SQYX _______________ AMBASSADOR AT LARGE _______________ SQYX: CENTRAL BANK OF CANADA : PRINCIPAL LENDING AGENCY : HISTORY : ACT & REGULATIONS : STABILIZING THE XXII CENTURY ECONOMY

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APR 12TH SINCE TIME BEGAN : salus populi suprema est lex - the right of the people is the supreme law : IN TRUTH WE TRUST 2020 A.D.E.
WHY I WANT TO BORROW MONEY FROM THE BANK OF CANADA - INTEREST FREE
IMPLEMENTATION

1. "Central Bank for Canada," became the framework for the Bank of Canada Act, which received royal assent on 3 July 1934. In March 1935, the Bank of Canada opened its doors as a privately owned institution, with shares sold to the public." Preamble : WHEREAS it is desirable to establish a central bank in Canada to regulate credit and currency in the best interests of the economic life of the nation, to control and protect the external value of the national monetary unit and to mitigate by its influence fluctuations in the general level of production, trade, prices and employment, so far as may be possible within the scope of monetary action, and generally to promote the economic and financial welfare of Canada; THEREFORE, His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:: SHORT TITLE (1.) This Act may be cited as the Bank of Canada Act ."

2. "The bank was chartered by and under the Bank of Canada Act^[13] on 3 July 1934, as a privately owned corporation, a move taken in order to ensure the bank would be free from partisan political influence. The Bank's purpose was set out in the preamble to the act: "to regulate credit and currency in the best interests of the economic life of the nation, to control and protect the external value of the national monetary unit and to mitigate by its influence fluctuations in the general level of production, trade, prices and employment, so far as may be possible within the scope of monetary action, and generally to promote the economic and financial welfare of the Dominion".^[14] With the exception of the word "Canada" replacing "the Dominion", the wording today is identical to the 1934 legislation.^[15] On 11 March 1935, the Bank of Canada began operations, following the granting of Royal Assent to the Bank of Canada Act." -WKPD

1. Canadian Dimension : "Few people understand the Canadian government’s relationship with the Bank of Canada or the nature of the Bank’s original raison d’être. Back in 2011 a lawsuit had been filed in the Federal Court by the Committee on Monetary and Economic Reform against the Government of Canada and the Bank of Canada. The lawsuit attempted to:

[R]estore the use of the Bank of Canada to its original purpose, by exercising its public statutory duty and responsibility. That purpose includes making interest-free loans to the municipal/provincial/federal governments for ‘human capital’ expenditures (education, health, other social services) and/or infrastructure expenditures.

After nearly five and a half years of contentious litigation, after five court hearings resulting in contrary decisions, on May 4, 2017 the Supreme Court of Canada declined to hear the appeal case, in “deference” to the political process, i.e., their decision was that the matter appeared to be more of a political issue than a judicial one. However, strong arguments can be made to the contrary and further court procedures may still take place. But in the meantime, since it appears that the issue at present cannot be resolved through a judicial process, there is now an urgent need to deal with this in the political arena.

The Bank of Canada was established in 1934 under private ownership but in 1938 the government nationalized the bank so since then it has been publicly owned. It was mandated to lend not only to the federal government but to provinces as well. To help bring Canada out of the Great Depression debt-free money was injected into various infrastructure projects. With the outbreak of World War II, it was the Bank of Canada that financed the enormously costly war effort – Canada created the world’s third largest navy and ranked fourth in production of allied war materiel. Afterwards, the Bank financed programs to assist WW2 veterans with vocational and university training and subsidized farmland.

For the next 30 years following World War II, it was the Bank of Canada that helped to transform Canada’s economy and lift the standards of living for Canadians. It was the Bank that financed a wide range of infrastructure projects and other ventures. This included the construction of the Trans-Canada highway, the St. Lawrence Seaway, airports, subway systems, and financial assistance to a corporation that placed Canada in the forefront of aviation technology – a project that was scuttled and destroyed by a controversial federal government decision. In addition, during this period seniors’ pensions, family allowances, and Medicare were established, as well as nation-wide hospitals, universities, and research facilities.

The critical point is that between 1939 and 1974 the federal government borrowed extensively from its own central bank. That made its debt effectively interest-free, since the government owned the bank and got the benefit of any interest. As such Canada emerged from World War II and from all the extensive infrastructure and other expenditures with very little debt. But following 1974 came a dramatic change.

In 1974 the Bank for International Settlements (the bank of central bankers) formed the Basel Committee to ostensibly establish global monetary and financial stability. Canada, i.e., the Pierre Trudeau Liberals, joined in the deliberations. The Basel Committee’s solution to the “stagflation” problem of that time was to encourage governments to borrow from private banks, that charged interest, and end the practice of borrowing interest-free from their own publicly owned banks. Their argument was that publicly owned banks inflate the money supply and prices, whereas chartered banks supposedly only recycle pre-existing money. What they purposefully suppressed was that private banks create the money they lend just as public banks do. And as banking specialist Ellen Brown states: “The difference is simply that a publicly-owned bank returns the interest to the government and the community, while a privately-owned bank siphons the interest into its capital account, to be reinvested at further interest, progressively drawing money out of the productive economy.” The effect of such a change would remove a powerful economic tool from the hands of democratic governments and give such control to a cabal of foreign bankers. This was one of Milton Friedman’s radical free-market ideas.

At that time it seems that Prime Minister Pierre Trudeau came under the influence of neoliberalism, promulgated by Frederich Hayek and Milton Friedman. Then, while attending the Basil Committee sessions, he probably came under further influence of fellow Bilderberg attendees and as a result he accepted the partisan flawed logic from the world’s top banks. Apparently on the basis of this, he decided that Canada should dramatically reduce borrowing interest-free money from Canada’s own bank and instead borrow the bulk of its money from chartered banks and pay interest on the loans. It appears that this decision was made without informing Canada’s parliament. This was such a fundamental change of policy that it should not only have been debated in parliament, this should have been put to a national referendum. Strangely, even when this became known, this was apparently never questioned by the opposition parties, especially the NDP, and never revealed in the media. Strange indeed."

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