An Open Letter to the Finance Minister of Canada

short URL:  http://wp.me/p5JJK8-cK

To:  The Finance Minister of Canada —

The Honourable Joe Oliver,  joe.oliver@parl.gc.ca

We, the undersigned, firmly believe that it is far too late to balance the federal budget. Powerful stimulus is essential now, to revive the economy and get it running on all cylinders. All that is necessary is to use the power given to you by the Canadian Constitution. There is a precedent.

From 1939 to 1974 the Bank of Canada provided the Canadian government with adequate financing at no-interest. This lifted our Country out of the Great Depression, helped finance World War II, and many great post-war projects, like the St. Lawrence Seaway and the Trans-Canada highway, as well as contributing to the establishment of our Medicare and social security systems, which were the envy of the world.

All was well until 1974, when without government approval the Bank of Canada abandoned its shareholders — us, the People of Canada, and adopted the rules of the Bank for International Settlements (BIS). The Bank for International Settlements is the de facto headquarters of the international banking cartel (the money mafia), a club of immensely rich con-artists who have persuaded kings, queens, emperors and politicians to give them licenses to lend the same money to 15 or 20 (or more!) different individuals, companies, or governments simultaneously, and collect high compounded interest from each one of them – a global fraud without equal.

This international Ponzi scheme has been so successful that big banks now control the ultimate destiny of Trillions of dollars in assets, which they acquired with virtual (debt) money that isn’t worth more than about five cents on the dollar – not much more than monopoly money.

Since the Bank of Canada joined the BIS club in 1974 it’s been all downhill for the Canadian economy. In 1974 there were no food banks in Canada. Today, there are almost two thousand of them, and the need is still growing. Then, Medicare was well funded and tuition rates were low. Now there are long waiting lists for elective surgery, and tuition fees are far too high.

This decline in our welfare since 1974 is the direct result of the Bank of Canada adopting two BIS edicts. First the adoption of the ideas of Milton Friedman, especially monetarism. Second, the Bank of Canada agreed to stop providing the federal government with low-cost money as it had been doing for 35 years. Instead, the government has had to borrow in the market and pay as much as 20% interest.

The first of these decisions resulted in using high interest rates, which are the clumsiest of all possible tools to fight inflation. The terrible recessions of 1981-82 and 1990-91, that created both social and economic chaos proved that the cure was far more dreadful than the disease.

The Bank of Canada’s second decision to stop providing interest-free loans has resulted in monstrous increases in government debt at all levels. Between 1974/75 and 2010/11 Canadian taxpayers paid over one Trillion in compounded interest on the federal debt alone  —  all of it unnecessary. And the debt remains. There is no way to pay it off. Those unconstitutional decisions shall be reversed by the Federal Court of Canada (COMER vs. Canada, file number: T-2010-11). Therefore we, the undersigned, issue a national Call for Renaissance of the Bank of Canada. Martin Wolf is widely considered to be one of the world’s most influential writers on economics. He is the associate editor and chief economics commentator at the Financial Times:

“One of these radical ideas was proposed by Martin Wolf in the Financial Times. He suggests stripping private banks of their remarkable power to create money out of thin air. Simply by issuing credit, they spawn between 95% and 97% of the money supply. If the state were to assert a monopoly on money creation [via public central bank], government could increase their money supply without increasing debt. Seigniorage (the difference between the cost of producing money and its value) would accrue to the state, adding billions to national coffers. Private commercial  banks would be reduced to being servants, not masters, of economy.” — George Monbiot  theguardian.com

Ontario’s provincial debt is fast approaching 300 billion, and is rapidly growing as you are reading this. This huge debt is due to provincial government borrowing from private banks at high compounded interest. Big private banks might be too-big-to-fail, and they might be even too-big-to-jail, but they are NOT too big to abandon as depositories for government funds. The State of North Dakota is the only US state that has a state-owned public bank, the Bank of North Dakota. The Wall Street Journal has reported that the public Bank of North Dakota outperforms Wall Street private banks. Why shouldn’t we, in Canada, learn from this good example, and establish our own provincial public bank, the Ontario Public Bank? If the State of North Dakota can bypass Wall Street with its state-owned public bank, and declare financial independence, so can Ontario and all other provinces across Canada bypass Bay Street.

William Lyon Mackenzie King had once said: “Once a nation parts with the control of its currency and credit, it matters not who makes the nations laws. Usury, once in control, will wreck any nation. Until the control of the issue of currency and credit is restored to government and recognized as its most sacred responsibility, all talk of sovereignty of parliament and of democracy is idle and futile.”  

