Guardian Issue 64

The Guardian Political Review Produced by the New Zealand Democratic Party for Social Credit Inc. Issue No.64

Autumn 2014

ISSN1176-614X

IN THIS ISSUE

Our 'rock star' economy?

What's the problem?

A simple and sensible solution PLUS NEWS, REVIEWS, FEATURES & MORE

The Guardian Political Review

Issue 64, Autumn 2014

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 Our vision

Owen Horton is angry. He sees the greed, connivance and treachery of successive governments towards its citizens.

His vision is that the power to change the system is within the province of any democratic State. What is required, he says in his article, is a system of monetary reform and policies that Democrats for Social Credit has advocated for years.

DSC leader, Stephnie de Ruyter, is concerned that, in a debt society rife with income inequality and financial serfdom, the rich-poor divide will inevitably grow to be a yawning chasm.

Party President, John Pemberton states that the successful

implementation of policies of social justice, environmental justice, and economic justice, will be heralded around the world.

Deputy leader Chris Leitch, says it’s time to ‘come out of the closet’ and tell your friends, workmates, and neighbours about how simple and sensible the social credit solution is.

In his message to the 2013 DSC conference, the highly respected Reverend Canon Peter Challen called for those in this ‘troubled Globe’, to “get a grip on the universality of our plight and of the specific elements of redesign that will redeem our troubled ways”.

That is our vision.

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 2 - Editorial 3 - Leader's Message 4 - Chris Leitch 5 - John Pembrton + DSC Executive 6 - Katherine Ransom

6

7 - David Tranter 8 - Michael Clatford What's the problem?

9 - Owen Horton

9 I have a vision

10 - The Big Lie 11 - A Titanic Problem 12 - Obituary 13 - Letters 14 - Media 15 - Review 16 - Review + Adrian Bayly 17 - Whitmill's World (1) 18 - Whitmill's World (2)

7

19 - Next Issue + Membership Bureaucratic tea party

Guardian Political Review, Issue 64, 2014 - Page 2

20 - Back Cover

11 New Zealand's Titanic problem

Our 'rock star economy'

By Stephnie de Ruyter Leader, Democrats for Social Credit

Child poverty hurts all of us. It harms the individual child and it has substantial long‐term costs to society. If we want to be a thriving, progressive, and successful country – we’re not going to get there with 25 percent of our kids in poverty. ‐ Dr Russell Wills, Children’s Commissioner

In our “rock star economy”, manufacturers and exporters continue their battle for survival against a high New Zealand dollar. Grey Power has expressed grave concern for the welfare of superannuation‐ dependent seniors. Unions and social agencies draw attention to the struggles of a rapidly growing underclass of working poor Kiwis. There are signs of growth in some sectors though: Invercargill has five soup kitchens and three food banks where previously there was half that number.

As countries across Europe struggle to rise above austerity measures imposed in response to the New Zealand is not skipping down a global financial crisis, leading global bank HSBC’s Paul Bloxham predicts social justice delivered path to peace and prosperity. Instead through economic justice systemic poverty is carving a track of that New Zealand will be the “rock discontent, marginalisation, and social star economy” for 2014, with growth instability.

Is this what we want? driven by the Christchurch rebuild, the housing boom, and rising dairy prices. It’s a catchy In a debt society rife with income inequality and phrase. financial serfdom, the rich‐poor divide will inevitably grow to be a yawning chasm. Inequality Presumably the 265,000 children and their in all its manifestations will be evident socially and families cited in the Salvation Army’s recently economically. The consequences will reverberate released State of the Nation report and in the Children’s Commissioner’s first annual Child Poverty long after the “rock star” label fades. New Monitor as living in poverty are merely the result of Zealand’s children deserve more. proverbially bad rock star behaviour, economically It’s election year. What better time to examine speaking. Will we attract groupies? Let’s hope not. our priorities as a nation? We need to talk openly and constructively about the social issues which Interestingly, New Zealand doesn’t have an official poverty line: the poverty threshold is usually make us uncomfortable then determine a way forward which enables all New Zealanders to fully set relative to 60% of the median disposable participate in their communities. household income adjusted for family size, after housing costs. Not that it matters much: people The DSC has policies and a comprehensive plan know when they’re poor. And the evidence is with which to address inequality and poverty in mounting of a widening gap between the New Zealand on a permanent basis, without wealthiest and poorest New Zealanders. According resorting to rock star superficiality. We promise a to Dr M. Claire Dale’s paper ‘New Zealand’s debt democratic financial system, modern monetary society and child poverty’, the top 10% of us hold policy, a basic income, a sustainable future. That’s about 50% of all wealth and the bottom 30% hold what the DSC stands for: social justice delivered no wealth at all, only debt. It’s a National/Labour through economic justice. disgrace.

Guardian Political Review - Issue 64 - Page 3

A simple and sensible solution

By Chris Leitch DSC Deputy Leader, Finance spokesperson

In the last few months upwards of 8 executives working in the banking and financial services sector have apparently committed suicide, a significant number of them employed by the international investment bank JP Morgan.

A number of commentators are beginning to consider this a prelude to an international financial meltdown.

This comes at a time when major world banks are under regulatory scrutiny over their so called “pre‐crisis cheating”, and multi‐billion dollar rigging of benchmark and commodity rates.

JP Morgan and Deutsche Bank have been hit the hardest, with JP Morgan being fined a record $4 billion and Deutsche Bank facing a $1.93 billion bill.

In January, JP Morgan also admitted it had aided the Bernie Madoff ponzi scheme by turning a blind eye to it, but the US Department of Justice decided not to send anyone from the firm to jail under a deferred prosecution agreement. In fact no banker in the US has been put on trial.

In March 2013 the US Senate Permanent Subcommittee on Investigation published a 307 page report that described in detail JP Morgan’s financial irregularities and deliberate masking of some critical financial information.

More recently, JP Morgan was fined $614 million for concealing the full risk associated with the mortgage securities it sold Freddie Mac and Fannie Mae ahead of the crisis.

In September last year JP Morgan Chase agreed to pay $920 million in fines to settle probes related to the “London Whale” financial debacle of 2012. Bank employee Bruno Iksil, nicknamed “London Whale” for the size of his operations, was notorious for his “casino bets” of other people’s money, which caused the bank about $6.2 billion in losses.

According to a European Commission investigation, eight world banking giants (Deutsche Bank, Barclays, Société Générale, RBS, UBS, JP Morgan, Citigroup and RP Martin) were part of two separate illegal cartels which conspired to manipulate the benchmark Euribor and Libor rates (the key rates at which banks can borrow) to benefit their own positions in euro and Japanese yen‐denominated interest rate derivatives markets. They were fined a record combined total of €1.71bn It appears there are more investigations underway into banking fraud. One cannot help wondering if the suicides are linked to these on‐going investigations.

If an international financial meltdown really is staring us in the face then the social credit economic solution will be more needed than ever before, and the public will be more ready to receive it than ever before.

Most people don’t give much thought to the government’s financial operations. They have been led to understand that there are limits to how much the government can afford to spend.

Ask anyone how it all works, and he or she will tell you emphatically that: “…the government has to either tax or borrow to get the funds to spend, just like any household has to earn or borrow the money it needs to spend.” Just like a household we were told, the government could only spend more than it takes in, as long as private lenders remained willing to extend credit.

Borrow too much, and your credit rating will suffer. From there, it’s a hop, skip and a jump to “shared sacrifice” and “tough choices” Guardian Political Review - Issue 64 - Page 4

to avoid becoming the next Greece.

So from this comes the inevitable question about healthcare, defence, social security, education, and any and all government spending: How are you going to pay for it – raise taxes, or borrow more?

Both National and Labour governments have chosen to borrow – that is largely what is driving the current “economic recovery”.

Let’s examine that process for a moment.

The Reserve Bank prints various pieces of paper called Govern‐ ment bonds, Treasury bills, or Reserve Bank bills, and offers these for sale to the banks and major financial institutions, often via an auction process through its Debt Management Office.

These institutions buy the bonds or bills with money they have created. No, not people’s savings deposited with them, but money they have created – out of nothing! This, of course, increases the money supply.

This is how a Reserve Bank publication describes it – (Reserve Bank of New Zealand: Bulletin, Vol. 71, No. 1, March 2008) “In a modern economy, money can be created either by the central bank (the Reserve Bank, in New Zealand’s case) or by private sector institutions – in practice, mostly registered banks”.

