Peter Lougheed is dead, and so goes with him his part of a story of an event that may have altered history. Granted his impact was deeply felt in Alberta, and even on Canada, but had things gone differently his role may have altered the world’s history.
With the death of Lougheed goes his part of the story, as he knew it. But the story began years earlier with the Social Credit (SC) Government, and the complete story was told to me by Ted Hinman, the former Provincial Treasurer of Alberta.
First a footnote: the Social Credit was born of depression desperation, and there was an appetite for change and a resolve that the depression would never impact Albertans again. So the Social Credit grew out of the writings of CH Douglas who invented and wrote of Social Credit, a social/financial system. The Social Credit swept to power replacing the United Farmers of Alberta.
Ted Hinman spoke of how the SC had gone to Ottawa asking for money from the Bank of Canada and were refused. So, they then thought that Alberta would go it alone and set up their own Monetary System by doing what banks already did, to create money. Alberta had the good fortune of having oil reserves. A fund, the forerunner of the Heritage Trust Fund was set up to collect money from every barrel of oil that was taken out of the ground in Alberta. This fund would generate a revenue stream that would serve as the base fund for their monetary system. With the funds, from the fund, the Province would go to the Bank of Canada and by the magic of the fractional reserve they would produce the funds to both operate the province and to lend to farmers and businesses. He said that the money would be lent out at about 1% interest. The other component of the system was that the SC had to set up a banking system to administer the lending, thus the Treasure Branch was born.
Ted emphasized how Alberta would have flourished under the policy, and if they wanted to, they could lend money to the provinces for the same 1 % interest that Albertans could acquire. This which would 1. help the provinces get out of debt and 2. show the provinces how to create money for themselves, in the way that Alberta would shown them.
But, this is where everything began to unravel, Alberta had $Billions to set up the system and the Treasury Branches across Alberta, but they had not yet implemented the plan; they were worried about the reaction of Canada’s private banks. As time went on, the Social Credit began to be arrogant.
Enter, Peter Lougheed. Peter went to the Social Credit and told them that he wanted to join the Party, and moreover, some day he wanted to lead the Social Credit Party. In their foolishness, and in their arrogance they told Peter Lougheed to go away. So Peter Lougheed did go away. He joined the Conservative Party and being the force that he was, he quickly became the leader of the Conservative Party, and when the Alberta people had had quite enough of the Social Credit Party, they kicked the SC out of office, and the Conservatives, under Peter Lougheed swept to power. Only, this was a Peter Lougheed with no knowledge of Social Credit Monetary Policy.
If Peter Lougheed had been taught the principles of
Social Credit and learned of the wonderful advantages it would have brought to Alberta, and to Canada it would have revolutionized Canada’s monetary system. And looking at the mess of the world’s financial state is, had he stayed the world may have been an entirely different place than the mess we find ourselves in today, merely because he was pushed aside.