Canadian monetary, financial and economic system is broken. And so our democratic system seems to be as well, as eminent Canadian constitutional lawyer Rocco Galati has publicly stated. John Maynard Keynes and Milton Friedman both erred when they assumed it was self-regulating. It has to be managed by the government on behalf of all the people. Our government has to use its sovereign power to liberate us from being slaves to debt.

We therefore demand that you table your austerity budget – an idea that was tried in the 1930s and failed miserably – and adopt a new deal for Canadians. In order for you to know exactly what we mean and want, we have explained it for you as follows.

A SOCIAL CONTRACT BETWEEN THE GOVERNMENT AND PEOPLE OF CANADA

In view of the fact that our present banking and financial system is unstable, unsustainable and basically immoral, we the undersigned, on behalf of all Canadians, demand that the federal government use its constitutional power over all matters pertaining to money and banking by forthwith taking the following action to benefit all Canadians:

  1. The government of Canada should print fifteen non-transferable, non-convertible, non-redeemable $10 billion nominal value Canada share certificates.
  2. Simultaneously the Justice Department should be asked for a legal opinion as to whether the share certificates qualify as collateral under the Bank of Canada Act. If not, legislation should be introduced to amend the Act to specify their eligibility.
  3. The government should then present the share certificates to the Bank of Canada that would forthwith book the certificates as assets against the liability of the cash created, and deposit $150 billion in the government’s bank accounts. The federal government should immediately transfer $75 billion to the various provinces and territories in amounts proportional to their population, with the understanding that they would help the municipalities, as appropriate, so there would be no need to cut back on essential services, or sell valuable assets.
  4. Amend the Bank Act to reverse the 1991 amendments that eliminated the requirement for the Canadian chartered banks to maintain cash reserves against their deposits and provide the Minister of Finance, or someone acting on his or her behalf, the power to set the level of cash reserves for banks and other deposit taking institutions up to a maximum of 34%, provided the increase, beginning in fiscal year 2013/14 is not less than 5% per annum until the new 34% base has been established in 7 years. This will ensure that there will be no inflation resulting from the government-created money (GCM). 
  5. Repeat the action prescribed in Sections 1 and 3 above in accordance with the following schedule. (a) 2014/15 $150 billion of government-created money; (b) 2015/16, $150 billion GCM; (c) 2016/17, $125 billion GCM; (d) 2017/18, $125 billion GCM; (e) 2018/19, 50% of the estimated increase in GCM to bring bank reserves up to 34% by the end of fiscal year 2019/20 (likely to be an amount greater than $100 billion); (f) 2019/20 the remaining amount of GCM to increase bank reserves to 34% (again likely to exceed $100 billion).
  6. In each fiscal year following 2019/2020 the amount of GCM spent into circulation will be 34% of the desired increase in monetary expansion for that year with the remaining 66% to be the prerogative of the chartered banks (the great advantage of changing the system over a 7 year period is to allow all levels of government the certainty of a cash flow adequate to complete projects once begun, and to facilitate a smooth transition to the new stable and sustainable system).
  7. After a year or two of robust economic growth, as tax revenues begin to rise, the amount of GCM created during the transitional period should exceed prudent budgetary requirements, so governments at all levels should take advantage of the opportunity to pay off significant amounts of their outstanding debt. It is estimated that the federal government could reduce its net debt by as much as one-third, providing further relief to hard-pressed taxpayers.

We demand that the Canadian Parliament and the Government of Canada implement items 1 to 4 (above) not later than midnight May 10, 2016 in order that the economic benefits will begin for students seeking employment.

We believe these actions to be so essential for the future welfare of the majority of Canadians, and as a precedent for other struggling countries, that should the parliament and the government fail to meet the deadline above, we will feel duty bound to adopt such peaceful measures as are within our power to guarantee that the 99% of Canadians on the lower end of the income scale are not shortchanged again. 

Canada was once great — let us make her great again.

