Tag Archives: debt
Modern Monetary Theory – Part 3 Deficit Spending & Taxation
There has been significant criticism of the new Labour Government Finance Minister, Grant Robertson, of late because of his determination to stick to his budget surplus & government debt to GDP targets outlined in his Budget Responsibility Rules that formed part of the coalition agreement. Even orthodox economists are ambivalent about this government “borrowing” more […]
Print some money for Christchurch
The debt problems of the Christchurch and Auckland City Councils have been in the news of late. Now I’m not going to defend the records of the last few administrations in those cities. In Auckland in particular there seems to be a meglomaniac desire to become a “global centre” with all the trappings, to play […]
Your money starts life as debt – Its official!
If there was any remaining doubt the Bank of England has confirmed what heterodox economists have been saying for decades. The economic text books are wrong. Banks do not accept deposits from savers and intermediate them into loans to borrowers. Nor do they rely on the multiplier effect or are limited by reserves. The loans in fact […]
Ponzi nation
As we enter the last couple of months before the general election it is worth talking about the unspoken cancer at the heart of New Zealand’s economic system. It seems to be off the election agenda. Sure it is not a purely kiwi disease but there is post GFC a smugness among many New Zealanders […]