“For that matter, any institution that can maintain the public’s confidence that its liabilities will be generally accepted as means of payment, can create money”.

“Such an institution will, in practice, also be in the business of creating credit, which implies the issue of a greater value of claims on the institution than the value of Reserve‐Bank‐issued money the institution itself holds”.

“In practice, by far the largest share of money – 80 percent or more, depending on the measure, is created by private sector institutions”.

So there! – when someone tells you banks don’t create money, that they just lend out other peoples savings, you can tell them the Reserve Bank, the government’s central bank, says they are wrong.

The problem is, of course, that the purchase of those bills or bonds is effectively a loan to the government on which it has to pay interest – with money from our taxes!

The Treasury has the power to end‐run the process by cutting out the middlemen – financial institutions (banks), taxpayers, and bond markets. We’ve already seen (above) that the Reserve Bank has the power to create money, so the Treasury could simply direct it to add some numbers to its balance sheet instead of printing bonds.

The truth is, the government is already the issuer of our money supply, but it has privatised this function to the banks – at enormous cost to the public through taxes.

It is time to remove private banking from its public dole entitlement.

Remember however, money is not real wealth. Real wealth is capital assets, our infrastructure, our cars, our houses, and most importantly the potential human ingenuity and co‐operation. Money is only a way for us to exchange that real wealth.

So it’s time to come out of the closet and tell your friends, workmates, neighbours, about how simple and sensible the social credit solution is – they are going to need to hear it.

21st Century Economics

By John Pemberton, DSC President The successful implementation of policies of social justice, environmental justice, and economic justice, will be heralded around the world ‐ to the same degree as the news of economic collapse and mayhem during the Global Financial Crisis.

I believe our solutions, when used by a New Zealand government, will see the political promises, slogans and taglines of the campaign to elect that government become a reality.

What actions do we need to take now, to successfully sell our message and to see the eventual implementation of our core financial policies?

Mv answer: We have to keep it simple.

We know that in the process of producing our nation's supply of goods and services, there is a shortfall in the amount of income available to purchase those goods and services. We know about economics and how our financial system works, more than any other group of New Zealand voters ‐ and

(edited extract from address to 2013 DSC Conference)

that's the problem.

Come election time other political parties trot out their promises, slogans and taglines that roll off the tongue, require little or no explanation and just sound simple common sense.

The best stand‐alone message we've ever had, I believe, is "Whatever is socially and environmentally desirable, and physically possible, is financially affordable".

To support the message this party, over a period of 60 years, has identified and developed a range of tools which will be used to create and manage a reformed economy.

These tools will create wealth for all New Zealanders, redistribute that wealth where necessary, discourage speculation, direct investment funds toward the real economy of goods and services, and, most importantly, remove the burden of compounding interest.

caused by the current financial system are evident to most of us. Our aim is to eliminate those inequalities, for the sake of all people alive today and all those yet unborn.

How can justice be achieved without changing the way we think about incomes?

During the year ended June 2012 our GDP was $202.504 billion.

Total incomes from all sources was only $129.792 billion ‐ a shortfall of $72.712 billion.

Our economic plan makes a basic income possible and affordable for all ‐ based on a visionary notion that income is no longer tied to work, or hand‐outs in the absence of work, but rather derives from ownership, inheritance, and residency.

I believe the establishment of a basic income is the single most important tangible outcome of the Democrats for Social Credit Party's plan for 21st Century economics.

The profound and deepening inequalities

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 Chris Leitch 42 Reyburn House Lane, Whangarei 0110 Ph 09 430 0089 Mobile: 021 922 098 Emaif: chris.leitch@democrats.org.nz Executive Officers: Party President John Pemberton PO Box 402, Matamata 3440 Ph 07 888 8564 Mobile 021 716 895 Email: iohn.pemberton@democrats.orq.nz Website: http://www.iohnpemberton.co.nz Biog: http://monetarviustice.blogspot.com Vice-president Katherine Ransom PO Box 402, Matamata 3440 Ph 07 888 8564 Mobile 027 471 6891 Email: katherine.ransom@democrats.orq.nz Blog: http://katherineransom.bioqspot.com Regional Presidents Northern Region & North Shore David Wilson PO Box 60, Paparoa 0543, Northland Ph 09 431 7004 Email: david.wilson@democrats.org.nz Guardian Political Review, Issue 64 - Page 5

Auckland Region Neville Aitchison Mobile: 021 816 713 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 Eastern Region Barry Pulford 17 Caernarvon Drive, Flaxmere, Hastings 4120 Ph 06 879 9497 Mobile 027 288 5658 Email: barry.pulford@democrats.org.nz Western Region Heather M. Smith 8 Darwin Street, Gisborne 4010 Ph/Fax 06 867 6668 Email: heather.smith@democrats.org. nz Wellington Region Errol Baird 102 Wainuiomata Rd, Lower Hutt 5014 Ph 04 564 4183 Email : errol.baird@democrats.org.nz Canterbury/West Coast-Tasman Regions Bob Fox 14 Charles St, Rangiora 7400 Ph 03 313 6774 Email: bob.fox@democrats.org.nz

Southern Region Hessel Van Wieren PO Box 149, Cromwell 9342 Ph: 03 455 1398 Mobile: 027 441 6089 Email: hessel.vanwieren@democrats.org..nz Party Secretary Roxanne Hansen 59-61 Arawa Street, Matamata 3400 Mobile: 027 733 6641 Email: roxanne.hansen@democrats.org.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 Website: http://www.guardian.org.nz Committee Convenors: Finance Committee Carl Findlater Ryal Bush, RD 6, Invercargill 9876 Ph: 03 221 7075 Email: carl.findlater@democrats,org.nz Policy Committee (acting/interim) Jenny Lichtwark Mobile: 021 295 5141 Email: jenner.lichtwark@democrats.org.nz Constitution Committee Neville Aitchison (refer Auckland Region President's entry for details)

Gender inequality ‐ what’s the problem?

by Katherine Ransom DSC Vice President

There exists a fundamental barrier to the sustainable development of women and girls, and indeed of every ordinary person. The primary barrier is the global economic system. It affects everything we do.

income for accommodation, whether it was rent or mortgage payments. Now most families are paying half or more of their annual income to service a mortgage on a house, and nearly that much towards rent. Huge amounts of money flow out of the welfare coffers as accommodation subsidies, because heavily indebted landlords want enough rent to service loans.

Under the global economic system, money is created out of thin air as a commodity by privately owned banks, and for a hefty profit is sold to us as debt. We pay for the money through interest.

Women still earn far less than men. When the prices of basic items go up due to rampant debt and speculation (all allowed by the 'free market' of neo‐liberal economics), even middle class families struggle.

Almost 98% of the world's money supply is created as debt.

The remainder is physical notes and coins created and issued by governments. The world is so in debt that if we took all the existing money and used it to pay off the debt, we would have no money left ‐ and we would still have debt.

Women have to seek employment (usually low paid) to make ends meet, and very few families can afford to live on one income any more. We are debt slaves, and that's just the lucky ones who still have jobs.

When money is allowed to be a commodity like wheat or sugar or oil, like those commodities it is subject to the activities of speculators. New software allows currency speculators buy and sell money several times a second. The NZ dollar is so volatile it is the Reno of currency speculation.

Meanwhile there is less affordable money for investment in the real economy of goods and services.

How does this affect women and girls in New Zealand?

When existing assets ‐ property, commodities, stocks, shares, and money ‐ are bought and sold it has the effect of driving the prices of those assets up. Most businesses are in debt, and they recoup that through price rises. Food, power, and all kinds of other essentials go up in price. This is also how we get housing bubbles.

Fewer and fewer women and their families are able to own their own homes. Once we could budget a quarter of our Guardian Political Review - Issue 64 - Page 6

The flow‐on effect of this is that children are now also considered commodities, the raw material of a childcare industry. The move to set up 'charter schools' is the next step of privatisation of the education system and commoditisation of our children.

We still have the remnants of a formerly egalitarian welfare system, and compared with much of the rest of the world, we are still enjoying a relatively prosperous standard of living. But it erodes every day, and poverty is on the increase.

We never dreamed of New Zealand children going hungry to school thirty years ago, but it's certainly common knowledge now.