Yours respectfully,

Jerry Ackerman, Paul Amodeo, Erik Andersen, Carol Bailey, David Banerjee, André Bernier, Erick Bittschwam, George Crowell, Arestia Dehmassi, Derrel Dular, Ann Emmett, Helen Ferreira, Connie Fogal, Claire Foss, Sarah Harrington, Paul Hellyer, William Krehm, Christopher Lambe, Chris Lang, Judy Lewis, John McMurtry, Dennis Morrison, David Patrick, Richard Priestman, Susan Rawley, Hon. Alan Redway, Hugh Reilly, John Riddell, Sarah Sackville-McLauchlan, Michael Sinclair, Derek Skinner, Myra Sonnichsen, Victor Viggiani, Andrew Ward, Sydney White, Keith Wilde, Pierre Zgheib.

CONTACT

 


To:  The Finance Minister of Canada —

The Honourable Joe Oliver,  joe.oliver@parl.gc.ca

Dear Sir,

Re: The Bank of Canada & why it was created

The purpose of the Cowichan Citizens Coalition’s ‘Duncan Initiative’ is to remind elected officials that:

  • The Canadian Constitution Act of 1867, Article 91, gives the Government of Canada the “exclusive” right to create the nation’s money supply;
  • The Statutes of the Bank of Canada Act of 1934, Article 18 (1), (c) (i) & (j) spell out clearly how governments, Federal, Provincial or Municipal, borrow from the Bank of Canada for public projects and services with little or no interest.

Sir, “money exists not by nature but by law” as Aristotle stated 2300 years ago. Article 14 (2) places you, an elected official of Canada, as final authority for Bank of Canada policy. You hold all the shares of the Bank of Canada on our behalf. Your duty is to uphold that law.

On September 30th 2006, the Honorable Jim Flaherty, Minister of Finance, declared a budget surplus of $13 billion which he would use to pay down the debt. Why would he not borrow that $13B to pay down the debt from the Bank of Canada, interest free, and use the $13B budget surplus to provide urgently needed social services like child care or housing, for the thousands of homeless Canadians?

Elected officials did use our Bank of Canada effectively from 1935 to 1974. In 1974 our national debt, dating back to 1867, stood at a mere $18B. According to the Auditor General’s report of November 1993, that debt had risen to $423 billion, of which $386 billion was entirely interest on interest. Please note economist Jack Biddell’s figures: Income Taxes paid by Canadians from 1981 to 1995 totaled $619B. Interest paid to private banks during that same period totaled $428B.

William Lyon Mackenzie King had once said: “Once a nation parts with the control of its currency and credit, it matters not who makes the nations laws. Usury, once in control, will wreck any nation. Until the control of the issue of currency and credit is restored to government and recognized as its most sacred responsibility, all talk of sovereignty of parliament and of democracy is idle and futile.”  

On November 14. 2006, the Fraser Institute stated that our current direct governmental debt stands at $798 billion. As an elected lawmaker of Canada, how do you and your fellow elected lawmakers justify the abdication of this “most sacred responsibility” as stated by Prime Minister William Lyon Mackenzie King, in 1938? Please, be honest and thoughtful with your reply. Note the words of economist John Kenneth Galbraith, “The study of money, above all other fields in economics, is one in which complexity is used to disguise truth, not reveal it”.

Sincerely,

Cowichan Citizens Coalition, ‘Duncan Initiative’
Duncan, B.C.

Summary Statement of Transactions
(including May 2006 Budget Measures)

   Actual1 Estimate Projection
 
   2004-05  2005-06  2006-07 2007-08
 
 Billions of Dollars
Budgetary revenues
211.9
 220.9 227.1
235.8
 
 Program expenses
176.3 179.2
188.8
196.5
 
 Public debt charges (Interest)
34.1
 33.7  34.8  34.8 Total 137.4 BILLION
 Total expenses
 210.5  212.9  223.6  231.4  
 Planned debt reduction  1.5  8.0  3.0  3.0  
 Remaining surplus
     0.6  0.4  
 Federal debt
 494.4
 486.4
 483.4  480.4  
 Percent of GDP
         
   Budgetary revenues 16.4
16.1
 15.7  15.5  
   Program expenses
 13.7  13.1  13.0  13.0  
  Public debt charges
 2.6  2.5  2.4  2.3  
  Total expenses
 16.3
 15.6  15.4  15.2  
   Debt reduction
 0.1
 0.6  0.2  0.2  
   Federal debt
 38.3  35.5  33.3  31.7  
 Nominal GDP
(billions of dollars/calendar year)
 1,290
 1,369  1,145  1,517

 Note: Totals may not add due to rounding
1Revised to reflect the impact of consolidating foundations

PLEASE NOTE IN THE TEXT ABOVE: National debt shown as $494.4Billion Our FEDERAL FINANCE MINISTER, JAMES FLAHERTY, will have given away JUST IN INTEREST: 2004-05 $34.1 B, 2005-06 $33.7B, 2006-07 $34.8B, 2007-08 $34.8B TO PRIVATE MONEY LENDERS. In four years a total of 137.4 BILLION of our tax dollars. This is money STOLEN from the taxpayers of Canada.

