all questions thinking ‐ what is the point? How do they get back to when continue to be asked. It will be characterised by ongoing doughty (Labour) fighters represented the region? What has challenges to complacency, ongoing pleas for defiance, and an happened to the Labour party's proud traditions on the ongoing refusal to accept things as they are".

Coast? Will Coasters take a leaf out of Australians' voting Sounds good to me! book and look beyond the same old, same old pedestrian politicians and their self‐seeking parties and go independent

Friends congratulate DSC Health Spokesperson David Tranter and Margo on the marriage at their Queensland property, 27 August 2010 Guardian Political Review, Issue 59, 2010 - Page 7

WE HAVE MAIL FROM JAMIE We have another great line up of speakers at the 6th Annual AMI Monetary Reform Con‐ ference this year, including Prof. Michael Hudson from the USA, Prof. Steve Keen from Australia and Prof. Kaoru Yamaguchi from Japan ‐ who has tested the proposed Ameri‐ can Monetary Act with a macro‐economic model and given it a very positive report.

We have good reason to expect that the Bill for the American Monetary Act will be introduced into Congress by the time of the conference!

As it is shaping up to be such an historic event, the conference will be filmed and made available for viewing for those who cannot make it to Chicago (watch for details at the AMI website: www.monetary.org.

Jamie Walton, USA Note: New Zealander Jamie Walton is scheduled to speak at the Conference (see World News page)

THE COMMON GOOD Thank you for so impressively taking the trouble to send the Guardian magazine so far for me.

I care about these things and am trying to get a hearing here in the UK. So I will continue to be interested in your actions and insights on which I congratulate you.

Rev Dr Dick Rodgers FRCS The Common Good Party, UK. www.thecommongood.info

PROFESSOR BURGSTAHLER Thank you for kindly sending me a copy of the latest issue of The Guardian Political Re‐ view (Issue No. 58) with the revealing pro and con fluoridation debate on page 17. Clearly, Mark Atkin made a more persuasive presentation.

Albert W. Burgstahler, Editor Fluoride Journal, U.S.A. www.fluorideresearch.org GREETINGS FROM ADELAIDE Greetings from Adelaide, the Queen City of the South. Many thanks for the copy of The Guardian Political Review.

Regarding John Rawson's Review of Malice in Plunderland, many of the ideas follow on from Achieving the Impossible. However, I made extensive use of insights and informa‐ tion from other more competent and better qualified Economic Reformers.

I acknowledge my indebtedness in this re‐ gard to the writings of Clifford Hugh Douglas and Social Credit Publications, William Krehm and COMER Publications, contributors to Eco‐ nomic Reform Australia (ERA) publications and Internet articles, especially Bob Turner, John Hermann, Shann Turnbull, Bob Blain, Steve Keen, John Coulter, Philip Lawn, David Keane, Douglas Everingham and many others.

I owe much inspiration and knowledge from Frederick Soddy and his book Wealth, Virtual Wealth and Debt.

Guardian Political Review, Issue 59, 2010 - Page 8

I began my working career as a Pharmacist.

In the early 1940’s I worked for two chemists who were both enthusiastic for Douglas Credit. I was convinced of its validity but other circumstances prevented me from fol‐ lowing up my convictions until the 1970s.

C H Douglas and F Soddy are numbered among the few "Pin Ups" from whom I have learnt much about the Metaphysics of Money.

Peter Bayard Locke, Adelaide, Sth Australia SOCIAL ORDER Thank you for sending me The Guardian Political Review, which I find interesting. I was reading an old article yesterday , which your party may find of some value.

The writer A.C. (Cecil) Harwood, who died in 1975, was a long time Rudolf Steiner school teacher, prolific writer and lecturer, close friend of C.S.Lewis and all‐round bril‐ liant thinker.

In his article he illustrates some aspects of Rudolf Steiner's Threefold Social Order con‐ ception which should resonate with some Social Credit ideas.

Colin Rawle, Dunedin JUST THINK The large fees and interest the banks and finance companies charged their customers enabled smart financiers to rip the system off, which is inexcusable. High interest and fees do not produce food or any usable product.

Low interest helps strengthen companies, and allows ordinary people to buy houses without mortgaging their future. Just think, no mortgagee sales and all the stress that goes with it ‐ and education and health costs brought back to within reason ‐ and NZ not having to borrow $240 to $300 million a week.

Ray Lodge, Oxford, Canterbury FTT Issue 50 of The Guardian Political Review featured an article on a Financial Transaction Tax.

THINK OUTSIDE THE SQUARE According to a recent opinion‐poll, only 10% of New Zealanders support further priva‐ tisation of state‐owned assets – 80% oppose and 10% are undecided. Yet no real debate of a Christchurch Press editorial advocating pri‐ vatisation has been permitted National, will get another term in office, will claim a "mandate" for privatization ‐ and the sell‐off of New Zealand into foreign own‐ ership will continue.

Mark Sadler BA,BSc, Christchurch.

An extract from a letter sent to the Press by Mark Sadler 29/6/10 follows:

Supporters of the post‐1980 variety of de‐ regulated destructive capitalism, and of its alliance with totalitarian communism, are like compulsive gamblers. They are on a losing game but are determined to go on to the bitter end. It doesn't take much thinking to see that uncontrolled and unbalanced trade must force countries like New Zealand deeper into debt ‐ but believers don't think, they just conform.

The Press editorial (June 19) advocates some privatisation of state "assets". For years, people have over‐paid for electricity so there would be money to build extra generat‐ ing capacity. Now, the editorial tells us, the only way to get money to do this is by seeking outside investment.

The 1935 Labour Government didn't seek private or foreign investment. It used Re‐ serve Bank credit at 1.3/4 per cent interest to build hydro dams and other such things.

I f N e w Z e a l a n d is to b e s a v e d economically, there needs to be some think‐ ing outside the square of blockhead ideology.

YOUTH A recent UK Financial Times article about the Liberal Democrats was reminiscent of Social Credit's climb to popularity in the late 70's and beginning of the 80's. The real catch cry then was youth. And it is the same in Britain. A youngish party with young ener‐ getic people, who have the energy of fresh appraisal of matters, and boundless energy.

As one of the authors of the study by Integrated Economic Services Ltd., referred to in the article, I note that we worked on the assumption of the tax being levied at a rate of 1 pro mille or 0.1% (0.001 of $1). Given the current enormous volume of financial transactions, compared to the flow of real goods and services, such a low rate would be sufficient to raise the amount of tax envis‐ aged (to replace GST), provided some provi‐ s i o n s are m a d e f o r m o n e y m a r k e t transactions.

What a delight it would be to see everyone over the age of 55‐60 years bring along a young person to the Annual Conference.

Even though the tax base is very wide, the tax would bear upon the real economy, which, of course, is much smaller than the financial one.

Letters or emails should be sent to The Guardian Political Review, 26 Warren Street, Oamaru 9400, NZ. Tel/Fax: 03 434 5523. E-mail: editor@guardian.org.nz 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.

Petrus Simons, Economist, Wellington

It reminds me of the days of apprentices.

The old craftsperson has slowed down but has a wealth of knowledge which can be passed on.

Thank you again for being there and pro‐ viding the written contact for members.

Geoffrey Morell, Washington DC

COMMENT

Go on John, surprise us Comment from Murray Horton Secretary of CAFCA (Campaign Against Foreign Control of Aotearoa) cafca@chch.planet.org.nz

Valued at $1.5 billion, Crafar Farms is the largest privately owned dairy operation in NZ

Williamson is guilty of the oldest, laziest and most misleading slur in the decades‐long debate on this issue, namely when you can’t think of any other argument to bolster your case, call your opponents names. He is referring to the intense opposition to Chinese transnational corporation Natural Dairy bidding to buy the dairy farms of the hapless Allan Crafar. CAFCA is most definitely opposed to that, but it’s got nothing to do with the potential buyers being Chinese.

CAFCA opposes foreign control of this country, not because we are racist but because it is patently not in the national interest, it is

Assisting New Zealand farmers

By Stephnie de Ruyter The intention of a Chinese backed, Hong Kong listed and Cayman Islands registered company, Natural Dairy (NZ) Holdings Ltd, to buy the 29 Crafar family dairy farms which are in receivership and also a further 100 dairy farms in Otago and Southland, raises nationally significant questions about who benefits, the motives of the investors, and issues of global food security. Although any such purchases will be closely scrutinised by the Overseas Investment Office (OIO) which must grant approval in order for the transactions to proceed, to date that organisation has not shown any willingness to put the brakes on foreign ownership and investment.

simply recolonisation by corporations, one which means that we do become tenants in our own country (Key hit the nail on the head with that phrase), decisions are made elsewhere about our future, the profits go overseas, and there is negligible contribution in terms of jobs and expertise. It is part of the problem, not part of the solution. We need it like a hole in the head.

Webb

Maurice Williamson, the Minister of Land Information, is obviously having none of this PC nonsense being spouted by his boss. In relation to farms being sold to foreigners, John Key has said more than once that he is not happy about it and doesn’t want to see New Zealanders become tenants in our own country. Williamson, on the other hand, simply brands opponents of such sales as racists.

Maurice Williamson

If the Key faction is genuine in its concern that New Zealanders don’t end up as tenants in our own country, then the perfect place to start would be with an Act that actually adhered to those principles. We now all know where the Minister of Land Information stands on this issue. CAFCA’s challenge to Key is to translate his fine words into effective actions, and on all aspects of the subject, not just farm sales.

Go on John, surprise us.

The proposed purchases are encouraged by the New Zealand‐ China Free Trade Agreement, signed up to by politicians on both sides of the House. It contains an embedded investment agreement protecting the rights of investors from the countries which are party to the Agreement, and those foreign investors' rights are backed up by the force of legal sanction.

This Agreement even includes a provision that New Zealand cannot make or amend laws (without China's permission) that "discriminate" against Chinese investors.

It is important to remember that New Zealand companies and individuals invest in overseas countries too. Fonterra, for example, has invested in three farms in China. However, the company does not own the land but is subject to land use rights which are similar to a long term lease arrangement.

The DSC believes that it is the responsibility of our government to support the vital productive farming sector by making low interest finance available to assist New Zealand farmers to purchase New Zealand farm land.

(From Guardian Political Review ‐ Issue 58)

DSC Policy We will promote private individual, family or co‐operative ownership of New Zealand agriculture land (Policy R 0473).

The sale of New Zealand agricultural land into overseas ownership will not be permitted (Policy R 0474) Guardian Political Review, Issue 59 - Page 9

OBITUARIES

Catherine Dorothy Marks 1905 ‐ 2010

An inspiration!

On Queens Birthday Weekend, 2010, Dorothy Marks would have reached the age of 105 years young. Here in Wangaaui we were honoured to have her as a financial member of the party right up until her departure for Papamoa not long after turning 10O. Born in Okato, Taranaki, Dorothy Fox was educated at New Plymouth Girls High

School, later taking a B.A. degree at Victoria University College: "I’m not having you marry the first farmer who comes along!", her mother had said.

Dorothy was to marry, but to a highly qualified English teacher named Roly Marks, one of the party's first candidates in 1954.

As Roly taught at Wanganui Collegiate, Dorothy became involved in school duties besides raising six children, one of whom, Oliver Marks, was to be a parliamentary candidate as his father before him, and also a local Councilor.

In later years Dorothy went on to teach at Wangnaui Girls College, besides following her other talents with piano and embroidery.

She was also elected as President of University Women in Wanganui, an organisation affiliated to the National Council of Women.

Catherine Dorothy Marks. An inspiration!

(Heather Marion Smith)

Additional information (Courtesy of Wanganui Chronicle 5/6/10) Dorothy Marks’ father was from Scotland and her maternal great‐grandparents came from Plymouth, England, and arrived in New Plymouth in 1841. Dorothy was very involved with the Anglican Christ Church in Wanganui and was a parish representtive at synod. She was known for her keen mind and sense of fun.

Dorothy Marks is survived by four children, 21 grandchildren and 28 great‐grandchildren. Her passing was the end of an important and interesting era.

Footnote: Extract from speech at Dorothy’s funeral by her daughter, Jenny Browne: Mum was blessed with a happy nature. If she had any anxieties, they were covered up. Mind you — she could be formidable when we misbehaved. Mum was brave and philosophical throughout her life. No wonder she was loved and respected by so many.

Terry Heffernan 1952 ‐ 2010

A strong vein of honesty

By Mike Crean, Christchurch Press (extract)

Terry Heffernan died recently in Christchurch, aged 58. He loved politics, having soaked it up from his Irish grandfa‐ ther and West Coast father. He was well versed in world political history and was active in political circles from student days.

He stood for Parliament in five electorates and had mastery of Parliament's Standing Orders. He easily beat opposing candidates in election debates.

