An Open Letter to the Finance Minister of Canada

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To:  The Finance Minister of Canada —

The Honourable Joe Oliver,

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

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.


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.



To:  The Finance Minister of Canada —

The Honourable Joe Oliver,

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”.


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
 220.9 227.1
 Program expenses
176.3 179.2
 Public debt charges (Interest)
 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
 483.4  480.4  
 Percent of GDP
   Budgetary revenues 16.4
 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
 15.6  15.4  15.2  
   Debt reduction
 0.6  0.2  0.2  
   Federal debt
 38.3  35.5  33.3  31.7  
 Nominal GDP
(billions of dollars/calendar year)
 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?

One Comment

  1. Canada needs to take the lead in getting the countries that are members of the BIS to understand that every country has the right to create its own credit. This is what will enable resiliency within the financial system. The current prohibition against national public banks within the BIS is the same discredited idea as huge monoculture crops being a good idea in agriculture. The least resilient way of growing things.



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