  • This is a violation of the Canadian Constitution of 1867, article 91
  • It is also a violation of the Bank of Canada Act of 1934, Article 18, (c), (i), & (j) 

What makes our Canadian politicians complicit in this great theft?

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The federal lawsuit Canadian mainstream media have not been covering… until now!

short URL:  http://wp.me/p5JJK8-2S

 

“I do not believe in conspiracy theories. Except those that are true.”

 

It would be easy to assume the people suing the Queen of England, the Bank of Canada, and three ministers for a conspiracy against “all Canadians” wear tinfoil hats.

They do not. They may be conspiracy theorists, but they are also intelligent, thoughtful people who have a lawyer with a history of winning unlikely cases.

And despite the government’s best efforts to have this case thrown out, it’s going ahead after winning an appeal that overturned a lower court’s ruling to have it tossed and surviving a follow-up motion to have it tossed again.

The government has one more chance to have it thrown out through an appeal at the Supreme Court, but that has to be filed by Mar. 29 and that looks unlikely.

That means the Committee on Monetary and Economic Reform (COMER) is going to have its day in federal court.

This little think-tank alleges that the Bank of Canada, the Queen, the attorney general, the finance minister, and minister of national revenue are engaging in a conspiracy with the International Monetary Fund (IMF), the Financial Stability Board (FSB), and the Bank for International Settlements (BIS) to undermine Canada’s financial and monetary sovereignty.

No major mainstream media have covered this story (since 2011 until now). That could be because of the powerful vested interests the suit targets, as Rocco Galati, the lawyer trying the case, suggests.

theepochtimes.com/n3/1290580-bank-of-canada-faces-lawsuit-for-alleged-imf-conspiracy/


Rocco Galati and CSIS:

Spies, lies and the myth of ‘oversight’ at CSIS

https://ccc4mr.wordpress.com/rocco-galati/

Banking on serious reform 

I saw an eminent constitutional lawyer Rocco Galati warmly greeting former Minister of Defence Paul Hellyer in the Federal Court of Canada this week, before the next round of legal proceedings started in an important national-level lawsuit, COMER vs. Canada, file number: T-2010-11.

Why do Canadians allow private banks to profit off our public debt, when our national public central bank, the Bank of Canada, is constitutionally legislated to provide no-interest loans for human capital and infrastructure spending? The Bank of Canada has not issued such loans since 1974, after it funded Canada out of the Great Depression, the Second World War, the infrastructure boom, free public health care system, universities and colleges, CBC and more. Monday, three judges upheld the previous ruling of justiciability. The next step is to determine the statutes of the Bank of Canada Act, and if they have been subverted by a conspiracy.

The monopoly of private banks’ exclusive privilege of lending money to governments will, for the second time in our history, soon be put on trial. The first time it was debated in the House of Commons, it led to the creation of the Bank of Canada. It’s high time to restore the Bank of Canada, and jail the banksters

We are in a perpetual-debt crisis because we’ve allowed foreign private interests to control the creation of money and, by extension, federal economic and social policy for their private interests. Banks are guaranteed billions in profits every year as families slide deeper into debt. Forget income splitting; imagine the tax relief once we escape debt bondage and compound-interest payments.

Arguing for the plaintiffs — Ann Emmett, centenarian William Krehm and the Committee on Monetary and Economic Reform (comer.org)  is perhaps Canada’s most prominent constitutional lawyer, Rocco Galati. Galati, who consistently undermines and reverses government decisions and actions, is not shy in declaring Canada “a quiet dictatorship.” The erosion of democracy is not complete without the erosion of justice and the independence of the judiciary, for which this government has received international condemnation. Galati has reason to believe there is a government-issued media blackout on this Constitutional lawsuit (sorry, Harper, I didn’t get the memo!).

Saturday prior to the hearing, there was a five-hour seminar in Toronto City Hall chambers on the subject of money, tax, poverty and public banking, with the keynote speech delivered by Toronto Councillor Kristyn Wong-Tam on the creation of the Toronto Public Bank. We heard from a renowned investigative accountant, Al Rosen, who described the existence of “hundreds of Nortels” that go uninvestigated because of a lack of resources to address white-collar crime, tax evasion and more, as the Canada Revenue Agency has been co-opted for partisan purposes to attack charities and birdwatchers critical of the Harper government.

