National Post Thursday March 11th.
I found a back issue of your publication and it was fascinating to read the various articles published on this day about the Bank of Canada.
There was a series about the list of governors, a suggestion that perhaps R P Bennett was not all that bad after all, and another libertarian biased piece called “75 years of funny money”.
Interesting to note that nowhere in those musings was it mentioned what the Bank of Canada was responsible for and did for the country between 1935 and 1974. During this period the cost of WW11 was paid for and the social network of Canada was established and paid for by the Bank of Canada at virtually no expense to the people of Canada. Because all the money required for the establishment of such things that we used to enjoy such as the public medical system, pensions, road systems across Canada, to mention but a few of those social networks created with money from the Bank of Canada at very low rates of interest. That interest was paid to the shareholder of the Bank of Canada, which is the Minister of Finance on behalf of all Canadians.
Unlike all other Central Banks the BOC was and is not yet a private corporate affair, and was not (and yet is not) operated as such as inferred in your articles. It is possible that this dysfunctional government might try to sell it, we don’t know. It was not mentioned either that the reason for the change from using the Bank of Canada to finance the country and to create money for Canadians was because the Bank of International Settlements told us that this was not a fair business practice to shut out commercial banks from this potentially highly profitable process of loan and money creation. Regretfully our politicians of the time didn’t have the balls to tell the BIS where to go and instead started using the commercial banks to finance the operation of Canada, and allowed them to create money that did not and still does not exist.
Thus we went from a national debt of some $80 million owed to ourselves to what we have to day which is about $520 billion owed to commercial banks at a compounding interest rate. Those banks are paying their CEOs in the many billions in bonuses alone each year. And even a simple man like me can see why.
I wonder if anyone knows how or has the ability to calculate just how much interest has been paid since 1975 to those commercial banks which are sucking the very life blood out of Canada. How much good could that money (even if fake) have done for the country instead of taking us into an every increasing debt.?
This may be an oversimplification of the facts, but it is a lot closer to the real truth of the fall of the Bank of Canada into an international “yes sir Mr. President” bank so much so that it is considered by your writers to be just another central bank instead of a Canadian jewel.
So happy 75th indeed Bank of Canada, and how I wish we were using you for the reason you were created. To Finance Canada and pay us back as we paid you back.