Guardian Issue 63

The Guardian Political Review Produced by the New Zealand Democratic Party for Social Credit Inc. Issue No.63

Winter 2013

ISSN1176-614X

IN THIS ISSUE

"Well done everyone" Money has to serve - not rule We hold these truths AND NEWS, REVIEWS, FEATURES & MORE

The Guardian Political Review

Issue 63, Winter 2013

Produced by Guardian Publishing on behalf of the N.Z. Democratic Party for Social Credit, PO Box 5164, 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 We hold these truths

In his book Straight from the Shoulder, John Kennedy, the late editor of the Catholic publication The Tablet said: “It is a fundamental principle of Catholic social teaching that economic institutions and systems must be seen in relation‐ ship to man and his eternal end.”

According to John Kennedy: “The writings of Major Douglas, the founding prophet of Social Credit, saw the Socred monetary system as a means by which man would be enabled to develop to the full his intellectual, moral and religious aspects; he saw economic security as essential for the establishment of this individual freedom.”

Pope Francis has issued a strong call for world financial reform, declaring that “Money has to serve, not to rule”. In an impassioned appeal, the pontiff said politicians needed to be bold in tackling the root causes of the economic crisis.

This message has spread worldwide and will be heeded particularly by the 1.5 billion Catholic Church members.

More good news is that Democrats for Social Credit has met the Electoral Commission's annual membership criteria – a significant achievement for a Party not currently repre‐ sented in Parliament. Its members will continue to promote its values, as they have done for the past 60 years. Currently, they have been active and influential in the campaign against compulsory medication (fluoridation) and in presentations on economic justice to councils throughout the country.

DSC leader Stephnie de Ruyter says we don’t need to sell off our assets or borrow massive sums to build and maintain essential infrastructure. The alternative is legal and cheap.

It isn’t current government policy, but it needs to be.

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 1 - Front Cover

13 - The Gala Plan

2 - Editorial

14 - OPR + Adrian Bayly

3 - Leader's Message 4 - Conference + DSC Executive

5

15 - PPP Delusion

7 Giant leap?

16 - Obituaries

5 - Pope Francis

17 - Mail

6 - Katherine Ransom

18 - Media

7 - Fluoridation - Hamilton

19 - Whitmill's World (1)

Money has to serve - not to rule

8 - Debt

10

Warning

9 - DSC Council Submission

8 Well done everyone

20 - Whitmill's World (2) 21 - Whitmill's World (3)

10 - Prince Charles + Review

22 - News Bites (1)

11 - David Tranter

23 - News Bites (2)

12 - World News

Guardian Political Review, Issue 60, 2013 - Page 2

22

Fraud?

24 - Back cover

We hold these truths

By Stephnie de Ruyter Leader, Democrats for Social Credit

Contrary to the view held by many “mainlanders”, themselves on the outer, further disadvantaged.

Auckland is not another country.

Alternatives exist and demand consideration. The st Auckland is a rapidly growing 21 century super‐ historic precedent for direct government funding of city struggling with transport infrastructure infrastructure shows the way forward. In New designed to meet last century’s requirements.

Zealand we have built roads, bridges, hospitals, Transport infrastructure is the life‐blood of an schools, houses, and even industries without economically diverse, modern city. It’s essential. recourse to taxes, charges, tolls, rates, PPPs, or overseas debt.

There is no doubt that public transport and roading solutions are needed in Auckland: this is We don’t need to sell off our assets or borrow reflected in the many comprehensive plans massive sums from foreign bankers in order to pay submitted by various groups in response to the for building and maintaining essential infrastructure Government’s proposals for $68 billion in transport – whether it’s in Auckland, Wellington, Christchurch spending over the next thirty years. The really big or anywhere else. question is how to pay for it. How It’s legal, it’s cheap, It makes sense to do what we’ve much should be borrowed? How will successfully done before: use the and it’s ours the estimated $12‐15 funding gap for Reserve Bank of New Zealand to make Auckland projects be filled? Should all Kiwis pay, or interest‐free loans available to the Government for just Aucklanders? major capital works. It’s legal, it’s cheap, and it’s The Consensus Building Group’s report identifies affordability as the key issue, as well it might given that the range of options put forward to meet the funding shortfall predictably follow the punitive user‐pays mantra.

A hefty rates increase has been mooted, which would have devastating impact on the already unaffordable Auckland housing market.

The proposed imposition of a network of road tolls and charges is supported, surprisingly, by the National Carriers Association.

There has even been a short‐sighted suggestion that all “unnecessary” roading projects could be cancelled.

A “user‐pays” approach is not a fair solution.

Recent experience here has shown us that those who can pay, use. Those who can’t pay find

Guardian Political Review - Issue 63, 2013 - Page 3

ours. It isn’t current government policy, but it needs to be.

The Government has a real and present opportunity to show political leadership by recognising the value of using credit as a public utility (social credit) to rebuild the economy by financing infrastructure investment. Auckland could have all the tunnels, bridges, roads, rail, and cycle‐ ways its growing population needs. And the Government’s share of the Christchurch rebuild costs could be met the same way.

‘As Thomas Edison once observed, the govern‐ ment could as easily spend interest‐free money into circulation for such purposes as sell bonds to banks then borrow the money back as an addition to the public debt’ – We Hold These Truths, Richard C. Cook.

Democrats for Social Credit Party 2013 Annual Conference All members and supporters are invited to attend this year's annual conference at the Elms Hotel, Papanui Road, Christchurch.

Conference opens with the AGM at 9.00am on Saturday 21st September and concludes at 3.00pm on Sunday 22nd September.

Registration forms available on request from your regional president or the conference secretary at conference@democrats.org.nz

Democrats for Social Credit Executive Contacts Leadership: Leader Stephnie de Ruyter PO Box 5164, Invercargill 9843 Ph/Fax; 03 215 7170 Mobile 027 442 4434 Email: democrats@democrats.org.nz Email: stephnie.deruyter@democrats.org.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

Auckland Region Neville Aitchison PO Box 113126, Newmarket, Auckland 1149 Mobile: 021 987 338 Email: neville.aitchison@democrats.orq.nz Waikato Region Murray Belchamber 26 Olwyn Tce, Dinsdale, Hamilton 3204 Ph 07 848 1895 Mobile 027 229 7883 Email: murray.belchamber@democrats.org.nz Email: mandej@slingshot.co.nz Eastern Region Barry Pulford 17 Caernarvon Drive, Flaxmere, Hastings 4120 Ph 06 879 9497 Mobile 027 288 5658 Email: barry.pulford@democrats.org.nz Email: brp51@xtra.co.nz Western Region Heather M. Smith 8 Darwin Street, Gisborne 4010 Ph/Fax 06 867 6668 Email: heather.smith@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

Wellington Region (acting) Errol Baird 102 Wainuiomata Rd, Lower Hutt 5014 Ph 04 564 4183 Email : errol.baird@democrats.org.nz Email: edbaird@xtra.co.nz

Northern Region & North Shore Chris Leitch 42 Reyburn House Lane, Whangarei 0110 Ph 09 430 0089 Mobile: 021 922 098 Emafi: chris.leitch@democrats.org.nz Email: chris@instepdance.co.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

Guardian Political Review, Issue 63, 2013 - Page 4

Southern Region Hessel van Wieren PO Box 149, Cromwell 9342 Ph: 03 455 1389 Mobile: 027 441 6089 Email: hessel.vanwieren@democrats.org..nz Email: h.vanwieren@yahoo.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 Committee Convenors: Finance Committee Ken Goodhue PO Box 6028, Otaika, Whangarei 0147 Ph: 09 430 3826 Email: ken.goodhue@democrats,org..nz Email: kenandvalerie@xtra.co.nz Policy Committee (acting/interim) John Pemberton (refer Deputy Leader's entry for details).

Constitution Committee Neville Aitchison (refer Auckland Region President's entry for details)

Pope calls for financial reform "Money has to serve, not to rule" Complied from the Guardian (UK) and Otago Daily Times 18/5/13

Pope Francis has issued a strong call for world financial reform, condemning a heartless "dictatorship of the economy" and saying the economic crisis had made life worse for millions in rich and poor countries.

The Pope said the root causes of the economic crisis lay in acceptance of money's power over society.

Pope Francis said the root causes of the economic crisis lay in acceptance of money's power over society

forged from his experience with the poor in Latin America.

Francis, who has said he wants the 1.2 billion‐member

"Money has to serve, not to rule," he told ambassadors in the first major speech about finance since his election in

Catholic Church to defend the poor and be more austere itself, urged more state control over economies.

March in which he also urged states to take greater control of their economies and protect the weakest.

"While the income of a minority is

There was a "need for financial increasing exponentially, that of the reform along ethical lines that majority is crumbling," he said. would benefit everyone"

The economic crisis had created fear

"This imbalance results from ideologies

and desperation, diminished joy of life and increased violence

which uphold the absolute autonomy of markets and financial

and poverty as more people struggled to get by in

speculation, and thus deny the right of control to states,

"undignified" ways, the Pope said.

which are themselves charged with providing for the common

Pope Francis hit out at unbridled capitalism and the "cult of money", calling for ethical reform of the financial system to create a more humane society.

There was a "need for financial reform along ethical lines that would produce, in its turn, an economic reform to benefit everyone", he said.

"We have created new idols. The worship of the golden calf

good," he said.

Speaking of financial markets he said: "A new, invisible and at times virtual tyranny is established, one which unilaterally and irremediably imposes its own laws and rules."

Attacking unchecked capitalism, the pope said the growing inequality in society was caused by "ideologies which uphold the absolute autonomy of markets and financial speculation,

of old has found a new and heartless image in the cult of

and thus deny the right of control to States, which are

money and the dictatorship of an economy which is faceless

themselves charged with providing for the common good".

and lacking any truly humane goal," he said.

The reference was to the Book of Exodus in the Bible, when

The Pope's comments add to growing expressions of concern about a global economic malaise that has left millions

the Israelites worshipped a golden calf while Moses was at

out of work or hanging on to insecure, short‐term jobs.

the top of Mount Sinai receiving the Ten Commandments.

In an impassioned appeal, the pontiff said politicians

While Francis' predecessor Benedict also called for changes

needed to be bold in tackling the root causes of the economic

in economic systems, he did so in often dense intellectual

crisis, which he said lay in an acceptance of money's "power

language. Francis seemed to be expressing personal views

over ourselves and our society".

Guardian Political Review - Issue 63, 2013 - Page 5

Why people don’t vote

By Katherine Ransom, (Vice‐President, DSC)

Compared to the number of people registered and eligible

The recent television campaign to sell shares in Mighty

to vote, the number of people who actually cast a vote drops

River Power, with its tag line “You can own a share” is the

at every election.

latest irony. We, the public, already own Mighty River! When

When asked why they don’t vote, many people will say, “It won’t make any difference to the outcome, so why bother?”

shares are sold off to private individuals, we will own less of it.

If you were one of the working poor,

So the question is: why do more and more people feel this way, compared to thirty

and you saw your power bill, your phone

years ago when voter turnout was high?

bill, your rates or rent, your food costs and your doctor’s bills go up faster than

The answer may very well lie in economics. Thirty years ago, the social

your pathetic minimum wage, would you

welfare system was still operating well,

be encouraged to vote for one of the

ensuring that real needs were met and the

parties in Parliament?

large corporations who are paid obscenely

supporting alternative political parties,

If you saw your power bill, your Would you vote for the people who most vulnerable were cared for. With the phone bill, your rates or rent, your food costs and your doctor’s bills have been running the country for the neo‐liberal dismantling of many of our go up faster than your pathetic last thirty years, taking from the poor social safety nets, the proportion of people minimum wage, would you be living below the poverty line has grown, encouraged to vote for one of the and giving to the rich? I don’t think so. parties in Parliament? alongside the increasing number of CEOs of There could be an argument for high salaries and bonuses.

