Finally ! The NDP Acknowledges The Fair Use Of The Bank Of Canada !

Posted on Friday, June 11 at 08:43 by Jim Callaghan
Press Releases > June 7, 2004 Canadian Action Party Congratulates NDP With a Caveat: Use of the Bank of Canada is a Stark Necessity Date: June 7, 2004 Time: 4:13 PM Location: Vancouver Connie Fogal, Leader of the Canadian Action Party, calls the economic policies of the Liberal and Conservative parties a fraud that will destroy Canada. Fogal applauds the NDP for its apparent willingness to acknowledge the essential use of the Bank of Canada in addressing Canada's economy. Fogal notes that the very last statement of the very last section of the NDP's 65-page platform document which you can access through www.ndp.ca contains a statement on using the Bank of Canada to carry public debt. The statement is, CLEAR CHOICES ON DEBT REDUCTION. It reads 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." Connie Fogal urges Jack Layton to use his political advantage as a major alternative party to talk about this issue so that Canadians can understand that the proper use of the Bank of Canada is the only way we can survive economically, have all our cherished programs and still pay down the debt. "In fact", Fogal insists, "as pointed out by the Committee on Economic and Monetary Reform, the return to the use of the Bank of Canada as originally intended is not an option, but a stark necessity. Without the Bank of Canada, 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, use of our Bank of Canada would bring our banks back to responsible banking which the country stands in need of." Fogal says, "Layton needs to talk about the fact that the proper use of the Bank of Canada is not an option but a dire necessity. He needs to point out that using the Bank of Canada in this way will make it possible to finance hospitals, schools and other infrastructure 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." "Furthermore", Fogal adds, "using the Bank of Canada properly would deal with the high cost of credit faced by private borrowers through the financial system because the end of statutory reserves left high interest rates as the only "blunt tool" for "licking `inflation'". "The NDP being an alternative party with some clout, has a burden of responsibility to expose the mutual deceptions of both the Liberals and the Conservative/Alliance, both of whom are talking tax cuts, and paying down the debts. They both have a record of slashing programs, "says Connie Fogal. "Voters are angry with the Liberals' recent history of deceptions. We need to remember the deceptions of the Mulroney Conservatives, and remember that Mulroney was the architect of the Conservative /Alliance merger", urged Fogal "It is crucial that the NDP take steps to halt the 'dumbing down' of the electorate as perpetrated by the Liberals and the Conservatives." - 30 - Contact: Connie Fogal, Leader CAP, (604) 872 2128

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