Tag Archives: Toronto

Using the Bank for the Public Good

The Harper government is about to attack the most vulnerable Canadians, the elderly, with a draconian series of government spending cuts. At the same time, they’re only too happy to subsidize the oil and gas sector, and to pour money into wasteful, murderous wars.

It doesn’t have to be that way, and not a single law needs to change. The Federal Government has the authority, under the Bank of Canada Act to fund government operations by creating interest-free bank money (credit or debt) through the Bank of Canada. See Article 18, Section C.

The Bank of Canada is held in trust for the people of Canada by the Finance Minister, Jim Flaherty, who will not use the Bank as intended by the Prime Minister who nationalized it, MacKenzie King. No finance minster since Jean Chretien has used the bank as intended – to create public credit at zero interest – and our massive national debt, more than 90% of which is compounded interest, is the result.

Likewise, here in Toronto, the public is being told “there’s no money.” What’s true is that the private banks refuse to create it without costly interest. The private banks are only interested in their own profits, which they make by virtue of having an immoral monopoly on the creation of bank credit, and through speculative investments. These generate massive windfall profits and bonuses for top management, but they only add costs to the real, productive economy, which  banks around the world are throwing under the bus, along with democracy itself. One only has to examine conditions in Greece and Italy, where two democratic governments have been replaced by unelected “technocrats” or those in many US cities, which are under the rule of  unelected”Emergency Managers” empowered to cut spending, even if people lose their homes, starve and die. This could soon be the City of Toronto’s situation, if we do not act together.

We don’t need the private banks to create our money. We must bring finance under democratic, public control. That means reclaiming the power to issue currency, to manage the size of the money supply, and to direct newly created credit towards public purposes, and away from speculation on the prices of financial and other assets. Until we take back this power, any other victories we win will be hollow.