The Bank of Canada, unlike the Federal Reserve in the U.S., is wholly owned by the people of Canada. It was nationalized in 1938 and was used very successfully to fund infrastructure, social programs, education, etc, for the benefit of all Canadians. It was used to bring us out of the depression, funded WWII, to build highways such as the McDonald-Cartier freeway, public transportation systems, subway lines, airports, the St. Lawrence Seaway, our universal healthcare system and our Canada Pension Plan.
Unfortunately, since Canada adopted economist Milton Friedman’s theory of monetarism in 1974 this has not been the case and one can track the progression of the dismantling of Canada since then.
By 1974, Canada’s accumulated federal debt since confederation was 18 billion. By 1977, after the government reduced its use of the Bank of Canada to carry public debt, it had risen 3000% to 588 billion. Today the debt is 500 billion, 95% which is compound interest owed to private banks and investors. Currently Canadian pay 37 billion approximately per year in debt servicing.
We must return to the Bank of Canada for a minimum of 50% of Government-created money (GCM). It is essential to maintaining our sovereignty (our monetary system must not be in the complete control of the private bankers and corporate elites. GCM could also be used to:
Incrementally repatriate our debt back to the Bank of Canada, eventually eliminating the need of paying interest to private banks. This means lower income taxes for all.
Fund new infrastructure (roads, bridges, hospitals, schools) could be built at a fraction of the cost because of reduced interest costs.
Lend to provinces and municipalities at near or zero interest with the proviso that they maintain a certain level and quality of healthcare, housing and education. That means lower property taxes for all.
Improve our universal health care system, reducing wait times and removing public-private partnerships. It is a proven fact that public healthcare systems are more efficient than private ones because profit is not the motive.
Ensure that our public school systems and teachers are equipped with all that is necessary to bring forth future generations of well informed, well-rounded, well-educated adults capable of critical thinking.
Lower and/or subsidize university tuitions so that all citizens would have an opportunity to attend institutions of higher learning should they wish, without ending up in the poor house.
Alleviate the suffering of the poor, homeless, drug-addicted and mentally challenged.
Invest in green technologies to save our environment.
Invest in the family farm and new agricultural technologies that would eventually benefit all citizens.
The Canadian Action Party would:
Ensure that a minimum of 50% of new money supply would be
GCM on which not interest is paid (an increase from less than 5% currently).
Amend the Bank Act requiring banks and other deposit taking institutions to maintain statutory cash reserves with the Bank of Canada.
Canadian Action Party Monetary Reform – An Alternative to our Present Economic Debt System
Those who have followed my blogs know that I have criticized our Federal Government`s policy of borrowing money to enact the common affairs of the Canadian people. I would be remiss in merely criticizing our Government without giving an alternative vision of how our financial system could be done. Merely criticizing the Government without giving constructive alternatives have become the trademark of Opposition Parties. Opposition Parties are no alternatives to the Government because when they get their opportunity to govern they make the identical mistake that they criticize in the corrupt ruling party is making. The alternative is to try something entirely different in financial management. The Canadian Action Party has such a plan, which is why I have asked the Canadian Action Party if I could reprint the information on their website; to inform Canadians…
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