I'm not sure of the implications of this as finance is not my strong point, but does this indicate that we could see the usual, "Oh my, we just can't follow through with that medical plan we promised nor can we cut taxes, nor can we help the cities, because the Liberals lied. There is no surplus."?
Prime Minister Paul Martin's Badly Kept Secret
by William Krehm
8 June 2004
An intriguing secret overhangs the federal election. Our Prime Minister appeared to have everything in the bag, so utterly was his control of information. He knew exactly what had brought on the financial bust of the late 1980s, and how the banks had been bailed out by enabling them to quadruple their holdings of federal government bonds by being able to acquire them without putting up any of their own money. The statutory reserves - were some 8% to 10% of the deposits the banks received in their chequing accounts that had to be redeposited on an interest-free basis with the Bank of Canada. Such reserves had been abolished in a bill sneaked through parliament in 1991 without debate or press release.