Printing money

promoted by automotive newspaper supplements and by TV ads that present each new model as a gadget-laden magic carpet carrying its owner along otherwise deserted roads.

If the future in your article is to come true, it will take more than a virus.

John Rhodes, Greytown

Kerry Wood, Khandallah

For the benefit of John Bishop (Letters, May 23), banks and financial institutions already ‘‘print’’ money now, every year, as a course of normal events.

In fact, last year, New Zealand’s money supply was increased by $32 billion as a result of commercial banks ‘‘printing money’’ when they granted loans. This did not devalue savings.

During a recession in particular, there is always capacity for new money. In the 1930s the first Labour government built 30,000 state houses by creating money instead of lending it, with no inflation. The Reserve Bank is ‘‘printing’’ $60 billion over the next few months. Its mandate is to keep inflation low so it obviously doesn’t think it will be an issue.

Social Credit’s policy is for an independent Office of Parliament (the NZ Credit Authority) to determine how much new money can be added to our economy each year to keep within inflationary limits. It will replace the same amount of money the banks add to our economy now, with money from the Reserve Bank instead. Then, as the required amount of new money is issued without debt or interest, it can work to do more for Kiwis. Amanda Vickers, Waikane [deputy leader, Social Credit]

Blue drapes?