Right now, a quarter of our children live below the poverty

who promote other ways of running the country. However, until those parties are given equal funding and equal media

line, and many of these go to school hungry. Successive

attention, so that they can compete with the Big Two and

governments, even those led by ‘leftist’ Labour, have whittled

other parties in Parliament, who all use established resources

even more from the social benefits that supported the aged,

to promote candidates at election time, there will continue

the sick and the unemployed. State‐owned assets were sold

to be a fall off of turnout on election day.

off, and continue to be sold off, to private owners, so that the

Alongside present skewed political party funding that

prices of essential services such as power, water and

freezes out smaller parties, there is the unjust, deeply

telecommunications continue to rise for the benefit of

unequal economic system that drives more and more people

shareholders. The poor and elderly suffer chronic health issues

into poverty.

due to poorly heated homes.

The user pays policies of the last 30 years has increased the

Poor people don’t have the time or energy to care about politics – all they see or hear is the same old rhetoric from

gap between rich and poor exponentially. Weasel words such

the same old political hacks. It is really not surprising that

as ‘individual responsibility’ and ‘efficiency’ are just thinly

fewer and fewer vote.

disguised excuses for enriching the already rich and robbing more and more ordinary people of their birthright – an ownership stake in the country.

Guardian Political Review, Issue 63, 2013 - Page 6

What is surprising is that so many who have lost so much still believe in our ‘democracy’.

Fluoride to be removed from Hamilton's water supply Published: 4:12PM Wednesday June 05, 2013 Source: ONE News After four days of submissions, Hamilton City Council has voted overwhelmingly to remove fluoride from the city's water.

A council tribunal today voted 7‐1 to stop the practice of adding fluoride to the public water supply from no later than June 21 when stocks run out.

Hamilton has been adding fluoride to its water since the 1960s.

Mayor Julie Hardaker said "potential and perceived risks" from fluoridation were raised at the tribunal. She felt a telling statistic was that of the 220 litres of water a day used by the average Hamilton person, only about two litres was consumed and the rest went to the wastewater system.

Deputy Mayor Gordon Chesterman said he was not satisfied fiuoridation had achieved benefits "beyond reasonable doubt".

He urged the Government to crack down on sugar‐laden drinks,

which many tribunal submissions linked to dental decay, suggesting they be taxed like alcohol and tobacco. He noted only 23 of 67 New Zealand councils still added fluoride as public opinion was changing.

The vote was greeted with applause from people in the public gallery.

How the money saved by removing fluoride is used wil! be discussed at the Annual Plan deliberations tomorrow.

Hamilton joins a growing number of communities that have voted to reduce or eliminate fluoridation, including New Plymouth, Central Hawke's Bay, Dunedin and Tauranga.

Footnote: Whakatane and Hastings are holding referenda in conjunction with the 2013 local body elections. Palmerston North have set aside $10,000 to look into the issue and Kapiti Coast District Council have decided to consult residents, although no date has yet been set. Thames‐Coromandel District Council is also in communication with the Ministry of Health asking for a guarantee of safety for all people at all times.

Group aims for total fluoride ban

By James Ihaka Otago Daily Times • Friday, June 7, 2013

A group that helped convince the Hamilton City Council to remove fluoride from its water supply says it will continue lobbying other councils throughout New Zealand to do the same.

Fluoride Action Network New Zealand (FANNZ) spokeswoman Mary Byrne praised Wednesday's Hamilton City Council special tribunal decision that voted 7‐1 in favour of removing fluoride from the city's water

supply by June 21.

swallowing."

"Those councillors did not have an axe to grind and they have proved to be very brave considering the way some of the media have been treating them." Ms Byrne said.

Ms Byrne said other cities throughout New Zealand were discussing the removal of fluoride from their water supplies and her organisation would "definitely" be a part of their conversations.

"They have listened to all the evidence ‐ we had doctors, dentists and scientists and an oncologist telling us about the harm from fluoride and we all agreed it doesn't work by

Just 22 of 67 councils throughout New Zealand still used fluoride as an additive in water supplies.

Well done everyone By Mary Byrne, FANNZ The Hamilton win has the pro‐fluoridation camp shaking in their boots. They know, like we do, that fluoridation must now be on its way out. Therefore, they are throwing everything they can at us including a media campaign of labelling us "nutters". They are trying to scare councillors in the remaining fluoridated areas not to take any further action lest they be ridiculed too.

I have to admit, I did not realise the media would be so vicious so I take my hat off to the Hamilton city councillors for putting truth and the wellbeing of their community above all else.

But after sitting through the Tribunal it was hard to imagine that the councillors could vote any other way. We had great professionals for our primary presentation at the start, throughout the Tribunal and for the Summation at the end. Our team was far more professional and far more expert in health.

And every one of the wonderful individual presentations were superb.

One that stands out for me was a young teacher who had a $1000 filter installed in his home to protect his family and his words were "I cringe when I see the children at school drinking the water".

DSC member Carolyn McKenzie (front left) with other campaigners celebrating the decision

The pro‐fluoridation side spent most of their time talking about dental health rather than fluoridation and they thought the councillors should just believe them because they worked for DHB or MoH. But they could not produce one shred of evidence that fluoridation is safe which is not good enough when there is a growing mountain of evidence pointing to harm. And since they agree that the primary benefit is topical (i.e. has to be applied to teeth) it is now absurd to continue.

After the 21st of June 2013 Hamilton will no longer have dangerous hydrofluorosilicic acid added to its drinking water. Well done everyone.

Guardian Political Review, Issue 63, 2013 - Page 7

Growing debt levels cause for concern New Zealand has gross debts of more than $79.6 billion with a forecast, by the year 2017, of $93.9 billion, which represents a total of 36.6% of our GDP. This is a staggering figure. We do not have the ability as a country, due to our size and access to limited resources, to even reduce let alone pay off this debt. No government in our history since the interference of the IMF and World Bank has had a long‐term solution to combating this plague of debt; by 2017 a debt that will equate to approximately $20,000 per person living in New Zealand. How do we stop this? How can we ever hope to pay off this debt? Unfortunately, no finance minister or any amount of government economic rhetoric with short‐term ambition is ever going to solve this matter.

Rob Stewart, Otago Daily Times 10/7/13 All is not well with the NZ economy, despite the Finance Minister believing the country is envied by others for its financial position.

New Zealanders are continuing to rack up debt despite two decades of government agencies telling us it is bad and experts say the result will be generations of debt to come.

How are you going to pay your debts? The Neison Mail reported "Household debt has increased six‐fold in the last 20 years and New Zealanders had collected $5.6 billion in credit card debt by January this year. The interest payments on this will add up to over $600 million this year aione with kiwis saddled under a total of $13 billion of consumer debt ‐ aside from housing."

Individuals are accumulating debts wherever they go. There's student debt, house mortgages, car loans and debts for big house‐ hold items, as well as any tide‐me‐over debts from loan companies.

Professor Michael Hudson, a former Wall Street financial analyst, and now research professor of economics at the University of

Missouri‐Kansas City, said: "there are three sources that a government can borrow from. They act as if the only source is borrowing from the capital markets ‐ from the banks and the bondholders. But the government can borrow from the Federal Reserve, (NZ Reserve Bank) no interest whatsoever, and simply create the money. That's what it's done for the $13 trillion of bail‐ out that it's given Wall Street” (and what the NZ Reserve Bank did for the Aussie‐owned banks).

If New Zealand owned its own money supply, financial costs would be reduced. Mortgages would be restricted by the ability to repay, without high interest charges, and even the monetary authority might be able to help pay off current outstanding mortgages. Everything is financially possible.

Debt could be on the way out.

Michael Clatford, DSC political commentator Edited extract from www.democrats.org.nz (July 2013)

Auckland pays interest of $1 million per day?

A media item states that the Auckland Council 2013 Pre‐ election Report shows "Net interest on Council debt at 20% of annual rate revenues". The item claims, given that current debt totals around $6 billion, at a 5.75% interest rate this is a payment to the banks of just under $1 million per day. www.whaleoil.co.nz 19/7/13

Debt reaches to the moon and back ‐ $3,000,000,000,000 in 1987 ‐ and still counting The huge United States Government debt is the real problem facing the world economy and now amounts to $US3 trillion, Mr Jim Cowan, chief economist of Monitor Money Corporation Ltd., told a seminar in Auckland.

Nor does the $3 million million debt include personal and corporate borrowing. But how does one grasp the magnitude of such a sum? Mr Cowan said if 100 United States notes were compressed in a vice to make a wad one centimetre thick, a trillion notes treated this way would make a pile 100,000 kilometres high ‐ or a quarter of the distance to the moon.

Represented in this way, the United States debt would reach three‐quarters of the way to the moon.

It took the United States Government 204 years to get to its first trillion dollars of debt, Mr Cowan said, eight years to its second and three years to its third. The debt was increasing at a rate of about a trillion dollars a year. It would take 1000 bank tellers working 24 hours a day for 30 years to count them.

A world economic depression appeared to be the logical outcome of the American debt situation. (Reprinted from the Guardian Political Review, Issue 55) Footnote: This item was published by the NZ Herald in 1987 ‐ over 25 years ago. US debt today has risen to over $17 trillion ‐ enough to reach the moon and back several times!

Guardian Political Review, Issue 63, 2013 - Page 8

One Giant Leap for Mankind?

SUBMISSION ON DRAFT ANNUAL PLAN April 2013

From: Democrats for Social Credit www.democrats.org.nz Written by Heather Marion Smith, B.A.,Dip.Soc.Sci.[Econ.] , DSC Western Region President

"...we will always seek to support and promote policies that strengthen local democracies and communities, regardless of the party putting them forward".

Eugene Bowden, CEO Local Govt. NZ (letter to Justice & Electoral Committee, 6/9/07)

Wanganui District Council: The seeds of rates revolt have been sown in Wan‐ ganui, writes Heather Marion Smith. Photo & caption Wanganui Chronicle 13/5/13

Local Government New Zealand holds its 2013 Conference this July in Hamilton. The chosen theme is "Transforming Communities ‐ building a successful New Zealand". Undoubtedly there will be much discussion on proposed mergers and boundary changes ‐ but if these are expected to result in significantly reduced costs, ratepayers are likely to be disappointed. LGNZ must take an honest, in‐depth look at council debt, and who profits from it, if progress is really on the agenda.

Around the globe there are more and more voices from academic economists demanding that sovereign governments fund essential capital works from their own credit‐creation rather than from private financial institutions. In this country we can not only cite historical precedence for central bank funding but also empowering legislation in Part 6 of the Public Finance Act and elsewhere. We refer to the state houses, bridges and roads constructed by the first Labour (Savage) Government plus the multi‐billion dollar facility provided to the major banks to ease them through their liquidity crisis following the 2008 meltdown.

We note that the Minister of Finance has very wide discretionary powers in the Public Finance Act, provided they are used in the public interest. Last December the Local Government Funding Agency (LGFA) was established after unanimous support from all parties currently in Parliament. Ostensibly, the purpose of the Agency is to assist councils to borrow at a slightly reduced rate of interest. The real intention is to "deepen the capital markets" ‐ surely not the responsibility of territorial local authorities and certainly not a way to fulfil the "sustainability" objectives espoused by most councils ‐ when a sustainable method of capital funding is available by law.

Although councils valiantly attempt to keep rate increases within inflation, their advisers avoid explaining that rising rates themselves add to cost‐push inflation. Better for councils to pursue actual rate reductions (a) by refusing to collect the GST and (b) by insisting on credit‐lines being opened with the Reserve Bank of New Zealand.

