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Once, there was no Reserve Bank of New Zealand. What?

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  • Once, there was no Reserve Bank of New Zealand. What?

    The Reserve Bank is getting top billing in the media these days.
    Possibly the group of people with the most power over your future security and wealth, but little is commonly known about them.

    Q1.
    What did we do before they existed?

    A.
    In 1840, there was no Reserve Bank, but there was -

    The UNION BANK of AUSTRLAIA , a BRITISH BANK from LONDON -

    agreed with the NEW ZEALAND COMPANY -

    to accompany the SETTLERS and provide them with BANKING SERVICES.


    In 1844 the NEW ZEALAND GOVENOR allowed them to ISSUE their own notes.
    BUT had to be a minimum of 1 POUND and redeemable in GOLD and SILVER.


    Last edited by McDuck; 20-11-2020, 05:29 PM.

  • #2
    In looking at A WORLD WITH NO RESERVE BANK ,
    It's important to remember, that, originally, there was another way to do everyday business.

    Coins.
    Coins from Britain were in free circulation.
    Coins had real value back then, compared to the these commercial paper notes.

    ​​

    How much value.?
    Well, adjusted for time, the biggest coin would buy you about $200 worth of goods.
    (Compare that to our $2 coin now).

    Would you like to bypass the fees and control of the central bank and the commercial banks ?
    Would you like to deal directly with the Govt?
    Would you use a $200, $100, $50, $10 or $5, coin, if they were available right now?
    (I believe the RESERVE BANK does NOT control coins, in so much as they are the responsibility of the Treasury).

    Once you have an alterative, would banks still be " Too big to fail" ?
    Hmmmm?

    It's an interesting idea.​
    Last edited by McDuck; 21-11-2020, 06:56 AM.

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    • #3
      Very interesting McDuck - and the future is digital currencies.

      cheers,

      Donna



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      • #4

        Sure there is a place for digital transactions,
        however,

        The point of large denomination coins, for everyday transactions, is to cut out the middle men.
        Less middle men, less ticket clipping.
        Less room for fraud.
        Last edited by McDuck; 21-11-2020, 12:24 PM.

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        • #5
          Hence coins are yesteryear

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          • #6
            Coins in the past aren’t the same. Commodity money did have value (mostly gold) and fiat money these days is just a currency based on people’s trust. Guess what would happen tomorrow when everybody goes to the bank for “give me my money!”.
            The Reserve Bank can print fiat money as liability of the taxpayer as long as they have paper and banks create it as checkbook money as much as people are willing to give everything they own as security for a loan.

            People own the banknote they carry in their wallet, but not what is kept in the bank. Digital currency is one step further to lose the control over cash people worked hard for and controlled by governments – issued and managed by central banks.

            Comment


            • #7
              Originally posted by klauster View Post
              [FONT=Times New Roman]Coins in the past aren’t the same. Commodity money did have value (mostly gold) and fiat money these days is just a currency based on people’s trust./FONT]
              Yes, so true.

              Even if it's not gold or silver, a $200 dollar base metal coin, issued by the treasury, would still work.
              You could buy groceries with a few coins, and pay your taxes too.

              Even actual Silver (one ounce) coins would work, they are the right size and value.

              The main point is to cut the Commercial banks and Reserve bank out of the loop totally.
              And all their ticket clipping too.

              Plus, you'd have a backup money system in operation.

              It's all just a thought experiment, to define the role of the Central bank and the Commercial banks, from a new perspective.

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              • #8
                Originally posted by McDuck View Post

                Yes, so true.

                Even if it's not gold or silver, a $200 dollar base metal coin, issued by the treasury, would still work.
                You could buy groceries with a few coins, and pay your taxes too.

                Even actual Silver (one ounce) coins would work, they are the right size and value.

                The main point is to cut the Commercial banks and Reserve bank out of the loop totally.
                And all their ticket clipping too.

                Plus, you'd have a backup money system in operation.

                It's all just a thought experiment, to define the role of the Central bank and the Commercial banks, from a new perspective.
                Yes. Get rid of the reserve bank. Get rid of fiat currency. We should go back to sound money backed by gold and silver so that the government can no longer rob us by printing money and so stealing from us the purchasing power of the dollars in our pockets.

