The PM says that big bank profits raise questions about their "social license to operate". However, it was her Central Bank that purchased over $50 billion of government bonds from private financial institutions. Where has all of the cash from those Central Bank "Large Scale Asset Purchases" gone? Into the private banks' settlement accounts at the RBNZ. Here is the amount currently sitting there, straight from the RBNZ's accounts:
September 2022 Settlement Cash Balance $44,573,000,000.
Yes, that number is $44.573 billion dollars. What interest is it earning? The Official Cash rate of 3.5%. What interest are the banks paying you on your cheque account? Close to nothing. So as we speak, the government is paying the private banks between $1 and $2 billion in interest to make their profits bigger.
More generally, it's getting to the point one should ask: does Labour like the private sector? Certainly not big, bad, social media internet companies that spread "disinformation"; not big, bad Banks which ride roughshod over their "social license"; not big, bad oil & gas companies causing global warming; not big, bad supermarket chains that run "duopolies" ... Maybe they should all be nationalized and run by State managers to please our Ministers?
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