With the resultant increase in disposable income communities would have the ability to invest in and purchase from locally and nationally owned businesses and farms, instead of the dangerous dependence we are experiencing on foreign investors in land an industry.

Democrats for Social Credit therefore urge Councillors to instruct their delegates to Conference to call on Local Government NZ to charge the Minister of Finance to arrange interest‐free credit‐lines (or loans) with our sovereign bank, the Reserve Bank of New Zealand for the purpose of funding essential capital works (e.g. the provision of potable water and environmental protection) ‐ with repayment schedules negotiated according to the socio‐economic profiles of the communities involved.

Secondly, we ask LGNZ to advise Government that the Goods and Services Tax on rates is unfair and unnecessary. Instead there should be a small turnover tax (say 1%) on the Stock Exchange (NZX) and the debt market (NZDX), a move which would have the salutary effect of reducing the volatility of those markets.

(END) Guardian Political Review - Issue 63, 2013 - Page 9

Reducing rates Good for Grey Power. Their recent petition should really impress on Wanganui's councillors that the seeds of a rates revolt have been sown — unless there is some enlightened thinking. Not that keeping rate rises down is the answer — rather, it is actually reducing the rates, and without losing services. That's the message in the Social Credit submission to council, heresy though it may be!

Grey Power used to have — maybe still has — a policy that would reduce rates very effectively. It is for councils to scrap the GST on rates — that tax on a tax which increases proportionately each time there is a rate rise. All the Minister of Finance has to do is pass an order in council abolishing this unfair tax and replacing any lost revenue with a one cent in the dollar levy on the NZDX financial turnover.

Several councils in Britain are now demanding their own Govern‐‐ ment implement what is popularly known as the "Robin Hood" tax (www.robinhoodtax.org.uk).

Another rate‐reducing tool is for the Government to invoke the Public Finance Act and its amendments, which give wide discretionary powers to the Minister of Finance to borrow from any source, and on any terms thought fit, in the public interest.

It means he could arrange interest‐free credit lines for councils with our state‐owned Reserve Bank. This legislation was passed by Labour‐led governments and endorsed by National, but MPs are overcome with timidity when asked to use it. Yet none of the parties squealed when a multi‐billion dollar facility was given to the major banks to help them cope with the credit crunch. No one cried "Inflation!".

So Grey Power could perform a great service by insisting on economic justice for ratepayers – at least rid us of that iniquitous GST. Heather Marion Smith, Gisborne Wanganui Chronicle 13/5/13 Footnote: the submission was mailed to 25 councils. Heather Marion Smith reports that this resulted in "very pleasant, even friendly, receptions from council staff and, so far, some positive feedback".

Verbal submissions have been made by the following DSC members: Kevin Steele (Rotorua District), Stuart Shaw (Ruapehi District).

Richard (Dick) Ryan (Napier City and Hastings District) Jason Todd (Wanganui District) Malcolm Murchie (Kapiti Coast District), Ron England (Wellington City), Adrian Bayly, (Tasman District) John McCaskey (Hurunui Distrlct), Hessel van Wieren (Central Otago District) Warren Voight (Dunedin City) Margaret Cook (Invercargill City)

COMMENT

It's a very dangerous game

Britain's Prince Charles has written an article calling on people to act before the planet reaches "catastrophe".

The Prince of Wales penned a piece in the latest Spear's magazine ‐ which has been guest edited by Ben Goldsmith ‐ in which he states his concerns about globalisation and his worries about what is going to be done about Earth's issues.

He wrote: "J was quoted recently as saying I am desperately impatient. Well, I am. We should all be. We are rapidly running out of time to adopt an approach that reduces our impact on the Earth's capacity to sustain us all.

"It is not just climate change we have to deal with; it is a multitude of factors — resource scarcity, energy security, food security, unsustainable population growth and globalisation. These pressures all render 'business‐as‐usual' an impossible option."

Charies compares nature with the big worldwide banks and insists people are playing a "very dangerous game" by failing to act on worldwide issues.

He added: "It must be acknowledged that by pursuing economic growth as if it were an isolated goal, we have done alarming damage to nearly every element of the natural world," he writes. "We are living off the Earth's natural capital rather than the income derived from that capital. Unfortunately, there is no global CFO to keep us in check.

"So we sit by and watch as the biggest bank of all — Nature itself— heads towards catastrophe. Over‐dependence on fossil fuels, over‐fishing, over‐stretching the capacity of the soil, rapid and unsustainable population growth: you name it, we're at it.

"And it's a very dangerous game."

Extract from a review by Bernard

REVIEW

Modernising Money is a thoroughly researched and very timely investigation into the way money is created, managed and circulated by our commercial banks. Unlike many analyses of what is wrong with the current system however, it also offers very well thought through and workable solutions. As the Governor of the Bank of England is quoted as saying in October 2010: "Of all the many ways of organising banking, the worst is the one we have today."

To know what needs to change in our current system requires us to understand how it is operating today. Since the world of finance is highly complex and seemingly beyond the grasp of ordinary mortals this is no easy task. But, as this book demonstrates every detail of the way money is created and circulated can be easily understood. This book explains in simple language how money is created and who controls it.

In tracing the historical development of money and banking from classical times right up to modern Britain, the authors present a very clear picture of each new step that was taken.

They describe how and when the Bank of England was established, what its original remit was in the 17th century and how this gradually evolved during the course of the Industrial Revolution and beyond.

The working of the current banking system is clearly described as are the problems that it causes.

Having carefully analysed and assessed the problems in our banking system in the first half of the book, the authors then offer a series of credible and relatively easy to introduce reforms that would radically alter the way banks operate. To achieve these aims some simple reforms are proposed that can be implemented without starting completely from scratch.

These are described in a step by step and easily understandable way.

Modernising Money ‐ why our monetary system is broken and how it can be fixed

By Andrew Jackson & Ben Dyson 336 pp. Price: £14.99.

Published by Positive Money www.positivemoney (free download).

Guardian Political Review, Issue 63, 2013 - Page 10

Each of the clearly defined objectives are addressed in turn down to the smallest detail.

Given the political will the whole reform could be easily and immediately implemented.

As well as offering real solutions to current problems this book promises to be an important and easy to read textbook on economics that deserves to become a key resource work for all students of economy.

About the Authors: Andrew Jackson is Head of Research at Positive Money. He previously co authored "Where does money come from? A guide to the UK monetary and banking system" Ben Dyson has spent the last 5 years researching the current monetary system and understanding the impacts it has on the economy and society as a whole. He is the founder and director of Positive Money, a not‐for‐profit organisation dedicated to raising awareness of problems with our monetary system.

Iniquitous agendas

By David Tranter

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

I

had intended writing a cheerful article for this issue centred on the wonderfully inspiring Fred Hollows biography I read recently ‐ but other issues with distinctly sinister undertones (overtones?) have emerged in recent weeks so I will have to save Fred for a future occasion. But I can't help mentioning how I smiled at the splendid way Fred and his colleagues used to treat bureaucratic interference with cavalier contempt and just got on with what needed to be done ‐ an approach which is ever‐increasingly more needed in an age when pseudo‐managers with utterly inappropriate qualification and experience are now dictating how health professionals have to work.

forces to be used against New Zealand citizens challenging the oil exploration companies”.

Is this a democratic country ‐ or some tinpot dictatorship of the sort that New Zealand politicians rail against at world forums? It is bad enough that politicians fall over themselves to allow the tragic consequences which will inevitably follow upon allowing the oil giants to overstep the safety boundaries in their insatiable lust for bigger profits ‐ but it is an equally horrendous development to use the armed forces to deny New Zealanders the right to protest while also lining up, “massive fines and serious jail time”. I hope there is some opposition growing to this agenda.

Meanwhile, it's back to the dark side of New Zealand politics, firstly the rumblings starting in New Zealand as My third issue concerns the horrific conse‐ Is this a democratic country regards the outrageous "solutions" circulating quences of botched surgery on a patient at Grey overseas whereby when banks fail their or some tinpot dictatorship? Hospital a year ago which is still causing the depositor's funds are to be stolen in order to victim dreadful suffering and requiring on‐going bail out the banking moguls. treatment. Those of you who saw the TV3 account (29 May) of Jo I quote from Section 3 of a “consultation document” written by Kevin Hoskin of the Reserve Bank of New Zealand; “Recent international developments in the field of bank resolution have focussed on enhancing authorities’ capacity to respond and resolve large or systemic failures without straining fiscal resources. …….Some governments that chose to guarantee their banking system’s liabilities are now faced with a sizeable public debt burden. The alternative is to make bank shareholders and creditors shoulder the losses of a failing bank whilst ensuring that the payments system continues to function”.

“Bank shareholders and creditors” are, of course, the banks’ customers/depositors.

So some twerp in the Reserve Bank is proposing that should there be problems similar to those overseas, customers could be robbed in the same way as in Cyprus.

In typically deceitful language it’s called the “Open Bank Resolution” ‐ presumably the “open” refers to opening the depositors’ accounts and nicking whatever the bank thinks it needs to prop itself up.

Contacts tell me that Finance Minister Bill English favours this option should a major bank failure occur. So on 9 May I sent Mr. English the following enquiry: “I understand that you favour the Open Bank Resolution process in the event of a bank failure whereby depositors savings would be used to fund the bank's bail out. Is this your view? If so when are you going to tell the New Zealand public? If not, what approach do you favour in the event of bank failures?"

To date I have not even received an acknowledgment of my letter.

So to iniquitous agenda number 2. It is a tragic fact of life that the fat cats in industry and the politicians who bend the knee to their demands, put profit above all else seemingly unconcerned with the state of the planet they leave behind, even for their own children. In Australia this is seen in the devastating greed of those running coal mining, the gas industry, oil wells and most recently the renewed drive to allow uranium exploration in Queensland after it had been off the agenda for many years.

Now I read in Chris Trotter’s column (Greymouth Star, 2 May) that John Key and his “gung‐ho energy Minister, Simon Bridges” are kow‐ towing to those seeking to drill for oil in “vast strips of New Zealand’s exclusive economic zone”. As part of government smoothing the way for the oil barons/pirates, according to Mr. Trotter Simon Bridges is lining up provisions, “permitting the armed Guardian Political Review, Issue 63, 2013 - Page 11

Partridge’s appalling surgery experience and the attempts by her and husband Scott to extract answers from the DHB will understand why I am acting as advocate for them. Yes, accidents occur in surgery but that Jo received no first aid and in fact had to wait five days following the disaster before anything was done to help her is appalling. Such evasion and attempted cover‐up by the DHB raises the questions being asked by a long‐term campaigner on patient safety, former Grey Hospital doctor, Lasantha Martinus.

Such questions include, how widespread is botched surgery and do patients have any rights at all when things go disastrously wrong? Dr. Martinus has a large dossier of such episodes and is trying to get the authorities to take these matters seriously. He recently expressed Jo Partridge’s experience in these terms; “This was one of many examples where things have gone wrong by attempting to provide medical services by personnel without an appropriate level of training for the task supported by telemedicine. Without appropriate training people don’t know when, what or who to ask for help.

Others victims have gone through the all the existing processes for justice including the Health and Disability Commissioner without acknowledgment of the errors”. Dr. Martinus is far from alone amongst former Grey Hospital health professionals known to me who have either left out of frustration ‐ or were virtually forced to leave ‐ when they attempted to take up issues of patient safety with management.