We face many other challenges too, like climate change, and global crises concerning food, oil, and potable water.

Underpinning them all, and shackling us from doing anything significant to face these looming storms, is the debt‐based financial system.

Bureaucracy ‐ or how to justify an obscene salary for doing nothing useful

By David Tranter B.Ed (Oxon), B.A. (Canty). DSC Health Spokesperson Readers of my articles may have discerned a slight antagonism on my part towards bureaucracy at large, and health bureaucrats in particular.

Let’s hope so, since the department administers more than $50bn of public funds a year”.

I find it distinctly gratifying therefore to note that there appears to be a growing number of people who share my annoyance. To paraphrase Winston Churchill, never in the field of human administration has so much public money been spent by so many for so little benefit to anyone at all.

It was dear old Spike Milligan who defined a bureaucrat as someone “who obeys orders from above and ignores complaints from below”. How well do we know them!

On the West Coast (you knew I’d get to the Coast sooner or later so I may as well start there) the Christchurch chairman of the Coast DHB board recently told a board meeting that although the board cannot provide 'A trail “normal, planned” birthing in the Westport maternity facility they can provide emergency birthing services there. Of course, no explanation was given as to why, if they have the staff and facilities to provide emergency birthing they can’t provide services for births which can be planned and prepared for. Only a health bureaucrat would make such a contradictory statement and leave it at that.

Lest it be thought I excessively target the Coast’s illogical health administration. I am indebted to a columnist on The Australian newspaper, Nick Cater, for the recent headline, “Bureaucrats striving for their benchmarks leave a trail of gibber”. Not having previously used the word gibber (I generally finish on “obfuscation”) I consulted the trusty Concise Oxford which defines the verb gibber as, “to speak fast and inarticulately” and the noun form as, “such speech and sound”. Spot on. I must use it in my next letter to the Greymouth Star.

In South Australia the town of Gawler has a, “pro‐active program for reducing graffiti vandalism…… (which) seeks to address deficiencies in youth decision‐making capacity and provide an increased profile of aerosol art in public spaces”.

That should stop the little devils (NOT!).

But my favourite has to be the Victorian Department of Education whose, “stakeholder engagement strategy….. serves to communicate the department’s commitment to stakeholder engagement to its stakeholders and represents the department’s on‐going commitment to work with stakeholders". Whatever did they call us before we all held stakes?

Lest I be over‐doing the Australian angle let me finish with another West Coast DHB classic.

The background to this is that for well over a decade politicians, bureaucrats, consultants, Uncle Tom Cobbleigh and all have been doodling about (at horrendous public expense) with abandoned schemes for a new Greymouth Hospital. Commenting on their latest change of plan (or should that be meaningless waffle) their “programme director” recently stated; “the facilities development process was currently in concept design”.

of gibber'

Do they really think we can’t see through such silly, meaningless jargon? Isn’t it time we just laughed at them?

I think so.

I will have to end here as I am seriously contemplating planning the concept of the consumption of a modicum of liquid nutritional element or, as we non‐bureaucrats would say, “have a cuppa”. Cheers!

To return to Mr. Cater it is tempting to quote his article in full but that would take several pages so here’s few choice examples of Ozeaucracy (not yet in the Concise Oxford but I have hopes).

Because of a 60 percent increase in complaints the Australian Health Services Commissioner, Mary Durkin, “has been forced to adopt an ‘increased workload mitigation strategy’ (oh how the West Coast managers would love that!) shunting off complaints to hospitals and other government agencies, a strategy once known as buck‐passing but now termed ‘a whole‐of‐government approach’ ”.

Mr. Cater continues, “Health Secretary Jane Halton assesses her department’s performance last year in five well‐chosen words: ‘We are making a difference’.

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Bureaucratic tea party. Mad Hatter: Would you like a little more tea? Alice: Well, I haven't had any yet, so I can't very well take more. March Hare: Ah, you mean you can't very well take less. Mad Hatter: Yes. You can always take more than nothing.

25 years minimum sentence

by Michael Clatford Edited extract from www.democrats.org.nz

Paremoremo

New Zealand taxpayers have been sentenced to a minimum of 25 years of paying out from our earnings and savings.

That's the sentence handed down by PM John Key and his National Party in an attempt to deceive the New Zealand public into believing that there is financial stability.

What crime have you committed for this punishment?

Auckland Prison's maximum security wing is to be completely rebuilt under a Public Private Partnership (PPP).

Correction Minister Anne Tolley said the new wing at Paremoremo was a significant infrastructure project, scheduled to open in mid‐2017 and would be designed, built, financed and maintained under the partnership.

It is no crime to rebuild and update the maximum security facility. What is a crime is not the unwise and unnecessary handing to, usually, overseas hedge funds, pension funds and specially formed companies, an opportunity to dig their snouts into part our income and savings for the next 25 years. But the deception, according to Mrs Tolley, is that the Depart‐ ment of Corrections was "getting value for money for taxpayers".

Labour, the forerunners of the privatisation of public assets, didn't seem to understand how the wool was being pulled over their eyes when all they could think of was that "the

Guardian Political Review - Issue 64 - Page 8

Mt Eden PPP showed the partnerships didn't always work, with prisoner escapes, high numbers of officer assaults, late releases, numerous reporting failures, and staff training and retention problems".

It was not the outsourcing of services that was the problem, for they can always be taken back into the public service, but the construction of "an infrastructure project".

It cannot be said that it represents value for money for the taxpayers when there's interest, annual administrative charges as well as annual profits loaded on to the cost of the building.

So why is John Kay and his National Party determined to punish us with unnecessary taxation for a minimum of 25 years with his PPP delusionary trick?

The debts these financial schemes entail are not on the government's balance sheet, but off balance sheet. They are hidden debts to be paid in future with interest. However by not having the debt on the balance sheet, Mr Key and his National Party can present to the voters a more rosier situation regarding the country's finances than would otherwise be the case.

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?

I have a vision

By Owen Wilfred Horton Edited extract from a paper presented to the 2013 DSC Conference

T

he older I become, the clearer I see. What I see scares the hell out of me!

I see a world where morals are put aside for greed, corrup on and ever increasing dishonesty. Where the very soul of a country that I call home, now disgusts me by many of the things that are happening.

When I see what is happening around me, it makes me so angry.

The greed, connivance and treachery of successive governments towards its ci zens is unbelievable The main problem of course, is the old debt-finance system, or funny money regime, prin ng money with no meaningful backing, which cannot cope with paying for such calami es without pu ng the rest of the na on in purgatory for eternity.

What is required is a system of monetary reform that 'Democrats for Social Credit' have advocated for nigh on 70 years. Of course, everyone laughs and says "Oh the funny money team". OK, let's put this funny money humour to bed once and for all. Social Credit creates money only if men, machines and materials are available, otherwise it cannot be issued as these items give it its value.

Presently China, India, Russia and probably soon Indonesia are using this system to finance their countries. Three years ago they started building a 200 mile long bridge across one of their big bays.

It was completed last October 2012 debt free. They printed the money to pay everyone involved and upon comple on the bridge became the asset of China. The money as it returned was cancelled, which equalled the price to build the bridge. Since then they have built the complex 'Bird Nest' for the Olympic Games and are also building one of the highest railway lines in the world, all financed by the Reserve Bank of China.

The futures markets are fiddling exchange rates up and down at the expense of the hard work of producers of items, such as oil, mber, grain, meat, fish, wool and many manufactured products. All done at the expense of the people who produce all these items.

An unwri en law amongst bankers was that they could use Frac onal Reserve Banking at 9-1 - one dollar on deposit meant they could print or issue $9 of new money They are now issuing $33 for every $l on deposit. And the latest news is they are now selling their deposits to a bank down the road, bringing back a cheque in exchange and deposi ng it in their bank as a new deposit and con nuing the above process. Would you not agree, if this is not Funny Money, what the hell is?

The debt and infla onary policies of past and present Governments have aided and abe ed the money lenders to wax fat at the expense of past, present and future genera ons of New Zealand ci zens. Where Democrats for Social Credit differs is the profits made in issuing credit are paid back to ci zens as a Na onal Dividend, and also by other means such as pensions for elderly and disadvantaged people, also in other ways to keep the costs to the public down.

