Money reality
In reply to Keith Hartley's letter (August 16) about the printing of money, he should do some study as to how the money he uses comes into existence.
He will find it certainly doesn't come into existence by his, or anyone else's, physical hard work. At present much of it comes into circulation as a loan from the present banking system, which is created out of nothing other than an entry on a computer keyboard.
Has he ever thought where the extra money comes from to pay the inflated prices for goods that a few years ago one could buy for a tenth of today's prices?
Dr Norman was only advocating what believers of social credit have been preaching for years. That is, using our Reserve Bank to put into circulation money to do infrastructure work (eg roads) or other public works. For his information this was done by the first Labour government in the 1930s and continued by both National and Labour until the 1970s.
The Reserve Bank of New Zealand was the source of much of the capital required by district councils in New Zealand until the new Reserve Bank Act. It also lent money to support the agriculture industry in New Zealand as well as housing.
Ken Goodhue
Otaika, Whangarei