Yet, though he came close, he never won a seat. In his days with Social Credit and the Democrats, this was put down to the public perception of the party's economic philosophy.

Guardian Political Review, Issue 59, 2010 - Page 10

He espoused parties where he found a strong vein of honesty. The priest at his funeral said: "He crucified himself for his principles".

Heffernan was raised in a devout Catholic home. He was involved in the Young Christian Workers movement and tempered the Marxist views of his friends with reasoned argument on economics and politics. He was drawn to the Social Credit Party by the idealism and passion of its members, and was drawn to the conserva‐ tion movement by the Manapouri protests.

He completed a degree in history and economics at Canterbury University and took up debating. He developed confidence from this and was always cool and in command when debating politics.

While studying, he met Paula and they married in 1977. Heffernan did the secondary teachers' course at Christchurch Teachers' College and taught at Christchurch Boys' High School and Xavier College. He contested the Sydenham seat and a Christchurch Central by‐election for Social

Credit. Party leader Bruce Beetham then offered him the job of party researcher at Parliament and he moved to Wellington.

He thrived in this environment. and contested the Wanganui seat three times, coming within 30 votes of the incumbent, Labour Cabinet Minister Russell Marshall, in 1987.

Social Credit sought to shed its "funny money" image and formed the Democrat party. Heffernan stood again for Wanganui as a Democrat. By now he realised the party needed to work with other minor parties and sought an understanding with them.

However, he became disillusioned when he thought Jim Anderton's New Labour was swallowing up the small parties.

Heffernan revered old Labour figures Mickey Savage and John A Lee because they lived what they believed. He reviled David Lange and Roger Douglas for turning the party away from its principles.

Terence Michael Joseph Heffernan is survived by daughter Hannah and son Aidan.

ENVIRONMENT

Conned!

The Emissions Trading Scheme has weird anomalies

By John G. Rawson

Racketeers are bent on cornering the world’s water supplies as this becomes a scarce commodity.

Is one of the aims of the carbon scheme eventually to control the world’s wood in similar fashion?

T

here can be no doubt that one of the greatest challenges facing mankind right now is to prevent its waste products from destroying the planet’s environment.

Effects on climate are one aspect, but probably the greatest concern of all is pollution of our rivers, lakes and oceans.

Nothing that we do on land can do more to damage the carbon cycle alone, among other effects, than poisoning life in the seas.

All that is being done now to counter the problem is to use carbon as a gaming board for wealthy speculators and to allow big business to pollute as much as it likes, provided it can purchase credits and pass on the cost to consumers. Little or nothing is contemplated to control other forms of pollution.

we dare not ignore the perils of pollution.

But there are other aspects that are being ignored. Would a warmer climate bring tall forest back to the desolate logged areas in South Westland? Is Australia a sleeping giant waiting to bring millions of hectares if now near‐desert land into fruitful production? Could parts of North Africa once again become “granaries of Europe” as on Roman times, if the greater evaporation from the seas results in greater rainfall?

One of the reasons we have to rely on plantations of exotic pine for our timber supply is that our major trees are long‐lived and slow‐growing; ideally adapted to cope with climate variations over long periods in an island situation. Forest ecologist J T Holloway, who developed this theory, checked data from parish records in Britain, recording a southward shift of fish species over the same period. In Australia, the Murray River red gum needs shallow flooding to regenerate, yet it occurs in isolated valleys over most of the continent.

It has no adaptation to spread seed for long distances. Obviously, significant changes have occurred there too.

This does not mean we can neglect the possibility that human action is having a serious effect on world climate. Certainly, Guardian Political Review, Issue 59 - Page 11

One of the weaknesses of democratic government, particularly those with a supposedly socialist bent, is that our leaders are very receptive to overseas pressure.

Praise and approval at this or that rigged international conference rings louder in their ears than the protests of their constituents.

Probably this started when Walter Nash came back from betraying monetary reform in his country at the Bretton Woods conference, claiming he “belonged to the world” rather than New Zealand.

This time, it appears that both sides of the political spectrum have been conned spectacularly, quite an achievement in view of the blatant chicanery of the scheme. Of course, they may have been told that Standard & Poors will degrade our credit rating if we don’t comply.

Much is being made of climate change, and as much of the argument as possible is being diverted to whether or not it is happening, rather than the details of the outright scam supposed to control the problem.

Like everything else in nature, climate does vary and is changing periodically.

About a thousand years ago, New Zealand’s climate appears to have changed from warmer and wetter to cooler and drier, leaving some of our major tree species unable to regenerate much south of the Waikato region.

Seedlings of rimu and matai are rare or completely absent in the forests of the central North Island and all of the South Island. At the same time, mountain tussock sets no seed in the upper range of its distribution in the Canterbury foothills.

can be manipulated at will by people who produce nothing of real value?

No nation, bound by our outdated and dishonest monetary system and heavily indebted to multinational corporations, can be fully independent.

In relation to Forestry, the Emissions Trading Scheme has weird anomalies.

Trees planted since 1989 gain carbon credits, earlier plantings do not. In effect, credits have been stolen from those who pioneered care of the environment in this way. All trees are considered to Should we pay to provide a casino for rich burst into flame and lose all their carbon speculators to gamble in at our expense? content the moment they are severed Yet proponents of the Emissions Trading from their stumps; New Zealand gets no Scheme suggest the unlikely occurrence of credits for its wealth of wooden buildings. It warmer and drier conditions. “Warmer air has risks; for example a plantation owner holds more moisture”. Sure, but that allows who claims the value of his credits at an for greater rainfall too. And yes, probably early stage to gain working capital could find much nastier storms. their price has risen too much when he There is no way of denying that pollution wants but them back to harvest his crop. If must be controlled. Whatever is done will he wants to use his land for other purposes, cost effort and money. It will raise costs for his whole thirty‐year enterprise may be industry and thus impact on consumers as totally uneconomic. higher prices. But should we pay to provide It has been clear for some time that a casino for rich speculators to gamble in at racketeers are bent on cornering the world’s our expense? Or should there be a generally water supplies as this becomes a scarce agreed level of tax on pollution, providing commodity. Is one of the aims of the governments with funds for remedial work? carbon scheme eventually to control the Should it be confined to carbon, or applied world’s wood in similar fashion? to all pollution?

How much more must New Zealand lose Will we have to wait for separate before it elects a government with the guts gambling schemes for nitrogen, phosphates, to resist pressures like this from irresponsible arsenic and a multitude of other substances and uncaring overseas interests? before the field is covered?

Do our primary producers need yet another variable to contend with, one that

John Rawson is DSC Forestry spokesperson and Northern Region president.

MEDIA WORLD

Call for a royal commission into financial system The Times (UK) July 8 2010 (Item supplied by Barbara Panvel & Colin Whitmill)

The turmoil in the City and in world financial markets continues and we have yet to understand its full cost. This is already recognised as the profoundest crisis at least since 1929; but how did we get to this point?

At the time of the 1929 crisis, the government set up the Macmillan committee to investigate the relation‐ ship between finance and industry. In 1957 — prompted by letters to The Times — the Radcliffe committee was set up to look at the postwar monetary system. And in 1977, after the secondary banking crisis, the Wilson committee was asked to investigate the functioning of financial institutions.

These committees had wide remits that looked across the entire UK financial system.

Since the Wilson committee there have been fundamental changes to that system, from deregulation and the

independence of the Bank of England to global speculation of dizzying scale and complexity.

The Wilson committee observed that there seems to be an inquiry into the financial system "about every quarter century". A new inquiry into the fundamentals of the entire system is long overdue and urgently needed, if we are to order our financial affairs sustainably for the long term.

This inquiry needs to be much broader and deeper than recent Treasury Committee inquiries and the forthcoming Independent Commission on Banking. It would best assure public confidence if a royal commission, of wide remit and prestigious membership, were to be charged with this task. We therefore call upon the Government to set up a royal commission of inquiry into the workings of the entire economic system.

LIST OF SIGNATORIES Andrew Phillips (Lord Phillips of Sudbury) Professor Lord Harries of Pentregarth, House of Lords Jonathon Porritt, Author and Broadcaster Colin Dexter, OBE, Author and Educationalist John Christensen, Director, Tax Justice Network Rt Revd Dr Peter Selby Dr ManazirAhsan, Director General, Islamic Foundation Anil Bhanot, Hindu Council UK Rabbi Jeffrey Newman, Director, Earth Charter UK Bert Schouwenburg, International Officer, GMB Trade Union Carlos Ruiz, Emeritus Professor of Engineering Science, University of Oxford Professor Timothy Gorringe Chris Brown, FNAEA (Honoured) FNAVA, Former President, National Association of Estate Agents David M Triggs, Executive Chairman, the Henry George Foundation of Great Britain Miles Litvinoff, Co‐ordinator, The Ecumenical Council for Corporate Responsibility Rev Paul Nicolson, Chair, Zacchaeus 2000 Trust Revd Canon Lucy Winkett, St Paul's Cathedral Canon Giles Fraser, St Paul's Cathedral Sacha Adams Stone, Chairman ‐ Humanitad Foundation Diana Basterfield, Co‐Founder, ministry for peace

Early Day Motion 913 presented to the UK House of Commons by Austin Mitchell MP 2010 That this House supports the Robin Hood tax campaign which calls for the introduction of a financial transaction tax; notes that by taking an average of 0.05 per cent. from speculative banking transactions, hundreds of billions of pounds could be raised every year to tackle poverty and climate change, at home and abroad; believes that banks, which had a large role in causing the economic crisis, should do more than just pay back the bailouts or insure against future crises; further believes that a Robin Hood tax would be an effective and popular response, with a recent poll finding that 80 per cent. of Austin Mitchell MP respondents supported the introduction of a Robin Hood tax; commends the work of all those organisations backing this campaign who have mobilised their supporters to increase the pressure for such change; believes that this tax is an idea that has come of age; and urges the Government to do all possible to ensure that the Robin Hood tax becomes a reality. (See 'Media New Zealand' page in this issue)

West looks for clues in radical Rogernomics of New Zealand The Financial Times (UK) July 8 2010

This week Sir Roger Douglas, New Zealand's former finance minister, was in London to talk with policymakers and pundits about his own country's experience of fiscal reform.

Back in the early 1980s New Zealand was gripped by economic woes. However, in Guardian Political Review, Issue 59 - Page 12

1984 a Labour government took control, and surprised many when, led by Sir Roger, it set about implementing radical neoliberal economic policies.

These policies (dubbed "Rogernomics") essentially introduced monetarist measures to control inflation. However, they also slashed subsidies and trade tariffs, privatised state assets and cut numerous government functions ‐ often by outsourcing them to private enterprises.

Is there a message for Europe here? The message from the Rogernomics era is likely to be closely watched by investors; it shows that radical action can sometimes emerge, even in places where the markets (and voters) least expect it.

(Item supplied by Geoffrey Morell)

Postscript: THE DUSTBIN OF HISTORY Sir Roger Douglas is founder and a current MP for the New Zealand ACT Party. Finlay Macdonald of the NZ Sunday Star‐ Roger Douglas Times reports (29/8/10): "Act had begun as a vehicle for the dry‐as‐dust economic beliefs of Roger Douglas and his followers. Instead we have Douglas croaking from the fringes of economic debate like some Ancient Mariner bearing tidings of woe. It looks increasingly likely that they'll be tipped into the dustbin of history at the next election."

MEDIA NEW ZEALAND

Robin Hood tax Wanganui Chronicle

22/6/10

Heather Marion Smith

Just a coincidence, or was the release of Russell Crowe's Robin Hood movie a timely reminder of what Nobel Prize economist James Tobin was advocating over 40 years ago?

Popularly called a "Robin Hood tax", his proposal was for a fiscal mechanism to calm the volatility of the money markets, what he called an "automatic stabiliser", i.e. a small levy on international financial transactions, which largely escape taxation. The result would be a move from corporate casino capitalism to productive people's capitalism with a healthy democratically decided

balance between small‐to‐medium business and government ownership of our resources.

Earlier this year shareholders in Sandford's fishing company were told: "A tax on non‐trade‐related currency transactions could not only earn significant income for the Government, it could result in our exchange rate moving closer to its realistic value and thereby add significant value to the wealth of New Zealanders!"

So we social creditors have been aiming our arrows straight for nearly three decades, in the face of ridicule from our detractors.

Now hundreds of European politicians,

Otago Daily Times 7/10/10 Labour leader Phil Goff s latest attempt to appease his constituents by promoting the removal of GST from fresh fruit and vegetables is nothing short of pathetic. If Mr Goff is serious about wanting to reduce the cost of living for all New Zealanders, he should be promoting the total abolishment of GST in favour of a financial transfer Bob Warrren tax (FTT).