It is a sad indictment of the corporate management regimes which now dictate how health services are run when the current “programme director” at Grey Hospital, Michael Frampton, has qualifications comprising a masters degree in business administration and a bachelor of arts in political science, with his masters being on “international financial services regulatory behaviour in the post global financial crisis environment”. His career is similarly inappropriate to virtually heading a DHB (the largely‐absentee ceo is in Christchurch) comprising a year as a project consultant for Shell Todd Oil Services, four years as group chief executive of the Gas and Petrochemical Industry Training Organisation and nine years as strategy and corporate relations manager for the Electro‐Technology Industry training organisation.

And this man walks into a top job at a DHB? In all the above I am reminded of a quote by Joe Bennett in his book, A Land of Two Halves; “The planners’ vision does not take kindly to how people are”.

Little wonder when such ill‐qualified and irrelevantly experienced people are supposedly "planning" health services.

WORLD NEWS QE for the People: Beppe Grillo's Populist Plan for Italy

By Ellen Brown, Truthout Beppe Grillo was surprised himself when his Five Star Movement got 8.7 million votes in the Italian general election of February 24.

His movement is now the biggest single party in the chamber of deputies, says The Guardian, which makes him "a kingmaker in a hung parliament."

Grillo's is the party of "no." In a candidacy based on satire, he organized an annual "V Day Celebration". He rejects the status‐ quo ‐ all the existing parties and their monopoly control of politics, jobs and financing ‐ and seeks a referendum on all international treaties, including NATO

membership, free trade agreements and the Euro.

 Unilateral default on  the public debt

"If we get into parliament," says Grillo, "we would bring the old system down, not because we would enjoy doing so, but because the system is rotten." Critics fear, and supporters hope, that if his party succeeds, it could break the euro system.

Nationalization of the   banks

Steve Colatrella, in an article in Counterpunch, says Grillo does have a platform of positive proposals. Besides rejecting all the existing parties and treaties, Grillo's program includes the following:

 A guaranteed  "citizenship" income of 1000 euros a month

Beppe Grillo

It is a platform that could actually work.

Austerity has been tested for a decade in the eurozone and has failed, while the proposals in Grillo's plan have been tested in other countries and have succeeded.

European Union approves Financial Transactions Tax The European Union has agreed that 11 European countries, including the biggest economies Germany and France, can set up a financial transaction tax to make the banks pay for the financial crisis they created.

The volume of national support to the financial sector between October 2008 and 31 December 2011 amounted to around 1.6 trillion euros (13% of EU GDP), two‐thirds of which came in the form of

State guarantees on banks' wholesale funding.

The European Union financial transaction tax would impact financial transactions between financial institutions, charging 0.1% against the exchange of shares and bonds and 0.01% across derivative contracts.

This proposal was approved in the European Parliament in December 2012, and by the Council of the European Union in January 2013.

A lesson from history From American Monetary Institute www.monetary.org

This 4th of July as we proudly celebrate our declaration of independence from the tyranny of a mad Brit King, let's remember the victory a small group of dedicated, courageous men and women achieved against the world's most powerful military of their time.

It was a victory that appeared extremely improbable at best, as they pledged their lives to fight for its success. And as events and battles were fought, the possibility of a favorable outcome grew even smaller. But at the right moment, help from France turned the tide and the British were defeated.

Defeated militarily, but not monetarily.

For soon after the Constitution was ratified, in 1791 the First Bank of the United States, a privately owned and privately controlled central bank was put through Congress by Treasury Secretary Alexander Hamilton, modelled on the private Bank of England.

The gang around that bank were more dangerous than King George the Third; and the Hamilton people thereby insinuated into the New World forces representing the most

Guardian Political Review, Issue 63, 2013 - Page 12

evolved secular form that evil had attained in the Old World ‐ a privately controlled Central Bank. Thanks a lot Hamilton!

Jefferson fought the bank, helping to bring it down and Burr killed Hamilton over public insults; but privately issued money had gained a foothold in America. It's still here, in control of our monetary system. It's the root cause of most of our social and economic problems.

Whenever it caused crises in the past, our government had to come to the rescue. It's latest atrocity is the current monetary, banking and economic crisis, threatening to take the entire world economy down into depression, and destroy the lives of billions of people in the process.

It must end now! This crisis gives us our only opportunity to reform our monetary system and…to eliminate using debt for money.

The American Monetary Act (and Kucinich's HR 2990) puts that plan into legislative form (see http://www.monetarv.org)

King George the Third

“The Gaia Plan: A Worldwide Guaranteed Income”

By Richard C. Cook Extract from speech prepared for “Public Banking 2013: Funding the New Economy”. Sponsored by Dominican University and the Public Banking Institute, San Rafael, California. June 2, 2013

My name is Richard C. Cook. I spent 32 years working in Washington, D.C., for a number of agencies, including the Food and Drug Administration, the Carter White House, NASA, and the U.S. Treasury Depart‐ ment. I served at Treasury for over 20 years.

My second proposal was for there to be established a worldwide basic income guarantee whereby a basic subsistence income would be paid to every adult on the planet. I call this the Gaia Plan.

where the money will come from. In particular, please examine carefully what I say about the ideas of British reformer C.H. Douglas, the founder of the incredibly important Social Credit movement that was a powerful force in Great Britain, Canada, New Zealand, and Australia between World Wars I and II. Douglas advocated for the periodic distribution of what he called a National Dividend to monetize the cumulative appreciation of a nation’s productive capacity. Today the Social Credit movement remains of importance. See for instance the Guardian Political Review of New Zealand, which is the publication of the New Zealand Democrats for Social Credit. This magazine is the most intelligent publication of its type in the world. These are people who truly understand money.

I am a member of the U.S. Basic Income I began writing articles on the growing Guarantee Network and have addressed two financial crisis and predicted the crash of of that organization’s national conventions.

I would add that in fact the very smart 2008. The coming of the crash was obvious Those of us who are members of the people who ask where the money will come due to the insanity of unsustainable debt‐to‐ network believe that as a matter both of from never ask where the $600 trillion in equity ratios in the economy. Because when justice and of economic policy, each person derivatives running loose in the world debt reaches a critical mass, which it has in society, usually expressed as each adult, economy comes from. That’s because they done repeatedly during the boom‐bust cycles should receive a free and unencumbered don’t know and maybe don’t care. And Fox of past decades, a crash is inevitable. It stipend sufficient to sustain the basic News doesn’t tell them. doesn’t matter if it’s a merger/acquisition bubble, a dot.com bubble, a housing In fact, that money comes through Today the Social Credit movement remains of bubble, a stock bubble, a gold bubble, the fractional reserve system’s overnight importance. See for instance the Guardian Political a government bond bubble, or a new deposit function that was implemented Review of New Zealand, which is the publication housing bubble. The result is always the through electronic funds transfer of the New Zealand Democrats for Social Credit same. Our economy has been based on following the cybernetic revolution of the inflation and deflation of bubbles for a the 1980s. Incredible amounts of money requirements of life. This stipend should be generation. Bank‐run economies are like granted regardless of employment status and were generated from shuffling reserves that, with devastating effects on those who around using EFT. Everyone in Treasury knew without any means test. We view it as a work for a living. that. And there was no way for the banks to fundamental human right belonging to every lend it out into the producing economy, individual on the planet.

An example of such I am the author of four books. In 2009 I because such amounts could never be repaid an initiative on a limited scale is the Alaska published a book based my ideas on the by businesses and certainly not by Permanent Fund, whereby every Alaska monetary system entitled We Hold These consumers. So it was turned into derivatives: resident receives a check annually as that Truths: The Hope of Monetary Reform. A few just a big casino with millionaire bankers person’s share of the state’s resource months ago I published my most recent skimming the cream in fees, bonuses, and revenues.

There are petitions circulating book, Return of the Aeons: The Planetary commissions.

The ultimate corruption. among the nations of the European Union to Spiritual Ascension, which contains a chapter bring the idea of a basic income guarantee on my monetary ideas and proposals.

Instead of putting that reserve‐generated before the EU parliament for formal analysis capital into derivatives, use the potential The peace and sanity of the world are in and debate. credit for the basic income guarantee. And it great peril today, especially with the would not necessarily cause inflation, However, the Gaia Plan goes directly continuing potential of world war taking because it would be balanced by the place between West and East. Though I think counter to all those who insist that the way production and consumption of goods and to save the world is for more and more jobs the growth of spirituality in the world services locally that it would call forth in the But the fact is that to be created.. promises a splendid future, on the way to liquidity‐starved local economies of the technology is constantly eliminating jobs by getting there we are facing a disaster of world. And it could also help capitalize the making work more productive. More and tremendous proportions. public banks for which the Public Banking more jobs are being eliminated all the time.

Public banking is unbelievably important Institute is advocating. And it would also By the year 2030, experts estimate, half of (see my six‐part video series on YouTube: result in a cultural and spiritual rebirth by all current jobs will be gone. So where will Credit as a Public Utility). It is the duty of people who didn’t have to engage in useless, purchasing power come from? any government to provide a circulating unneeded, and menial service‐industry.

But why don’t people realize this is a medium of exchange for the movement of The Gaia Plan is a measure that provides trade and the facilitation of free exchange of good thing? This is an actual real‐time a spiritual solution to the problem and appreciation of the value of the world labor. makes us into ones who love our neighbor economy. It means that the leisure dividend Two years ago, I was invited to address as ourselves. Don’t say it “can’t” or “won’t” which we once thought held great promise the annual meeting of the International happen. The world has changed remarkably but has proved an impossible dream would Reciprocal Trading Association at Puerto even in the last four to five years. When you actually become possible.

Aventuras, Mexico. I made two proposals. say or think “can’t” or “won’t” you are Some people like to ask, “Where’s the The first had to do with promoting financial binding yourself to the past and destroying money going to come from?”

Well, please freedom for any organization, institution or your own freedom. read my book, We Hold These Truths: The jurisdiction that creates an alternative Hope of Monetary Reform, as it tells you www.richardccook.com currency, including bartering.

Guardian Political Review, Issue 63, 2013 - Page 13

COMMENT

“Open Bank Resolution” ‐ daylight robbery

By David Tranter If anyone has lingering doubts about the duplicity of the commercial banking system the latest outrage in Cyprus amounting to nothing less than robbery of bank customers should remove those doubts.

To those who think it couldn’t happen here I quote from Section 3 of a “consultation document” written by one Kevin Hoskin of the Reserve Bank of New Zealand; “Recent international developments in the field of bank resolution have focused on enhancing authorities’ capacity to respond and resolve large or systemic failures without straining fiscal resources.

Some governments that chose to guarantee their banking system’s liabilities are now faced with a sizeable public debt burden. The alternative is to make bank shareholders and creditors shoulder the losses of a failing bank whilst ensuring that the payments system

continues to function”.

No prizes for guessing that the “bank shareholders and creditors” are the banks’ customers/depositors.

So here we have a New Zealand Reserve Bank guru proposing that should there be problems similar to “recent international developments in the field of bank resolution” customers could be robbed in the same way as those in Cyprus.

It’s called the “Open Bank Resolution” and under this daylight robbery proposal if the bank fails all depositors will have their savings reduced overnight to fund the bank’s bail out.

The word around the traps is that Finance Minister Bill English favours this option should a major bank failure occur.

I always thought fraud was a criminal offence. How come banks can get away with it ‐ and with the backing of government?

I always thought fraud was a criminal offence

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

Greetings from the Top o'the South.

24/1/13 Socred solutions needed BBC TV announced that the European Union is looking at introducing a ‘Financial Transactions Tax’ on sales of shares and derivatives, to help curb speculation on the stock markets in Europe.

It does not apply to the European banks – banks that provided loans for speculation on the sharemarket ‐ and when the sharemarket crashed the banks were rescued by the Reserve Banks and Government Treasury Departments. Some Social Credit financial solutions would do much to help the European Union’s financial woes.