The report, Banking: A Proven Diversification Strategy, commissioned by Canada Post, was killed by the Harper government a day before it eviscerated the public institution. After access-to-information requests, the report was released, with more than 701 of 811 pages redacted. The report detailed the win-win nature of postal banking, given Canada Post is the largest distribution network in the country, with branches in more than 6,300 communities, more than all banks combined, said Mike Palecek, the representative from the Canadian Union of Postal Workers. Even grocery stores have their own banks, from which they make hundreds of millions a year. With a few simple software upgrades and ATMs, Canadians from coast to coast could have low-cost, accessible banking services, among 700 pages of other benefits the Harper government doesn’t want you to know about. Chew on that, Grandma, when you’re trudging through snow to get your mail.

P.s.

Rocco Galati reports: “Federal Court of Appeal Decision — January 26, 2015. On April 24, 2014, we were, in the main, successful in our appeal before Justice Russell. We appealed, to the Federal Court of Appeal, on two minor points. The government cross-appealed on the ruling that we can proceed with the bulk of COMER’s action. On January 26, 2015, the Federal Court of Appeal dismissed our Appeal (on two minor points). More importantly, the Federal Court of Appeal dismissed the government’s cross-appeal claiming that the Federal Court could not entertain the lawsuit. Since the Federal Court of Appeal fully upheld the decision of Justice Russell dated April 24, 2014, Justice Russell’s decision stands. I refer everyone to my summary of that decision on COMER’s website. What that means is that we are entitled to proceed with our action, subject to me drafting and filing an amended Statement of Claim with the Federal Court, which will be done shortly. In short, and in summary, the decision of the Federal Court of Appeal is a victory for COMER to proceed. (While the government can seek leave of the Federal Court of Appeal’s decision to the Supreme Court of Canada, to date no such indication has been conveyed. The government has until March 29, 2015, to do so).” 

www.orilliapacket.com/2015/01/30/banking-on-serious-reform

Jacob Kearey-Moreland is a local Orillia resident and gardener. He can be contacted at: jacobkeareymoreland@gmail.com

 


Liberate the Bank of Canada, Intrepid Think Tank Urges

Canadians have been fleeced for billions, but no traction in media for complex banking case.

By Murray Dobbin, 17 Apr 2015, TheTyee.ca


 

The Canadian court case the mainstream media will not cover

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 Canadians pay approx. 37 billion per year in debt servicing.

Canada Debt Free. Is it possible?

Did you know that the Bank of Canada used to make interest free loans to municipal, provincial, and federal governments before 1974, when the total national debt was only 18 billion dollars; you could still buy a good house for under 20 thousand dollars, and inflation was just a word. Then, it seems, our officials in 1974 decided to stop using the Bank of Canada’s ability to print interest free money, and instead to borrow money from private and foreign banks, that love compounded interest.

Does that explain our ballooning national debt? As well as the never ending call from all governments for more and more of our hard earned money.  So, what can we do about it?  Well, a few Canadians have filed an action in Federal Court to restore the use of the Bank of Canada. The crime of this story is that none of the mainstream media has covered it.

Restore the Bank of Canada

Canadian constitutional lawyer, Rocco Galati, on behalf of Canadians William Krehm, and Ann Emmett, and COMER (Committee for Monetary and Economic Reform) on December 12th, 2011 filed an action in the Federal Court of Canada (COMER vs. Canada, file number: T-2010-11, decisions.fct-cf.gc.ca) to restore the use of the Bank of Canada to its original purpose by exercising its public statutory duty and responsibility. That purpose includes making interest-free loans to the municipal, provincial and federal governments for “human capital” expenditures (education, healthcare and other social services) and infrastructure expenditures. COMER has also issued a national Call for Renaissance of the Bank of Canada

This is not a conspiracy theory.  This is a conspiracy — international banking conspiracy, as per lawsuit in the Federal Court of Canada. The Plaintiffs allege that the Defendants have acted in ways that are unlawful, unconstitutional and tortious in their handling of monetary and budgetary policy and administration in Canada. In their Claim, the Plaintiffs sought a number of declarations that the Defendants are required by the Constitution and the Bank of Canada Act, RSC, 1985, c B-2, to take, or refrain from, certain actions relating to their handling of fiscal and monetary matters, described further below. They also sought a declaration that the Defendants, along with certain international monetary and financial institutions, have engaged in a conspiracy to render impotent the Bank of Canada Act, as well as Canadian sovereignty over financial, monetary, and socio-economic, with injurious consequences to all Canadians:

