Loan from Reserve Bank?

Faulkner’s Corner (Sept 7) discussing City Council funding, mentions “zero or low interest loans from Government. Good luck there too.”
Prospects, to him, appear about zilch. Why? It can be done through the Reserve Bank.
I’m reminded of a story in Rogers Rabbits (10.06.09) about the rich Russian tourist inspecting prospective hotel accommodation, who plants a 100 euro bill on the bar whilst he inspects upstairs.
The note goes quickly from hotel keeper, to butcher, to farmer, to prostitute, and back to the publican, but the ruskie doesn’t like the rooms, takes the 100 euros and out the door.
Meantime, for all the good folk... debts paid, all happy. So where’s the catch? There is none. A classic, simple illustration of money (credit) being created, does its job, then cancelled.
But if the Russian had said “You has using my money. Yes? You pay me...how you say...10 per cent interest?” Where would the extra 10 euro come from? They would have to borrow it!  So, more interest, more debt, more.....
And that is why Council is hit by ever increasing debt sure as night follows day. So what is Councillor Faulkner doing about it?  
Campaigning for Reserve Bank loans, or too busy trying to keep Council’s debt under control? Finger in the dyke sort of stuff. That’s hopeless Mr Faulkner.

Cedric Blaymires, Te Puke.