Here is a chart from Statistics Canada. It represents Canada’s debt from the time of Confederation until 2008. As you can see, Canada’s debt lay flat many years and quite suddenly a curve developed and it seemed like the line was a jet and took off into the heavens. The peak was closing in on almost $700 Billion of debt. Today, Canada’s debt is about $630 Billion which represents a ball and chain of $17,500 for every man, woman and child. See Canada’s Debt Clock : http://www.debtclock.ca/
It wasn’t always this way. Back in the midst of the Great Depression, the banks had called their loans, and at the same time the banks did not lend money out. This was the cause of the Depression; very little money in the economy. So, the Canadian Government under Lyon MacKenzie King, bought a few banks and created the Bank of Canada, which became Canada’s very own bank. So the Bank of Canada began doing what all banks do, it began creating money out of nothing but a number. As you know, Canada pulled itself out of the Depression, but not only did it pull the economy out of the Depression, but it began what would become a time of decades of enormous growth. Aside from the Bank of Canada money being debt-free money, there was there was a marked important difference from money from Private Lending Institutions lent into circulation. That difference was that private banks lent out debt laden money and interest payments were removed from the economy by the banks, whereas money injected into the economy by the Bank of Canada is not take money out of circulation, rather, the money keeps growing in the economy. This is the explanation for the boom after the war.
Go back to the chart, consider the period of time of ‘ WW2. The war was financed largely by the Bank of Canada which explains the meager blip on the debt level of the chart.
Consider this. This is a list of things manufactured by Canada, to help in the war effort.
- 11 billion dollars of munitions
- 1.7 million small arms
- 43,000 heavy guns
- 16,000 aircraft
- 2 million tonnes of explosives
- 815,000 military vehicles, 50,000 tanks and armoured gun carriers
- 9,000 boats and ships
Anti-tank and field artillery
Small arms and automatic weapons
Radar sets and Electronics
Uranium for the ’Manhattan Project’
All of this only produced a mere blip of increased Canadian debt on the chart, and yet today we see Toronto is having trouble finding the funds in our debt system to build 13 miles of subway. It is criminal that our Governments do not have the Bank of Canada create money for all the necessary infrastructure repairs and development and governments on all levels have to rely on indebting the people, via taxes to fund such necessary projects.
Source of info on military equipment produced during WW 2: http://canadaatwar.ca/content-17/world-war-ii/canadian-war-industry/
So, what happened at the moment that the curve started its upward trajectory? It was the day that former Prime Minister Trudeau changed the whole future of Canada, possibly forever; it was the day in 1974 that Canada stopped getting debt-free money from Canada’s own Bank of Canada, and began borrowing money from International Financial Institutions, namely the Bank of International Settlements. And of course, when money is borrowed from a bank there are interest charges at compound interest.
The logical question that shouts out to you is, why aren’t we getting our money from the Bank of Canada today? Why are Canadian taxpayers having an enormous amount of money deducted from their paycheques every week to service the debt when Canada could have gotten it’s money from Bank of Canada, and never gotten into debt to finance infrastructure projects and paying for the necessary money needed for operating our social programs.
In the article below, “The Bank of Canada Must Finance…” states within it, that if Canada had continued getting its money from the Bank of Canada, as opposed to from the private banks as they do today, Canada would now be in a place of surplus today.
What can you do? This is a vital topic to bring about a positive economic environment to Canada. Please share this with your friends on Facebook, Twitter, and other internet platforms. It takes so little to make a positive change. And check out the organizations that are fighting to get a return to the policy of getting money from the Bank of Canada. There are those fighting to getting Canada to to go back to getting their money from the Bank of Canada, there is a political party, Canada Action Party found at http://actionparty-ne.ca/
I add this information because over 35 years ago I learned somewhat of the Social Credit Economics and have a particular love for the system. The Alberta Social Credit Party proposes to not only contribute debt-free money to Alberta’s economy, but also help the citizens of Alberta to purchase farms and businesses, and to help people to buy their own homes. This is information from Social Credit’s own words and policy. It has not changed since I first learned of it way back then. From their own site:
“A couple buying their first home will have to take a mortgage of $300,000 or more. At an interest rate of 5% over a 30 year term, they will pay $276,383 in interest to a bank or mortgage company. This is a shame!
The ATB (Alberta Treasury Bank – owned by Alberta) should be directed to provide Albertans with mortgages at cost. Currently, the Bank of Canada’s prime rate is 1%. At this rate the interest over 30 years would be $47,268. If a fee of $100 per year is charged to administer this mortgage then the total cost would be $50,268, which is $226,115 less than the cost of the bank mortgage”. (end of quote) found at link http://www.socialcredit.com/index.php
If you compared this Social Credit plan to the insanity of our present road to financial bankruptcy (of governments and private citizens) why would we choose anything but having a policy of our governments creating debt-free money for our citizens. Whether it be by Canadians getting debt-free money from the Bank of Canada or Alberta’s getting their debt-free money via the Social Credit Plan there is hope for a bright financial future.
Also, you can check out the educational site, Canadian Centre for Policy Alternatives found at http://www.policyalternatives.ca/
Also, you should check out former Deputy Prime Minister Paul Hellyer who is (in his own words), “obsessed to get Canada to bring back the practice of borrowing debt-free money from our Canadian owned Bank of Canada”. Please watch this video of Paul.
I leave you with the information that Paul Hellyer along with others have filed lawsuit against the Government of Canada and the Bank of Canada to force the Government of Canada to start getting it’s debt-free financing from the Bank of Canada. My prayers are with them in their efforts.