As Russel Norman noted in his address to the Green Party,

“There are 20,000 New Zealand children going to school each day without food, or shoes or raincoats”

This is a major issue facing NZ. Poor health and nutrition impacts hugely on the ability to learn and on general outcomes in life. As Jamie Oliver has shown with his Food Revolution, starting early in schools can change behaviour before it becomes embedded and beyond repair. The Sustainable Kids Programme has been a real winner so far but we need more of this. Sadly the National Party over turned a previous policy on health eating in schools. It’s these types of programmes that are being slowly squeezed in the name of cutting spending. This is the classic mistake many governments make when trying to cut costs….they don’t realise that this ends up costing us all more in the long run.

We should be investing hugely in our children. In an employment constrained world, in an outsourced world, in a world of highly competitive manufacturing, we need our people to be as well as possible. They are our future. If we are going to develop a hi-tech, productive and efficient economic system then we need smart kids with good habits and a good understanding of how systems work. Food and nutrition is a perfect example of where this kind of learning can come from. If you ever seen the faces on children who have grown their own food and then cooked and eaten it then you will know what I am talking about.

We are in severe need of new jobs. Well here is a start: get every school a food and nutrition specialist, with a garden alongside. Make it a core part of the curriculum. It’s as important as P.E. (if not more important according to research). I would love to see all schools with a canteen, cooking and supplying a healthy lunchtime meal. For some children this may be the most important meal of the day. Now imagine how many jobs that could generate (with 2000 primary and secondary schools in the country).

The main argument against this approach has been of interfering in what should be a parental responsibility and also taking away to choice to eat crap, unhealthy food. Well my response to that would be to argue that schools have the advantage of scale: they can teach many kids at once. Scale is the pathway to efficiency. The most efficient way to get healthy eating into our society is through our schools and our children. They children will then take that back home and slowly change will take place.

It’s this type of vision that we need to see. Hopefully the Green Party will be the ones to bring it to the Parliamentary table.

So back then I suggested the RBNZ should think about selling as much NZ$ as they could. Why? Why go against prevailing market sentiment which is that intervention doesn’t really work and simply provides a target for the speculating hordes which incidentally account for 95% of the volume of daily trades.

That’s a fair sentiment when your currency is falling but when it’s rising? And when you have an eye popping foreign debt of almost 140% of GDP……that’s foreign debt not overall debt.

And yet the punters keep buying the NZ$. Perhaps they know something I don’t. Maybe 50 years worth of oil has been discovered in the Southern Basin. Who knows?

The point is that at some point that money has to be paid back and at the moment, due to the sneaky monster that is compound interest, we can’t even get close to reducing it.

But now is the time to strike.

Again I would like to suggest that the RBNZ starts selling NZ$. When you have a lot of something to sell it’s always best to do it when others are keen to buy. Now is that chance.

By selling NZ$ now and paying back, or at least holding for that same purpose, it will take the pressure off the very precarious dependency we have on overseas lenders.

This doesn’t eliminate the debt but simply transfers it to a domestic situation where it can be managed at lower rates and where there is no threat of having to suddenly repay.

How can the RBNZ do this? Again this is very simple. Print NZ$ and buy US$. There is no change to the actual money supply just how the debt is denominated.

Considering the implosion Iceland experienced and the unfolding disaster that is Ireland (surviving only due to its membership of the Euro), it makes complete sense just to get on with this now.

To allow foreign debt to be run at such a level is financial mismanagement of the highest level.

It also shows a willingness to be dictated to and dependent on overseas interests. This makes no sense at all when the country’s economy security is at stake.