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                • #9
                  As you know, all topics are researched to their natural conclusion.

                  So, in an article called "In spite of Tooley street" by Simon Boyce, I found take on the connection between our Reserve Bank and The Bank of England.

                  The phrase "recolonial unity" is used to describe the way Britain and New Zealand were considered a single cultural economic system.

                  I'm just watching it de-twine and intertwine over the decades, since New Zealand began, it's an interesting little battle.

                  Investigation continues...
                  Last edited by McDuck; 04-12-2020, 01:02 PM.

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                  • #10
                    If there was only one currency or limited amount of that currency eg. Gold or Bitcoin.

                    Will use Bitcoin in this scenario.

                    It's March 2020 a mysterious virus has infected the worlds population,all countries close there borders to stop the spread of the virus.

                    The sharemarkets crash 40%

                    People all around the world start hoarding there Bitcoin.
                    There is no more Bitcoin in circulation in all the worlds economy because people are afraid to spend as they did this year... and you can't print more.

                    If there is no Bitcoin,(currency) the world gets ferial pretty fast.
                    Unemployment hits 80%
                    The housing market crashes
                    And in the comment section of interest.co.nz people start demanding for the return of fractional reserve banking.
                    Worldwide antefa protest demand fractional reserve banking.

                    The moral of the story is you can't have it both ways.. for every action there is a reaction.

                    So you accept the wealth transfer happening right now or return back to the dark ages..there is no compromise.
                    Last edited by Jeffa; 04-12-2020, 03:23 PM.

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                    • #11
                      Originally posted by Jeffa View Post
                      If there was only one currency or limited amount of that currency eg. Gold or Bitcoin....

                      The moral of the story is you can't have it both ways.. for every action there is a reaction.

                      So you accept the wealth transfer happening right now or return back to the dark ages..there is no compromise.
                      Ha. interesting logic,
                      but oversimplified and incorrect.


                      I'm sure a bulk of people using money have no idea what it is, or how its generated.
                      Or care for that matter.

                      I'm still digging down into your claim that The Reserve Bank is merely a puppet.
                      There's a lot to verify and dig through.








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                      • #12
                        Originally posted by McDuck View Post

                        Ha. interesting logic,
                        but oversimplified and incorrect.











                        Then please enlighten me on why I would be incorrect?

                        Read exactly what I wrote in my above post

                        ​​​​​​​Break it down line by line

                        and there is no other outcome if they didn't start Q.E.

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                        • #13
                          Originally posted by Jeffa View Post
                          If there...

                          The moral of the story is you can't have it both ways.....
                          One interesting related bit of information came up.
                          It's the huge role John Keys and the National Govt had in all this.

                          By dismantling both the state housing infrastructure, and skewing the system heavily in favor of landlords,
                          While Simultaneously eroding the wage barging power of workers

                          Those same wages that would need to keep in line with house price increases.

                          Do you suppose he is a puppet, and for who?





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                          • #14
                            Originally posted by McDuck View Post

                            One interesting related bit of information came up.
                            It's the huge role John Keys and the National Govt had in all this.

                            By dismantling both the state housing infrastructure, and skewing the system heavily in favor of landlords,
                            While Simultaneously eroding the wage barging power of workers

                            Those same wages that would need to keep in line with house price increases.

                            Do you suppose he is a puppet, and for who?




                            Everyone had to get their hands dirty McDuck.

                             

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                            • #15
                              That small cleaner was a pretty cool toy.

                              So what I think you were trying to say, with your bitcoin example, was about the role of credit in a society.

                              The whole equation gets interesting, because you have three time frames overlapping.

                              The past, the present and the future.


                              Debt from the past consumes some of today's and tomorrow's productivity.

                              Debt from today consumes some of tomorrow's and more future productivity.

                              Yesterday, today and tomorrow are different sized worlds, compared to the size of the debt.

                              I'm still not sure if there are any pre RESERVE BANK debts still drawing interest today.




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