Dramatic monetary revamp?

There appears to be a division between politicians and central banking Modern Monetary Theory (MMT) about what monetary reset is required.

While Finance Minister Grant Robertson is upbeat on the Reserve Bank’s ability to reduce interest rates and stimulate the economy, my theory is the Government is preparing to default on the national debt and move us to a cashless society.

Christine Lagarde from the International Monetary Fund has been encouraging central banks to centralise blockchain technology and issue digital currency as money, backed by government in the same way cash is today. Her reasoning is a central bankbacked crypto-currency would promote financial inclusion, security, and privacy in payments.

Outgoing Bank of England Governor Mark Carney has urged replacing the United States dollar with a “Libra-like” reserve crypto-currency in a dramatic revamp of the global monetary, financial and economic order.

There has hardly been a more appropriate time for such a proposal. Trade wars and now the threat of currency wars are upending multilateral co-operation. Central bankers are trapped in a low interest-rate world, and the threat of MMT has reared its ugly head. Yet, the establishment has so far been unable to come up with its own alternative to combat MMT.

If Carney speaks for his central banking peers, one can say “game over” for the fiat system, which will need to devalue against something such as gold or cryptocurrency/stable coins, like bitcoin. Hyperinflation is about to arrive.

Steve Laurence, Egmont Village.

Pass mark

Thank you Maureen Coxhead for your comments, but I think New Zealand is already doing very well without the wielding of a big stick in the classroom.

As shown on the PISA chart, an international study between OECD countries, results in maths, science and reading show New Zealand is 16th overall, a drop admittedly, but nevertheless better than Australia at 21st position and Britain in 23rd, two countries often suggested as ones we follow. Over and above anything else, our young people come through our education system and go on to do amazing things in many, many fields. We are known worldwide for our courage, determination, intelligence and fair play. The world is also aware that high achievements in such a small population is a truly magnificent feat.

And they do this regardless of a right or left Government.

Our education system has a lot to be proud of and I think a big pat on the back for teachers is warranted.

If we need to follow any country to do better, Finland is the example we should follow. No big stick there.

Emma Mackintosh, Birkenhead.

Dairy divergence

The threat to our dairy industry will not come from the high targets of the Zero Carbon Bill so much as from a disruptive synthetic milk protein industry, making artificial cheeses, yoghurt and milk powder in bulk for global food markets.

Wise farmers can deal with both problems — methane reduction and dairy competition — by gradually switching to (some at least) horticulture, including growing more trees on marginal land.

The outcome: reduced greenhouse gas emissions, carbon sequestration, improved land and water quality, greater land-use efficiency for food production, and higher profits.

The new reality for a sustainable future.

B. Darragh, Auckland Central.

Bold schemes

John Tamihere’s plans, should he be elected mayor, are coming in for criticism on the basis that they are unrealistic or are unworkable. Phil Goff has chosen a more moderate “steady as she goes path”.

Given the council’s critical debt levels and with huge budgeted infrastructural asset spending planned, JT’s manifesto at least recognises the approaching crunch point where innovative and radical policy options will be necessary.

Voters now have the choice of picking a mayor who is “up for it”.

Larry Mitchell, Rothesay Bay.

Dull choices

It’s been said we get the political leadership we deserve, so this could explain the eye-watering dullness and sheer lack of inspiration, aspiration and style of the current two main contenders for Auckland’s next mayoralty.

Tamihere’s clarification (Herald, August 27) on his harbour bridge proposal displays this cult of the mediocre perfectly. Though there are some merits to rebuilding the bridge and using the same transport corridors to carry increased traffic across the harbour, his idea is to recreate the original 1950s design, an engineer-led, hideously perfunctory and imagination-free structure even time has not helped soften.

In a world of cities with iconic, beautiful bridges, from Istanbul to Florence to Sydney and Singapore, he wants to recreate a harbour bridge that even on a good day is described as a coat hanger.

Why do we do this to ourselves? Is it the perfunctory colonial number 8 wire mentality of ugly function over aesthetics? If it was down to a Kiwi politician tasked with creating the Trevi Fountain, their first call would not be to an artist or a designer, but a plumber because it involves piping water. Heaven help Auckland if it’s the best we can do.

Phil O’Reilly, Auckland Central.

Keeping track

I see John Tamihere has confirmed his proposed double-decker Auckland Harbour Bridge will include four rail tracks. It follows, therefore, that he must also plan to retrofit four railway lines from the Auckland CBD, through the St Marys Bay-bridge-Northcote Pt corridor and on to the North Shore.

Has he budgeted this? I think not. JT needs to get real.

Mark van Praagh, Mt Eden.

Privacy breach

One of your commentators said “the recent breach of IT security at Creative NZ is a headache for the Prime Minister”. Why is it so? Then, Simon Bridges jumps in on this matter using that dreadful cliche “the buck stops with the PM”. One has to again ask, why?

Database security is the total responsibility of the organisation concerned. No politician, least of all the Prime Minister, can interfere in this. Imagine the public outcry if they did. They can express regret, disappointment and the like, but that is all. Cannot Bridges come up with something constructive for once? If this is all he can think up to throw at the PM, then she is doing very well.

Russell O. Armitage, Hamilton.

MPs’ salaries

An unelected group of bureaucrats decide the salaries of MPs, judges and other civil servants. The Remuneration Authority is not accountable to voters or taxpayers. It is endorsed by the Government and exempt from the Official Information Act.

In a true democracy this would not happen. Then again, the history of western politics has never been interested in true democracy. The 2014 Bolivian elections rate as a rare democratic election that the West could learn from.

You can guarantee whenever transparency is proclaimed by Western authority, the truth will be surreptitious.

Mark Lewis-Wilson, Mangonui.

Ferry crash

The collision between the Fullers ferry Kea and the Devonport Wharf has led to life-changing injuries to a passenger.

The apportioning of any blame towards either the master or the skipper under special training for that vessel would be ill-considered.

Fullers concedes that the incident was a result of “both systems and tidal influences” which highlights the difficulty of berthing the vessel “blind” with no direct visual reference, and the extremes of wind and tide that are commonplace at the Devonport Wharf.

But Fullers’ failure to acknowledge requests, from both highly experienced boat skippers involved, to allocate more training time and off-run berthing practice with the notoriously tricky vessel the Kea shows an attitude of commercial intent outweighing operational responsibility.

Having a monopoly on such lucrative passages as they do, one would think Fullers should have no difficulty in completing what its masters see as operational necessities.

The trouble is, if Fullers was to have the goose that lays the golden egg taken away, and more control then given to Auckland Transport, would things be any different?

Perhaps the goose we know is no different than the goose in the wings.

I.M. Phillips, Muriwai Beach.