Mar n Luther King had a dream for the future of America. That dream is star ng to look more like a nightmare because the monetary system cannot cope with the wants and demands of the American ci zens. Unlike Mar n, I did not dream. But I have a 'vision'. A vision of New Zealand as I would like to see it. New

Guardian Political Review - Issue 64 - Page 9

Zealand is in a unique posi on to lead the world, and New Zealand was a world leader once and can be so again.

Not so many years ago, we gave our sisters the vote. We ins gated universal superannua on for the elderly. We looked a er our sick and frail by Social Welfare benefits. We ins gated help for our mothers and very young, by the Karitane system. And we created a free educa on system for all those aged 5 years and onwards. And lastly, we made hospital treatment available to all.... free! Most of you here today have watched many of these memorable bas ons being slowly but sadly torn down, mainly by the tentacles of infla on.

My vision goes like this. We must ins gate a fairer tax system, namely 'Financial Transac on Tax', whereby when a person takes a dollar from their bank, they have half of one cent deducted. The beauty of this system is it is easy to administer, the banks collect the tax and the government pays them a fee for this service. Everyone will pay this tax, with no excep ons. This is not a cruel tax like GST which robs the poor to help the rich.

The next vision is that the crea on of 'credit' must be put in the control of the NZ Monetary Authority, which will work hand in glove with the Reserve Bank of NZ. By doing things this way, would mean we would not need to sell off our assets to sa sfy the greedy needs of overseas money lenders My vision is that the power to change the system is within the province of any democra c State, and this can be done without dispossessing the banks or by na onalising them. But reforms will involve considerable pruning of their powers and also a very salutary increase in the exercise of the sovereign power.

As I said earlier, taxa on must be reduced in all its forms. As taxa on is the arch inflator. All forms of taxa on are automa cally loaded into prices. So if we rearrange our financial system and Income Tax is lowered by 5% per annum, prices will fall generally by that amount each year. Then exis ng assets need not be sold off to buy new infrastructure and no more profits need to be sent offshore. Tried and red budgets, such as the Mr English has presented, to shore up a global financial system that is no longer sustainable will end.

My vision also includes 'Ci zens Ini ated Referenda', which with the aid of modern technology would be a desired system for many issues, but which the present Government has denied on a number of occasions to its ci zens.

But to achieve this vision we must fully support a very talented person in the name of Stephnie de Ruyter and all those who have supported her in the past few years. Stephnie has worked relessly to reconstruct a party that holds the salva on of mankind, not only in New Zealand, but also in the world.

Let's get behind her and give our undivided support, with effort and financial backing.

Owen Horton is a long-Ɵme Social Credit supporter, and candidate on three past occasions.

The Big Lie Waikato Times Caught Lying About Fluoride Survey Results Press Release: Fluoride Action Network NZ 2/12/13 (extract)

The Waikato Times has been caught out reversing its online survey results about the Hamilton City Council’s decision on Thursday to defer its fluoridation decision.

The poll asked people if they supported the council’s decision to wait (re‐starting fluoridation) until the after the legal challenge currently before the High Court is decided.

68% of people said “yes” and only 32%.said “no” but the Waikato Times misrepresented this as 68% saying “no” and 32% saying “yes”.

Various members of the public had taken screen shots when the poll was running so were shocked to see the newspaper print the poll with the results reversed.

However, instead of responding and correcting the mistake, the paper removed all comments, covering up their deception.

Direct communication has failed to elicit a retraction.

Screen shot 1 - correct

Opinion poll

So how much faith can we put in the Waikato Times’ survey results during the recent fluoridation referendum campaign? How many of those did it falsify and did this affect how people voted?

For years the Times has been the DHB’s cheerleader for its outdated fluoridation policy. During the recent referendum, every article was heavily biased in support of fluoridation, practically all the opinion pieces were pro‐fluoridation and the only two pieces that were opposed to fluoridation, one written by a local highly qualified academic and the other by a local oncologist, were only in print and not online like all the pro‐fluoridation ones.

Huge headlines said “New Poll, We want fluoride on Tap” right in the middle of the referendum voting.

A referendum manipulated by hundreds of thousands of dollars of taxpayer‐funded resources, and a complicit Waikato Daily Times, is not grounds for reversing the right decision.

Mayor Hardaker‘s vote against fluoridation, or her main opponent’s (Ewan Wilson) ardent support, was highly likely to have been a factor that tipped Hardarker’s re‐election.

Conversely, Central Hawke’s Bay District councillors who voted for fluoridation in 2009 were mostly removed from office.

32.0% 68.0% Screen shot 2 - false

"We oppose compulsory preventive medication where it can produce undesirable side‐effects or where the long term benefit is or becomes uncertain." Democrats for Social Credit Health Policy.

As the only political party to have objected consistently to the addition of fluoride compounds to public water supplies since the practice was first introduced into New Zealand, we must again register our concern about the continuation of fluoridation in your area. Under the Health and Disability Commissioner's Code of Rights no‐one should be medicated without their individual and informed consent. Therefore neither a majority of councilors not a majority of citizens has the right to impose fluoridation on others. That is not democracy

Hamilton Councillors can rest assured the public is firmly behind its decision not to reintroduce fluoridation at this time.

They can equally rest assured that the Waikato Times cannot be trusted to print the truth.

Treating water to make it potable is acceptable where necessary ‐ but it is unscientific to claim fluorides as essential trace elements or as medication absolutely safe for all people. We commend to you the campaign against fluoridation conducted by the Fluoride Action Network and urge councilors to heed that organisation's submissions.

The Council should also be confident that its decision after the robust Tribunal process was the right one.

David Tranter (DSC Health Spokesman), Heather Marion Smith (Local Government) Submission to Wellington City Council’s Draft Annual Plan 2014/15.

Guardian Political Review - Issue 64 - Page 10

COMMENT

New Zealand’s Titanic Problem

by Steve Baron B.A. (Hon)

I

magine for a moment you’re in the middle of the Atlantic Ocean aboard the Titanic. You’re in the ballroom having the time of your life rubbing shoulders with other wealthy individuals—the few who could afford such an expensive first class berth on one of the most expensive ships of its day.

Suddenly the ship lurches and you wonder what the hell happened. Then you bump into Professors Richard Wilkinson and Kate Pickett (authors of The Spirit Level). They’ve just come up from below deck and tell you there’s a massive rip along the side of the ship and it’s taking on water fast. The Captain then makes an announcement over the ships' intercom; “Don’t worry, we’re just taking on a little bit of water but the pumps are working well. By the way, we’ve rearranged the deck chairs and the band will play its latest hit song, so you can all sit back and relax without a care in the world”.

Comparably, what a shock it was to hear the Captain of our ship, John Key, announce in his recent ‘Key Notes’ video blog that; “Income inequality has actually reduced”. The reality is that New Zealand society has a colossal rip along its entire side which was highlighted by the statistics in Wilkinson & Pickett’s book. For Key to simply spin such propaganda regarding this devastating social problem is to show a real lack of sagacity and a disconnection with society in general.

Of course it’s not surprising that Key wants to paint a rosy picture, after all it is election year and he doesn’t want anything unbalancing his ship. However, Key ignores this problem at the country’s peril. Income inequality is a curse on us all and certainly far more important than Key’s facile attempt to sidetrack the public with his magniloquent flag debate—surely hypocrisy at its pinnacle given Key’s refusal to respect the public’s wishes in previous referendums.

Unfortunately, wealthy people are often quick to dismiss income inequality as an issue, believing it has little effect on society and probably doesn’t concern them specifically. They often believe income inequality is simply a cunning socialist plan to take yet more money from the rich and give it to the Guardian Political Review - Issue 64 - Page 11

undeserving poor… let the poor work their way up just like John Key and I did, from our humble State house beginnings.

The difference is that back in our State house days, we had equal opportunity. Today it’s a completely different ball game for young people. The poor of today do not have equal opportunity to get themselves out of the poverty trap because the steps on the ladder are simply too far apart.

Even though the wealthy don’t realise it, income inequality affects them directly too. The hard part is trying to explain the significance of income inequality and getting politicians to come to grips with it as a serious social problem. It’s like a balance of payments deficit or inflation, it’s there but it doesn’t affect anyone does it? In fact, income inequality produces ‘displaced aggression’ and that aggression gets played out in everyday life leading to child abuse, spousal abuse, substance abuse, youth suicide, petty crime, violent attacks and increased taxes which we all pay to pick up the pieces. Like inflation that eats away at our wealth, income inequality eats away at our society—without us being fully aware of it or even connecting up all the dots.