This tax is simple, easily understood, administered by the press of a key and, as its name suggests, collects tax from every financial transfer, through the banking system. A FTT takes a small percentage from every dollar that goes out of any account. No account escapes.

including ex‐Prime Minister Gordon Brown, are rushing to promote some kind of "Robin Hood" tax, as supported by the writer of the "... bankers must pay for recklessness" article in Saturday's Chronicle. What say our local MPs? Heather Marion Smith, Democrats for Social Credit, Wanganui (See 'The Robin Hood Tax' on Media World page)

All transactions in a currency are subject to the tax, with no compliance costs, no exemptions, no bureaucracy or fraud investigations, no havens or loopholes. FTT is truly broad based and low rate, and so efficient that nearly all of the revenue collected is available for Government needs. Social Credit recognises that money, originally invented to facilitate trade, is now almost entirely employed in speculation, an activity that notoriously frequently escapes the tax net. It is time to rethink the tax system, not tinker with it or patch it.

Bob Warren Chairman, Southern Region Democrats for Social Credit (See 'A tax system for the new millennium: FTT' by John Pemberton in the previous Guardian Political Review issue 58).

The disappearing family farm The Disappearing Family Farm Farmers today are not the gumbooted, Swanndri‐clad sons of the soil that Fed Farmers and their spin merchants would like to portray to you. The new operators are money men, adept at playing the futures on the commodity exchange. Their soft hands are more used to caressing their Blackberries. Live stock are production units; grass, fertiliser and water are inputs.

Human resources hires and fires the workforce. The bottom line for investing in farming is how cheap the land is, how much water is available, how many kilograms of dry matter per hectare it will produce, and how many cubic metres of effluent the environment can stand before it collapses.

John Gardner And there is some serious money to be made, and production at all costs is the game. Cows that became numbers, and now are just barcodes. Animal husbandry has been replaced by asset management. Sovereign wealth funds and multinational corporations are investing heavily in those parts of the world that will not be affected by climate change. Land is being bought in New Zealand in order to secure water rights and to develop large‐scale food production. In the future, who knows what our primary sector will look like?

If you want your grandchildren to have a memory of what the family farm looked like before agri‐industry took over, take the opportunity to show them now, before the family farm disappears completely.

John Gardner, The Nelson Mail (extract) 7/4/10 • John Gardner works as a senior adviser on border health protection for the Ministry of Health.

(Item supplied by Adrian Bayly)

Tenants in our own land? Sorry John, we're that already

By Finlay Macdonald Sunday Star‐Times 1.8.10 (extract) When John Key first said he'd "hate to see New Zealanders as tenants in Finlay Macdonald their own country" I was mildly shocked. A former master of the money universe and free‐trade cheerleader expressing such a parochial, nationalistic, economically incorrect sentiment ‐ could I believe my ears?

The whole notion is so loaded, so resonant with feudal implications, only a politician so cheerfully bland as Key could utter it without sounding like a populist Guardian Political Review, Issue 59 - Page 13

demagogue.

Even someone whose personal fortune derives from the borderless flow of hot money in an unfettered global casino economy can appreciate that selling the ground out from underneath your own feet may be a gamble too far.

As a nation we sold many of our most valuable strategic assets some time ago, handing ownership over to local and foreign elites with a pro forma rubber stamp from the Overseas Investment Commission, making us the equivalent of sharecroppers

or crofters in what was once our own land.

Our puny currency is afloat on a speculative ocean that sees it traded at absurd levels ‐ mostly while we sleep, proving how little influence we have over our own fortunes ‐ in large part due to a monetary policy that keeps interest and exchange rates high, pumps billions of dollars of credit into housing bubbles and personal debt, and generally facilitates a culture of renting our lifestyles off others.

We're renting the present off the future and hoping the bailiff never comes knocking.

MEDIA NEW ZEALAND necessitating increased travel for people out‐ side the main centres.

NZ Listener 7/8/10

HEALTH BUREAUCRACY Karl Du Fresne's compelling expose of the theoretical nonsense used to justify the de‐ mise of IHC sheltered workshops (Listener 17‐ 23 July) parallels the nonsensical agenda which has seen the public health system taken over by an ever‐growing bureaucracy which has largely eliminated the previously valued input of health professionals.

Nowhere is this more apparent than in what remains of the rural hospitals network which, prior to the so‐called "reforms" in the early 90s, provided local services at remark‐ ably low costs. For example, in the early 90s, Otago rural hospitals ran on annual budgets as low as $400,000 for which they provided a remarkable range of services ‐ in the words of one rural G.P. known to me, "from birth at one end to hospice care at the other". But, just as Mr. Du Fresne described the change in IHC from being community‐based to, "national administration at odds with its grassroots membership" so the rural hospi‐ tals network has been supplanted by medical centres providing fewer services and and

Along with the proliferation of centralised bureaucracy has come a huge raft of pseudo‐ democracy in the form of impotent DHB boards with their pointless "ädvisory" committees, hugely expensive outside consultants, and paper wars which defy belief. Nowhere is this more apparent than on the South Island West Coast where I was twice elected to the board and twice resigned in disgust at the disgraceful pretence that the community was being represented, along with the demeaning attitude exhibited to‐ wards highly experienced health professionals by ill‐qualified, career‐ladder‐climbing management.

Du Fresne's account of Sue Bradford's dis‐ torted view of sheltered workshops which ignores both the feelings of those who worked in them and the views of their fami‐ lies is a stunning condemnation of the politi‐ cians who put theoretical dogma before prac‐ tice and who stubbornly refuse to learn from past mistakes.

David Tranter.

Health spokesman, NZ Democrats for Social Credit.

Editor's Note: The NZ Listener is New Zealand's No.1 Best‐selling Current Affairs Magazine, with a circulation of over 62,000 and a readership of 262,000 ‐ of which 39% are university graduates.

Otago Daily Times 7/7/10

The following letter appeared in the same issue:

As long as New Zealand, along with most Western nations, keeps blindly follow‐ ing "orthodox" ideological economics, of "competitive‐ free markets fix all" and does n o t make f u n d a m e n t a l changes, no amount of play‐ Hessel Van Wieren ing with tax, GST, ACC levies or ETS will have any positive effect; in fact, the reverse will happen.

Even a simple example of using "carrot" instead of "stick" by using energy sector SOE profits to assist industry and households in energy efficiency using the latest technology implementations, would be of greater benefit.

Major reforms in many areas are needed but the finance and banking sectors should be at the top, along with associated money and commodity short‐term trading. Only two years ago approximately, global credit was 10 times global GDP, which is totally insane. I wonder what it is now.

This Government needs to consider using better instruments for economic stability and debt reduction. Interest on debt is a major problem. One such instrument is using Re‐ serve Bank credit, instead of interest‐bearing loans from overseas banks. This option has already been promoted and has some over‐ seas acceptance.

Hessel Van Wieren, Cromwell

In his letter about our debt levels (29.6.10), Calvin Oaten says they "will require the wis‐ dom of Solomon to guide us through" and there is no Solomon to be seen. The reason for this is that if anyone of any importance dares to upset the financial empire by expos‐ ing the myths and flaws of the debt monetary system, they will be ridiculed into oblivion.

A good example is the Democrats for Social Credit. They could see years ago the situation the world is in now and have continually warned of it happening. They were laughed at and their solutions were described as "funny money". Now that the chickens have come home to roost, it is certainly no laughing matter.

Colin Weatherall, Milton

Editor's Note: Hessel van Wieren is DSC Waitaki electorate candidate.

Guardian Political Review, Issue 59 - Page 14

Social credit in theory . . .

In Michael Rowbotham's 1998 book In the Grip of Death, the political economy of social credit is described as the 20th century's most radical, most constructive and most coherent blend of economic and social analysis.

Furthermore, social credit has long been known as "practical Christianity" ‐ and not without sound reason. As stated by one writer, the objective for social credit is estab‐ lishing a correct accounting system that has the desired result of providing economic and political security for the individual.

J Price, Ashburton

. . . and in action To illustrate how the system I advocate would work, let's look at two projects proposed in this region, the Lee Valley dam and the performing arts centre. Irrespective of costs, the criteria for funding: feasibility, in the Don Steele public interest, people and material available to build the project. The Lee Valley project would qualify on all criteria.

The performing arts centre would only qualify on two criteria. Therefore a binding, citizens‐initiated referendum would be required. Assume it was successful. Both projects would then qualify for Reserve Bank Credit (your credit) at the contracted prices.

On completion of the projects, they are then your assets, as everyone concerned has been paid.

Contrast that with, the system of perpetual debt, which has operated for 316 years. The above projects would cost at least three times the contracted price in rates.

You should now be perfectly clear why your "money" continues to devalue and the banks control a sham democracy. One sys‐ tem creates assets, the other debt in perpetuity. Only social credit use can promise the asset creation and deliver on it.

D L Steele, Stoke

Editor's Note: See 'Colin's Comments' on page 24.

Professor A K Susheela, in an affidavit pre‐ sented in a United States' court room, made it clear that fluoride destroys muscle, bone, teeth, bloodvessels, the lining of the stomach and can cause infertility.

Fluoridation is banned in China. Only a fool would suggest their scientists are less able than those in the west. Fluoridation will cease here just as it has throughout 98 per cent of Western Europe where teeth are now on average better than those in fluoridated countries.

Peter Daniel, The Horowhenua Mail (extract).

The Press editorial (June 19) advocates some privatisation of state "assets". For years, people have over‐paid for electricity so there would be money to build extra generat‐ ing capacity. Now, the editorial tells us, the only way to get money to do this is by seeking outside investment.

The 1935 Labour Government didn't seek private or foreign investment. It used Re‐ serve Bank credit at 1.3/4 per cent interest to build hydro dams and other such things. If New Zealand is to be saved economically, there needs to be some thinking outside the square of blockhead ideology.

Mark Sadler BA,BSc, Rlccarton (extract).

(Submitted to the Christchurch Press 29/6/10)

Our Proud Heritage How it all began The current Democrats for social credit Party has a proud heritage. Formed in 1953 and, with some variations of name, it has been active for over 57 years. During that time it has secured over 20% of the vote in a General Election and had six Members of Parliament ‐ an achievement to be heralded. This is an extract from Colin J Whitmill's history of the Party.

Reserve Bank was taken into public ownership, but the hopes for change and monetary reform were cruelly quashed when Walter Nash, an advocate of orthodox financing, became the Minister of Finance.

The Labour Party had promised that the state on behalf of the people would control the issue of credit, so necessary for any implementation of any of the social credit solutions. The promise was not kept.

Introduction by Colin J Whitmill I was asked in February 1995 whether I could supply a history of the party ‐ and this is it. The wealth of material and knowledge that accumulated from my research resulted in an extensive story of dedication by hundreds of people convinced of the need for social credit reforms to bring about a just economic system for New Zealand.

ON THE WAY TO PARLIAMENT THE DOUGLAS REVELATION Had it not been for the first‐past‐the‐post electoral system, and a vacuum in it for a third party to fill, the interest of the social credit message would have faded from the public mind in Hew Zealand far earlier than it did.

Clifford Hugh Douglas, the engineereconomist behind social credit.

Douglas published his findings and expanded on them in the weekly review The New Age. In 1920 Douglas published the first of several books in which he attempted to show the deficiencies of the monetary system. His solutions to them took on a mystical jargon which meant nothing to most people.

Seeing that all its hopes had been smashed by Labour Party orthodox economists, the Douglas Social Credit Movement, which had become the Social Credit Association, decided to give encouragement and support to independent candidates advocating social credit reforms.

In addition it formed a Political Council to educate people and bring pressure on members of Parliament.

It was political action, and the first‐past‐ the‐post electoral system, which enabled a POLITICAL ACTION 1930's message of salvation from financial depression to remain part of Hew Zealand's When it became clear that these efforts history for so long. It was the electoral were failing, a demand arose from the system which pushed the message to a peak membership for direct political action.

More than an economic doctrine, social Following two years of debate, on 10 of 31% public opinion support before being rapidly pushed downhill faster than it had credit is a philosophy which takes into January 1953 the Social Credit Association taken to climb the mountain. Establishment account the fundamental aspirations of man agreed by 28 votes to 3 to support an ridicule, lies, public ignorance, but most of immediate and intensive dominion wide The monetisation of a country's assets, all the first‐past‐the‐post electoral system campaign with the objective of achieving a the establishment of a national credit and the appearance of other third party SOCIAL CREDIT government. authority, the payment of a national challengers sent the vehicle of social credit Incorporated society status as the New dividend and the mechanism of a compen‐ crashing to the bottom of public support.

