Bank Of Canada Is At Core Of Economy/Election Debate

 THE CORE OF THE ELECTION/ECONOMY DEBATE: 

'We don't have the money!' (Harper) -- Or do we? (Everybody else)

It is extremely difficult to get people to talk about the preposterous way in which we finance Canada's (all G-8 countries!) needs: because it is so unbelievable!!

Perhaps this will help:
LET ME ASK YOU A QUESTION: if you had your own bank (which we do: the Bank of Canada)
through which you could finance your (federal, provincial, municipal) needsdebt-free (which is so, as its your own bank)
and at no interest (why would you charge yourself interest?)
and without causing inflation (which it would not: see below)
would you indeed use YOUR Bank to finance your needs
OR
would you instead go down the street to OTHER banks (which we- our governments- do)
and borrow the money (which they do)
as debt (which it is)
and at substantial interest (which is charged)...

THE PRIVATIZATION OF THE MONEY SUPPLY: on behalf of the private banking system, ALL G-8 governments choose the latter!! Rather than the former, on behalf of the citizens of the country-- but of course citizens STILL PAY FOR THE ENORMOUS DEBT INCURRED THROUGH THEIR TAXES.

Tax $ are thus channeled into the coffers of private banks rather than into social programs and environmental care. Through so doing the REAL Capital of any G-8 country- the HUMAN and ENVIRONMENTAL Capital- is expunged. It is truly SO preposterous it staggers the imagination: It is difficult to believe something so stupid, and of such a destructive magnitude could be adhered to, taken seriously, and sustained, year after year after year.

Stephen Harper is DEAD WRONG THAT THE PROGRAMS OFFERED BY THE LIBERAL, NDP, AND GREEN CANNOT BE FINANCED OR WOULD CAUSE INFLATION.

Would using OUR OWN BANK- the Bank of Canada- cause inflation? -Read on!

FOR THE RECORD: Here is a passage from Article 18(c) of The Bank of Canada Act; and a reply to this question of inflation. All Canadians should become familiar with this passage, and what it means!

Article 18 sets out the Bank's powers of lending to our governments. Article 18 (c), dealing with funded debt- bonds or treasury bills- authorizes the Bank to "buy and sell securities issued or guaranteed by Canada or any province."

This simple phrase means that the Bank of Canada can buy bonds the federal or provincial governments might issue for various projects. (For example, the Bank could buy Kyoto Bonds issued by governments to offset the costs of implementing the Kyoto Protocol; Infrastructure Bonds, Health Bonds, etc.) As the Act further states, the Bank of Canada may- spend into circulation- debt and interest free funds needed for federal or provincial programs.

No restriction, by the way, is set on such holdings as referred to in (18(c)). So limits on these Bank of Canada powers must then be sought in the real economy- whether or not further money supply created by such loans would add to the demand in an economy already employing all available resources. Were the Bank to go on increasing its lending to governments under such circumstances, it would indeed be inflationary. But such a state of affairs has not existed in Canada for decades.

This is not rocket science, & should be at the very HEART of our election issues. Of course, it would require a federal finance minister willing to direct the Governor of the Bank of Canada (Art. 14 in the Act) to act accordingly. Federal finance ministers have for many many years now placed the interests of the private banking system over and above the interests of the single shareholder of the Bank of Canada: the federal government: 'we the people'.

This debate should be front and centre in this (any!) election. In a negative way, it is, with Harper complaining about 'where's the money going to come from...?' Well, the answer to that question lay open for all to see within the pages of the Bank of Canada Act. If you are interested in a Bank of Canada tutorial, click here www.comer.org/boc/BoCtut.htm>

It is unfortunate, but debate in this (or any other) election about the uses of the Bank of Canada remain off limits. This is not surprising, however, as such a debate would bring to light the greed, dysfunction, and rot prevailing at the very core of our financial system. This is a debate the so-called 'financial community' [sic] does not want to see happen. But until such time as an open, public debate occurs as to how our governments finance Canada's needs, it is hard to see how we will move forward as a society in any constructive way. We are currently bound by debts which are completely unnecessary, and would not need to be, were we to use our own Bank in an intelligent manner, on behalf of the citizens of Canada.

It would be so very hopeful to see one of our political Parties call for a Royal Commission into Banking Practices in Canada! Current economic jitters should tell us there is something fundamentally wrong with the construction of our financial system. There is. It is the privatization of our public money supply.

Water is next up for privatization. Is it too far-fetched, under this system, to think that 'Air' might next be privatized? That the question could even be asked reflects the current discrepancy between reason and courage and fear and foolishness. It is the latter context which currently rules the roost.

John Riddell

www.thedreamofcanada.ca