This letter is addressed to me from the Canadian Action Party. I wrote to them to ask them how their party would keep Canada out of debt.
Canadians, think about this; much of the taxes we pay are to service our governments’ debt. If the Federal Government and provincial governments did not have debt they have then our taxation could almost be nil. Think about how much money would remain in your pockets yearly if we paid little to no taxes. Why do you and I have to pay taxes? Because our governments have chosen to borrow money from Private Banks rather than from the Bank of Canada where the interest would be negligible.
Friday, March 30, 2012 1:32:09 PM
What CAP proposes is going back to the amount of money in our system needs to balance between Government Created Money (Cash) and Bank Created Money (debt). What happened in the 70’s was a shift to make lending to Governments a secure process for Banks and so more and more Governments took on debt to deal with their deficits. Prior to the 70’s Government expenditures were looked after by the Bank of Canada.
The Government would issue Bonds. The Bank of Canada would buy these bonds and issue cash. The interest paid back on the Bonds was treated as Dividends by the Bank of Canada. Since the BOC is owned by Canadians those dividends went back to the Government. Very low interest free money. (2% simply for administration)
That is a quick off the cuff reply, as have many emails and people to deal with. I would be happy to talk more and send you more info.
(End of email)
The Social Credit of Alberta has another plan to provide Alberta with debt-free money. In the 1970’s I spoke to the then Alberta Minister of Finance, Ted Hinman, and he told me of the Social Credit Plan to create debt free money for Alberta, and also they planned to lend money at very low interest loans using the Heritage Trust Fund and the Treasury Branch as an administrating institution.
Here is a website that provided proof about money created out of nothing and that every dollar that comes into society, via private banks, as a debt.
Here are a few excerpts from the 1939 study of Banking an Commerce.
Q. by Mr. Mc Geer : But there is no question about it that banks create the medium of exchange?
Mr. Towers: That is right. That is what they are for… That is the Banking business, just in the same way that a steel plant makes steel. (p. 287)
The manufacturing process consists of making a pen-and-ink or typewriter entry on a card in a book. That is all. (pp. 76 and 238)
Each and every time a bank makes a loan (or purchases securities), new bank credit is created — new deposits — brand new money. (pp. 113 and 238)
Broadly speaking, all new money comes out of a Bank in the form of loans.
As loans are debts, then under the present system all money is debt. (p. 459)
(end of excerpt)