Zealand Social Credit Political League was sated or just price however caught the In comparison with some political creeds granted on 9 June 1954. imagination of thousands of New Zealanders and ideology in the world, social credit is a Such was the distrust of the party political who warmly welcomed him for a brief little known philosophy, even in the country system and its domination over individuals speaking tour in January 1934. of its founder Major Clifford Hugh Douglas, that the new organisation refused to become In depression‐hit New Zealand the social an English‐born engineer. Major Douglas was a party and instead called itself a league. credit solutions to economic misery spread given a brief in 1916 to review costing The circumstances of political activity in like wildfire with at one stage the rising procedures at the Royal aircraft works In New Zealand boosted the Social Credit Douglas Social Credit movement claiming Farnborough, England. His enquiries showed cause.

There were two main parties in the some 225 branches.

In the political arena, that the factory was compiling costs faster country.

Labour on the left and National on independent MPs Harry Atmore of Nelson than it was distributing incomes. Fascinated the right.

There was no major countrywide and Captain Rushworth of the Bay of Islands by this revelation, Douglas collected wide third party. Those who did not wish to gave the solutions their support as did many information from over a hundred large support either of one of the two parties people who saw the Labour Party with its companies and found the same result. By were left with no other group to give their own advocates of monetary reform as the producing a mathematical formula called the votes. means whereby the positive proposals would A + B theorem, Douglas found that in any be implemented.

The appearance of the Social Credit one time frame there was a gap between Political League on the political scene With the emphasis of monetary reform in the costs of an article and the money changed all that and the fledgling govern‐ its policies. Labour hauled in the votes of distributed to buy it. Only wages for future ment aspirant provided somewhere where social creditors at the 1935 general election production could enable this "gap" to be thousands could register their disapproval of to enable it to win enough seats to form its closed or money from overseas or by the two main parties. first government. The privately owned borrowing.

Guardian Political Review, Issue 59 - Page 15

REVIEWS

Understanding the Financial System: Social Credit Rediscovered

By Frances Hutchinson Published by Jon Carpenter Publishing, UK (2010). Price £15.00.

Available from The Social Credit Secretariat www.douglassocialcredit.com Edited extract from a review by James Reed www.alor.com

What Everybody Really Wants to Know About Money (1998 Jon Carpenter Publishing). She has also co‐written with Mary Mellor and Wendy Olsen (2002), The Politics of Money: Towards Sustainability and Economic Democracy, published by Pluto Press, London.

Frances Hutchinson is a leading social credit theorist who has the distinction of publishing sound academic treatises with major mainstream publishers.

In 1997 she published The Political Economy of Social Credit and Guild Socialism, co‐written with Brian Burkitt, followed by

Understanding the Financial System deals with almost every subject in the social credit canon. This then is the definitive introduction to social credit, readable for the beginner, but jam‐packed with insights for the experienced scholar.

Chapters cover well‐known ground outlining the theory and practice of social credit, as well as the English origins. Here we have explained very clearly topics such as the national dividend and the A+B theorem.

There are also some excellent quotations explaining the philosophy of social credit.

Social credit was tried in Alberta Canada in the 1930s. Hutchinson devotes two very soundly written chapters to this sorry story.

A democratically elected Social Credit Government, which aimed to move beyond the “defective system of bank‐loan accountancy”, was frustrated at every turn.

Hutchinson says: “An academic world run according to the pecuniary rules of ‘sound finance’ could scarcely have been expected to accommodate an open minded approach to study across the spectrum of the arts and sciences."

To understand the historical roots of the problem, “Understanding the Financial System” is an enormous contribution.

Fluoride Wars ‐ How a modest public health measure became America's longest running political melodrama

By Allan Freeze & Jay H. Lehr Edited extract from www.wiley‐vch.de/publish/en/books/

Since its first implementation in Grand Rapids, Michigan, in 1945, public drinking water fluoridation and its attendant conflicts, controversies, and conspiracy theories serve as an object lesson in American science, public health, and policymaking.

In addition to the arguments on the issue still raging today, the tale of fluoridation and its discontents also resonates with such present concerns as genetically modified foods, global warming response, nuclear power, and environmental regulation.

Fluoride Wars presents a witty and detailed social history of the fluoridation debate in America, illuminating the intersection of science and politics in our recent past. This reader‐friendly assessment explores the pro‐ and anti‐fluoridation movements, key players, and important events. This recounting includes:   a look at fluoride issues, including dosage, cost, financial and funding interests, fluorosis, and problems of risk‐cost‐benefit analysis.

  The back‐and‐forth drama between pro‐ and anti‐ fluoridation factions, with all its claims, counterclaims, insults, acrimony, and lawsuits

 Case studies of various cities  and their experiences with municipal water fluoridation initiatives Fluoride Wars offers an engrossing history to both interested general readers and specialists in public health, dentistry, policymaking, and related fields.

Published by John Wiley & Sons Inc, New Jersey, USA. Price US$39.96

Debating whether to fluoridate a water supply is like poking a raw nerve

By Philip Matthews Dominion Post & The Press 31.7.10 (extract) A new book has just appeared in the United States called Fluoride Wars. The subtitle: "How a Modest Public Health Measure Became America's Longest Running Political Melodrama". Substitute New Zealand for America and the same mix of war and melodrama has been running here since at least the 1970s.

There have been two stoushes already this year: in Northland, the Far North District Council ran a referendum which saw fluoride Guardian Political Review, Issue 59, 2010 - Page 16

being taken out of the water supply in Kaikohe and Kaitaia after a two‐year trial; in Kapiti, the district council voted to keep it in, but it was a close‐run thing, and down the road in Paekakariki, the water is still fluoride‐free.

In recent years, fluoridation has also been a volatile public issue in Ashburton ‐ which voted against it ‐ Hamilton, Methven, Christchurch and Dunedin. After the next local body elections, it will be New

Plymouth's turn.

Fluoridation advocates argue that a health debate has been captured by a well‐ organised lobby group, the Fluoride Action Network New Zealand (FANNZ), which is connected to the US anti‐ fluoridation body, the Fluoride Action Network.

Email, websites and YouTube clips are the weapons. FANNZ spokeswoman Mary Byrne remembers how much tougher it was in the (continued on next page)

(Reviews continued)

pre‐internet age when you had to try to change someone's mind by getting them to read a book. Now people can be converted by a 30‐minute internet video.

when the issue comes up in New Plymouth, they will be ready to lobby the councillors.

They want to be able to respond to us in kind. I think that is a huge abuse of taxpayers' money."

It also makes opposition harder to monitor and combat. One of the functions of a new National Water Fluoridation Support and Co‐ ordination Service proposed by the Ministry of Health will be to monitor public discussion. At a practical level, that means cutting out every letter to the editor about fluoridation in every daily and community newspaper in the country.

Byrne says that there is one doctor and two dentists on the FANNZ committee. One of the latter is Whangarei dentist Lawrie Brett. Brett claims to speak for others.

Perhaps 25 per cent of dentists would now have second thoughts about fluoridation, he says, especially the younger ones who have been given a "less one‐sided" dental education than he got in the 1970s.

For FANNZ's Mary Byrne, this new Ministry of Health service is a sign that her activists have the government health officials on the ropes. "It will be a mobile unit that will respond to any place,” she says. "So

Brett helped to launch the recent campaign in the Far North and, before that, a referendum that kept fluoride out of Whangarei. Both are examples of what happens when internet activism meets

grassroots advocacy ‐ the very global and the very local.

Those who call for fluoridation to be a national policy run from Wellington face an uphill battle, especially in Christchurch, with its famous protectiveness of local water quality. While north‐west Christchurch was fluoridated for 20 years before Waimairi County merged with the city in the 1980s, the rest of the city has always been fluoride‐ free.

In 2000, when former Health Minister Annette King tried to push fluoridation on local councils, a Christchurch City Council survey found that 60 per cent of ratepayers were against it.

That figure is unlikely to have changed.

Indeed, the ensuing 10 years of activism would probably have increased it.

Trial to Triumph ‐ inspiring stories of overcomers

By George Bryant Published by DayStar Books, PO Box 7031, Maungatapu, Tauranga. www.daystarbooks.org Price $29.95 Editor's introduction:

abuse, persecution and hardship in their lives.

George Bryant M.A.(Hons.), Dip.Ed. has a long association with social credit. He was the convenor of the Social Credit Party production committee which was responsible for the Party publication You and Your Environment in 1973 ‐ called "the finest environmental book produced" (see last issue). He sends the following message: "I was Interested to see a write‐up about 'You and Your Environment'. It takes me back over three decades. At the time the book was a real hit, except for Comalco who weren't very happy at all. My latest book (14th) is published by a new company which I and one or two others have established."

Review by Duncan Pardon, www.baptist.org.nz Surely George Bryant must be one of New Zealand’s most prolific Christian authors. It’s only quite recently I reviewed his autobiography, George: The Secrets of an Ordinary Kiwi. Yet here he is again with a new book that looks at the lives of ordinary Kiwis who have struggled and overcome pain, suffering, disaster, disease,

George brings us the stories of 21 Kiwi overcomers – some familiar names, others not so. Their stories are varied; some make for very uncomfortable reading. Yet in each case, the human spirit has prevailed.

Why does bad stuff happen to good people? It’s a common theme of the Christian faith and one that has been the subject of Christian writing ever since Jesus was nailed to a cross.

George doesn’t get bogged down in the theology of suffering.

Instead, he lets his subjects speak for themselves as they offer insights into how they managed to overcome crushing adversity in their lives.

No two stories are the same. Each person offers different reasons as to how they have managed to survive with hope renewed. But there are some common threads – faith, attitude, setting goals, perseverence, hope and faith – and George explores these in his concluding chapter.

The book ends with some quotes from famous people about overcoming personal trials.

I have now read several of George Bryant’s books. This is the best.

A Journey ‐ by Tony Blair Extract from a review by Julian Glover, Guardian News UK No political memoir has ever been like this: a book written as if in a dream ‐ or a nightmare; a literary out‐of‐body experience. By turns honest, confused, memorable, boastful, fitfully endearing, important, lazy, shallow, rambling and intel‐ lectually correct, it scampers through the last two decades like a trashy airport read.

You can't put it down. But then, it is so badly written in parts that you can barely pick it up.

Guardian Political Review - Issue 55, 2008 - Page 17

At times its great flaws are magicked away by his brilliance as a politician, the man who can make you believe. Then, pages later, you feel almost sick.

Yet the impressive thing for such a commanding figure is that he confesses to an absence of control. Government, as described in these pages, happened to Blair as much as because of him.

Of course, one consequence was Iraq, to which he devotes long and uninformative chapters. Suffice it to know that Blair thinks he was right and the war on terror both real and continuous. He won't persuade

unbelievers on this.

More telling are the small things. The banal opening lines to each chapter. The endless self‐belief (and unwillingness to give others credit).

There are also standard grumbles, such as a sustained attack on the media ‐ odd from a man who courted Rupert Murdoch.

You can say he was mad. You can say he was a flawed genius. But you can't say he didn't matter.

Published by Hutchinson. Price $75.00

WORLD NEWS AMI 2010 Conference From Stephen Zarlenga ami@tactonic.net The American Monetary Institute held its 6th Annual Conference at Roosevelt University, Chicago, from 30 September to 3 October, 2010.

action, Robert Poteat, whose depth of under‐ standing of monetary reform and all aspects associated with it, delivered another seminal lesson, Dick Distelhorst, a living legend among people who really know monetary reform presented to the conference by video, Ben Dyson, UK monetary reformer, discussed how similar legislation has been prepared for England, Jamie Walton, of New Zealand, lead‐ ing AMI Researcher with a razor‐sharp mind for monetary questions, focused on the American Monetary Act, Will Abram came back to give us the full details of how Cana‐ da's excellent monetary reforms of the 1930s were de‐railed and by whom! Prof. William

There were a top notch line‐up of speakers: Richard Cook, Prof. Steve Keen from Australia, Congressman Dennis Kucinich of Ohio addressed the Conference by video, Dr. Michael Hudson reported on his work with European reform, Prof. Nic Tideman of Virginia Tech, formerly senior economist of the President's council of Economic Advisors, discussed the key issue of seigniorage privi‐ lege of money creation, Michele St. Pierre, a leading organizer for effective political

Black returned this year ‐ his presentation in 2009 created a sensation de‐ Jamie Walton scribing how fraud had to be involved at every level in the financial meltdown.

Note: Stephen Zarlenga, Director of the American Monetary Institute, spoke on the process by which the AMI has reached this stage ‐ strategies, challenges and plans.

Contact: www.monetary.org/2010conference.html A free 32‐page brochure designed to help people understand monetary reform is now available at www.monetary.org/32pageexplanation.pdf

Great News from the U.K. From Alistair McConnachie The great news is that the Money Reform movement in the UK now has a specific Bill around which to rally interest and support and which can be used to convince the legislators. It really is a great piece of work!

exclusive right to create and issue all currency; to protect fully the content of cus‐ tomer transaction accounts held with deposit taking institutions; and for connected purposes'.