 “Defendants, wittingly and/or unwittingly, in varying degrees, knowledge, and intent, engaged in a conspiracy, along with the Bank of International Settlements (BIS), Financial Stability Forum (FSF), and International Monetary Fund (IMF), to render impotent the Bank Act, as well as Canadian sovereignty over financial, monetary, and socio-economic policy, and in fact by-pass the sovereign rule of Canada, through its Parliament, by means of banking and financial systems.” — decisions.fct-cf.gc.ca

Due to the fact that main stream media has not picked up this story, it will all sound foreign to you, If you would like to learn more on the Bank of Canada , I recommend  that you take the time to watch, what I consider to be the best documentaries on the subject, Oh Canada Movie – Our Bought And Sold Out Land:

Here are three quotes from the Oh Canada Movie, and the times in the movie to view them:

  • At 37min. 8sec. into the movie Elizabeth May of the Green Party Leader says, “The reality is the Bank of Canada has by legislation the ability to make what ever money  needed, to loan the money to the government of Canada without interest.”
  • At 37min. 50sec.  into the movie, late Jack Layton,  Federal MP Leader of the NDP says, “We never should have privatized our debt and turned it over to the private banks. We should have kept it in the hands of the Bank of Canada.”
  • At 42min. into the movie, Paul Martin our former Prime Minister is asked if Canadian government has the ability to create debt free money?  “Absolutely,”  Martin responds,  then adds, “but you have to ask the Question. Why don’t they?”  Martin answers his own question: “because its inflationary, it would drive inflation through the roof.”

I hope that last paragraph didn’t confuse you. I can’t believe he said it myself, I had to listen to it again. You see, we had very little inflation prior to 1974 while the Bank of Canada was creating debt free currency. Inflation started  with the  borrowing of fiat fractional reserve money from the private banks (fiat money is a currency that a government has declared to be legal tender, despite the fact that it has no intrinsic value).

So if you are tired of paying these never ending taxes I do encourage you to research the above.

Update COMER vs. BOC, Jan 2015

26 Jan 2015, Committee on Monetary and Economic Reform, and constitutional lawyer Rocco Galati won yet another round of appeals. Galati, the most prominent constitutional lawyer in the country, says he does not believe Canada is a democracy any longer.

Source:  http://westcoastnativenews.com/the-canadian-court-case-the-mainstream-media-will-not-cover/

http://www.cbc.ca/player/News/Business/ID/2666703865/

 


Rocco Galati in court to challenge how Bank of Canada does business

By Les Whittington,  Mar 23, 2015

 

Readers’ Letters

That was William Lyon Mackenzie King, Canada’s 10th and longest serving prime minister, whose accomplishments include the creation of old age pensions, unemployment insurance, family allowances, who led Canada through World War II and, in 1938, in the midst of the Great Depression, removed private bankers’ ownership and control of our central bank by nationalizing the Bank of Canada making the government of Canada its sole shareholder on behalf of the people of Canada. Rocco Galati, on behalf of the Committee on Monetary and Economic Reform (COMER), argues for the restoration of the BoC’s previously successful role of financing the borrowing of all three levels of government at minimal interest cost to the Canadian taxpayer, but at substantial cost in lost profits to the private banking establishment. As for inflation, it is not who creates the money – currency and credit – that causes inflation, but how much money is created. Who creates the money determines how much that money will cost taxpaying citizens – with compound interest currently paid to privately held banks, represented (surprise) by the Bank for International Settlements (BIS), frequently referred to as “the bankers’ bank.”

Derrell R. Dular, Toronto

 

I’m glad to see a major newspaper covering the lawsuit against the Bank of Canada. More attention needs to be paid to how the bank could be used to serve people of Canada. Instead, we’ve created an economy where we’re all going further and further into debt and paying interest to the financial industry. It’s like an anvil around our necks but it doesn’t need to be this way, and it used to be different. Thanks to lawyer Rocco Galati and COMER for bringing this to the courts. I hope they win and we get the bank we need.

Jeff Dean, Victoria, B.C.

