Use New Zealand's own bank to fund the Covid19 rescue package
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This petition has been created by Amanda V. and may not represent the views of the Avaaz community.
We are calling on the New Zealand government to use the Reserve Bank (which the government owns) to fund the Covid-19 economic rescue package.
The government may borrow up to $52 billion from privately owned financial institutions, including commercial banks.
That will provide big profits to wealthy overseas shareholders. Taxpayers will be footing the bill.
This means there will be less money for the things Kiwis really need: health care, education, housing the homeless, the environment and reducing poverty. The government could get the money from the Reserve Bank at no cost to taxpayers.
Former investment banker Raf Manji says "What the Reserve Bank needs to do now is to make clear that it can and will purchase government bonds directly from the Treasury at 0%".
As respected economist Ganesh Nana explains "To be technical, it’s literally [the government] borrowing from itself."
There is no need to take money from hard-working Kiwis and put it into the pockets of wealthy investors.
Many economic commentators and economists are now calling for this common-sense approach. They include Dr Geoff Bertram, Shamubeel Eaqub, Jordi Gali, Bryan Gould, Bernard Hickey, Raf Manji, Ganesh Nana and Adair Turner.