Called the 'Bank of England (Creation of Currency) Bill 2010', it is described as 'a Bill to provide the Bank of England with the

You can find it at www.BankofEnglandAct.co.uk which is a related site to www.Call4Reform.org

The 14th Annual Conference of the Bromsgrove Group on monetary reform was held Alistair McConnachie from 29 to 31 October 2010 at country house Barnes Close, Bromsgrove, UK. Further details from contactus@ProsperityUK.com

The Yekaterinburg Turning Point

By Prof. Michael Hudson (Item supplied by Peter Challen) is comprised of Russia, China, Kazakhstan, Tajikistan, Kyrghyzstan and Uzbekistan, with observer status for Iran, India, Pakistan and Mongolia. It was joined by Brazil for trade discussions among the BRIC nations (Brazil, Russia, India and China).

The sticking point with all these countries is the US ability to print unlimited amounts of dollars. Mr. Medvedev said “what we need are financial institutions of a completely new

The city of Yekaterinburg, Russia's largest east of the Urals, may become known not only as the death place of the tsars but of American hegemony.

Challenging America was the prime focus of extended meetings in Yekaterinburg, Russia (15‐16/6/09) for Chinese President Hu Jintao, Russian President Dmitry Medvedev and other top officials of the six‐nation Shanghai Cooperation Organization (SCO). The alliance

type, where particular po‐ litical issues and motives, and particular countries will Dmitry Medvedev not dominate.”

Central bank governor Zhou Xiaochuan of the People's Bank of China wrote that the goal is now to create a reserve currency “that is disconnected from individual nations.” This is the aim of the discussions. in Yekaterinburg.

Ireland's economic collapse

By Patrick Barkham, The Guardian (UK) 26/5/10 Ireland was hailed during the boom years as a 'celtic tiger'. But now the government has had to introduce huge cuts to deal with its budget deficit. How is it affecting ordinary people?"

Ireland is, per capita, the most indebted country in the EU. Its budget deficit of 14.3% is higher even than in Greece. For a decade, the "celtic tiger" economy was the poster child of free‐market globalisation. Now, this bedraggled alley cat of an economy is neo‐ liberalism's favourite example of how to cut your way to recovery. Ireland's government has slashed public sector spending by 7.5% of Guardian Political Review, Issue 59, 2010 - Page 18

gross domestic product with a series of dras‐ tic cuts this year: public sector pay by 15%, child benefit by 10%, unemployment benefit by 4.1%. Another 3bn will be removed next year, a total of 10% of GDP over three years: these measures are equivalent to the British government slashing its budget not by the £6.25bn planned by George Osborne in 2010, but by an incomprehensibly gigantic £150bn.

Yet despite the cuts, dubbed "masochistic" by the Financial Times, Ireland's debt is still growing, thanks to the desperate bailing out of its banks. Irish critics fear this economic death‐spiral could lead to a decade of grind‐

ing austerity, a genera‐ tion lost to unemploy‐ ment and, worse, the re‐ Patrick Barkham turn of a spectre that has haunted Ireland for two centuries: mass emigration.

Item supplied by John Rawson, who comments: “When we were over there, the EC was pouring money into Ireland. For example, every farmer got £100 for every cow owned - and it was being hailed as a result of "hard work"!

Looks as though the propaganda baby has had his run.

You and Your Environment Further thoughts from John G Rawson Congratulations to the Editor on again drawing attention to “You and Your Environment”, which probably remains as the major initiative work on environmental concerns in this country.

Yes, I am proud to have played a small part in this team, but only as one of a number. Heather Smith, now President of our Western Region was a powerful contributor, as also was Jeremy Woodhall. Also my wife Eilean, whom some will remember as Eilean Cousins, Guardian Secretary at HQ while she completed her degree at Victoria University. Her contribution was a command of English language that even George Bryant had to respect. Others like Alan Patterson‐Kane had a strong influence on the resulting document. The point is that this was a well‐convened, mixed working team, which produced a landmark product and had a lot of enjoyment, real fun at times, in the process.

A footnote is that, when it was presented to the following Conference, the TV1 reporter covering it was a gentleman who later rose to the top rank of that organisation. His response to it was, more or less, “That’s interesting. Now tell me, is Social Credit a religion?” The whole Conference cover was based on this preconceived idea. The report was ignored completely

A footnote to my note on Forestry in the last edition, undoubtedly as a result of imprecise notes provided by me to the Editor, incorrectly credited me as a foundation Secretary of a Branch of the Institute of Forestry.

The Institute was fully formed, along with its Local Sections long before I knew the meaning of the word forest. Despite a degree, mainly in Botany, on joining the Forest Service, my first six months as a Technical Trainee, later grudgingly known as an Assistant Forester, was spent holding the blunt end of a slasher and learning from tough Rangers and Foremen who knew how to survive in the bush. They also consulted the massive tome of Cheeseman’s Manual of the Plants of NZ for the Latin names of obscure ferns and orchids I had never heard of.

If I got to an Institute meeting at all, it was to listen to the “greats” of the time. My greatest contribution in that field then was to be given a free day out while others did the routine work and (thank Heaven) to return successfully with some venison for the dinner of a Commonwealth Forestry Conference.

But yes, stirred up by my father from Whangarei, who was previously motivated by Bob Young from Hamilton, I was the instigator and founding Secretary of the Rotorua Branch of this Party.

HEALTH

Stop fluoride, says academic From article by Geoff Taylor in the Waikato Times New Zealand health authorities have locked themselves into a position and are ignoring the scientific evidence about the dangers of fluoride, according to a Waikato University academic.

Ted Ninnes, who co‐ordinates the university's social sciences programme, said at least 800 peer reviewed published scientific studies now existed showing links between fluoride and health problems.

responsible for many studies supporting fluoride.

Dr Ninnes

Dr Ninnes said the history of fluoridation in the US had seen science become "the handmaiden of industrial giants" such as the Sugar Research Foundation of America and Superphosphate companies which produced fluoride as a toxic byproduct.

Scientists who came up with contrary Yet fluoridation of water was now an "evidence too powerful to ignore" findings were often discredited and only one integral part of the Health Ministry's policy side of the fluoride story had been presented to the public. and named in its publications as one of its 13 health strategies.

Some Health Ministry and Waikato District Health Board employees had the role of promoting fluoride included in their employment contracts.

Dr Ninnes likened the fluoride debate to that around dioxin, which he said for years was backed by health authorities until the evidence was too powerful to ignore.

"It makes it very hard for them to look at any evidence which is critical of fluoride," he said.

"Governments in New Zealand and the United States refused to accept scientific evidence of the toxicity of dioxin to humans for 30 years, even though the scientific evidence of its toxicity was overwhelming.

He wanted to to see fluoridation stopped as a precautionary measure.

"Water fluoridation should be stopped until such time as it has been proven that it is ethically justified, proven safe and is effective in improving oral health."

Dr Ninnes, who delivered a paper on fluoride at a national sociology conference last year, said corrupted science was Guardian Political Review, Issue 59, 2010 - Page 19

"You seem to have to wait until its overwhelming before they do anything."

DSC opposes "compulsory medication", including mandatory fluoridation of public water supplies (Health policy R.1076).

The Diary of Adrian Bayly Nelson-based Adrian Bayly keeps a close eye on the political scene in New Zealand and overseas.

9 April 2010 ‐ FRED DAGG TO MONEY MEN

John Gardner gives an interesting view on how farms in NZ are now transforming them‐ selves into agribusiness. Farmers are chang‐ ing from the Fred Dagg to Money Men. Instead of sheep and pigs and dairy and beef cattle feeding on grass in paddocks, they are now being put into holding pens.

It’s production at all costs to make maximum profits, disregarding health & safety and effluent discharges. (See "The Disappearing Family Farm' in News Pages).

20 April 2010 ‐ DESPERATE MEASURES

knocked the GST rise but when asked if he would reverse it if elected to government in 2011, he wouldn’t guarantee it. Only the Democrats for social credit have solutions to the debt, social and tax problems facing NZ. Our three core policies: Community Credit, Financial Transactions Tax and Basic Income are the solutions.

The surplus is up.

Unemployment is down. The public have battled bravely thru' the recession even managing to remain cheerful against all odds

The Nelson Mail reports that people are taking to living in cars and caravans as housing gets tighter and rents and mortgages get too high.

These are the desperate measures people turn to when unemployed or on part‐time work on low wages. Nelson’s real estate prices have put it beyond low‐ income people to afford a mortgage, and rent/leases make it tough for those on benefits.

The UK Sunday Telegraph reports that the UK has printed money to an unmatched degree, termed ‘quantitative easing’. “Be‐ tween 1900 and 1948, Britain’s monetary base expanded three‐fold, from 7% to 22% of GDP. That happened over almost a 50‐year period which, of course, included two world wars. The UK has tripled its monetary base again, but this time in a single year.”

10 May 2010 ‐ JIM’S WAY

Jim Anderton is now 70 years old, receiv‐ ing NZ Super, a MP's salary and if he retires as an MP in 2011 he will collect a Parliamen‐ tary pension. It’s clear that Jim Anderton doesn’t want to retire from public office be‐ cause he would die from mind‐rotting boredom. He still wants to be in charge at the helm in local government as mayor of Christchurch. I found over the years with Jim Anderton that there was always the danger of not seeing it Jim’s way.

22 May 2010 ‐ WE HAVE THE SOLUTIONS

The Government Budget benefits the higher income earners whilst penalizing those on the lower level. National campaigned in 2008 “not to raise GST” – a promise broken.

Bill English reported in the Budget that NZ owed the world over $168 billion in debt, and that it could be 2015 before the Budget might be in surplus. Labour leader Phil Goff Guardian Political Review, Issue 59, 2010 - Page 20

It’s not the enemy outside the camp you have to worry about, it’s the enemy within.

2 August 2010 ‐ WHERE’S THE GROWTH?

The UK Coalition Government has to look at making service cuts and increasing taxes to get back into the black with its Right. budget. The total UK debt is now 1.3 It's time we raised GST to trillion pounds, Value Added Tax (VAT) – 15% then that similar to our GST ‐ has increased from should wipe the 17.5% to 20% and the Capital Gains Tax smile off their faces! has increased from 18% to 25%. There is to be a 2‐year pay freeze on Public Sector workers. A levy is to be made on Nice one the size of the banks, bringing in 2 JK! billion pounds a year, and a Financial Activities Tax (FAT) will be based on banks’ profits and pay.

Hodgson - The Nelson Mail

1 May 2010 ‐ QUANTITATIVE EASING

contest the leadership. Bolger quit rather than face a ballot and Shipley became NZ’s first woman PM.

27 May 2010 ‐ ‘TILL DEBT US DO PART

A British newspaper had a message about the new UK coalition government: “I, Nick, take you Dave, to be my leader, for better, for worse, for richer, for poorer, in sickness and in health, ‘till ‘debt’ us do part."

The new UK coalition government is a mar‐ riage of convenience between Westminster’s odd couple. There will be a brief love‐in before the inevitable divorce. This isn’t a coalition but a dodgy deal – smarter Cameron playing gullible Clegg like a fiddle.

One only has to recall the National/NZ First government of 1996 in NZ, formed following two months' negotiations. After a year and a half, the marriage ended in divorce.

12 June 2010 ‐ TRANSACTION FEE

US Congress Bill No. HR 1703, has been introduced by House of Representatives member Chaka Fattah, which “Directs the Secretary of the Treasury to conduct an in‐ depth study on the implementations of a transaction fee in the United States to replace all existing federal taxes.”

The Bill has been referred to the House Committee on Ways and Means.

24 June 2010 ‐ THE ENEMY WITHIN

The ousting of Australian PM Kevin Rudd

by Deputy PM Julia Gillard is a similar situa‐ tion to that in NZ in the late 1990s, when National leader Jim Bolger lost the confidence of his caucus which selected Jenny Shipley to

It is claimed that the VAT increase will hit jobs, consumer spending, the pace of recovery and add to inflation.

Alistair Darling, the Shadow Chancellor, said: “It’s not clear to me, if you take all of this money out of the economy, where is all the growth to come from”.

While Britain, her Commonwealth, and America are indebted nations, the Chinese are becoming the creditor nation and new world power.

11 August 2010 ‐ HOLE IN THE GROUND

My local MP for Nelson, Dr Nick Smith, paid a visit to the semi‐submersible rig in Tasman Bay, north of D’Urville Island. They are looking to strike oil (2,000 metres of drilling). Watchdog groups are concerned about the drilling, hoping it won’t see an oil leak as happened in the Gulf of Mexico disaster.