This topic has evaded the public eye for much too long. The people of this country are bring robbed blind of their wealth and financial freedom under the fraudulent debt money system controlled by the private bankers. Why is this important topic not being blasted all over the news? Because “they” (the private bankers) do not want the people to know how they have been scammed over the past several years.Time for the media to do their job – inform the public!

Grant Baudais, Kelowna, B.C.

 

It was interesting to read the article on the lawsuit by the Canadian group Committee on Monetary and Economic Reform (COMER). While the article plainly tried to spin the suit as a nuisance suit by a bunch of “commie kooks,” nothing could be further from the truth. This country of ours had it’s greatest years of development (1938 to 1974) attaining its modern character and form with the Bank of Canada as primary lender to the people’s governments insuring a stable monetary heartbeat. After 1974, Canada’s politicians were “hoodwinked” into believing that borrowing from an international cabal of bankers would somehow be less inflationary than borrowing from Canada’s own public bank, having the best interest of the people as its guide, rather than the rich shareholders of private for profit banking houses. The proof is in the charting of Canada’s governmental debt over the years. Up until 1974, Canada had a modest and very easily manageable debt. Afterwards, the rise in debt is precipitous as Canadian governments switched to borrowing from commercial banks at the going interest compounding. How very foolish! Since then inflation has, continually in a downward spiral, been eroding the value of the Canadian dollar as the amount of debt by all three levels of governance, carried by the taxpayers, and all owed to the commercial banking class, instead of to ourselves with any profit from that self-owed debt accruing to ourselves as under the previous Bank of Canada regimen. The very statement by today’s Bank of Canada, stating that a return to their direct lending to government at practically 0 per cent interest would somehow be more inflationary instead of borrowing from commercial banks at the going rate of compounding interest defies logic and shows how that formally lifesaving institution has been captured by the bankers for their own ends; which dear reader will not coincide with your or our nation’s best interests. I wish Mr. Galati and COMER every success as this will also mean every success for Canada and her people if they succeed in tearing Canada away from the avaricious grasp of the money lenders.

Obviously something went terribly wrong after 1974

short URL:  http://wp.me/p5JJK8-g

The above chart illustrates the history of Canada’s federal debt (not including provincial and municipal debts: debtclock.ca). Obviously something went terribly wrong after 1974. Over a 108 year period (1867-1974) the accumulated debt shows as nearly a flat line growing to only $21.6 billion. But around 1974, the debt began to grow exponentially and, over a mere 39 years, it reached over $600 billion in 2013.

What happened in Canada in 1974?  See: chriswick.ca/who-changed-the-bank-of-canadas-policies-in-1974-and-why. Also, in 1974 the Basel Committee was established by the central bank Governors of the group of ten countries of the member central banks of the Bank for International Settlements (BIS) ccc4mr.wordpress.com/bis/ which included Canada. A key objective of the Committee was and is to maintain “monetary and financial stability.” To achieve that goal, the Committee discouraged borrowing from a nation’s own central bank interest-free and encouraged borrowing from private creditors, all in the name of “maintaining the stability of the currency.”

The presumption was that borrowing from a central bank with the power to create money on its books would inflate the money supply and prices. Borrowing from private creditors, on the other hand, was considered not to be inflationary, since it involved the recycling of pre-existing money. What the bankers did not reveal, although they had long known it themselves, was that private banks create the money they lend just as public banks do — out of thin air. The difference is simply that a publicly-owned national central bank (Bank of Canada) returns the interest to the government and the People of the country, while a privately-owned bank siphons the principal plus interest into its capital account, to be re-loaned at further interest, progressively drawing money out of the productive economy.1

Paul Hellyer,2  also notes that lobbying by the banks and adoption of monetarism — the idea that “markets know best” and should be “without regulation,” and that public services should be privatized — took hold.

In 1974, the Government of Canada began to borrow all of the monies to cover its shortfalls from the private sector: chriswick.ca/who-changed-the-bank-of-canadas-policies-in-1974-and-why/  at interest rather than creating money through the Bank of Canada interest-free: prudentpress.com/finance/history-bank-of-canada/

Since 1974, the Bank of Canada has not been acting in the best interest of its shareholders: the People of Canada.

To understand how ridiculous the present situation is, consider the 1993 Auditor General of Canada report (Section 5.41)3 which states:

The cost of borrowing is the third area that affects the annual deficit. In 1991-92, the interest on the debt was $41 billion. This cost of borrowing and its compounding effect have a significant impact on Canada’s annual deficits. From Confederation up to 1991-92, the federal government accumulated a net debt of $423 billion. Of this, $37 billion represents the accumulated shortfall in meeting the cost of government programs since Confederation. The remainder, $386 billion, represents the amount the government has borrowed to service the debt created by previous annual shortfalls.

