This is a re post from the Alberta Social Credit Party Platform, showing the there are other alternatives to our debt system system, that would heal our financial system if implemented. Written by Len Skowronski in its entirety.
Make the Alberta Treasury Branch the economic engine of Alberta
Money does not have any value on its own. It is a means of helping people trade goods and services. It only has value when it is traded for goods or services. In modern economies, enough money must be available to facilitate the transactions needed to provide the people in a community the goods and services they need for a good standard of living.
The amount of money needed to achieve this goal must be determined and supplied by a central source that has the good of the whole community as its mandate. This money should be provided to the members of the community with a small surcharge for this service. No additional funds (profit) should be expected for this service, for it does not provide any of the goods and essential services that the community needs.
The Bank of Canada was established to be this central source in Canada. Unfortunately, the creation and distribution of money has slipped to the private banks. Individuals and the federal, provincial and municipal governments are paying billions of dollars in interest to these banks for a service that deserves only a small surcharge. These banks are making huge profits, even during our recession, which are distributed to their shareholders, many of whom are not even Canadian.
The Bank of Canada should recover its control of the money supply. It should allow the private banks to function as distribution utilities with regulated service charges and profit margins.
Unfortunately, vested interests in the eastern-controlled banks make achieving this goal highly unlikely. But we Albertans can lead the way! We can return the Alberta Treasury Branch (ATB) to the mandate given by the Social Credit government of 1935 – 1971: Provide the capital needed by Albertans to establish a thriving economy. It can function as the “Bank of Alberta”, giving us economic independence!
We should make the ATB the economic engine of Alberta’s economy. By statute, the Bank of Canada (B of C) is required to give no-interest loans to the provinces. We will demand this service even though none of the provinces are receiving this advantage over the private banks. If we are not able to convince the federal government and the B of C to take this step then the ATB will take loans from the B of C at the prime rate, as do the private banks. This will still give Albertans a huge competitive advantage for they will only be paying prime and a small operations surcharge as opposed to the private banks’ prime plus many percentage points. These “prime plus rates” always provide for large shareholder dividends and huge executive salaries and bonuses.