The chief operating manager of the Australian‐led consortium said: “You can do all the theories, all the wonderful coloured slides and interpretations and think tanks – but you’ve got to put a hole in the ground.”

21 August 2010 ‐ COULD DO BETTER

The Nelson City and Tasman District coun‐ cil ‘Report Cards’ show the financial situation of the two councils. The debt rate burden is continuing to climb. The councils have to find a better way of debt servicing. The solution is with Social Credit Reserve Bank credit for infrastructure development – paying for projects just once instead of several times over many years.

COMMENT

Where were you when we needed you Sir Geoffrey?

Contributed to The Guardian Political Review by Steve Baron Steve Baron

One of my first university lecturers suggested the best advice he could offer was to challenge everything he said, and to come to my own conclusions. In other words, don't believe everything you are told, even by an esteemed university professor.

These words flooded back to me when I heard Raymond Miller, an Auckland University political scientist and media commentator, calling for the 1993 Citizens Initiated Referenda Act, to be repealed on the Paul Holmes Q&A television show.

Former Prime Minister and law professor, Sir Geoffrey Palmer, has often suggested the same. In his 1997 book Bridled Power he said, “the Act should be repealed. It appears to offer a chance for citizens to influence policy, but in substance that opportunity is like a mirage in the desert. Referenda should be reserved for those few and important issues of constitution and conscience that should be bound by the people's voice.”

Given the huge number of conscience votes in Parliament over the last decade on extremely polarizing issues, I for one would have loved to hear Sir Geoffrey calling for citizens to decide these outcomes in a referendum... where were you when we needed you Sir Geoffrey? If referendums are a mirage, then what of representative democracy?

Does it not also give citizens the illusion they can influence policy, because they get to vote once every three years at an election? Yet the day after an election a government can break every promise it has made, and often has. Perhaps we could also repeal representative democracy?

The weakness of representative democracy is that once a government is elected, there are few checks and balances between elections. The public is basically excluded.

While proportional representation and coalition governments may have slowed Cabinet government to some extent, voters generally have to accept whatever the government decides it wants, even if the majority of citizens disagree as they did in the 2009 smacking referendum and even if the government of the day represent only 36.78% of those illegible to vote, as was the case with the 2008 National/Act Party government. Yet they rule 100% of the people.

It would seem strange that academics like these would be making calls to repeal the CIR Act. Surely what New Zealanders seek is a strong and robust society, where there is a true exchange of information between the elected and the electorate, not the “thin” representative democracy that Benjamin

Barber refers to in his book Strong Democracy.

A democracy controlled by political elitists and influenced by academic elitists who have little respect for the will and collective wisdom of voters is surely undesirable.

There is no doubt that the CIR Act needs to be made more robust to ensure referendum questions are not bias, misleading or ambiguous. More effort also needs to be placed on supplying voters with balanced information, giving the pros and cons of the referendum in question via an official referendum pamphlet and website.

US President Thomas Jefferson said it best when he said, “I know of no safe depository of the ultimate powers of the society but the people themselves”.

Steve Baron is an author, Founder of Better Democracy NZ, and a regular contributor to publications throughout New Zealand. www.betterdemocracy.co.nz

DSC is committed to democracy through the policy of Binding Citizens' Initiated Referenda, and "that where an absolute majority of registered electors support the changes placed before them at a refer‐ endum the result will be binding and the change will become law" (Policy R0914).

Dear Sir Colin Weatherall is a MIlton‐based, long‐term DSC activist. For many years he has been a familiar face at local branch meetings and annual conferences. Colin is a regular contributor to the letters columns of local newspapers. Two of his Otago Daily Times letters are reproduced below ‐ another appears on the 'Media New Zealand' page in this issue.

On May Day, I attended the opening of the Working Class Memorial at Blackball. After the ceremony, I visited the Museum of Working Class History. On the walls were pictures and information about the workers' struggles over the years and at the end of one section was written: "Do you know what caused this recession? If you do, write it down and let us know."

I now have that answer.

It was in an interview about the film Inside Job under the headline "Economic crisis exposed" (ODT, 24.7.10). It said the meltdown of 2008 was not an accident but the result of an out‐of‐ control finance industry that took unethical advantage of decades of deregulation.

I am sure readers would want that explanation pointed out as the Prime Minister and Minister of Finance are not telling us as it really is.

Otago Daily Times 24/5/10 Guardian Political Review, Issue 59, 2010 - Page 21

The 2.5% rise in GST is actually a 20% rise in tax going into the Government coffers. The Government and its spindoctors do not want it presented to the public in this light.

There is an alternative tax the Government could use if it had the political will to use it This is a financial transfer tax, which the Democrats for Social Credit have had as policy for quite a number of years.

This is similar to the Tobin tax which was proposed by the Nobel Prize‐winning economist James Tobin in 1978. It targeted financial speculation and did not have an adverse effect on the trade in goods and services or long‐term investments.

The Government knows about this alternative tax, which could replace GST. I doubt that the Government will want to upset the financial speculators as the Prime Minister has a "Vision of NZ as a world financial hub" to quote the ODT headline.

Otago Daily Times 31/5/10

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

How's your Kiwisaver pension pot faring?

An elderly woman in December 2002 was advised to put her savings of $22000 into a property plan. For this she was charged $3,800, deducted from the capital, but was told that the fund had prospects of making large returns.

Eight years later,her investment is worth a little more than $2200.

The London Daily Telegraph [3‐8‐10] observed that "an insidious relationship" between financial advisers, investment funds and stockbrokers is costing savers billions of pounds.

making them feel small. Humiliation is routine. People walk in feeling vulnerable and often leave raging or broken.

Some people, through no fault of their own, simply struggle with everyday tasks that make up existence. You can't force them to work and you certainly can't allow them to starve.

A basic income for all, as of right, would change all this costly administrative, degrading charade.

No basic income ‐ so just work, work, work

Of course, people could always seek an annual financial health check from experts ‐ but that would be just another set of fees to pay.

No change in the case for a basic income as a human right The London Times [9‐7‐10] had an article written by a job centre staff member which indicated that the grovelling to secure some money on which to live still hasn't changed since the Thatcher era. People seeking a job search allowance must prove, to the satisfaction of often young inexperienced junior staff, that they are looking for paid employment. An extract of what she wrote is as follows:‐

A London Sunday Times investigation [11/7/10) has revealed that a boy of just seven years of age has been found working in India earning just 15 cents an hour.

Slaving from 9am to 11pm a day for seven days a week he was helping the profits of an American owned cut price store chain in Britain. His wages were alleged to have been sent to his widowed mother.

The bureaucracy is ridiculous. People can wait for months for money. Presumably the idea is that this will make them think twice before signing on, but actually it just stops them returning to work in case the work ends and they have to go through the process all over again. There are secret pots of money for rent, job interviews and clothes but you have to know that funds exist and ask for them.

The result is that the lad's family now have no money coming in. When access to income is dependent on paid employment, cruelty and deprivation have a field day.

There were scores of people who, strictly speaking, should not have been claiming jobseeker's allowance because they were not really looking for a job or were doing a bit of work on the side, but we let them claim. The effect of stopping benefits on someone with no savings and no income can be devastating. These are not people with rich friends or wealthy families. If you cut their benefit money you are telling them to beg or starve.

Some Jobcentre workers have a real knack for coaxing people back into jobs, others enjoy wielding power over the jobless and Guardian Political Review, Issue 59, 2010 - Page 22

As a result of this investigation, the Indian Police raided the factory, released the lad and other children enslaved there and sent them home.

Who said life changes over time?

What a pass we've come to! Poor ignorant humanity living in fear of itself. A world of people all waiting for food, clothing, shelter and ordinary comforts, all possessing the physical power to produce the things they want, yet living in fear of want.

Walking upon the Earth as legal trespassers; the Earth from which they could draw all that they desire.

The Earth is no longer the storehouse of mankind as a whole; it is the Basic Security of Bankers, the concession of the monopolist and the dice of the speculator.

The tokens wherewith rootless humanity is compensated for toiling have become at once

the instruments of their slavery and the secret weapons of their international masters; the make‐weight that ever throw the balance of the scales against just reward. (a letter written by Andrew MacLaren, British MP 2 March 1943)

We're all in this together ‐ well, not quite all The British government proclaims that in these days of dire financial austerity we're all in this together.

That doesn't seem to apply to those at the top. BBC staff are, according to Jenni Russell [Sunday Times 1‐10‐10], in a level of rage that I have not seen since I joined the corporation as a trainee 25 years ago. What incenses them is that their wages are being limited or frozen and their pensions slashed by a management whose own incomes and comfortable retirement leave them utterly detached from the lives and fears of their employees.

The deputy director general not only earns $1,075,000 (equivalent) a year but he has accumulated one of the largest pension pots ever seen in the public sector. At 51, even if he left the BBC tomorrow, he would retire on an income almost 50% higher than the prime minister's salary.

Jenni Russell suggests that if current board members think they are worth more elsewhere, let them leave. Nothing is more important than that the BBC, which is an essential part of our cultural and political life, should be led by people who care more for what they can achieve than what they earn themselves.

She observed. The era in which private‐ sector greed could be carried over in to the public sector is over. The governor of the Bank of England has announced that when the Bank takes over regulation of the financial system, he won't be offering high salaries. Instead he's looking for people who are motivated by public service.

The same ethos used to apply to the New Zealand Public Service until it was effectively privatised by the National/Labour parties in the 1980's and 90's.

Mark Byford BBC deputy director general

'The largest pension pot ever seen' (continued on next page)

(Whitmill's World continued)

The benefits of privatised water companies

I saved the world!

Try telling that to 2.8 million people suffering illness caused by swimming in dirty water around British beaches. Britain ranks 18th out of 22 countries in Europe in terms of clean sea water.

Water companies regularly discharge raw sewage and rainwater into the sea presenting a serious risk to public health.

The mainly overseas‐owned water companies seem to prefer to increase their profits ‐ some $4000 million in 2009 ‐ rather than use the huge sums they are trawling in through their local monopolies to fix the problems.

Surely a slip?

When former failed British prime minister Brown said in Parliament that his actions had saved the world, when he should have said his actions had saved the British economy (which it didn't), this was seen as a Freudian slip. I wondered whether this had happened to Dominic O'Connell, Business Editor of the London Sunday Times in what I see as his usual pro‐business, pro‐financial status quo column [11‐7‐10] when he said, in commenting on a building society, access to financial services is a basic need of modern life, so it sounds sensible to run those services in the interests of the common good, on a not‐for‐profit basis.

What is "the market"?

One part of "the market" is in Basildon, England. A warehouse construction covering the size of four football pitches contains an internet data centre which deals in trading by investment banks and stockbrokers using computers to make decisions. The company which runs this place is a high‐frequency trader. Their computers are programmed to make decisions on trading and do so at the rate of 18,000 trades a second!

Of course we know that computers never make mistakes, it's only the people putting data in that do that ‐ or is it? In May, the Dow Jones Industrial Average plunged 1,000 points within half an hour and caused a mild panic. The cause was suspected to be a computer's assessment.

So remember, when next our politicians tell us that we have to have concern for "the markets", our lives, our futures, our income, our taxes are decided by some computer programme somewhere. But who puts in the programme?

The eyes have it One of the Greek Government's problems with its huge deficit is that too many people are not paying tax they owe. However by studying Google Earth maps of a prosperous Athens suburb, authorities found it contained 425 villas with swimming pools. Of these only 170 had been legally declared leaving the others dodging taxes.

Guardian Political Review, Issue 59 - Page 23

Since privatisation there has been constant increases in water bills to allegedly pay for leaks and replace outdated pipes, but the profits still poor in. The companies warn that prices must increase if people want improvements.

The advantages of water privatisation seem to be benefiting the owners, not those whom they are supposed to serve. At least with a publicly‐owned utility, there is somebody accountable.

River life threatened by water company "greed" This was the headline of an article in the London Sunday Times of 4 July 2010. It reported that water companies ‐ mainly overseas owned ‐ have exploited licences granted in the 1960s and 1970s, before privatisation, to pump water out of rivers even when they are nearly dry.

Diminishing river flows are destroying wildlife habitat such as water voles and otters, killing off valuable plant life and doing nothing to preserve such fish life as remains.

Only five out of 6,114 rivers in England and Wales could be considered in pristine condition.

money from private banks at big interest rates when it could borrow the same amount from their (our) own bank at nil interest. The cause is my intellectual limitations.

Britain ‐ A land blighted by giant pylons This editorial headline appeared in the London Sunday Times [20‐6‐10], but one which could equally apply in New Zealand.

The private energy transmission company, the National Grid, plans to add many more towering pylons and kilometres of overhead cables to its already existing 22,000 high voltage pylons and 7,300 kilometres of cables as well as upgrade some existing pylons with even greater monsters.

