"Some of you may be interested to know that the NDP platform contains a statement on using the Bank of Canada to carry public cebt. It happens to be the very last statement of the very last section, CLEAR CHOICES ON DEBT REDUCTION, but it is here as follows:
"Jack Layton and Canada's NDP will give Canada clear choices on debt reduction by....bringing some of Canada's national debt under the control of the Bank of Canada, as it used to be, and paying the interest to ourselves as opposed to chartered banks."
We haven't heard Jack talk about this as yet. I hope he will soon and show how using the Bank of Canada in this way will make it possible to finance hospitals, schools and other infrastructure programs and still balance the budget as he has promised to do. While the savings in interest are substantial, even greater savings could occur by amortizing capital projects over their expected life, thereby reducing the annual payments of principal.
The platform is a 65-page document which you can access through www.ndp.ca
Our congratulations to the NDP for this important step, but to it we must attach a caution:
The return to the use of the Bank of Canada as originally intended is not an option, but a stark necessity. Without it the speculative bubbles on which the end of the statutory reserves and their further deregulation have made possible will lead this country to the most devastating financial bust yet experienced. In addition to making it possible to finance essential government investment in physical and human capital, it would bring our banks back to responsible banking which the country stands in need of.
Once before COMER warned an NDP government in good that the proper use of the Bank of Canada was not an option but a dire necessity. Under date 21/10/91, Premier Bob Rae, at the time when the Ontario NDP was at the height of its prestige, replied to John Hotson and myself as follows:
"In your letter, you suggest the Bank of Canada should follow a regional policy, by buying-interest bonds issued by the governments of provinces suffering economic hardship. Our government would prefer federal-provincial transfer programs continue without successive reductions and formula overrides. In any case, your proposal would not deal with the high cost of credit faced by private borrowers through the financial system."
It would, in fact, since the end of statutory reserves left high interest rates the only "blunt tool" for "licking `inflation'". It would be a tragedy for Canada, if the NDP gave us an encore to Bob Rae's blunder.
William Krehm
[Editors note to Mr Riddell: Feel free to sign up for an account at our introductory price of $zero and return more often. :) It's really hard for regulars to tell one Anon from another. Dr C]
Note: www.ndp.ca
Stumble It!
Perhaps Mr. Layton should encourage the help of Mel Hurtig and Paul Hellyer when confronted with a situation where he needs to be very eloquent in his arguments.
Jack cannot come across as not knowing all the answers or he will lose the confidence of the forces that would be on his side.
However, I would like to see Jack get this dicussion in the foreground, soon.
As an aside, I have a friend who recently told me that before we became good friends, he had never heard of PR or Monetary Reform.
It just so happens we had a candidate in our riding that put full-page ads in the local newspapers that explained his position on monetary reform, and PR was also mentioned in these newspapers.
My friend has said he has noticed a lot more info regarding these subjects lately, and since he had no knowledge of these important positions before he met me, I feel good that the message seems to be getting out more and more each day.
We have to keep pushing. Tell all your friends, and tell them to tell all their friends.
It can work if we push hard enough.
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"Arrogance in Politics is unacceptable"
Jim Callaghan
Minden, Ontario
705-286-1860
www.misterc.ca
The anti-bank crowd will always say that returning to the bank of Canada will bring about hyper-inflation. For those in the know - you know that is not true. We never had hyper-inflation for 35 years while we did utilize the bank.
Look at it this way - it would free up billions each year for funding whatever project or social service we want to fund. We could lower the unemployment rate - truly bring down the debt to GDP ratio, and make Canada a world leader once again.
For the naysayers - one more thing - Milton Friedman (the man who started all the private bank nonsense) on his 91st birthday said in no uncertain terms - "all those nations that adopted my policies are now worse off than before". Yet that is never mentioned by the people who want to see billions more wasted and thrown away to private interests.
A 50/50 share is what the CAP has always pushed, and its good to see the NDP pick up where we started. The Greens also are pushing a return to the Bank of Canada so there is hope on the horizon.
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If there was ever a time for Canadians to become pushy - now is the time - for time is running out on this nation called Canada.
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"These Yankee politicians are the lowest race of thieves in existence." - Sir John Sparrow Thompson
Send your comments and pressure the NDP cause at least they can listen and try to create change. I think that CAP members across Canada could accomplish something if they all sent their comments to the NDP. Pressure them and help educate them. CAP should work behind the scenes with the NDP on the issue of BOC, cause its obvious that CAP understand the banking system better then the NDP does.
Kevin
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"Love actually, is all around us" --From the movie Love Actually.
Unfortunately - even with the NDP having and holding seats, the pressure will not be enough until we get some lieberals and CONServatives on board. There was one Liberal candidate in a local riding that was all for the BOC - but he did not get elected.
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If there was ever a time for Canadians to become pushy - now is the time - for time is running out on this nation called Canada.
Roy would you have either some kind of sample letter I can use to present to him outlining all the details of the issue and changes being suggested by CAP?
Kevin
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"Love actually, is all around us" --From the movie Love Actually.
Maybe this will pass?
Canada can easily become great again. Anyone who says we can’t afford hospitals, staff or medical equipment, clean electricity-generation plants, affordable housing, roads, waterworks, sewers, bridges, military hardware and other essentials is just not levelling with you. All we have to do is use the Bank of Canada for the benefit of its shareholders (Canadians) as we did before 1974.
The Canadian Action Party supports a policy where Canadian governments – at all levels – could borrow money at just 2% interest. We’d issue enough government-guaranteed Canada Infrastructure Bonds, to be purchased by the Bank of Canada, to cover our most urgent needs. The repayment term of the bonds would match the estimated life span of the asset being created.
Rebuilding Canada’s infrastructure would generate valuable side benefits. It would create desirable new jobs for Canadians of all ages, ideally reducing today’s unconscionable 7.5% unemployment rate to a more modest 5% or less.
This would increase the Gross Domestic Product and thus the tax revenue essential to sustain all our essential services. It would even be possible to make modest tax cuts and repay some of the national debt. Everyone wins and Canada would enjoy an air of excitement that has long been missing.
CAP advocates a 50/50 share between the private banks and the BOC for our monetary needs. Thus the private banks will still remain very competitive on the world market scene.
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If there was ever a time for Canadians to become pushy - now is the time - for time is running out on this nation called Canada.