19/3/13 The world has changed In the Sunday Star‐Times (10/3/13) Rob Stock recommends Credit Unions, which are mutual banking organisations owned by their depositors. One in 20 New Zealanders are customers and assets total around $1.3 billion. The article states that “Credit Unions should be allowed to lend to small businesses – the world has changed”.

17/5/13 Heading for broke Despite Bill English’s Budget comments that we are on the right track and his Treasury Books are the envy of the developed world, what he does not tell you is the $70 billion he has borrowed and spent in the last five years. He got $1.7 billion from shareholders in the part sale of Mighty River Power to put in the government’s investment fund and now he is looking at the same arrangement with Meridian Power. We are heading for broke if they continue.

Guardian Political Review, Issue 63, 2013 - Page 14

29/5/13 March against GM Protest groups turned out in Nelson and St. Arnaud Lakes to give their support to others around the world opposed to the U.S. corporation Monsanto Biotechnology and its programme of genetically modified crops and herbicides.

Protest organiser Nadine Connock said she wanted to start a march because Nelson had a history of opposing genetic modification and nuclear power.

29/5/13 DSC Submission I intend to visit Nelson & Tasman council meetings on 29th & 30th May to present the DSC Submission (see feature elsewhere in this issue).

4/7/13 Doing a deal?

It's going to be interesting in 2014 to see if the Maori, Mana, United Future and ACT parties will make it to Parliament. John Key could find himself having to deal with NZ First's Winston Peters in coalition.

The PPP delusion

By Michael Clatford, DSC political commentator

Is financial integration with Australia the long term policy objective of the National Party? Has the destruction of NZ as a sovereign state begun? it appears to be so judging by the tremendous amount of overseas debt being planned and accepted for our country.

And when we can't pay our overseas debts, the solution must be abandon‐ ment of independence and absorption with Australia. That may be the demand of our growing number of foreign creditors when NZ must inevitably default having been crushed by its debt mountain.

This worse case scenario took a step towards reality in the Prime Minister's speech of 25 January 2013 to the North Harbour Club. He has unleashed a massive debt programme which will not be recorded in the government's debt figures.

The ruse to do this is contained in the words "public private partnership". The debts these financial schemes entail are not on the government's balance sheet, but off balance sheet. They are the hidden debts to be paid in future with interest irrespective whether or not there is any asset which they represent.

about the Private Finance Initiative system and one commented that many of its practitioners knew it represented absolutely terrible value for taxpayers' money.

It was revealed in 2006 that in the UK a company, called Innisfree, had 14 employees only and yet owned or co‐ owned 28 NHS hospitals, 269 schools, a Scottish motorway, a Welsh prison and the Ministry of Defence Headquarters in

Public Private Partnership "absolutely terrible value for taxpayers' money" London. It owned 80% of a school in Clacton, Essex under the PFI scheme, for which the county's taxpayers are contracted to pay this company 32,500,000 a year until the year 2035.

This is despite the school having been closed for some time.

Will the people in Hobsonviile know this as the new primary school opens "under the first major public‐private partnership ever undertaken in New Zealand" [John Key 25‐1‐13]

Experience overseas indicates it is a con, a delusion foisted on the taxpayers.

At present, as the British NHS collapses within itself because of heavy interest charges and PFI. hospitals are being closed, staff sacked. Accident and Emergency departments shut or "amalgamated".

Six journalists wrote in the London Sunday Telegraph way back in May 2007

So where do these PFI groups get the money which is unavailable to

Guardian Political Review, Issue 63, 2013 - Page 15

governments? They borrow most of it from banks! And do they pay their fair share of tax on the profits? It is very doubtful.

Let's look at the activities of the Australian investment bank Macquarie's. bearing in mind Prime Minister Key's statement on 25 January 2013 that Transmission Gully in the Paekakariki area is being developed through one of the PPP deals.

When it comes to building a road, Macquarie's has done well out of the British. It bui!t ‐ or had built ‐ a 27 mile expressway between Birmingham and Cannock in 2003, borrowing the money to do so. It refinanced its loan and owes more than $2000 million. The toll charge has risen from $4 a car to $11, but many motorists prefer to drive on the roads for which they have already paid.

To date, Macquarie funds and investment partners have taken out $784 million in dividends and paid no tax.

Why are we borrowing millions with added interest from private groups who usually borrow their money from private banks when infrastructure projects could easily be funded by a line of credit at the Reserve Bank? The answer, as previously, is that the rich must be given opportunities to increase their financial wealth.

He was instrumental, along with Jim Barclay, Peter Barrow & Don Parlane in buying the St Asaph hall so all the branches had housie in one place every night of the week; this became a major fundraiser for the party.

OBITUARIES Graham Butterfield

Graham was the epitome of the quiet achiever – always determined – never loud nor overly forceful ‐ but not one to yield to pressure when he believed he was right, as a succession of party Presidents and Leaders could testify.

From his early training Graham gained a sound accounting and financial knowledge and a great sense of responsibility for other peoples' assets and money that he felt he held in trust.

One of Graham’s early projects in the Social Credit movement along with Peter Barrow, was the setting up of the housie for the Avon Branch. Graham, with a young family to support, extended himself to put up the float for the opening night, and that small seed started what was to become a very successful fundraising effort.

Graham’s ability and willingness to take responsibility saw him move from being a branch member to branch and regional and national positions including that of Dominion Councillor and then Chair of the Party Finance Committee.

Graham was also the Canterbury Regional Secretary for many years, ensuring the accurate recording of all of these meetings.

In the heady days of the late 1970’s as the party faced the major challenges of rapid growth, it became very hard to keep party finances in balance. Graham, who had a fine appreciation of the huge volunteer effort that went into raising funds, was a dedicated and able steward as Finance Committee Chairman.

This appreciation had been gained with personal involvement in housie, bookshops, market days, raffles and all the other functions and events that were part of those

vigorous and sometimes turbulent days as the Party strove to become a real political force. From Debutants' Balls organized at the Winter Garden, to raffles and pamphlet drops, Graham was there guiding, helping and supporting, with no thought of personal political glory.

He also provided the services of his “New Century Press” printing business to turn out pamphlets, booklets and tracts, as well as manifestos for the party, sometimes in large quantities against ridiculously tight deadlines.

Even after heart surgery in Christchurch Hospital, and on being sent to the Rangiora Hospital to recuperate, Graham managed to walk the 2 km to Veny Palmer's house to spend an afternoon folding election pamphlets. Dedication personified.

Graham was also on the New Brighton Pier Committee, secretary of the North New Brighton school committee, and was active in his local Lions club & his local church.

A dedicated active and loyal monetary reformer. He will be missed.

(Tribute supplied by the Butterfield famiily)

Bruce Stirling 1953‐2013

By Pat Veltkamp Smith The Southland Times 17 April 2013 (extract)

Southlander Bruce Stirling joined the Social Credit political league after a year at Otago University. And 40 years later, at his passing last week in Invercargill at the age of 59, he was still a staunch, loyal, committed member.

Throughout those years the political league he had joined had undergone half a dozen name and alliance changes.

But Stirling remained true to basic Social Credit principles and to the clear democratic face of the movement he believed in.

Fellow Southlander Stephnie de Ruyter, leader of Democrats for Social Credit, DSC, as the party is now known, was Stirling's campaign manager in 1996, when he stood as Democrat for the Alliance in the Invercargill electorate.

He first stood as the New Zealand Democratic Party's candidate in the Clutha electorate in 1987 and then for Awarua in 1990.

By 1993, the New Zealand Democrats had joined with others to form Alliance, Stirling stood as a Democrat for Alliance in Awarua, then following a boundary change in Invercargill at the following election.

By 2005, the party had reclaimed its independence and Stirling stood in Invercargill as the DSC candidate. In 2008, he was a party list candidate for Democrats for Social Credit.

But over those 40 years he did the lot ‐ leafletting, door knocking, raffle ticketing ‐ campaigning with a conviction so evident numerous others joined to support his endeavours.

Those four decades of unswerving commitment to a democratic political process ‐ expressed through his membership of DSC ‐ that keeps democracy alive, Ms de Ruyter said.

Stirling was the only member of his family to have this Social Credit commitment, this interest ‐ and he had many friends outside of it. He never hammered others with ideas ‐ but would willingly explain the theory when asked.

Born the youngest of four children in the Wyndham South farming family of William and Marjorie Stirling, of Mantle Bush, he lived away from home only twice.

Stirling was an AFS student on exchange to North Salem high school in Oregon,

United States, for a year and on his return in 1973 spent a year at the University of Otago, where the seeds of Social Credit were sown.

Stirling had a gift for friendship, valuing others, their lives and interests.

At his First Church farewell, led by the Reverend Nyall Paris, his brother Neil said he had led an "unconventional" life, a fair comment, but others saw Stirling's life as satisfyingly ordinary ‐ the life of a pleasantly parochial Presbyterian Southlander with a keen interest in politics and people, music, books and sport and with a deep apprecia‐ tion of family and friends.

He is survived by older brother Neil, only sister Heather Falconer and nieces and nephews, a fifth generation on that family farm at Wyndham south.

Nevern Clark McConachy Nevern was a long‐term DSC activist, fundraiser and office holder. He passed away peacefully at Regency Rest Home, Auckland, on 4th March 2013. A full obituary will be published in our next issue.

Guardian Political Review, Issue 63, 2013 - Page 16

WE HAVE MAIL A great team I just received the printed copy of The Guardian Political Review. I was surprised and delighted to see the cover of my book on the back of the issue. Wow! I think the excerpt looks great, and of course I am very grateful for the review which I have been sending around to people.

We are a great team. And I do believe that somehow, some way, the higher spiritual aspirations of humanity will prevail in the current deepening crisis. And you folks in New Zealand that understand these things will be in the forefront.

Richard Cook, U.S.A. (See feature by Richard Cook in this issue)

Taking the fall

Think outside the box To all those who think outside the box, read with glee the article by Ellen Brown: Money for the People: Grillo’s Plan for Italy.

Geoffrey Morell, U.S.A. See World News item in this issue

The nature of deposits The definition of a deposit is “A sum of money placed with a bank for safe‐ keeping….”

When money is deposited with a bank, it is paid to the account of the depositor, not to the bank itself. If it is in notes and/or coins, the bank purchases these from the depositor by creating the equivalent sum and placing it in his account. The notes etc. become part of the banks’ reserves.

If the money is transferred by cheque or draft from another account, it passes straight into the recipient’s account. Neither of the transactions changes the volume of money in circulation if the payer’s account is in credit.

The latest Guardian Political Review, as usual, is up to a high standard and accuracy beyond doubt. I find the articles published keep me really informed about what is going on.

If the payment involves drawing on an overdraft authority, the transaction increases the money supply by that amount. (R. Comm. Report, P. 45.)

I cannot respect the manner in which P.M. Key sets his ministers up to take the fall for him, especially as the 'buck stops with him' in reality.

Demand deposits of this type can be converted to short or long term deposits.

This removes them from the direct money supply, M1, and places them in M2 or M3.

Roger Nodwell, Greymouth.

These deposits, as such, also are never lent. There is no case on record, anywhere, where a bank notified its customer that his deposit had been reduced because it had lent part of it.

Beyond Greed Thank you for another interesting issue of the Guardian. Congratulations for featuring the slogan ‘Beyond Greed’, and for the stimulating article by John Rawson.

I was pleased to read John McCaskey bringing the policy of Financial Transaction Tax to the fore.

In November 2011, I organised a user‐ consortium together with a financier, Wool Equities Ltd., and achieved the re‐activation of the Milton Woolen Mills, which re‐opened 6 months later providing employment to 31 staff and some hope for the little town of Milton., as well as continuing processing of our wool in NZ rather than China.

