Pushin’ Back Writer:
I was emailed this dialogue between Richard Priestman of COMER and Jeff Sakula, Treasurer of Canadian Action Party. I agree with both of them on their 2 main points. I like them agree that the Government of Canada should create money for Governments’ (Federal, Provincial, and Municipal). Also, I too believe that the only way to get good governance, one that is responsive to the public good is, for Canadians, on mass, to forsake the idea of Parties giving leadership in helping to navigate us through the financial and healthcare land mines ahead and to address the democratic deficit that has sickened many Canadians. I publish this blog to add information to the democratic discourse, and to point readers toward sources on leadership in the areas of economic and democratic reform. My opinion, both COMER and Canadian Action Party are worth taking a look at, to learn from and garner direction from.
Rob McQueen (Writer of Pushin’ Back)
Statement by COMER — (Committee on Monetary and Economic Reform )
In December 2011, the federal government announced that it would cut $31 billion from public health care by 2024 effectively downloading much of the responsibility for health care onto the provinces and territories
Jeff Sakula (Treasurer of Canadian Action Party)
Interesting that this amount is equal to the interest on the fed debt
Cuts to public medicare (and other public services, public infrastructure and environmental protection) are unnecessary because there would be sufficient money if billions of dollars were not spent on unnecessary public debt interest through government borrowing from the private market, including commercial banks, instead of from Canada’s central bank, the Bank of Canada, at effectively zero interest. This (“zero” interest) occurs because the federal government owns the Bank, and all interest paid into it is returned to the government minus a little for administrative costs.
Unnecessary interest paid on public debt by federal government – $31-billion (2011) Unnecessary interest paid on public debt by Ontario government – $9.5-billion (2011) Unnecessary interest paid on public debt by our three levels of government: – $60-billion ($165-million a day)
In 2011 the people of Ontario paid $26-million a day, every day all year long on public debt interest. Question: How many Ontario hospital budgets could be balanced with a cash infusion of $26-million (which is the amount Ontario spends on public debt interest in one day)?
This info above explains the how the total interest on our debts equals 60 billion and not just 31 billion as statistics canada only is quoting the fed liability
The federal government could reduce the interest paid on public debt by borrowing more from the Bank of Canada at near zero cost and less from private financiers. So, why doesn’t it do that? The government is up to its neck in interest-bearing debt of over $800 billion – and when you owe that much you are inclined to listen to the wants of your creditors over the needs of ordinary Canadians. Government indebtedness to private financiers gives that sector undue influence over government policy decisions. It is not in the interest of banks and wealthy bond holders for the government to borrow from the Bank of Canada, but it is in the interest of ordinary Canadians. Not only would it save billions in debt charges, but more importantly it would reduce the influence of private sector financiers on government policy decisions. This would occur because use of the Bank in this way would provide government an alternative source of financing for its debt – and therefore more independence to adopt policies which are in the interest of most Canadians even if not to the liking of its major bond holders and the banks.
Provinces could borrow from the Bank of Canada, too, but this would require the federal government’s co-operation and willingness to rebate the interest paid.
I would expand that to municipal loans as well
Can we change the situation? Yes, but only if we reduce the influence on our government of banks and wealthy bond holders by electing supportive politicians.
We have supportive politicians but they will never be allowed to perform their function because the corrupt Harper inner circle excludes them .
To save public medicare (and support for other public services, public infrastructure and the environment) we must say to our politicians and political candidates, “If you want my vote you have to agree to support use of the Bank of Canada for financing public debt to invest in public services, public infrastructure and protection of the environment”. Note that this use does not include financing for aggression or aggressive weaponry.
Will not work because the existing parties are the problem . They must be totally replaced by independents and small parties such as CAP. Besides politicians will agree to anything and then make excuses why they cant later on . futile
If, in a given riding, none of the party affiliated candidates agrees to this, the community could then organize to elect an independent candidate. We have a choice!
Just elect the independent as per my last comment
It could be thought of as a new kind of politics!
YES . The public needs to Vote according to their record and not the false promises they offer us.
Addition: For all you political junkies, I add a blog that I wrote in the past, that challenges the idea that we need Parties to provide us with the leadership for change.