Bankers compared to counterfeiters

 

Source: Thirst for Justice.com

by Jean-Pierre Richard

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In his November 1993 report, Canada’s Auditor general calculated that of the $423 billion in net accumulated debt from Confederation to 1992, only $37 billion (8.75%) went on actual goods and services, all the rest (91%) consisted of interest charges. this should tell us how we all have become slaves.

 

 

A real solution is now having a phenomenal promotion throughout the world. The main facts on which it is based are now being supported and taught by top economists like, for example, Harold Chorney, Assoc. Professor of Political Economy at Concordia University, in Montreal, the late John Hotson, who was Professor of Economics at the University of Waterloo, and Mario Seccareccia, Assoc. Professor of Economics at the University of Ottawa, published a booklet in May of 96: “The Deficit Made Me Do It”. In it they say: “When World War II ended, the national debt relative to the national income was more than twice as large as it is now. but was the country ruined? Did we have to declare national bankruptcy? Far from it! Instead, Canada’s economy boomed, and the country prospered for most of the post war period.

 

 

“Why isn’t the same thing happening today? Why was a much larger national debt shrugged off in 1945, while today’s much smaller debt (as a percentage of GDP) is being used as an excuse to let the economy stagnate?

 

 

“The answer can be found at the Bank of Canada. During the war, and for 30 years afterward, the government could borrow what it needed at low rates of interest, because the government’s own bank produced up to half of all the new money. That forced the private banks to deep their interest rates low, too.

 

 

“Since the mid-1970s, however, the Bank of Canada, with government consent, has been creating less and less of the new money, while letting the private banks create more and more. Today, “our” bank creates a mere 2% of each year’s new money supply, … (p. 4, 5).

 

“… The conventional wisdom, however, is that inflation is the greatest threat to the economy and must be restrained by raising interest rates. This flies in the face of the commonsense observation that rising prices (inflation) are caused by raising costs, and that interest rates are costs. So raising them will raise prices, not lower them. p. 8).

 

 

“… One of the most pervasive myths about the government deficit is that government which spend more than they receive in revenue must borrow the difference, thus increasing the debt.

 

 

“In fact, a government can choose to create the needed additional money instead of borrowing it from the banks, the public, or foreigners.” (p.9).

 

 

And to those who say that there are only two ways to control the deficit: one being to raise taxes, and the other to cut government spending, they say: “But, in fact, there is a third way: reduce the interest rate. The Bank of Canada can set the rate of interest at which it lends to the chartered banks at any number it chooses, and it can peg the rate on government bonds, too. This was evident during WW II When it set the rate on Treasury Bills at as little as 0.36%, and on longer term bonds at less than 2.5%.” (p. 10).

 

 

Maurice Allais, Professor of Economics at the National School of Mining Engineering in Paris, France and the 1988 Nobel Prize Winner in Economics, had this to say, in his book “Les conditions monétaires d’une économie de marché” (The Monetary Conditions of a Market Economy p. 2): “In essence, the present creation of money, out of nothing, by the banking system is, I do not hesitate to say it in order to make people clearly realize what is at stake here, similar to the creation of money by counterfeiters, so rightly condemned by law. In concrete terms, it leads to the same results.”

 

 

And finally, let us quote Mackenzie King, while he was campaigning, in 1935, to become Prime Minister of Canada: “Until the control of the issue of currency and credit is restored to government and recognized as its most conspicuous and sacred responsibility, all talk of the sovereignty of Parliament and of democracy is idle and futile.”

 

 

So let us work to get the government of Canada to create all new money, cash and credit , by getting our municipal and town councils and all associations to pass a resolution to this effect. And let us circulate petitions on this issue among the general public. A model resolution and petition is available from us upon request, at no cost.

 

Jean-Pierre Richard