It’s going to take a leader with guts and foresight to address the problem. It’s going to take a Paul Volcker (Chairman of the US Federal Reserve under Presidents Carter and Reagan from 1979‐1987 who showed the world how to smash inflation) to smash income inequality. President Obama is beating the drum on income inequality in the USA, but in reality, whether or not he can do anything about it there, given the USA’s complicated political system, is yet to be seen. Even if Obama or his successors can solve the problem in the USA, their solutions will not necessarily be what New Zealand needs to solve the problem here. Income inequality is a cunning beast and the poison to kill it off in one country doesn’t always work in another.

One thing is for sure, dismissing this problem as incon‐ sequential is like saying the Titanic wasn’t in trouble.

Steve Baron is a political scientist, co‐editor of the book ‘People Power’ and the Founder of Better Democracy NZ.

OBITUARY

Nevern Clark McConachy Born 1922 – Died 4 March 2013

Nevern was born in London in 1922 during one of the many trips his mother and father (Clark McConachy world champion billiards player), made to the United Kingdom. His education spanned Napier Boys High School, Seddon Technical College, and Auckland University.

He spent four years in the Navy, and was self employed for most of his life.

Apart from having a busy life as a farmer, and director of several companies, including the Albertland Co‐ operative Dairy Company, he was also very active in the community. Chairman of the Molesworth Ratepayers and Citizens Association, Patron of the Mangawhai Heads Life Saving Ctub, member of the Wellsford High School PTA, foundation member of the Wellsford Lions Club, elected member of the Northland Regional Council, secretary of the Mangawhai Heads Ratepayers Association ‐ these are just a few of the roles he undertook. He became a JP in recognition for his community activities.

Amongst all that he found time for a life long commitment to Social Credit.

With wife Phyl, he joined the Social Credit Political League as it was then known after hearing Gerald Hunter, the local League candidate, speak on monetary reform. Together with other local enthusiasts (Jack Furness, Harry Langridge, Ham Worsfoid, Ivan Blackmore, Jack & Noreen McKenzie spring to mind) they set up sub‐ branches across the Rodney electorate.

When Nevem first stood as a candidate in 1963 a thriving Rodney branch with twin pillars of money and membership had been established. This model became a prototype for future

Guardian Political Review, Issue 64 - Page 12

successful campaigns ‐ notably in East Coast Bays and Rangatiki. In 1978, with an enormous team effort behind him, (1400 paid up members, 300 election day workers) he came within 520 votes of winning the Kaipara seat. Social Credit replaced Labour to become the viable opposition in many electorates across New Zealand. Without proportional representation this was never translated into members of Parliament.

He was a dominion councillor, member of the policy and technical committees, chairman of the campaign committee from 1976 and chief architect of the campaign strategy which built the party to the height of its success in 1981. His "Target 81" campaign booklets to conferences will be long remembered, as will the "Beetham Dwyer" fundraising campaigns. With his enthusiasm and salesmanship he raised large sums of money for Social Credit.

His Holden Statesman covered countless thousands of miles across the Kaipara electorate to stock sales, on door to door canvassing, and around the country. His consuming interest never waned and well into his 80's he was an enthusiastic campaigner.

Awarded Life Membership, his commitment and contribution to the Social Credit cause was invaluable. He was a loving and supportive family man.

From Chris Leitch

Tribute from Geoffrey Morell It is with a heavy heart that I write this as a token for a man I had known for seventy years, but it is with joy that I have had the privilege of working with

someone of his calibre.

Nevern was part of the naval establishment in Waiouru during war time action, as I was. HMNZS Irirangi was a radio receiving station with contacts across the globe, a key base for NZ. He was one of two Naval personnel who married Wrens, and were granted permission to live off base, on a farmer's property.

Nevern brought life to the Base when he invited his Father, Clarke, to visit and perform his skills as the World Champion of billiards.

I have a vivid memory not only of Nevern in that role, but also later as he became involved with the up‐and‐ coming new political force: the New Zealand Social Credit Political League.

It was a delight to find a fellow naval man and farmer encompassing the theories of Major Douglas. I could write screeds more of his activities within the Social Credit Movement. Not forgetting the trials and tribulations that the League, albeit Party, went through but Nevern was still there. He was part of the stock of Northland monetary reformers, down from Capt. Rushworth.

It has been a privilege to have known him since the early 1940's and his work in establishing a real political force for monetary Reform.

I salute you Nevern.

Geoffrey C. Morell (U.S.A.) 24/9/13

WE HAVE MAIL The pilgrim's path The issues of land, money and a basic means of livelihood for all ‐ a universal basic income ‐ are now entering the minds of many groups inside and outside faith traditions.

They are beginning to see that the necessary and urgent pursuit of palliative measures, within the extant economic order, must not be to the neglect of the fundamental task of re‐designing the economic system for the benefit of all.

So either side of the troubled Globe we should get a grip on the universality of our plight and of the specific elements of redesign that will redeem our troubled ways.

Yours along the pilgrim's path we travel together.

Rev Canon Peter Challen, U.K.

We hold these truths Well, the print magazine arrived today, and I have to admit I was very pleasantly surprised to see the excerpts from my speech on the Gaia Plan, along with my email to you and the reference to "We Hold These Truths" in Stephnie de Ruyter's speech.

It is extremeiy gratifying to see a place ‐ New Zealand and your magazine ‐ where briliiant and practical commentary on monetary affairs is coming together the way it is in the pages of The Guardian Political Review.

Richard Cook, U.S.A.

Economic Reform Australia The complimentary copy of the Guardian Political Review that you send on to me is always appreciated and read with great interest by myself and other members at our meetings.

It is clear that the concerns of DSC members overlap to a considerable extent with those of ERA members, although ERA does not align with any political party.

There do not seem to be any political parties in Australia advocating social credit ideas at this point in time. Although there is a small community of social crediters centred in Queensland.

John Hermann,Economic Reform Australia.

The real economy There are two economies. One is where things are made or grown to supply the needs of life, leisure, and export returns. The other is the financial sector, which deals in the trading of money, futures, insurance, shares, and banking.

One rides on the back of the other.

Guardian Political Review, Issue 64 - Page 13

We all know about the real economy’s resources – minerals, oil, grass, trees, cows and sheep. The resources of the other, the financial sector, are not so well known.

Their resources are credit creation, speculation, capital gains, all based around the real economy’s means of exchange, the dollar.

Of course this isn’t a bad thing as all real economy businesses require capital for expansion and foreign exchange for export.

Since Rogernomics in the late 1980s, the financial sector has been growing exponen‐ tially in relation to the real economy.

As a percentage of the economy, the financial sector is at the same level it was before the Great Depression of the 1930s.

This is a problem, now that the tail is wagging the dog. What used to be a service sector to the real economy has grown into a monster. Manipulating our exchange rate, encouraging every purchase to be made on credit and concentrating on best return for them, rather than advancing our economy.

New Zealand isn’t just a paddock in some banker’s international financial farm. Our population isn’t a crop to be harvested by the super wealthy through a treadmill of debt.

We elect governments to control these threats and protect us from the usury of the “free” market.

Where are you now, government “of the people, by the people, for the people” as Abraham Lincoln demanded of democracy?

Carl Findlater, Ryal Bush

Keeping Left

depositors would get at least some of their money back.

Our Royal Commission on (finance) referred to this method as a “blunt instrument”, which may have had something to do with the change in emphasis that occurred later. In any case, few countries now have “reserve ratio” requirements and, like our Reserve Bank, most central banks rely on variation of interest rates for the purpose of control attempts.

Almost daily we get comments on TV from “knowledgeable” spokespeople pondering if or when the Reserve Bank will “have to” raise its Overnight Cash Rate. Emphasis on this aspect is undoubtedly encouraged by the banking fraternity, because it tends to give the public an impression that the Trading Banks get their money from the central bank and “lend it on” at a higher interest rate.

The same people would be aghast if legislation was introduced to Parliament confirming such a system, as some overseas monetary reform organisations suggest.

In fact, commercial banks need accommodation only to handle their interbank adjustments each day, and this is required only by those that have received less value in deposits than the amount they have paid out that day. “Reserves follow deposits”. If one bank receives from another less in deposits than the other has received from it, it must transfer to the other reserve funds equivalent to the difference. Obviously, this works in different directions each day.