Of the accumulated debt of $423 billion, the government really needed to borrow only $37 billion—accumulated over 127 years—to cover its shortfalls on real spending for goods and services. The rest of that accumulated debt was monies borrowed to service the debt, essentially a payment of interest on interest to the private sector when the government could have created the money to cover the shortfall at what amounts to be no interest.

According to Paul Hellyer, from 1974–1975 to 2010, Canadian taxpayers have paid over one Trillion, 100 billion dollars ($1,100,000,000,000) in interest alone on the federal debt to private lenders.4 In 2011, alone, Canadian taxpayers paid the private banks an estimated $37.7 billion to service the federal debt—over $103 million each and every day of the year! 5 These are tax dollars that, ceteris paribus, could have gone towards infrastructure, health care, education, and other social needs, if the Government of Canada used it’s own national, public Bank of Canada to create the money to cover its shortfall. Ultimately, the government could pay off the federal debt through the same means.

And consider this: from the time of confederation until 1974, Canada fought two world wars, went through a major depression, constructed major infrastructures such as the St. Lawrence Seaway, Trans-Canada Highway, International airports, Canadian National Railway, and brought in social welfare programs such as Family Allowance, Old Age Security pensions, Canada Pension Plan, Universal Health Care and wound up with a total accumulated debt of only $21.6 billion. Today (as of 2015) Canada’s total debt (federal, provincial and municipal) is already over one TRILLION dollars (and growing); total compounded interest on the debt paid to private banks since 1974 was also already over one TRILLION dollars, and the government is continually cutting services in order to be able to keep paying off the rapidly growing debt and the compounded interest on it, while our infrastructure is not being maintained. Meanwhile, the private banks keep increasing their already obscene profits. This unconstitutional “subsidy” to the private banks must end

The solution to this problem is simply for the government to stop borrowing money from the private banks at interest and borrow from the Bank of Canada at no interest. The private banks should also be prevented from creating money. That right should be returned to the People of Canada through the Bank of Canada

Brown, E. 2012. “Oh Canada! Imposing Austerity on the World’s Most Resource-rich Country”  http://www.commondreams.org/view/2012/04/01-4
2 Hellyer, P. 1999.  “Stop: Think.”,  Chimo Media Ltd, Toronto. pp. 15,19, 20, 80 (Chapters 2 and 6)
3 http://www.oag-bvg.gc.ca
4 Hon. Paul Hellyer — “The Bank of Canada: The people’s bank?”  http://www.youtube.com/watch?feature=player_embedded&v=p8mlwxBpaTU
5 http://www.parl.gc.ca/Content/LOP/ResearchPublications/2010-08-e.htm

Source:  http://qualicuminstitute.ca/federal-debt/


The Bank of Canada should be a lender

By André Marentette

“There must be a discussion, to show how experience is to be interpreted. Wrong opinions and practices gradually yield to fact and argument: but facts and arguments, to produce any effect on the mind, must be brought before it.”
– John Stuart Mill, 1806-1873

With the onset of the federal election, the following information should be known by all candidates and taxpayers alike.

In 2009, Canadians paid $160 million per day, $58,7 billion for the year, in interest on federal, provincial and municipal debt. These costs lead to higher taxes and fees, cutbacks in public services and deterioration of public infrastructure. Much of this debt-service cost could be eliminated by greater use of the Bank of Canada to finance government investments.

Because the bank is wholly owned by Canada, all profits on its lending activity go to the government. This means that borrowing from the bank by the government is almost costless.

For years, the government borrowed from the Bank of Canada and, during that time, contrary to t he fears raised by opponents of the idea, run-away inflation never occurred.

By 1975, federal net debt amounted to $19 billion. Then, the government began to shift more of its borrowing from the Bank of Canada to the private sector – especially chartered banks, insurance companies and other large corporations.

By March 31, 2010, the net debt had ballooned to $583 billion and interestbearing debt had reached $763 billion.

The interest cost to taxpayers for the federal government’s debt is currently a $29 billion drain on federal revenues.

In addition, the use of the Bank of Canada to finance public debt would reduce the influence of large corporations on government policy decisions.

We should only vote for candidates who support the use of the Bank of Canada for the purposes described above.