#21 - Paulus B Telfer 2008-11-20 03:17 - (Reply)

Paulus Legal Services 39 Liverton Crescent Bryndwr CHRISTCHURCH 8053 Phone (03) 359 8148 Cell #1 021 167 7942 Cell # 2 027 710 5628 Paulus@slingshot.co.nz November 19, 2008 To Mr. John Key On this day to your accession to being Prime Minister. This time 40 years ago, was the 40th Anniversary of when Harold Wilson the Prime Minister of Britain devalued the British Pound from 2.8 US dollars to 2.4 US dollars, thus virtually in the upshot ending and killing the spirit of “Bretton Woods”. Three years later Richard Nixon abandoned the currency gold price pegging, thus was the start of the world borrowing and currency calamity. Papers recently released, revealed that Harold Wilson pressed ahead with the devaluation while totality ignoring the strong objections and the advice of his Finance Minister and his Cabinet. The British Labor and Conservative party are very corrupt and take their directly orders from British and Dutch banking interests Harold Wilson was a bastard, who thought more of Robert Mugabee then Ian Smith of Rhodesia. Living in Britain in that time was like living in a Stalinist State. Harold Wilson told the people of Britain on television the following day after the announcement of the devaluation, the famous shining lie, “That people had nothing to fear, for they had the same Pound in their pocket or purse”. Furthermore, this was to help the exporters and create many jobs, of course, which never happened. This devaluation made certain people very rich, one individual boasted that he made One Billion Pounds profit (on today’s figure about $20 Billion Pounds) in addition there were countless business people whom fleeced the public. This was typical how the British exporters lined their pockets, in the devaluation aftermath, a Californian Pasadena newspaper reported infuriatingly, “That British cars had no way had been reduced in price since the British devaluation”. In New Zealand, the then heal-clicking Keith Holyoake Prime Minister and his Finance Minster Robert Muldoon acting obediently and foolishly under the direct orders of the British government, immediately devalued the New Zealand Dollar. At that time before the devaluation, the New Zealand Dollar equaled US$1.4 (US $2.8 to the old New Zealand Pound), to its new value in parity of the Australian Dollar @ US$1.05. The direct consequences of this New Zealand devaluation, the New Zealand economy corkscrewed, it then nose-dived and went dizzily out of control, and after a period of 15 years of economic calamity the New Zealand economy had somewhat corrected itself by the middle 1990’s through the efforts of Roger Douglas, more or less. The consequence this devaluing opened up New Zealand Pandora’s Box, which released many ills, such as the New Zealand government owning its proverbial printing press, printing lots of money, and heavily borrowing to support the New Zealand currency. Furthermore New Zealand was living beyond it means (and still is with elite privileged New Zealand governmental and council people receiving 18% pay rises with back pay), the policies of which brought New Zealand to stagnation and near to economic collapse. Around Christmas 1970, wages had risen by a factor of 1.5 times and the worse was ready to come. The British government applied the same economic heaviness to their colonial controlled Hong Kong colony. In the past, the structuring of the Hong Kong economy, the governmental policy was not to concede to local wage demands. The consequence of this workable policy made Hong Kong prices very stable indeed and there was virtually very little inflation at the time of the HK devaluation. On the morning just after the Hong Kong devaluation announcement, at my Jewish relations bank in Hong Kong there were masses of panicky and terrified crowds queuing up outside his bank, all wanting to exchange bundles of money. The Hong Kong authorities quickly realized that they had made a disastrous blunder and a week later quickly revalued the local currency almost back to its original pegged value of HK $16 to the British Pound ( In China one must not lose face, so the banks could not revert back to $16) . Now we are in a depression, let us bring back “Bretton Woods” economic policies. Yours truly Shalom Paulus B Telfer Attorney