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455Reserve Bank Heads Banking Cartel

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  • Libertarianz Media Centre
    Apr 16, 2007
      PRESS RELEASE

      FOR IMMEDIATE RELEASE
      Finance

      Reserve Bank Heads Banking Cartel

      "State interference in the financial affairs of New Zealanders has
      reached a disturbing new low point," said a disgusted Greg Balle,
      Libertarianz Finance Spokesman today. "Reserve Bank Governor Bollard
      has allegedly orchestrated a 0.5% home loan rate increase in closed
      door negotiations with the major banks."

      "This brazen cartel-like behaviour seems to be welcomed by the
      governing Labour party while all other political parties have kept
      silent on the questionable legality of this price fixing. Where's the
      outrage?" Mr Balle asks. "While seemingly simultaneous petrol price
      rises bring about yelpings from all quarters, a state orchestrated
      rise of around 0.5% on home loans seems to go by without comment."

      "There is no law that allows the Reserve Bank to coordinate commercial
      banks to target home mortgage holders for special financial pain," Mr
      Balle noted. "For the Reserve Bank to talk directly to, and act in
      concert with, the commercial banks has clearly taken it well beyond
      it's lawful mandate to keep prices stable via the OCR."

      "The role of the Reserve Bank in this possibly fraudulent activity
      calls into question the existence of a Reserve Bank at all, now that
      the willingness to abuse its state-given powers has been
      demonstrated."

      "Libertarianz policy is to abolish the Reserve Bank and its monopoly
      to produce fiat money. The discipline of a free market monetary system
      would deliver stable prices and a vastly more flexible banking
      environment," concluded Mr Balle. "Without a centrally-planned
      monetary system and a one-size-fits-all interest rate., New Zealand
      could stop repeating the tragic boom-bust cycle."

      ENDS

      For more information contact:

      Dr. Gregory J. Balle
      Libertarianz Finance Spokesman
      Phone 021 250 5430
      Email greg.balle@...

      Libertarianz: More Freedom, Less Government
      www.libertarianz.org.nz