Given the impending dual crisis we face (post-COVID19 economic collapse and catastrophic climate change), the need to regain public control over our money system is more urgent than ever. New Zealand, like the US has embarked on massive Quantitative Easing (QE). Under QE, money created by central banks is handed over to private banks to buy back Treasury bonds.* This influx of new cash is supposed to inspire private banks to lend lots of money to businesses to create new jobs.
The US, UK, and EU tried QE following the 2008 global economic collapse. It didn’t work then and it won’t work now. Instead of using these funds to increase business lending, private banks used it to increase stock prices by buying back shares, to increase CEO salaries, and to speculate in the housing market (driving up house prices) and derivatives.
The result? A so-called jobless recovery in which stock prices soared with minimal new job creation.