Opponents to this desecration of what remains of the British countryside have called for these visual eyesores to be placed underground.

Oh no, the director of transmission operations is reported to have said. Running cables between pylons would cost about $3.3 million per 1.6 kilometres, but putting them underground would cost at least $42 million per 1.6 kilometres. The money would have to be recovered from customers.

The Sunday Times editorial commented:‐ the fact is there are huge profits in power generation and distribution and some of those profits should be used to find new ways of carrying electricity around the country unobtrusively. The beauty of Britain is far too valuable to blight with these ugly pylons.

Protesters along the routes of the proposed high voltage lines have formed campaign groups to co‐ordinate resistance.

The rich still won't pay taxes, whilst the poor must

The Environment Agency wants to impose stricter limits on siphoning off water river, but does not have the money to pay the millions of dollars of compensation which the privately‐owned water companies demand in exchange for their rights!

Millionaires run Britain Nearly 80% of the new British cabinet are millionaires. The previous Labour Government, out of touch with ordinary people, had only ten millionaires in its Cabinet.

Intellectual limitations The president of the Royal Society is reported to have said that some of the greatest mysteries of the universe may never be resolved because they are beyond human comprehension. The inherent intellectual limitations of humanity mean we may never resolve questions.

So, now I know why I cannot understand why most people aren't concerned about the government ‐ i.e. the taxpayer ‐ borrowing

The London Times [9/7/10] editorial named five wealthy peers all of whom have decided that they will give up their seats in the House of Lords rather than give up their status as being non‐domiciled in Britain for tax purposes. They are quitting the red benches to spend more time with their money.

Most astonishingly, though, this ermined quintet ‐ who saw no shame in wishing to play a role in framing the laws of this country while not wishing to pay this country's taxes ‐ will be allowed to retain their noble titles.

The cause of the international depression A report on Ellen Brown's talk at the London Global Table

By Colin Whitmill The cause of the international depression could be firmly laid at the door of the Bank of International Settlements because of its capital reserve requirements of the private banking system. That was the view of internationally famed American author Ellen Brown, the writer of The Web of Debt.

Her presence at the London Global Table in June 2010 attracted a record attendance of people of various nationalities crammed into the library of the School of Economic Science for the lunchtime chinwag.

She explained that the role of the international bankers was always to limit their products, loans, to increase their price, interest. The BIS had determined that banks should always have some capital set aside, the basis from which they could make loans, create debt. However banks had a shadow lending market. Investors bought up parceled packets of loans and their purchase enabled more loans to be made, parceled up and sold again and again. There was no limit to how much the banks could lend ‐ create ‐ and they didn’t care if those who took out the loans couldn’t repay. The investors (pension funds, other banks, etc.) would take the loss. When the time came, and the roundabout had to come to a stop, some ten trillion dollars disappeared from the market.

With money withdrawn from the market, economic society went into depression.

Ellen welcomed government debt.

Governments didn’t have to have capital requirements to feed money into society.

Government debt was a good thing because if there were no debt there was no money for people to use. No money means depression.

While she was not actively campaigning for change, she wrote books and articles with her views and had been surprised by an avalanche of emails from people supporting them. People had wanted to discuss matters with each other, and her, and therefore she had established an internet public bank google group, entrance to which was only by invitation to those sincerely interested. As a

result of her input, she had constant invitations to conferences and gatherings and others had started to implement avenues of change. She was in London for a day, having come from Switzerland, then on to Manchester and home, having originally been in Stockholm.

Regrettably she had to decline to attend conferences this year in Ellen Brown with Professor Rodney Shakespeare Malaysia and Australia. fail if we don’t need them anymore!

Her internet views, which had caught the imagination, concerned state banks in In commenting on bankers Goldman America. Prior to her London visit, there had Sachs, Ellen said that 80% of its profits came been state government owned banks in four from speculating in high frequency trading, states. Of those four, only the one in North skimping profits from all of us. High Dakota was not insolvent. frequency traders are like sharks. Pension funds were trading in a dark pool. She Ellen explained that a bank was a corporation whose primary responsibility was explained in detail how the computer generated HFT tested investors, like pension to earn money for its owners, shareholders. funds, [or Kiwisaver funds?] at the level they North Dakota state bank, which had no were or would trade and then, having found capital requirements as its capital was the a potential weakness, pounce and make a earning ability of its people, could lend, as killing. [See Whitmill’s World] per usual lending practice, to other banks in its state to increase their capital require‐ In answering a question, Ellen agreed that ments from which they could grant loans to people just could not or would not or did business and people, as in normal not want to take in that banks create money circumstances. ‐ or debt loans ‐ out of nothing. They had In discussions with states’ finance officers, the view that banks only lent out their customers’ deposits. As one listener she learned that most had had funds set commented who deposits money with a aside for a rainy day. In one state 80% of credit card? the budget was spent on putting money away for a rainy day. It was with these non Banks did not need deposits to create active funds that she had suggested that money, that stipulation was determined for states start their own banks. them by the Bank of International Settlements.

At that moment in time, five states.

Washington, Michigan, Illinois, Virginia and Ellen said that the European Central Bank Massachusetts, had bills pending to form broke its own rules when deciding to bail their own state banks. Ten candidates for out the private banks. Countries should not offices such as governor or state senator be giving credence to old rules made by the were advocating state banks and they came banks themselves. from across the political spectrum ‐ Money is nothing but a medium of Republicans, Democrats, Greens, independ‐ exchange, she said, and people should be ents and others. challenged to think that if private banks If we couldn’t beat the bankers, then we could do something, why could not a should set up another system with publicly government or state bank do something to owned banks with interest free loans to the benefit people, the shareholders in a government. The banks won’t be too big to government or state?

Whitmill to the rescue Addressing the DSC 2010 Conference, Colin J Whitmill told members that New Zealand had had a terrible time and was still having it.

This was not a reference to the Canterbury earthquake, but to the financial situation which was slowly returning to the level where it left off before the 2008 crises.

He said the New Zealand was still trying to sell its land, its assets and anything to obtain overseas money.

New Zealand was sitting on a financial time bomb ‐ a financial earthquake, the big one yet to happen.

In five years to July 2010, 150,000 hectares of agricultural land had been sold to overseas investors. In 2009 New Zealand raked in $4,900 million in selling land to foreigners. If anyone complained Guardian Political Review, Issue 59 - Page 24

about that, National Party Cabinet minister, Maurice Williamson, called them racist.

All the selling was because the country needed foreign money to pay foreigners interest on New Zealand's overseas debts and the dividends from foreign investment in the country.

What was alarming about the Chinese communist government backed group buying New Zealand farms to feed its people was the potential for interference in New Zealand should China see the ownership of the land as being amongst its vital interests and threatened in some way.

Independent research indicated that by the years 2013 or 2014 the New Zealand economy would be in deflationary mood. Things financially were to become worse and nothing would stop this happening.

When the vacuum in ideas arose as to how to deal with the financial disaster the country was building, the Party must be there to fill the gap. People sinking in a sea of debt may look for the lifeboat which can rescue them. And the DSC would be that lifeboat.

THE BEST YEAR EVER

NEWS BITES - hunting through the media jungle!

IT’S AS SIMPLE AS A+B

NO COMPROMISE

Believing we can solve our money problems with a larger superannuation fund is misguided. True, Australia's compulsory super fund is larger than KiwiSaver, but Australians average debt is not much different from ours. It's massive everywhere and growing. Why? It cannot be a lack of productivity or endeavour as factories, farms and shops the world over have more to sell than people can buy. Observation indicates the money system issues insufficient money for us to pay for everything that is for sale as only a portion of every businesses' expenses are issued as wages or dividends, yet all costs must go into prices. Hence ever‐expanding consumer debt. The government is spending nearly $900m annually on "policy advice". How about some of the advisers being asked to work out why indebtedness continually increases, irrespective of whether the economy is doing well or poorly?

Members of the Democrats for Social Credit Party's Invercargill Electorate urge you to reject any compromise deal at the International Whaling Commission meeting that would legitimise commercial whaling. We urge you to work instead for a deal which would: bring hunting in the Southern Ocean Whale Sanctuary to an end; ensure no hunting of endangered and vulnerable species; secure an end to international trade in whale meat or products ; reform the IWC so that it is a relevant organisation in the 21st century and is able to deal with the growing number of threats facing whales.

Bill Daly, Otago Daily Times 5/9/10 Note: An explanation of the above is given by the A + B Theorem in 'The Monopoly of Credit' by C.H. Douglas .

(See feature 'Our Proud Heritage' in this issue).

STUCK IN A FORD We once had a Ford Escort that got stuck crossing fords. The first time this happened, I involuntarily switched on the starter motor, which gave just enough power to push us through to dry land. The economy has been a bit like that. When the Global Financial Crisis stalled the world economy, we got it moving again with a fiscal stimulus. A ford can be so wide we cannot use the starter motor to power the car through it; the battery eventually runs out. This year's Budget is hardly engaging with the future, except a very short‐term one. The crisis is long term; the policies that got us into it aren't going to get us through it. They need to be different.

Letter from Stephnie de Ruyter to Prime Minister John Key 15/4/10

THIS HOUSE BELIEVES That this House believes that HM Treasury should alleviate the effects of the recession and prevent the continued escalation of debt by matching the amount of money created through quantitative easing by the Bank of England with interest free cash for financing works in the public interest, thus addressing the enormous imbalance between interest bearing credit and interest free cash in the overall money supply.

Early Day Motion 1138 presented to the UK House of Commons by Austin Mitchell MP 2010

Under Local Government Minister Rodney Hide's Amendment Bill, local government will be able to contract out public services without consulting the public. The arrangements inherent in such contracts will most likely remain secret. The price of water will rise because of servicing the profit demands of its shareholders — rather than providing, as of right, a supply of clean, clear, fresh, pathogen‐free water to citizens. The Local Government Amendment Bill is a charter for privatising water.

Simon Cunliffe, assistant editor Otago Daily Times 16/6/10

FINAL ACT FOR ACT? The showdown over Act’s deputy leadership raises serious questions. If leader Rodney Hide’s hold on Epsom is tenuous “at best”, then it is even more so now. Act looks near the end of the road. Mr Hide has barely 15 months at most to turn things around for his party and himself.

There is no room for further error. Even then, you would not put money on him succeeding.

John Armstrong, NZ Herald 19/8/10.

Guardian Political Review, Issue 59, 2010 - Page 25

AFP 7/4/10 (Item supplied by Colin Weatherall)

VULTURES AND CHARLATANS Compulsory super creates a cash cow and virtually guaranteed income for fund managers who pocket the same fees regardless of the gains they generate. It would create a flow of funds overseas, rather than fixing our funding problem or improving productivity. Where there’s a pool of money, there are vultures, charlatans, the incompetent and the avaricious looking to use OPM (other people’s money) to make themselves rich.

Rob Stock, Sunday Star‐Times 22/8/10

TOXIC MONEY‐GO‐ROUND The toxin sodium fluoroacetate, or 1080 as it is more commonly known, kills literally everything with which it comes into contact. It is fifty years now that 1080 has been in use. This means 50 years of application, tens of thousands of tones of 1080 toxin and increasing mega‐millions of dollars being spent on this particular money‐go‐round. If the money spent on aerial 1080 was spent on hitting rabbits where they actually live, there would in a few years be no rabbit problem.

Competent operators can achieve almost 100% kills. Surely it has to be better than the present ill‐ informed use of 1080.

Mike Bennett, Otago Daily Times 17/6/10

CALL TO CEASE

Brian Easton, NZ Listener 10/7/10

CHARTER FOR PRIVATISING

The heads of the world's top hedge funds took home record pay cheques last year, as the hedge fund sector rode high on the recovery from the global economic crisis. The 25 chief executives of global financial heavyweights pocketed a total of $US25.33 billion ($NZ36.1 billion), doubling their earnings from 2008,. The world may still be coming out of the Great Recession, but for the richest hedge fund managers, 2009 was the best year ever.

'GIANT LEAP' FAKE The Dutch national museum said one of its prized possessions, a rock supposedly brought back from the moon by United States astronauts, was just a piece of petrified wood. Investigation proved that the piece was a fake. It was gifted to the museum in 1969 from the then US ambassa‐ dor J. William Middendorf during a visit by the three Apollo 11 astronauts, part of their "Giant Leap" goodwill tour after the first moon landing.

AP 29/8/09

CHICANERY AND GREED

The Westland District Council has called on Parliament to not only cease all aerial 1080 drops, but review the entire Animal Health Board (AHB).