In any case, each night, roughly half the banks require accommodation representing a very small fraction of their business during the day.

A word about foreign tourists, who in their home country are used to driving on the right‐hand side of the road and automatically veer to the right if suddenly confronted with an unexpected situation.

This method also is a very “blunt instrument”. It represents such a small proportion of bank turnover that they could, in fact, lend at rates below the OCR if it was fairly high, and still make a profit.

In the 90s our family sponsored a Slovakian into New Zealand. I fitted a cardboard arrow to the dashboard of his car, pointing to the left. He never had any trouble keeping to the left. Now that's where the arrow should be ‐ always in front of the driver.

It is made even blunter by their practice of lending to each other at rates below the OCR.

Geoff Church, Kerikeri

The Façade of OCR In earlier times, central banks attempted to control inflation by the use of reserve ratios. Commercial banks had to retain in their accounts with them sums equivalent to a proportion of their customers’ deposits, and this proportion was varied from time to time. Relating such a process to deposits probably resulted from the fallacious idea than banks could lend their deposits, but it did mean that, if the bank went broke,

How much better would be Social Credit’s proposed system with an independent National Credit Authority controlling the volume of money in circulation directly! By ensuring that there is enough, and only enough, money in the hands of consumers to buy the goods they produce, without going into debt.

John Rawson, Whangarei 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 Health system in crisis There are tragic consequences to National's corporatising of public health system management in the early 1990s, an approach continued under subsequent governments.

Previously, nursing input was guaranteed by such means as the senior nurse being in the hospital management 'triumvirate' along with the medical superintendent and hospital secretary.

What, no hordes of executive PAs, planners, managers, lawyers and computer‐ twiddlers? Yet under the previous arrangement, our public health system was the envy of most countries around the world.

The Canterbury Area Health Board compiled a major study of their rural hospitals, which found that to run health services from small local hospitals was 60% cheaper than running similar services without a local hospital. I also wonder whether any health minister or party health spokesmen are aware of that study? I doubt it.

It is obvious that politicians and bureaucrats unaware of New Zealand's health system history simply do not understand there are other ways of running health than burdening it with self‐serving bureaucratic empires while ignoring nurses' crucial knowledge.

David Tranter Health spokesman NZ Democrats for Social Credit (Grey Star 12/2/14)

Funding the new hospital Most people would like to see a new Greymouth hospital, but not at the expense of existing services.

David Tranter suggested that a new hospital should be funded from Reserve Bank credit. The tragedy is that there is no one left In Labour or National who would have the slightest idea what David was talking about.

New Zealand was the first country to peacefully create full employment following the Great Depression of the 1930s. We built roads, railways, bridges, State housing, schools, hospitals, government buildings, on and on, so‐called infrastructure.

For 40 years the Reserve Bank had a policy of economic stabilisation, maintaining full employment no matter who the government was. Then, under a Labour government we got Rogernomics or neo‐ liberal economic theory, followed faithfully by both Labour and National, What that means to our health services is that the new hospital will have to be funded from the existing budget, leading to a radical rundown in existing services.

Peter Neame, Cobden (Grey Star 12/2/14)

Guardian Political Review, Issue 64 - Page 14,

Dunedin debt Dunedin is no closer to reducing the financial impact of private interest bearing debt on the average ratepayer in the near future.

A possible solution is within reach, but for the lack of will or sheer ignorance from local and central government politicians, it could feasibly wipe many millions of dollars currently paid in interest on the existing loans which could then be used to hasten principle payments and thus the term of the loan saving further interest.

Alternatively a partial reduction in rates from interest savings could also benefit ratepayers with the balance of interest saved being added to principle repayments.

The obvious question being, how is this possible and why has it not been used if it could?

Our City debt (as well as roughly 8 Billion dollars of local body debt nationwide) is mostly a private commercial arrangement with interest attached.

The 1933 Debt Conversion Act was used to relieve the interest burden during the Great Depression by refinancing similar Local Body debt at no interest through the Reserve Bank, it was successfully enacted by the Forbes Coates Liberal Reform Govern‐ ment to increase cash flow throughout the New Zealand economy and was also applied to farm and small business debt.

A cursory study of the legislation which resulted in lifting the country from the Depression, (a study of which is featured in The Reserve Bank Bulletin Vol. 75 No.1 March 2012 will quickly attest to the efficacy of such a measure.

It is within the power of any Minister of Finance to enact such legislation and the DCC is obliged to rigorously pursue such solutions if they are serious about effectively reducing the burden of rate increases on the local economy.

Warren Voight DSC Spokesperson, Dunedin South Otago Daily Times 22/2/14

Monetary reform needed to rescue us In an election year I always feel a deep sense of loss for those politicians who could have made a difference.

They were either side stepped, died before their time, or their opportunity to act was taken from them.

Many of these politicians were before my time.

They offered so much more than the ignored referenda and growing inequality brought about by those who call themselves "the people's representatives" of today.

I am alluding to those politicians who stood for and represented the people of this country, Savage, Lee, Coates, Beetham and Kirk.

They gained our respect because they worked for the betterment of us all.

We all know that Government that fails to represent all the people, fails to represent any of them. I imagine that is why major parties market themselves as something they are not ‐ centrists.

The colours on our flag or whether we can smack our children are not the true issues of today.

The true issues are those which brought people to this place 150 years ago.

Inequality, lack of opportunity and hope, and of course the ability to own rather than rent.

There is a new feudal system now and a new aristocracy, though they don't live in New Zealand.

Are we the Government‐sanctioned crop to be harvested by these foreign bankers, foreign owners of our energy companies, and so on?

Our successive Governments have exposed us to the usury and abuse by foreign Interest. It's a disgrace, and time for monetary reform.

New Zealand for New Zealanders, and government that is interested in representing its people.

Carl Findlater, Ryal Bush Southland Times, Feb. 2014

God befriend New Zealand While 200,000 kids seek jobs they just can't find. There'll be "Proud to be a Kiwi" on each welfare cheque enshrined.

Now hoist a flag to show that we can overcome our plight. There's just one little query... a minor oversight.

Should that flag be upside down, half mast or simply white?

Warren Voight

God befriend New Zealand Geoff Church, Kerikeri Northland Age 11/2/14 (extract)

on reforming the system, to resolve the excesses of money problems and to ensure that we learn to be more financially responsible. To do so requires boldness, creativity and far‐sightedness because the supporters of orthodox economics do their best to preserve the status quo, although there would be few economists who would declare the economy is running perfectly.

REVIEW

From the 1950s through the 1980s the Social Credit movement promoted financial reform, and then we had the advent of Rogernomics, the market‐oriented reforms of the 1980s.

Surely it is not beyond the wit of human beings to devise ways and means of achieving financial reform.

Treasury reported that New Zealand’s net internal or national debt was $41.5 billion in July 2011. That’s more than $9.4 million for each man, woman and child. In 2011 the average household owed $1.47 for every dollar earned. Net overseas debt at the end of March 2012, according to Statistics NZ, was $141.6 billion, or 104 per cent of our Gross Domestic Product, and expected to grow.

Can we continue to borrow and borrow our way out of problems?

Is it ethical to continue living beyond our means? If we do then surely sooner or later the whole financial edifice will collapse. It doesn’t take a great genius to work out that a tower built on debt will eventually tumble down. Greater borrowing will never solve a debt crisis.

Solving the widening gap between rich and poor and the deficiencies of the economic system require in‐depth investigations and reforms.

It is my firm contention that we need to approach all social issues in a new way, for the old ones have ceased to work very well.

We need a new kind of politics that addresses the deepest values of human beings. For the third millennium an outmoded system has obviously failed to solve the issues we are concerned about and need to shift to higher ground.

Millennium 3 By George Bryant Reviewed by Tony Cardy In Millennium 3, George Bryant probes twelve current social problems, discusses the pros and cons of each, and offers suggestions for positive progress.

He dedicates the book to all those social institutions and individuals who work so hard to solve society’s problems. He says we remain faced with a widening gap between the rich and the poor.

The aim of this book is to raise awareness of some of the chronic social problems facing us today.

The resolution of the key issues of our time demands a new approach that transcends two‐dimensional thinking and left‐right politics. It needs a new vision of the sort of society we really need.

