Bank of Canada,the National debt and Infrastructure funding
Canada faces problems similar to those found in most ‘first world’ countries-
relatively high unemployment, stagnant wages for workers, and a struggling
Under these circumstances, investment in infrastructure is a
classic government approach to address these problems. Infrastructure-creating projects have in the
past included the building of the Trans-Canada highway system, St Lawrence seaway, creation of a public system of health care facilities including hospitals, not to
mention the largest project in recent memory- the infrastructure and equipment
necessary for Canada’s huge contribution, from 1939 to 1945, to Allied victory in the Second World War!
At the same time the rapid, constant rise in our national debt increases pressure for cutbacks in funding for, and hence services from, government programs
intended to benefit the public. This is true at the Federal, Provincial and Municipal levels of government.
How best can this investment be created, while simultaneously minimizing the effect on our national debt and social programs?
The National Debt
What is our current national debt, what affects it, and how was it accumulated?
Canada’s national debt is 645 BILLION dollars (on 10 Jul 2017)
and grows at $ 77 million dollars a day. It is estimated that at least $75 million of this daily figure is compound interest, charged to service the debt.
(error corrected May 18)
How did we accumulate such a huge debt and staggering interest charges? A clear explanation is given
In 2008, a 12 year old girl from Ontario, gave part of the answer in an
she gave to the conference of the Public Banking Institute of America, in Philadelphia PA.
One main stream media review of the speech is given
Not surprisingly, the Financial/National Post did not agree, in an article notable for its patronising contempt for a 12 year old, but
also notably lacking any accurate counter arguments. There appears to be no other negative reviews of
The real reason for this massive debt was best expressed by
the Auditor General of Canada in his 1993 annual report, as follows:
Confederation up to 1991-92, the federal government accumulated a net debt of
$423 billion. Of this, $37 billion represents the accumulated shortfall in
meeting the cost of government programs since Confederation. The
remainder, $386 billion, represents the amount the government has borrowed to
service the debt created by previous annual shortfalls.”
The Bank of Canada- publicly owned by all Canadians
Canada is relatively unique among ‘first world’ countries, in having a publicly owned central bank- ie
one owned by the Canadian people- NOT private shareholders.
Costa Rica has one, as does the state of North Dakota This gives these organizations the ability to create money to lend to government at
minimal interest , and return the interest to its owner, their citizens.
Neither the American Federal Reserve Banks, nor the Bank ofEngland, both central banks, are publicly owned.
of Canadians have been actively trying to force the federal Government to
return to such a policy of borrowing from the Bank of Canada, using the legal
Not surprisingly there is scarce mention of this in our news
media, although CBC, at least, did conduct
with one of Canada’s top constitutional lawyers on the subject.
It is definitely worth watching.
While our current government, like its predecessors, claims such a use of our public bank would be inflationary, this excuse does not stand
A similar explanation of national debt, including background information on our publicly owned Bank of Canada is given
For a visual presentation and access to further information, watch this
Money creation by commercial banks
Commercial, private banks, strive to maximize profit to benefit their shareholders.
Central banks can create money by printing it. Commercial banks create money out of nowhere, commonly referred to as ‘fractional reserve
Martin Wolf, a member of the UK Independent Commission on Banking has said:
the essence of the
contemporary monetary system is the creation of money, out of nothing, by private banks often foolish lending
Following the economic meltdown of 2008, organizations in many
have called for a reform of this questionable
The attached shortlist of links provides some some details.
Canada now has a new government organization. It is a
Crown Corporation called the ‘Canada Infrastructure Bank’, created in an omnibus
budget bill C-44 (recall the Liberal’s promise to eliminate omnibus bills?) passed
22 June 2017.
have been raised about the lack of detail of the
plan, and lack of time available, for adequate study by MPs.
This ‘bank’ will enable private-public partnerships (PPPs) in creating infrastructure, but who will be the investors, what will they own
and who will
from these partnerships?
Someone else has a similar idea. Donald Trump. Not
south of the border thinks this is a good idea either, based on experience.
The solution suggested to the flawed Trump plan is:
other approach would be for the treasury, Federal Reserve or Congress to create the money and just directly
invest it in infrastructure projects.
through a public bank or banks, or invested directly, the funds could be provided at no or very low interest, .. ”
taken from the Bill Moyers article linked above.
Doesn’t that sound like the approach we can already take in Canada through the Bank of Canada
if the government chose to do so??
don’t sit on your
hands– our economic future as Canadians is at stake!
Access the links above.
Do your own research.
Forward the links and your findings to your friends and
Contact your MP, MPP/MLA, other parliamentarians and their
staff, and the political parties in this country.
There is a worldwide movement to reform and change the banking
system and method of money creation. Join it!
In the 3 days it took to develop this webpage, the debt has increased by
approximately 231 million dollars!
Monetary Reform Links
Public Banking Institute
American organization promoting establishment of public banks, similar to our Bank of Canada, which is publicly owned by all Canadians!
This page was last updated 22 May 18
|COMER- Committee on Monetary and Economic Reform||Canadian group advocating “renaissance” of the publicly owned
Bank of Canada as a lending source for the Federal and Provincial governments, to avoid wasteful interest payments.
|International Movement for Monetary Reform||a global movement to democratise money so that it works for society and not against it.|
|Canadian Citizens Coalition for Monetary Reform||Changing the way money is created to serve society
We are a non-partisan coalition of organizations and
all concerned citizens from across Canada, campaigning to change the
way money is created in our country.
|Positive Money||British organization. Positive Money is a movement for a fair, democratic and sustainable money system.|