Mayor Maureen Pugh recently tabled a petition before Parliament’s local government and environment select committee indicating that at least 90% of Westland residents were opposed to the toxin. The Westland council’s submission urged that “mass poisoning” be halted immediately until there could be a properly designed and executed study. “The tolerance for 1080 poisoning is at an all‐time low and alternatives ‘must’ be trialed,” the council submitted.

Hokitika Guardian, 11/8/10

EPHEMERAL

We should always be suspicious of anything sold to us by governments as good for us but too hard to explain. Case in point, the Emissions Trading Scheme, being so opaque and complex that only those with a vested interest or a job in the bureaucracy administering it can even claim to understand it. Like the pseudo‐science from which they emanate ‐ economics ‐ they’re mathemati‐ cally seductive yet psychologically naive. They’re vulnerable to human fallibility, chicanery and greed.

TVNZ's infantilising of the news, smothered in its perpetual self‐regard, reflect its crucial need to claim a ratings triumph to sell its target audience to advertisers. That is its chief purpose today. its new model of public broadcasting, as signalled by its latest round of cost‐cutting, marks an acceptance of low‐cost quantity rather than high‐ cost quality; of selling fractions of "news" to audiences it hopes will be mesmerised by its very ephemerality.

Finlay Macdonald, Sunday Star‐Times 4/7/10

Otago Daily Times editorial 9/7/10

TAMIFLU

THE ORGANIC SOCIETY

A leading virologist who helped develop New Zealand's influenza pandemic response has been accused of not properly disclosing his ties to drug companies. Dr Lance Jennings has been promoted as an independent expert on influenza but has received payments, airfares and accommodation from drug companies including Roche, which manufactures Tamiflu, and GlaxoSmith‐Kline.

Similar concerns were raised by the British Medical Journal, which found World Health Organisation advisers who wrote 2004 guidelines recommending stockpiling drugs in a pandemic had received payments from Roche and GSK for lecturing and consultancy work. That advice led to governments around the world stockpiling billions of dollars' worth of anti‐viral drugs ‐ most now sitting in warehouses. New Zealand stockpiled 1.2 million Tamiflu doses from 2005, of which only 20,000 courses have been used.

A truly human society must be consciously formed on the recognition of the separate roles of economic production, of human rights and spiritual freedom The first is a world question, the second reflects the peculiar genius of the nation, the third is the stamp of man.

From The Organic Society by A.C. Harwood (Item supplied by Colin Rawle)

Sunday Star‐Times 18/7/10

POLITICAL OBLIVION? ENDED WITH A WHIMPER

Jim Anderton recognises that running on a pro‐ fluoridation ticket in Christchurch would be a shortcut to political oblivion. "I have no intention of declaring unilaterally that the water of Christchurch will be fluoridated. I know there would be angst and concern and misinformation and big campaigns. I'm not that silly.”

In the depth of the night and in secret, the last coalition force combat soldiers crossed the border from Iraq into Kuwait, seven years and five months after the invading American army reached Baghdad. The "War on Terror" thus ended with a whimper, having begun as a fight ostensibly to preserve the civilised Western world. It proved, like most wars, to be a long‐lived catastrophe.

There are no victors from the Iraq war. Operation Iraqi Freedom eventually cost 4415 American and 179 British lives, with some 30,000 wounded.

Civilian casualties could be as many as a million dead. Many members of the public in both Britain and American remain convinced they were lied to by their leaders to justify a war that may, in the end, have been purely ideological.

While in Beijing, John Key launched a documentary series examining Rewi Alley’s achievements.. But at such times when Rewi Alley returned to New Zealand; he was closely watched by the NZ Security Intelligence Service because of “his membership of a subversive group”. Ironic, really. The spooks who sweated over such reports must be turning in their graves.

Otago Daily Times editorial 24/8/10

Simon Cunliffe, assistant editor Otago Daily Times

To pay off the Australian national debt, Kevin Rudd had decreed a modest special tax on the profits of giants like BHP Billiton and Rio Tinto.

The response was a vicious advertising campaign against the Government and a threat to shut down mines. In 48 hours in June, Julia Gillard and mates in Labour's parliamentary caucus got rid of the elected prime minister, Her weapons were Rudd's slide in the opinion polls and the power and prize of Australia's vast trove of minerals. Within days of her coup, Gillard had reduced the new tax, and the companies' campaign was called off. This may help explain the extraordinary and brutal rise of Gillard.

(Illustration from Colin Whitmill)

14/7/10

John Pilger, Otago Daily Times 26/7/10

The Press 31//7/10

SPOOKED

CYNICALLY EXPLOITING

Otago Daily Times

South Canterbury Finance increased its risky real estate loans after it signed up to the Government’s scheme protecting its investors’ money, the company’s chief executive Sandy Meyer said.

Asked whether it had been cynically exploiting the Government guarantee, Mr Meyer replied: “It might have been cynical, it might have been merely incompetent – it probable violated a lot of prudent lending criteria. Prime Minister John Key agreed: “Many of the loans were bonfire material”.

NZPA 1/9/10

SECURE THE FUTURE CREAMING IT

Prior to the default of South Canterbury Finance, seven other institutions covered by the Crown’s retail deposit scheme had triggered repayment provisions to the tune of about $320 million. Was it fair that finance companies were included when the scheme was rushed into existence in October 2008 during the darkest hours of the global banking crisis. Officials correctly predicted that their high‐risk investments, weaker funding lines and the absence of a robust regulatory regime meant there was a much higher chance of them toppling over than the trading banks. No‐one – apart from those who creamed it on the back of the Government guarantee – is happy.

John Armstrong, NZ Herald 4/9/10 Guardian Political Review, Issue 59 - Page 26

The messy demise of Alan Hubbard's finance company has been inevitable because of the way companies such as South Canterbury Finance operate" said Democrats for Social Credit Party Leader Stephnie de Ruyter and Southern Region President Bob Warren in a joint statement.

"Finance companies are not private trading banks: they are fringe financial institutions. They re‐cycle, at high speed, the available cash in the system. This means that they are able to offer attractive interest rates to investors then on‐lend that money at much higher interest rates, often to those unable to borrow from the trading banks.

This is in stark contrast to the way in which trading banks operate.

"When finance company borrowers are unable to honour their loans, trouble follows. The original

THE PAY OFF

investor loses out when the finance company in which they have invested their funds is liquidated or goes into receivership. "And this has been the case with South Canterbury Finance, as with innumerable other finance companies in recent years.

"The DSC does not support the existence of these fringe financial institutions. They are part of a failing debt‐based financial system.

"Nor does the DSC support the taxpayer‐funded $1.6 billion bailout of SCF. The company's total assets represent about 1.3 per cent of total farm activity and less than 3 per cent of total farm lending. The DSC suspects that the government's motivation lies in protecting the global reputation of the New Zealand finance industry rather than a desire to protect 'mum and dad' investors.

"However, if the government genuinely believes that it has an obligation to support SCF investors through the receivership process, a Reserve Bank fife‐line of credit similar to that made available to the foreign‐owned trading banks during the financial crisis would be a more palatable option.

"The DSC contends that New Zealand's publicly‐ owned central bank, the Reserve Bank, should have the sole right to issue, allocate, and cancel all new money for and on behalf of New Zealanders.

In that way, the future prosperity of our nation is secured."

DSC Media Release: September 2010

THANKS A LOT HAMILTON!

NEVER, EVER AGAIN? U.S. Senators voted in favor of the top‐to‐ bottom rewrite of rules governing Wall Street firms. “Never again, ever again should we have to go through what we did in the fall of 2008 to ask the American taxpayer to write a check for $700 billion to bail out a handful of financial institutions that frankly in many cases helped create the mess we were in,” Senate Banking Committee Chairman Christopher Dodd said.

Bloomberg.net 15/7/10

100 PERCENT DEBT On June 2, the U.S. Treasury Department reported that federal government debt had exceeded $13 trillion, more than 90 percent of the country's gross domestic product. According to the White House, the public debt will exceed 100 percent of gdp in the next fiscal year.

The Philadelphia Trumpet, August 2010

Dear Fellow Americans, and friends around the Earth; this 4th of July we proudly celebrate our declaration of independence from the tyranny of a mad Brit King. It was a victory that appeared extremely improbable at best ‐ but the British were defeated. Defeated militarily, but not monetarily. For soon after the Constitution was ratified, in 1791 the 1st Bank of the United States, a privately owned and privately controlled central bank was put through Congress by Treasury Secretary Alexander Hamilton, modeled on the private Bank of England. The gang around that bank were more dangerous than King George the 3rd; and the Hamilton people thereby insinuated into the New World forces representing the most evolved secular form that evil had attained in the Old World. Thanks a lot Hamilton!

Stephen Zarlenga, American Monetary Institute 4/7/10 (See AMI report on World News page)

THE SPECTRE Britain, like several other countries in Europe, is in dire financial straits. Its budget deficit rivals that of Greece. The spectre of a sovereign debt issue hovers over it just as it does Greece and Spain.

British think‐tank Policy Exchange believes net public sector debt, combined with public sector pension liabilities, brings the total amount owed by the Government to £1.854 trillion, or 150% of GDP. There can be no doubting the seriousness of the situation.

Otago Daily Times editorial, 26/6/10

(Item supplied by Colin Weatherall)

See feature page: ‘World Collapse Explained in 3 Minutes’

HORNET’S NEST The NZ Ministry of Health are setting up a task force to counter all opposition to fluoridation.

They state they are doing this in response to The Far North decision not to fluoridate Kaitaia and Kaikohe and the split vote in Kapiti. The task force will push fluoridation in the unfluoridated parts of New Zealand and act as a mobile unit that can spring into action whenever fluoridation is threatened in any part of the country. They are also to monitor all major anti‐fluoride sites in New Zealand and any letters to the editor etc. The task force will "build arguments" to counter anything said. This will cost the NZ taxpayer a few hundred thousand dollars a year, every year, until fluoridation is stopped.

Mary Byrne, Fluoridation Action Network NZ 4/7/10

Footnote from Mark Atkin: Remember Ghandi's quote: "First they ignore you, then they laugh at you, then they fight you, then you win.”

NZ TOO At almost 90% of GDP, New Zealand’s external liabilities are similar to those of Spain, Ireland, Portugal, Hungary & Greece. The sheer size of servicing our obligations will become an intolerable burden to the country.

Otago Daily Times editorial, 28/6/10

BABBLE The 2010 New Zealand Association of Economists Annual Conference in Auckland featured an address entitled: “Initial Analysis of the Impact on Different Firm Size Class Methodologies on Quarterly and Net Gross Flow Statistics”.

PRESERVING JOURNALISM In New Zealand, Fairfax, APN, TVNZ and MediaWorks cut staff, including journalists. The effect on journalism has become obvious. In future, these organisations may need to be

sustained not by dividend‐seeking investors but by trustees whose function is to preserve and promote journalism in the public interest. The Irish Times Trust Company's memorandum of association provides a good example. It requires an editorial policy that promotes constitutional democracy expressed through freely elected government; social justice and non‐discrimination; arts, education, culture and recreation; Christian values, free from all religious bias and discrimination; peace and opposition to all forms of violence and hatred; and international understanding.

Gavin Ellis, former editor‐in‐chief NZ Herald. (NZ Listener 28/8/10).

AXED In the earliest days of democracy in Greece, a large axe was hung on a wall in the town square to remind their chosen representatives of the consequences if they did not worthily represent the people in the halls of power. It's an idea that has increasing appeal.

David Tranter, Westport News 24/5/10

WHEN WILL WE EVER LEARN? It would be easy to subside into despair as we see the greatest economic crisis of most lifetimes ‐ a crisis brought about by manifest and egregious errors of policy and understanding ‐ come and, hopefully, go without apparently disturbing the simple Bryan Gould certainties of a self‐ serving orthodoxy that should surely have been discredited. If, at this precise moment, govern‐ ments cannot learn lessons and strike out in new and better directions, what hope is there of a better future? We must hope that the lessons will not be driven home all over again by an almost immediate relapse into a double dip recession, brought about by the failure to recognise what went wrong in the first place and what must be done to correct it. In the meantime, we must equip ourselves with the knowledge and the arguments to carry the debate to those who are reluctant to listen. We should ensure that the lessons are so clear that they cannot be ignored.

Extract from ‘When Will We Ever Learn?” by Bryan Gould, Foreign Control Watchdog, August 2010

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Guardian Political Review, Issue 59, 2010 - Page 27

Conference 2010 - a seismic event!

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3 Photos: (1) Leading from the front: Stephnie de Ruyter.

(2) Barry Pulford enjoying proceedings. (3) Melva Butterfield shares a moment with Jeremy Noble.

(4) Screen check: Margaret Cook and John Pemberton.

(5) Delegates listen to new President David Wilson.

(Photos by Les Port and Colin Whitmill)

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