Abraham Lincoln once said: “Determine that the thing can and shall be done, and then we shall find the way”.

People want answers. They want a new kind of politics, a politics of vision, hope and meaning.

Nothing is impossible, except in our own thinking. Enough of us believing enough can soar to the greatest heights."

Published by DayStar Books Ltd. www.daystarbooks.org Price $27.99.

Special offer for Guardian readers $25.00 freight free, from bryantGW@xtra.co.nz 224a Welcome Bay Road, Tauranga 075441669

Edited extracts follow: "Thirty‐three years ago I wrote a book about poverty in New Zealand entitled The Widening Gap. Recent research and evidence points to a worsening situation.

The paradox is that there is poverty amid plenty. Why can’t the economy function in such a way that all citizens benefit from the combined efforts of their labours, from their collective wealth.

Our Western economic system engenders a degree of inequality.

A free‐market economy will ensure that “the poor are always with us". Any proposed solution to poverty must seriously engage with the economic system. Reform is paramount to ensure a more even distribution of wealth.

A widening gap between rich and poor does not bring about a harmonious society and is a blight upon a supposedly enlightened democracy.

From time to time political parties and social institutions campaign

Guardian Political Review, Issue 64 - Page 15

George Bryant M.A.(Hons.), Dip.Ed. is one of New Zealand’s foremost writers on social issues. He has produced many volumes on people and society based on his experiences as a teacher, preacher, public speaker, politician and social worker.

He has a long association with social credit, being former President of the NZ Social Credit Political League and convener of the Social Credit Party production committee responsible for the Party publication ‘You and Your Environment’ in 1973 – called “the finest environmental book produced”. th

George Bryant

Millennium 3 is his 16 book. His previous release ‘New Zealand without God?’ was reviewed in The Guardian Political Review, Issue 60.

REVIEW

Prosperity, Poverty, or Extinction?

Humanity's Choices

By Allen Cookson Self published @ asimco@farmside.co.nz $37.34 paperback, $3.99 e‐book

Reviewed by Jenner Lichwark (Kirkus Media) A sound economic model must include ecological sustainability, writes Cookson, a New Zealand educator, who bridges the natural sciences with economics in a quest for solutions to the planet's most vexing problems.

Economics is the study of scarcity, but, Cookson says, most mainstream models fail to recognize the finiteness of Earth's

biosphere. A science teacher at a secondary school, Cookson earned an economics degree after his son challenged him to help bring about a better future. His debut work is an ambitious, far‐ranging tome on the subject of "ecological economics," which concludes that the planet can't sustain the current level of human activity.

economic pie, Cookson proposes a less‐is‐ more approach. He explores demographic strategies to slowly reduce the world population to more sustainable levels, and his economic models reject what he believes to be a harmful obsession with GDP growth, while advocating "balanced trade" between nations rather than free trade.

With a population of 7 billion and a global economy becoming more dependent on ever‐increasing consumption, Cookson says we must change course if we want to achieve widespread prosperity. He plunges into the debates on climate change, energy, food supply and international trade, probing the writings of influential thinkers like John Maynard Keynes, Milton Friedman and Rachel Carson.

There's no shortage of doomsayers among futurists, but Cookson remains cautiously optimistic. His broad research, which is meticulously sourced and receptive to opposing viewpoints, succeeds at providing an introduction to a high‐stakes, increasingiy visible topic. The book is comprehensive and systematic in its presentation.

What emerges is a worldview that refuses to measure quality of life solely in terms of money. While policymakers often try to achieve prosperity by creating a bigger

To suggest less growth might challenge conventional wisdom, yet the book remains doubly valuable since it earnestly confronts dilemmas that threaten rich and poor nations alike.

(Allen Cookson is a DSC member)

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 13/8/13 Home affordability At the 2013 National Party Conference, John Key announced further assistance to home buyers plus a revamp of the Resource Management Act – which will do little solve the main problem of home affordability.

Prices for land and houses have reached a level that makes it impossible for those on low‐to‐middle incomes to ever pay off a mortgage.

The Labour Party’s solution is to levy a Capital Gains Tax to curb speculation, restrict foreigners from purchasing land and homes, plus build more lower‐priced State houses.

The Democrats for Social Credit Party advocates a better solution: use the Reserve Bank of NZ to create the money needed for new, well‐built, low‐cost housing at low‐to‐interest‐free loans/mortgages for the public good. We would also add a Bank Financial Transac‐ tion tax to discourage speculators.

24/8/13 Perception West Coast‐Tasman MP Damien O’Connor commented on John Key: “It’s a strange world when the public seems to want someone who’s a money‐trader, who has consistently been inconsistent with his facts, and is determined to sell‐off the country – and they prefer him as Prime Minister.” Perhaps it’s the perception of the people of this country that needs to be looked at carefully.

12/11/13 Returning a favour The NZ International Convention Centre Bill is being voted on by Parliament. Sky City wants to build a 3,500‐delegate Convention Centre costing $400m, increasing gambling machines and tables from

Guardian Political Review, Issue 64 - Page 16

1,500 to 1,830 with the Government’s blessing. It is interesting to note that during the 2011 General Election, United Future, ACT NZ, and the National Party all received donations from Sky City – and now they get to vote on a Bill to return the favours given.

18/11/13 Borrow and sell The Crown Debt of NZ has topped $60 billion – and will continue to rise. Bill English has borrowed $27 million a day since National gained power in the 2008 election. They are borrowing and asset selling to fund their Budget agenda. Nothing changed in 20 years.

16/12/13 Elected dictatorship The results of the Citizens’ Initiated Referendum on the sale of S.O.Es show over 67% opposed. But the government called it a waste of taxpayers’ money and would not be bound by it. The Government is now an elected dictatorship and doesn’t care what Kiwis want or need ‐ as long as they rake in the cash.

25/1/14 State of the Nation The Prime Minister’s ‘State of the Nation’ speech shows that John Key’s government has borrowed over $50 billion over that last six years. He talks about a budget surplus next year but how does he plan to achieve it? (More asset sales, layoffs in the State Sector and search for oil in deep water).

25/1/14 Celebrate It is my hope that when the Democrats for Social Credit Party stands candidates in this year’s election its members will make the effort to fund the DSC Election Campaign Fund as well as campaign in the electorates to sell our policy and find new members. This year is the 60th Anniversary of the formation of the NZ Social Credit Political League and we will celebrate this at the DSC Conference.

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

Investment bankers in training Over 2000 head teachers of UK state schools were surveyed about children being taught the difference between right and wrong. One said "we train children to be successful, ruthless, greedy and selfish; our virtues are money, fame and looks. We do not reward kindness, do not value loyalty, do not care about courage" [London Sunday Times 9‐6‐13]

Twitter "...people somehow feel it is socially acceptable to behave like a poison‐pen writer, 30 times a day. All those ugly, mean thoughts have an instant outlet in social media; no child or young person appears to be taught that it's usually a good idea to keep your hideous, mean thoughts to yourself. We have stopped placing any kind of value on achievement Worse, we couldn't care less about kindness any more. And we reap what we sow," [India Knight columnist London Sunday Times 24‐11‐13]

Communist China ‐ just like the West "We now understand that China is ruled by about 350 families behind its facade of an authoritarian one‐party state. We also understand, thanks to the companies registry in Hong Kong and diligent journalism exposing the wealth of the leaders' families, how profoundly corrupt the system is. Far from being a team of rivals, it is a snakepit of vested interests." [Michael Sheridan London Sunday Times 9‐6‐13]

The West ‐ just like Communist China "The sickening reality is, these individuals are very well off. Added to that, they get paid a substantial tax‐free allowance for merely attending [the House of Lords] ‐ with over 800 members. Without a constituency to worry about, very little effort is required of them. The only word to describe this practice is greed". [Letter to the editor of the

was 27% with 57% amongst the young. In 2012 over 30,000 went to Germany looking for jobs. A 29‐year‐old Spanish woman with a master's degree with work experience in marketing and accounts and speaking fluent English found she couldn't win a job as a receptionist. "Even receptionists have multiple languages and degrees these days" she said.

I wonder whether she was among the 18,524 who applied for 11 low‐level jobs at Spain's national art museum.

