I have put in a lot of doom and gloom here, but I do think we have some solutions.
Nationalising banking is the only solution which people would except. The only one which could be sold as an election policy.
Recent rorts by finance companies and investment firms will help the case. We are being forced at the moment to put Kiwisaver accounts directly into financial firms which are likely to go down with the US share markets final crash. Better to reinvest it in constructive areas for the future of NZ.
We have already seen the effects of Kiwibank on the amount of money the other banks can remove from the system.
Kiwibank actually has the capability to remove the other banks from our system because it can operate like a co-op with no need for profit, the private banks could be removed by making them unable to compete.
Banking is too important to be left to the control of private shareholders whose only motivation is extracting money from us.
There will always be those who extend credit and borrow privately, but credit supplied by the Government is always cheaper and a private credit providers will stay on the fringes. Laws against loan sharks already exist.
The only difference between legal private finance providers and loan shark are a few percentage points.
Those who control the money have the say. It should be the citizens of NZ.
With democratic control of credit restored we can deal with other externalities of credit creation.
A library book or student loan model of credit where constant economic growth is not required to maintain a constant increase in credit supply.