Being an ‘angel’ investor to create employment and drive technology is the objective of my consulting (and philan‐ thropic) company, Melic Innovators Ltd. It keeps me active.

Wishing you success in taking New Zealand ‘Beyond Greed’.

Michael J Mellon, Christchurch Michael Mellon was Democratic Party candidate for Dunedin West in 1987 and subsequently chaired the inaugural meetings of the Alliance Party in both Dunedin and Invercargill. He retired after 10 years as a Senior Marketing Lecturer at Lincoln College and later at Canterbury University, moving back into commerce to expand his speciality – brand building.

Guardian Political Review, Issue 63, 2013 - Page 17

In fact, locking up the amount of money for its term means there is no chance of it being transferred to another bank during that time; no need to require transfer of equivalent reserves to that bank.

Term deposits are still liabilities of the bank, not reserves, but they are ones which also function to prevent loss of some reserves.

A logical argument could be raised to the effect that the bank lends, in this case, not the deposits themselves but the money paid in to gain them.

I much prefer the simple and logical stance of Economic Reform Australia, that: every payment by a bank to the community increases the money supply, and: every payment to a bank decreases it.

The first case would include salaries of bank staff, running expenses and dividends paid out. Neither would include transactions in and out of bank accounts, except of course, interest etc. paid one way or the other.

Banks can, of course, lend reserves to each other, or deposit them with or draw them from the Reserve Bank. But reserves are never lent as retail loans. Notes etc.

have to be bought with “bank money” before they can come into circulation.

John G Rawson, Whangarei

Informative Every Guardian edition is packed with insight and good comment. I know the blood, sweat and tears that must be involved. Well done and much appreciated.

Two fellows from IMF (Michael Kumhof and Jaromir Benes) published an independ‐ ent document last August on monetary reform a‐la the Chicago School. A summary of the doco was published in the Dompost Business section under the heading: Making money dance to a new tune "can work." The web site is imf.org/external/pubs/ft/wp/2012/wp 12202.pdf.

Gordon Dempsey, Wellington

Robin Hood delighted It was great to hear the actor, Bill Nighy, state emphatically at the G20 Summit (2011): "The government's contract should be with the people, not the banks!"

I have contacted the Robin Hood campaign in London ‐ seeing that we have mentioned it in our LTA submission (see feature in this issue). Their response is delight that we are a registered political party advocating the Financial Transaction Tax ‐ especially as we have been advocating it for over 25 years.

Heather Marion Smith, Gisborne

From 'woe' to go The fabulous result in Hamilton is from some very hard working fluoride‐free Hamilton workers.

I can (now) get on with what I believe are the binding issues for DSC and for me as Patients' Rights Advocacy Chairperson.

The Tribunal was a truly epic experience and goes down as the most 'intense' and thorough Tribunal ever held in NZ Aotearoa.

I can believe that; it has taken a couple of days to retrieve my footing!

Enough to say we had the head of Oncology at Braemar Hospital; Prof Ted Ninnes from Waikato Uni (social & Neuro scientist) Dr Harms (once the head of Dentistry of Aus.) and assorted MDs, psychiatrist, dentists, doctors, acupuncturists, herbalists all lined up for our side. WOW! In the meantime the Hamilton City Council is being demonised by the 'lame stream media' but none will do what we did; namely; sit down on Youtube and watch the hearings from woe to go!

I suspect this is just the beginning.

Carolyn Mckenzie, Hamilton 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.

dsc in the media Sinister agenda

I

t is a tragic fact of life that the fat cats in industry and the politicians who bend the knee to their demands, put profit above all else seemingly unconcerned with the state of the planet they leave behind, even for their own children.

In Australia this is seen in the devastating greed of those running coal mining, the gas industry, oil wells and most recently the renewed drive to allow uranium exploration in Queensland after it had been off the agenda for many years.

Now John Key and his “gung‐ho energy Minister, Simon Bridges” are kow‐towing to those seeking to drill for oil in “vast strips of New Zealand’s exclusive economic zone”.

As part of government smoothing the way for the oil barons/pirates, Simon Bridges is lining up provisions, “permitting the armed forces to be used against New Zealand citizens challenging the oil exploration companies”. Is this a democratic country ‐ or some tinpot dictatorship of the sort that New Zealand politicians rail against at world forums?

It is bad enough that politicians fall over themselves to allow the tragic consequences which will inevitably follow upon allowing the oil giants to overstep the safety boundaries in their insatiable lust for bigger profits ‐ but it is an equally horrendous development to use the armed forces to deny New Zealanders the right to protest while also lining up, “massive fines and serious jail time”.

A vote for any politician supporting this sinister agenda is a vote for dictatorship of the worst sort.

David Tranter NZ Democrats for Social Credit spokesman..

Greymouth Star 21.5.13.

The first step

T

he recent announcement by privately‐ owned banks about their "robust" earnings, i.e. profits, needs to be addressed by the Government. The ANZ reports a 14% increase in profit in the last six months — $699 million.

How do these banks continue to make these profits, year after year? Is it because of the bank fees and charges they impose?

Well, a small amount of it is, but it mostly comes from the fact all loans and mortgages made to small businesses and individuals are created out of nothing, with interest charged having to be paid with hard‐earned cash (no money is created to pay the interest).

So, who gives these privately owned banks the right to create our money and charge ongoing interest? Our Government does.

The credit creation system should be ours,

Guardian Political Review, Issue 63, 2013 - Page 18

controlled by Government, through the Reserve Bank.

The Reserve Bank Act (1987) needs to be changed back from controlling inflation to creating enough debt‐free money for local and central infrastructure, health, education and realistic pensions.

This would be the first step in, 1) stabilising our internal economy, and 2) restoring our true sovereignty. This requires the will of the Government to change.

hit the banks, when millions reneged on their mortgages and credit card debts.

The Government Reserve Bank and treasuries in countries used taxpayer money to help the banks out to avert a depression.

The debt system is still with us and it's time our elected leaders and bankers got together to resolve this problem, with financial reform.

The New Zealand Democratic Party for Social Credit has solutions for this. View our web page on www.democrats.org.nz.

Adrian Bayly Nelson Mail, 28/12/12.

Informed consent

Bob Warren Former DSC Southern Region president.

Otago Daily Times 17/5/13

Rort

I

f the Gisborne/East Coast rail link is to be abandoned, we can only blame those whose thoughts on politics are even shorter sighted than the National/Labour coalition they’ve kept in power. To paraphrase Ian Smith (Rhodesia remember?) ‐ “socialists make the changes ‐ then conservatives continue the status quo”.

Rogernomics instituted National's dogma for them and we’ve been paying through the nose ever since for energy and transport ‐ to name but two.

All highly developed countries are revamping their rail networks. Christchurch/ Canterbury has the ideal opportunity to initiate a commuter system that would be the envy of all other NZ cities that would give access from all major outlying towns, the lines being already in place, and massively invigorate the present practically dead city centre but it seems they (Mayor Parker & Commandant Brownlee) don’t want the “country bumpkins” to visit/study/ do business there in the future.

The latest rort is the upping of fares on the Coastal Pacific so they can wean off passenger numbers and thereby create an excuse for closing down an excellent scenic/tourist attractive service John McCaskey Democrats for Social Credit spokesperson for Regional Development & Primary Industries.

Sent to Gisborne Herald 11/3/13

Home to roost

Y

ears of debt spending by US presidents and congresses have resulted in a US$6 trillion national debt. For years they have ignored this problem, and now the chickens are really coming home to roost.

New Zealand, Australia, Canada and the UK are all facing the same dilemma on a smaller scale.

It's not just the government, it's also the city and district councils, corporations, companies and individuals who have this credit card mentality (get now, pay later).

Well, four years ago global credit crunch

D

emocrats for Social Credit is the only political party to have objected consistently to the fluoridation of public water supplies since the practice was first introduced into New Zealand.

Fluoridation contravenes the Health and Disability Commissioner's Code of rights which asserts that no‐one may be medicated without their informed consent.

The purpose of ingesting fluorides is to affect a bodily function ‐ hence administering them to all members of a community is clearly unacceptable under the Code.

Fluoridation is intended to treat people so must not be confused with the treatment of water to make it potable. It is blatantly a "one‐size‐fits‐all" policy which avoids tackling the dietary causes of tooth decay.

It is both unethical and unscientific to claim that a substance is absolutely safe for people of all ages, now and in the future, let alone spend public funds to promote this view.

Democrats for Social Credit commend the campaign led by the Fluoride Action Network and trust their submissions, along with ours, lead to the cessation of fluoridation.

DSC Media Release 31/3/13

Newstalk

N

ew Zealanders are being encouraged to start the new year by switching all their accounts to a local bank.

Democrats for Social Credit says it's the ideal time to not only display a bit of patriotism, but for New Zealanders to also get themselves out of the clutches of the overseas owned banks.

Leader Stephnie de Ruyter says the big four Australian‐owned banks dragged $3.5 billion out of our back pockets in the past year.

"We know that the Australian‐owned trading banks make a sizeable profit every year, in fact every year the profit increases, and to retain that money in New Zealand can only help the New Zealand economy."

Stephnie de Ruyter says it's time we stopped propping up the Australian economy and supported our own.

Newstalk ZB 29/12/12

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

The road to money The British government is planning to seek private finance to build and maintain new roads, as well as other new infrastructure needs. The fact that the funding could come interest‐free from the Bank of England is, of course, not considered. Private concerns have to gain money from the taxpayers somehow and their friends in the political establishment are on hand to facilitate this robbery.

Deputy Liberal Democrat leader Simon Hughes doesn't want these private groups to make too much profit. He told Parliament: "The M6 toll road is owned by Midland Express Ltd (MEL), which is owned in turn by the [Australian] Macquarie Motorways Groups Ltd, which is in turn owned by Macquarie Atlas Roads International Ltd of Bermuda. It is controlled by Macquarie Infrastructure Group, but the identity of its investors, and therefore the owners of MEL, remains unknown and undisclosed."

the price from $2 to $4 for one line on each of its twice weekly draws as well as halving most of the prize money, it announced this as a "re‐energised redevelopment of the game".

Others view it as another typical rip off of British people by a bunch of foreigners who mostly run the country. Extra profits will undoubtedly accrue to the owners, the Ontario Teachers' Pension Plan, but will Canadian pensioners reap the windfall or will it be mopped up by directors and executives of Camelot as bonuses?

Hiding the truth behind positive sounding articulation is popular with British companies. The Royal Mail described the axing of the postal second delivery and the establishment of a "deliver when we have time service" as "improving our service to customers".

No change

I wonder if he means just like spending $85 billion a year too much on interest payments when the capital could have been borrowed from the Bank of England interest free.

No end to British debt mountain Britain's debt mountain is expected to exceed that of Spain and France within three years and soar to nearly 100% of the gross domestic product ‐ even more if the GDP falls. By 2015, the country will owe as much to international creditors as it earns all year.

You've got to be in to win When the the UK National Lottery operator Camelot announced it was doubling Guardian Political Review, Issue 63, 2013 - Page 19

It doesn't trickle down as some of us knew it wouldn't "Thirty years ago, we came to believe self‐ interest, freemarkets and globalisation would make us all rich as wealth 'trickled down'.

This forms the basis of the so called neo‐ liberal economic paradigm. The evidence from this experiment is now in: wealth doesn't trickle down, it gets sucked up. (a letter writer to the London Metro newspaper on the tax avoidance activities of major world companies].

Where is it?

Only one in six new car models now comes with a spare wheel as standard.

Not a lot of people know this.

I wonder how much tax they paid?

