The By-elections
Sir,—Mr Wilson’s objection to more inflation means that he is opposed to the inflation we suffer now through borrowing. I agree. Inflation means more money for the same or even less goods, but it also means higher prices for the same goods, which is less purchasing power. Labour unions demand more wages to meet higher prices, and more wages in turn lead to higher prices. This condition is called the vicious spiral. The same spiral is found in all money in use which bears bank interest in perpetuity because it is borrowed from outside sources. The Reserve Bank owned by the Government has the power to issue legal-tender money. It has issued this at rates varying from no interest to anything it likes. Much of it is at 1 per cent to 3 per cent. Why should the Government borrow elsewhere when it can issue? The more the interest the greater the prices.—Yours, etc, W. B. BRAY. Leeston, April 8, 1967.
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Press, Volume CVI, Issue 31341, 11 April 1967, Page 16
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163The By-elections Press, Volume CVI, Issue 31341, 11 April 1967, Page 16
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