Self-created money

John McCaskey’s letter yesterday has merit. As long as self-created money is devoted to the creation of economically sound infrastructure and not to the inflation of wages then it should be done.

Many examples of this abound in the world. Canada financed and built the Trans-Canada rail link and also the SaultSainte-Marie locks linking Lake Superior to the sea.

In New Zealand – as John mentions – successful irrigation schemes were also financed in this way. I have read somewhere – though I am open to correction here – that the draining of the Waikato swamps was financed in this way too, with enormous benefit to the dairy industry there.

In no instance was there any inflationary consequence.

There is no good reason why the Canterbury earthquake repairs should not have been done in the same way too.

The enforced practice of debt-based money needs to end. It has outworn its usefulness.

Leo Swart, New Brighton