An ex Tory government minister, Liam Fox, wrote in the London Sunday Times [10‐ 3‐13] "at the end of this financial year our public sector net debt will be about £1,200 billion [$2,160 billion] and we will be paying more than $47 [$85 billion] in interest payments alone. "We must be clear that we don't have this debt mountain because we tax too little but because we have spent ‐ and continue to spend ‐ too much".

"If you're rich, you get away with tax avoidance and, if you're an ordinary person, you pay your fair share." [Margaret Hodge MP, cross party Public Accounts Committee British Parliament]

Ford has promised to have its dealers tell customers whether the model they buy has a spare wheel. Not including a spare wheel saves the makers $300 and reduces the car weight by about 20 kilograms.

"In 2006, however they paid themselves a £392 million [$770 million] exceptional dividend, and over six years made a return on investment of more than 150 percent a year." [Private Eye No.1326]

Paying too much

Now it's confirmed

Mark Carney "Has got what it takes" ($1,200,000 p.a.)

The replacement for Sir Mervyn King as Governor of the Bank of England is the Governor of the Bank of Canada, Mark Carney.

The 47 year old will receive a remunera‐ tion of about $1,200,000 ‐ double the amount of his predecessor ‐ and apparently, according to the UK Finance Minister, "has got what it takes to help bring families and businesses through these incredibly challenging economic times".

The "incredibly challenging economic times" were caused by the dubious activities of the likes of financial operators Goldman Sachs and JP Morgan. Mr Carney was a former investment banker at Goldman Sachs for 12 years working on complex financial "products".

With additional responsibilities he will be more powerful than any other previous governor.

"Our economic future will be in his hands".

So no changes there then. Austerity in Britain is expected to last until at least 2020.

Britain ‐ only second to China The Chinese national people's congress has 2,987 members. Britain ranks second in the world with its House of Lords with 760 members already costing the hard pressed British taxpayer around $48 million to administer plus paying peers $600 a day just for turning up for a few moments.

More peers are to be created to swell the number. Efforts to slim down this unnecessary archaic symbol of privilege, or even to replace it with elected representa‐ tives of the people, have been rejected.

The Rich ‐ and their desire to control us In her book, The Plutocrats, Chrystia Freeland in talking of the rich 1% of the world comments: "They tend to believe in the institutions that permit social mobility, but are less enthusiastic about the economic redistribution ‐ in other words, taxes ‐ it takes to pay for those institutions".

She observed that "the plutocrats inhabit a world we rarely encounter. If they don't harm us, why, other than for reasons of envy, should we care? The reason is in their attitude towards the rest of us and their growing desire to exercise political power."

(Whitmill's World continued)

Debt is a tie that binds the 99%.

In the USA from a coalition of Occupy groups came the idea of entering the debt market and eliminating debt owed by individuals. Money to buy the debt comes from donations.

The internet site www.strikedebt.org explains it all: "As individuals, families, and communities, most of us are drowning in debt to Wall Street for the basic things things we need to live, like housing, education, and health care. Even those of us who do not have personal debt are affected by predatory lending. Our essential public services are cut because our cities and towns are held hostage by the same big banks that have been bailed out by our government in recent years.

"Strike Debt came from a coalition of Occupy groups looking to build popular resistance to all forms of debt imposed on us by the banks. Debt keeps us isolated, ashamed, and afraid. We are building a movement to challenge this system while creating alternatives and supporting each other. We want an economy where our debts are to our friends, families, and communities — and not to the 1%.

"We buy debt for pennies on the dollar, but instead of collecting it, we abolish it.

We cannot buy specific individuals' debt ‐ instead, we help liberate debtors at random through a campaign of mutual support, good will, and collective refusal.

"When a certain debt is wiped, the debtors, so far mainly those unable to pay necessary health bills, are advised. Worry about it ceases."

The London Sunday Times reported [2/12/12] that the investment wing of the world's largest grain trader, Cargill, had bought $600 million of debts on Irish property from the Lloyds Banking Group. It was rumoured that it paid 25 cents in the dollar for the debt. Presumably it will try to recover the debt in full from the offices, hotels and industrial estates which owe the money.

Woodman ‐ spare that tree Deforestation accounts for 20% of carbon emissions. [London Sunday Times]

When will the mainland Chinese people wake up?

According to the book 'The End of the Chinese Dream' by Gerad Lemos reviewed by Stephen Robinson [LST 2‐12‐12 ] "the lack of political rights bothers [the Chinese people] less than their realisation that the country is now run by the wealthy, for the wealthy.

When the workers and the unemployed connect these two points, the Communist party could be in serious trouble" It is a pity that New Zealanders don't wake up also!

Guardian Political Review, Issue 63, 2013 - Page 20

British not anti‐immigrant Last year it is reported that 566,000 immigrants, mainly from Europe, flooded into the overcrowded British Isles. That they could be given housing ahead of the indigenous population and have free health care and, what to some, seem like lavish financial benefits on arrival has caused the government to seek to restrict their immediate access to these.

The rise of UKIP (United Kingdom Independence Party), the anti‐European state party, in opinion polls and in elections has something to do with this. As Rod Liddle in the London Sunday Times [24‐3‐13] commented: "the British are not really anti‐ immigrant; they are anti the people who keep letting them all in."

credit cards, were made to as many as 20 million consumers from the nineties to 2010.

The credit boom after 2001 saw an estimated $68 billion of the hugely profitable PPI (Payment Protection Insurance) policies sold by high‐street banks, building societies, credit card companies and other lenders.

Yet this is a massive financial crime seemingly without criminals.

"Customers have been robbed: sharehold‐ ers have been ............. But there have been no criminal charges of fraud, deception or theft against any of those who peddled PPI. No director from major lender has been sacked. None has been banned or disciplined by the Financial Services Authority for mis‐ selling PPI." [Private Eye issue 1331 ] Compensation paid since 2011 is $15 billion and rising.

Talk the talk

Nigel Farage, leader of the UK Independence Party, has much to laugh about.

Go where you are wanted The billionaire UK Conservative Party donor Lord Ashcroft in a report to his party found that many of his party's supporters are turning to the UK Independence Party: "The biggest predictor of whether a voter will consider UKIP is that they agree the party is 'on the side of people like me'. The switch to UKIP is rarely policy driven. It is about mood music.

People "will go where they are wanted.

And as they jump ship it is precisely because they are decent that makes it easier."

London Sunday Times 30‐12‐12

British PM doesn't want to be like Norway Prime Minister Cameron has explained why he does not want Britain to leave the European State. Apparently he feels it would end up just like Norway. Norway is the world's fourth richest country per head of population, the richest in "social capital" and assessed as the happiest country in the world. Britain comes nowhere near this.

As usual, Cameron shows how out of touch he is with non old Etonians.

Crooks escape punishment if they are establishment financiers In the UK, sales of the expensive, but more often than not, worthless policies, supposedly covering loans, mortgages or

"There are 23 official languages in the European Union, but staff must above all be fluent in the commission's colloquial tongue.

In this language, think tanks are reflection groups; planning is planification; comitology means "committee procedure"; and visa‐ing with a hierachical superior just means clearing it with the boss." [London Sunday Times 17‐2‐13]

Not for coffee A 'Costa Coffee' shop in Nottingham advertised for 3 full time staff and 5 part time staff with wages starting from the minimum wage of $10‐98 an hour to $18 an hour. For these 8 vacancies, there were 1,701 applicants, many with years of retail experience. It is not known how many were from the 26 European countries with free access to Britain.

The last to realise?

Outgoing Bank of England governor, Sir Mervyn King, told the British Banking Standards Commission that he was "surprised at the degree of access bank executives had to top politicians".

Apparently he hadn't realised from where politicians received their instructions. On the same day that Sir Mervyn spoke, in Brussels, British Finance Minister Osborne was the only Finance Minister in the 27 country European Union to oppose caps on bankers bonuses.

Would not a basic income help defeat fraud?

The London Sunday Times [31‐3‐13] reported that a Middle Eastern woman with her four children lived in a London flat whose $2,340 a week rent was paid for by the British taxpayer through housing benefit.

She then sublet it for $7,200 a week and went to live elsewhere. The Westminster City Council anti‐fraud officer commented that "the reality is that benefit fraud is as sophisticated and international in its scope as organised crime."

(Whitmill's World continued)

Cuts infiltrate everywhere Some local councils are considering abandoning potholed country lanes damaged by the weather. Reclassification of roads as byways would allow the roads to crumble away without the councils having to pay to fill in the potholes and stop edges dis‐ integrating. (London Sunday Times 31‐3‐13] The reason for this degradation of the countryside road system is because councils are short of money caused by financial cuts.

There are, of course, plenty of unemployed skilled workers able to repair the roads, and sufficient material and time to allow them to do so. However, a shortage of money ‐ dots on a computer screen ‐ prevents this.

Same old myth being perpetuated The problem of 25% unemployment in Spain ‐ 50% plus for the young ‐ has repercussions for future generations, or rather the lack of them. A Spanish nurse and her partner would like to have children, but, like many others in a similar situation, are struggling to make ends meet. They are on short term contracts and redundancies are looming. In those circumstances having a child is not on the agenda especially if it means losing one's job and income, such as it is.

The London Sunday Times [7‐4‐13] reports that by 2052 Spain will have 9 million fewer people between the ages of 25 and 64 than it does today, meaning ‐ and here comes the old myth ‐ "there will be not enough people to fund retirement for the elderly".

When will these people get it? If it is physically possible to look after the elderly, then it can be made financially possible to do so. If there are billions for the banks, why can't there be millions for the needy?

Water privatisation brings no benefits ‐ to consumers In Britain the new Water Regulator has warned of the dangers of private equity owners who use holding companies to avoid tax. He was also concerned about the huge debts loaded onto companies "purely for shareholder gain without advantage to customers".

Only three of Britain's 23 water companies remain on the stock market, the rest were bought by private equity groups, pension funds and investment firms. Who knows, perhaps some Kiwisaver pension funds are involved.

In 2010 Anglian Water earned $121 million in pre‐tax profits, was loaded up with $11, 000 million of debt spread across several outfits including sister companies. It paid out $282 million in dividends and a measly $14 million in tax. The previous year it had paid $290 million in dividends and nothing in tax.

The new regulator should know what he is Guardian Political Review, Issue 63, 2013 - Page 21

talking about as, when he left Anglian in 2010, he was awarded $17 million in cash, shares and pension contributions.

This would never had happened with a public servant in charge.

The biggest bank robbery in history ‐ in Cyprus Although few realise it, legally a bank owns a depositor's funds as soon as they are put into a bank. Our money becomes the bank's and we become unsecured creditors.

According to the Rev Clifford Hill writing in a Christian newspaper, the bankers who triggered the great financial crisis and insist upon their million‐pound bonuses for Christmas were unjustly punishing the little people in the tiny island of Cyprus, Depositors who had put their money into a bank for safekeeping suddenly found that, far from being safe, it was stolen from them in the biggest bank robbery in history.

People trusted that the money they entrusted to the bank for safekeeping would be carefully guarded and would always be available to them.

"But to save the banks from collapse the authorities have stolen money from their depositors. This is employing moral bankruptcy to combat economic bankruptcy."

Reuter reports revealed that whilst the banks in Cyprus remained shut and ordinary Cypriots queued at ATM machines to withdraw a few hundred euros and credit card and cheque transactions were stopped, the rich depositors used other means of getting access to their money.

We're all in this together This was the infamous claim by British Prime Minister, David Cameron, that to defeat the financial disaster brought upon the nation by greedy banksters, sacrifices would have to be made and that "we're all in this together". Two‐thirds of Cameron's Cabinet are estimated to be millionaires.