Time for a basic income A letter writer to the London Sunday Times [16‐6‐13] commented "...the time and energy that a mother invests in her young family, that an active pensioner devotes to the community and that the middle‐aged spend caring for elderly parents are of enormous value, but their contributions to society are overlooked because they are invisible to the exchequer. If these people were to be replaced by state‐subsidised carers, more money would change hands, the GDP figures would,be boosted ‐ but it would not necessarily make society wealthier and happier."

How to get a good CV "Tony Blair was the first prime minister in [Britain's] history who knew that going into Downing Street would act more as a resume builder than a way of serving the public. He has become fabulously wealthy with the contacts he made as prime minister, Blair personifies the move, in the UK and the US, away from representational democracy and towards control by bankers" [Max Keiser ‐RT television finance programme host]

London Sunday Times 9‐6‐13 on yet another corruption scandal of Lords seeking cash for unethical activities]

Democracy costs The London Sunday Times (24‐11‐13) reports that it cost $1.2 million per MP a year, $220,000 a year for a Lord and $2.8 million per Member European Parliament to run the debating structures. Is it worth it?

Getting a university degree often doesn't pay.

In June 2013 Spain's unemployment rate

Guardian Political Review, Issue 64 - Page 17

Keiser was right.

The London Sunday Telegraph reported [5‐1‐14) that Blair earned $26 million in the year to April 2013. His estimated wealth is $140 million and he gained $150,000 in interest after lending his own company money and charging it 5.5% interest. He is an official adviser to investment banker JP Morgan and to Zurich International, the

global insurance company, he advises the autocratic ruler in Kazakhstan, he earns up to $500,000 for a private speech and appearance, and has deals with Mongolia, governments in Latin America, and with Kuwait and Abu Dhabi.

Obama not a socialist I wish everyone would stop calling Obama a socialist. If Obama was one of us, he would be supporting higher taxes on the rich, a federal legalization of same‐sex marriage, strong anti‐gun laws, fair trade, single‐payer healthcare, strong unions, pro‐ worker labor laws, living wages, free tuition at public universities for all citizens and permanent residents, a non‐interventionist foreign policy, nationalization of our banks, prisons and the energy sector, public transportation provided and funded by government, high speed rail, the building of government hospitals and more public schools, an upgrade of our electrical grids, infrastructure, roads, bridges, dams, etc. and public broadband. [Views of a Derrick Patterson on Bloomberg web site 12‐8‐13]

So the NZ Labour Party and its followers can't possibly call themselves "socialist". All they have in common with the "socialists" is "same‐sex marriage".

How can you be happy?

"If a man doesn't have a job or an income, he has neither life nor liberty nor the possibility for the pursuit of happiness."

[Martin Luther King Jr.]

They are talking about bankers, aren't they?

The UK Ministry of Defence's development concepts and doctrine centre has produced a study paper Global Strategic Trends, predicting threats to Britain. International organised crime is expected to thrive and an expert observed "We are not looking at traditional families now, like the mafia although they do still exist. We are looking at highly sophisticated international networks of criminals who are loosely affiliated."

The Water Industry Rip Off ‐ Is this the way for New Zealand?

The English water industry "is weighed down by a debt load far larger than investors and regulators realise".

"Water companies have been a favourite for big investors ‐ pension funds, private equity firms, foreign governments since the industry was privatised in 1989. Of the (continued on next page)

(Whitmill's World continued)

country's 18 water utilities, all but three have been taken over by private consortiums."

"Successive investors have developed a very lucrative template: load up the firms with debt and ripout giant dividends. To ratchet up returns further, loans often come from off shore vehicles linked to the controlling shareholders. They can collect interest payments so large as to wipe out profits and cut tax to zero. The upshot water companies are cash machines for their owners." [Report from London Sunday Times 10‐11‐13]

distortions of reality in such waves of propaganda that the general public comes to accept them.

For example, private, mostly foreign owned, energy companies in Britain hoof up their prices ‐ often by arranging to have their wholesale suppliers, which they own, charge over the top to their distribution companies who then bill the consumer.

When people can't pay, they have to reduce their usage. That would explain the 18% fall in gas usage and 3% in electricity consumption, but not in the perverted reality of spin doctors. The energy companies say this is due to the success of their energy‐ saving schemes!

He tells it as it is I am indebted to Liam Halligan for writing in an article in the London Sunday Telegraph [5‐1‐14] what readers of this publication would probably know, but is not general information in case members of the public actually start to question what's going on.

Are you clued up? ".... the people I know who are most clued up about the internet and surveillance, including a former spy and an employee of one of the internet giants, put nothing about themselves online. They aren't even on Facebook and never commit anything they wouldn't want on a billboard to email.

Politicians have given up on email and even texts for anything sensitive and gone back to old‐fashioned letters or whispered conversations." [Eleanor Mills, columnist London Sunday Times 24‐11‐13]

Privatising justice can produce dividends but not for taxpayers With New Zealand well on the road to fully privatising justice, it should be noted that private operators are themselves not immune from some of the criminal activities of those they control ‐ for a fee. In Britain, Serco, as one of its duties, tags criminals ‐ except their own ‐ and have agreed to repay the British taxpayer $137 million for grossly overcharging for their services. G4S, whose security operation for the 2012 Olympic Games was such an administrative disaster that the government had to step in and provide its own (which it should have done in the first place), has also overcharged the British taxpayers and has offered to repay $48.2 million, which, at the time of writing, has been rejected as too low. The now privatised Court interpretation service (much in demand with millions of non English speaking migrants pouring into Britain) has been so inept in providing interpreters that it has unnecessarily cost the taxpayers $34 million.

Spin is meant to disguise truth Spin doctors, whether government or big business, have the practice of churning out Guardian Political Review, Issue 64 - Page 18

It relates to quantitative easing, QE, which the NZ Reserve Bank indulged in to help foreign owned banks, and its constant use in the USA and the UK. Liam Halligan wrote "instead of being used as a necessary emergency measure, or a crash pad, QE instead expanded grotesquely and became a a comfort blanket.

Billed as a £50 billion initiative back in 2009, it has since doubled, doubled and almost doubled again".

This shouldn't surprise us. This outlandish policy has friends in high places ‐ being all about rescuing City denizens from their crazy investments". ...much of the central bank funny money has either found its way into asset prices, pushing Western shares to overvalued highs, or is sitting on the balance sheets of the banks that are pretending to be solvent.

Certainly few of the QE proceeds have been lent out, as was intended ‐ and as the busted banks promised in return for being rescued."

Britons have to suffer from overcrowding ‐ an EU ruling It is because of the undemocratic nature of the European Politburo that causes so much dispute in Britain between those politicians and rich business people happy to be on the gravy train and controlling the masses, and the people subjected by them.

Immigration ‐ a subject so touchy that three political parties in Parliament and the rich business world thought it the province of extremists ‐ has now come into the open. As the UK Independence Party leader said, the numbers coming to the country affects the quality of life. Prime Minister Cameron, in one of his many never‐to‐be fulfilled promises, said that net immigration would be cut to 100,000 a vear. As Dominic Lawson observed in the London Sunday Times (12‐1‐14) "we have an absurd arrangement in which the government makes it more difficult for the best from outside Europe to come here, in order to fulfil net migration targets made implausible by an obligation to receive all‐comers from the 28 EU nations".

Shrinkflation People can fairly easily spot inflation. The cost of living index or the retail price index tells us how much the government wants us to believe although often it is far from reality. The COL rate affects pensions etc, but, with shrinkflation, benefits and pensions are not being compensated sufficiently for the real inflation and our standard of living is diminished.

Shrinkflation is where, say, a bag of chippies used to contain 20 chippies and weighed a certain amount, but now, while weighing the same and looking the same, the number of chippies has decreased whilst compressed air in the bag has increased. The price remains the same. Thus the COL index is not affected by this inflation. Shrinkflation in a bar of chocolate is easier to spot.

A monetary union anyone?

The talk is on again about a united Australian/Kiwi currency, but it is to be noted that the report of the joint Australian and New Zealand Productivity Commission Strengthening trans‐Tasman economic relations published in 2013 said that "in forming a monetary union a country surrenders autonomy over monetary policy and exchange rate flexibility, which are important tools for macroeconomic stabilisation".

Change in the European Politburo?

In early January, a former prime minister of Luxembourg let it be known that in principle he was willing to succeed the present President of Europe. Observers noted that he would be nominated for the position not elected. Such is the level of democracy in the European state.

END

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