Once a nation parts with control of its currency and credit, it matters not who makes that nation's 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 conspicuous and sacred responsibility, all talk of the sovereignty of Parliament and of democracy is idle and futile."
--William Lyon Mackenzie King, Prime Minister of Canada, 1935
Canadian Prime Minister Mackenzie King realized the critical importance of having government in control of the money supply. This critical function of the government is not being used today. That is why we have such enormous government debts.
Canadians paid $165-million per day in 2010 in interest on federal, provincial and municipal debt. These costs are reflected in taxes, fees, cut-backs in public services such as education, health care and support services and deterioration of infrastructure such as roads, sewers, water lines and affordable housing.
This amounts to a little under $5 per day for every man, woman and child in the country. For a family of four that’s about $20 per day or $136 per week, every week, all year long.
(These figures are easily verified by Statistics Canada. Go to this link, Table 1.3-1, scroll down to the SECOND Table, locate heading 'Interest on the public debt', and you'll see there that interest on the public debt in 2010 amounted to $60,210 millions or $165 millions per day.)
SOLUTION TO THIS GOVERNMENT DEBT
The federal government can reduce the interest paid on public debt by borrowing from its own Bank, the Bank of Canada, at near zero cost. This would lead to a reduction in the profits of the commercial banks and less income for holders of government bonds, but most Canadians would benefit.
So, why aren’t we doing this? Government's indebtedness to private financiers gives that sector undue influence on government policy decisions. Our federal government alone is up to its neck in debt ($763-billion) and when you owe that much it’s not so hard to choose between the wants of your creditors and the wants of ordinary Canadians.
To reduce the influence of private financiers and to save taxpayers billions of dollars every year we should only elect politicians who support using the Bank of Canada for financing public debt to invest in public services and infrastructure, making it clear to politicians and political candidates that they will not get our vote unless they do.
Your ideas are welcome. We invite you to share them with others on this blog.
Canadian Monetary and Economic Reform News
Committee on Monetary and Economic Reform