Anthony Seldon wrote in the London Sunday Times [5‐5‐13] "Cameron came from a world remote from most of the country.

After graduating [from Oxford University via Eton College] he went to work for the Conservative Party, facilitated by his cousin.

Helping hands were never far away as Cameron rose up the ranks before becoming an MP in 2001" [for a safe Tory seat, the only work required to win being his signature on a nomination form!]

In the London Sunday Times, Rod Liddle commented [28‐4‐13] that "it grates a little to be lectured on financial prudence by people who were born with silver spoons sticking out of every orifice."

Fruitcakes, closet racists and clowns These were some of the names used by Prime Minister Cameron and one of his leading Cabinet ministers to describe people who voted for the UK Independence Party ‐

David Cameron ‐ helped by his old school tie

which seeks to leave the European State.

The name calling was considered by 77% of those polled in a survey to be poor election tactics.

In the May local elections, UKIP polled 22% of the vote and gained 139 seats to add to their previous 8.

UK Labour leader tells us how it is In a radio interview with the BBC, Labour leader Ed Miliband, who like the Tory leader has never had a real job but just a political career, said "Are our problems so deep that nobody can actually make a difference to them? My emphatic answer is yes."

Miliband was criticised for failing time and again to answer a question about VAT, the British version of GST, and borrowing. The London Sunday Times [5‐5‐13] asked its readers whether it meant that politicians are incapable of giving a straight answer? It commented: "We did point this out to several MPs, but they avoided the question".

The rich ‐ or those who acquire financial wealth ‐ exploit every loophole And don't mind using fraud to avoid legitimate tax demands. Hundreds of trusts have been established in tax havens with charities, such as Greenpeace, being listed as the beneficiaries.

Naming a charity as the main beneficiary of a trust reduces the requirement for identity and money laundering checks. The rich tax avoiders pour their money into the trusts, but charities do not seem to benefit.

The charity's name can be removed from the trust document before any funds are distributed without the charity knowing anything about it. Guess who then gets the cash?

John Sauven, executive director of Greenpeace, which has been named as a beneficiary of a trust in the Cook Islands, said [London Sunday Times 28‐4‐13] "It looks like our name has been exploited by somebody operating from an island notorious for facilitating tax avoidance".

If only countries had a financial transactions tax.

(END)

NEWS BITES - hunting through the media jungle!

WORTH BANKING ON Pope Francis' calls for ethical world financial reform and what he called a faceless and inhumane "dictatorship of the economy" have been seen by many as being right on the money. He will continue to inspire minds and hopefully change. That is worth banking on.

Editorial, Otago Daily Times 30/5/13 (See feature in this issue)

ON THE FRONT LINE

by following the proper channels. However, what the Sky City deal tells us is that it's now possible to get away with it even if you don't. The 500 more poker machines it will accordingly be allowed, via a law change, in its Auckland casino represent almost a Faust bargain by proxy. Although not a direct party to the deal, the hollow‐eyed addicted gamblers who feed money into slots will be the ones to part with their souls. Except, of course, that it's ultimately the Government, courtesy of the taxpayer, that pays for the poverty and misery caused by problem gambling. So it becomes a veritable soul train, in which the Devil gets to clip the ticket all the way around, with the exception of Sky City. Once again, the house wins. Or, to put it another way, there is such a thing as legalised daylight robbery.

Jane Clifton, NZ Listener 2/3/13

Representatives from several countries will be in Chicago, USA, 19‐22 Sept, speaking at the 9th Annual AMI Monetary Reform Conference. Described as being "the main people on the front lines of monetary reform around the world", speakers will include Prof Joseph Huber, Dr. Michael Kumhof of the IMF, Prof. Kaoru Yamaguchi, Prof. Richard Werner, Prof. Nic Tideman, Prof. Steve Keen Barbara Panvel, UK bapanvel@gmail.com

The leaders of the two biggest parties agreed that they would like to have a longer term in power. Three years is not long enough to get things done, said National leader John Key. We should have four instead. Labour leader David Shearer agreed.

What these two power junkies are saying, in fact, is that they want to be able to rule us for 33 per cent longer after every election.

And since these two are the ones most likely to benefit from this arrangement, what they said amounts to a crude bid for a greater duopoly. The voters should give them a very rude reply.

Sunday Star‐Times editorial 10/2/13

FLIMSY DREAM The fracking dream is putting Britain’s future at risk. The frackheads claimed shale deposits under Lancashire alone could power the country for more than half a century.

An experimental well operated by shale gas company Cuadrilla in Lancashire has been suspended after two mini earthquakes. In Europe, the National Assembly has responded to public alarm by banning the drilling of shales. To take so many risks on the basis of such a flimsy dream is “fracking crazy”.

Guardian News & Media (UK), 17/12/12

DEVIL CLIPS THE TICKET It has long been an accepted feature of being in Government that you can get away with daylight robbery provided you commit it

Guardian Political Review, Issue 63, 2013 - Page 22

Slane, NZ Listener

POWER JUNKIES

DECODING MAMMON What is clear is that our present capitalist society promotes selfish desire and almost justifies it. I have suggested, therefore, that the remedy required is not just a change of attitude in individuals, but radical changes to the system as a whole, so that the appeal to desire has less prominence, and the system is geared far more to human needs and the sustainabiity of creation.

From Decoding Mammon by Peter Dominy (Item Supplied by Colin Whitmill)

A SCAM? Anyone with half a brain can work out that the carbon emissions trading scheme is a scam, designed to provide another casino for speculators like the futures market that has bedevilled oil prices in particular. It would do nothing to prevent other and more dangerous forms of pollution. It would allow big business to continue carbon pollution by simply buying “units” and passing on the cost on prices to us all. It could allow control of our forests by speculators who have never seen a tree planted.

John Rawson, Northern Advocate 27/4/13

SHOVED UNDER THE CARPET Reported mishaps in the aerial application of the controversial poison sodium fluoro‐ acetate (1080) doubled last year, although opponents of the controversial poison say these are just the tip of the iceberg. The Stop 1080 National Network co‐ordinator said the 1080 drop operators reported the incidents only after they were caught by members of the public raising concerns: “many more are hushed up and shoved under the carpet.”

Otago Daily Times 16/12/12

THE LAST BASTION? The Otago Daily Times really is an oddity ‐ the sole survivor from an era when New Zealand newspapers were virtually all family‐ owned and highly parochial. Allied Press, the family company that publishes the ODT, stands out as the last bastion of independ‐ ence in an industry overwhelmingly dominated by big Australian publishers Fairfax and APN. The company's owners, the Smith family, are firmly anchored in the local community. They have been here for generations and know their market intimately. They are generous donors to local causes, often without acknowledgment. Their interests are interlocked with those of the community they serve ‐ a factor that sets Allied Press apart from the Australian corporates that publish every other metropolitan New Zealand newspaper, and which are open to the accusation that they have no interest in New Zealand beyond making money.

NZ Listener 2/2/13

BERTIE'S SECRET Bertie Blatch was branch chairman of the Conservative Party in the safe North London seat of Finchley when in 1958 it voted by a narrow margin of 46‐43 to adopt Margaret Thatcher as its candidate at the next general election and thus set her on the parliamentary path that would culminate in 11 years as Prime Minister. Except, according to Blatch in a new biography of Thatcher, the vote in fact went to the other candidate. "She didn't actually win. The man did, but I thought, 'He's got a silver spoon in his mouth. He'll get another seat. So I 'lost' two of his votes and gave them to her." So Mrs Thatcher probably (unknowingly) won her way to Parliament through fraud.

UNBRIDLED POWER

FOOLISH LENDING “The essence of the contemporary monetary system is creation of money, out of nothing, by private banks’ often foolish lending.”

Martin Wolf, Chief Financial Editor, Financial Times (UK) 9/11/10. (From ’Prosperity’ April 2013)

DISCOVER George Orwell would have been impressed: a spy system so powerful it can ingest three billion pieces of data every day, sift for anything deemed threatening and sound the alarm, all at the touch of a button. Prism doesn’t target individuals but populations. It matches video, phone calls, emails, bank records – your digital footprint.

It is a gigantic fishing expedition. If you’re thinking such a thing couldn’t happen here, think again; John Key has refused to say anything about Prism. And our law change is Prism‐plus, because of the parallel law allowing GCSB to spy on New Zealanders.

Not even the American spy agencies are allowed to monitor their own citizens. If the Government wants to subject its citizens to increased levels of surveillance then it has a duty to ask our permission. The price of freedom may well be eternal vigilance, but it is not unbridled power.

Colin Espiner, Sunday Star‐Times 16/6/13.

DESPERATE CHALLENGE Eleven countries in Europe have pledged to introduce the Robin Hood (financial transactions) Tax but this is now under threat by our own Chancellor of the Exchequer. George Osborne is resorting to a desperate legal challenge to try and block those countries from introducing their own taxes. Make no mistake, this is not about defending British interests in Europe – it’s about defending the interest of this Government’s friends in the City of London – a desperate last‐ditch effort to protect the obscene profitability of our bloated financial sector.

Robin Hood Campaign (UK) 3/5/13

Go to www.socialcredit.com.au and see what your friends and the world can discover about the philosophy and what New Economics of Social Credit is about.

From Henry Raynel 20/5/13

RUNNING OUT OF TIME? “Impatient? Me? What a thing to suggest. Yes, of course I am. I’ll run out of time soon. I shall have snuffed it if I am not careful.”

Charles, the Prince of Wales, the longest‐waiting Heir to the Throne in history.

SPIN DOCTORS Secrecy and evasion ‐ and waste of money ‐ by West Coast DHB management has taken a new twist with the involvement of a PR consultancy. According to their website, Convergence Communications & Marketing Ltd “have seven former journalists who know how to get the publicity you want or keep you OUT (their emphasis) of the media spotlight”. Surely the best publicity for DHBs is word of mouth”, not that dreamed up by high‐priced spin doctor businesses.

things that will grow the economy. There is also the other, venal reason: it alone tends to benefit from the widely despised coat‐ tailing provision. But given the state of Nat buddies Act and United Future, that's about as likely to recur as the curious trend of our unwanted MPs getting jobs at the United Nations.

Jane Clifton, NZ Listener 25/3/13

GHOST MONEY Tens of millions of US dollars in cash were delivered by the CIA in suitcases, backpacks and plastic shopping bags to the office of Afghan President Hamid Karzai for more than a decade, the New York Times says. The so‐ called "ghost money" was meant to buy influence for the CIA but instead fuelled corruption and empowered warlords. The "ghost money" came and left in secret.

Reuters 30/4/13

DEAD DUCKS The duck shooting season is well under way with many spotted plummeting into lakes and rivers. There have even been alleged sightings of two rare species, the Meridian and the Genesis, riddled with shot, floating belly up. They have gone to meet their maker (the taxpayer). They are dead ducks, thanks to the performance of Mighty River Power. The problem for the Govern‐ ment is that most of the state assets have already been sold.

Michael Wilson, Sunday Star‐Times 9/6/13

David Tranter, DSC Health Spokesman 7/6/13 The West Coast DHB has paid a Christchurch public relations firm $63,000 since November 2010 as well as employing its own communications manager, according to an Official Information Act request from Democrats for Social Credit spokesman David Tranter. It works out at just over $151 an hour. (Westport News 10/7/13)

RENEGING National is reneging on electoral reform, saying it only wants to put its effort into

Hubbard, Otago Daily Times

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Guardian Political Review, Issue 63, 2013 - Page 23

Democrats for Social Credit Here for good

We stand for social, economic and environmental justice At the heart of our vision for New Zealand is a fundamental reform of the money system We offer policies to strengthen communities, reward enterprise & safeguard the environment

www.democrats.org.nz