This week, Libertarianz leader Dr Richard McGrath has been watching home ownership made more difficult.
John Key, former scourge of communists, leads a government whose central bank now wants to nationalise this country's private banks. State-owned Radio NZ News, of course, gets it arse-about-face, claiming that "[U]nder the proposed changes, the Reserve Bank would require trading banks to increase their loan-to-value ratios". In actual fact, the Central Bank wants to make it harder for people with little cash on hand to purchase their first (or any) house by decreasing loan-to-value ratios, apparently to a level below 80%.
Labour's housing spokesman, Philip Stoner Twyford—who, incidentally, supported the Misuse of Drugs (Medicinal Cannabis) Bill when it was before Parliament in 2009—quite rightly labelled this heavy-handed intervention as a form of governmental dentistry: "a kick in the teeth... for first home buyers," and said it would "lock out thousands of low-to-middle income first-home buyers."
I'm glad the Blue Socialists hadn't nationalised banks when I purchased my first four homes, as in each case I had less than 20% of the value of the properties available as a deposit. And I never defaulted on my loan obligations. Yet PM John Phillip Key, Housing Minister Nicolas Rex Smith and Reserve Bank boss Graeme Paul Wheeler want to stop me, and other New Zealanders, from being able to easily purchase real estate.
Should the government be allowed to manipulate the property market by fixing interest rates or making arbitrary rules about the required deposit for home purchasers? If your answer to that question is yes, then what's to stop the required deposit from being raised to 50%? Or 80%? Or to completely outlaw home loans altogether?
Governments have certainly done things just as stupid in the past.
Fortunately, there is a political party in New Zealand which opposes moves by the Blue Socialists to nationalise the private banking system, while also opposing corporate welfare for banks. That party is Libertarianz. At a local level, Affordable City candidates will be attempting to make house ownership more affordable by reducing property taxation via reductions in the cost of running district councils.
So if you want more government, John Key's the man for you; if you want less government across the board, you might want to back the party described by Tumeke as "far, far, far right"—this being the same party that supported legalisation of prostitution and supports the legalisation of all drugs and separation of church and state. Does that sound "far, far, far right" to you?
See you soon!
LEADER, LIBERTARIANZ PARTY