Canada's Central Bank Scam...

Even more scandalous, after being bailed out so sumptuously, the banks were further deregulated and allowed to take over stock market brokerages in Canada and abroad, and underwriting and merchant banking establishments, derivative boutiques - such a jumble of businesses incompatible with banking that the mighty banks could not begin to keep track of the clashing relationships that resulted. Thus as part of the world-wide bail-out of banks in trouble, the Bank for International Settlements, had declared the debt of developed countries to be risk-free , hence requiring no further capital for banks to acquire. But at the same time governments throughout the world had put an end to the statutory reserves, that had served as an alternative to higher interest rates to lick perceived "inflation". But if you raise interest rates, the huge bond hoard with lower coupons held by the banks fall below market value. And the banks thus lose much of their remaining capital from their very rescue package. In short the right hand of Mr. Martin and his colleagues in charge of our money supply in Canada and abroad, lost rack of what their left hands was up to. That led to a major financial crisis in Mexico that would have brought down the entire financial system had the Clinton government in Washington not at the last moment patched together a $50 billion plus standby program. And meanwhile Mr. Martin as Finance Minister during the Chretien government was beating his own drum as a financial expert who merited ten years in power as PM. As further proof of his "fiscal responsibility", he stashed away government revenue to "hide against a rainy day". It was in fact the part cost of keeping the sun shining on our banks' excursions into the US financial wild west. Not only were these incompatible with their banking activities, but not particularly successful. They have already cost them a small fortune. But that was not enough, Mr. Martin got himself into an awful row behind closed doors with the Auditor-General of that day, Denis Desautels, on the government's practice of ignoring double entry bookkeeping. When it built a bridge, a school, or a penitentiary, it wrote off the spending in a single year while keeping the debt incurred on its books as a liability. After weeks of wrangling a compromise was reached in which this accrual accountancy (also known as `capital budgeting') would be introduced with respect only to the aboriginal peoples' accounts and the environment. That resulted in the discovery of an unrecognized surplus, that he wore like a Purple Heart Cross. Yet under the terms of his settlement with the Auditor-General, the final balance sheets of the government would be subject to approval by the Auditor-General. Until that approval is forthcoming, Mr. Martin is as much in the dark about the government's balance-sheets as the general public. Accordingly it falls to the electorate to decide whether he really has been a prudent administrator, or has just bullied his auditor.. In the US intimidating or bribing a company's auditor has earned high executives jail sentences. Could it be that in Canada we reward them with 10-year runs as head of state? . That was the grand illusion of Mr. Martin's career. The time has come to prove him wrong. But surely, all these things are far too complicated for the ordinary elector to understand. Hence how did the public pierce the mystery and grasp the essential fact that Mr. Martin has been up to no great good. For that is the view that has taken over. More at: http://tinyurl.com/28h3vk

Note: http://tinyurl.com/28h3vk