"If the nation can issue a dollar bond it can issue a dollar bill...It is absurd to say our country can issue bonds but cannot issue currency. Both are promises to pay, but one fattens the userers and the other helps the people. If the currency issued by the people were no good, then the bonds would be no good, either." --Thomas Edison
There
is a Solution!
It is astonishing how a basic cure such as The Sovereignty Loan Plan
could for so long
elude consideration by those who search for solutions. It is based on a
very simple premis:
| a simple, legal
transfer of fiscal power from
private banks and their associates to the federal banking system on behalf of citizens! This transfer of power would enable changes to be made. And it has been successfully done before! |
History
In 1939, in order to assist Canadians in their recovery from the
Depression; and to finance Canada's participation in the War, The Bank of
Canada legally made massive loans to the federal government which did
not exceed 1/2 of 1% in interst fees. These loans continued on into
the 1950s, and were of great benefit to the people of Canada. Indeed, why
loan such moneys from private banks, often at double-digit interest, which
benefit only bankers and their associates, as
is being done today?
Today
The Bank of Canada could do the exactly same thing it did in
1939: make loans to either/both provincial or federal
governments. For example, Jack Biddell, author of
A
Self-Reliant Future for Canada, offers a plan for loans to
provincial governments:
How it would Work...
Implement The
Bank of Canada Act, Article 18 to create three Bank of
Canada funds bearing 2% per annum interest.
Facility A: a $200 billion debt refinancing
fund which would allow provincial (and municipal) governments to
replace high interest debt with low as the existing debt matured.
Facility B: a $75 billion revolving term loan to provincial
governments to fund a 20 year capital expenditures and/or industrial
investment program.
Facility C: a 10 year term Deficit financing loan available to
fund provincial deficits incurred in, say, the last three fiscal years up
to a date to be determined.
In other words, the Bank of Canada could send cheques (drawn on itself)
to the provincial Treasurers who would deposit them in private banks. At
the moment, the private banks could use ALL of this moneys to create new
loans, which could cause inflation.
That being the case, the federal statute which eleminated private bank
reserve ratios must be repealed (explained in next link). The
ability of the federal government to require such reserve deposits at
whatever level it sees fit is the most important inflation control measure
the government has! To revoke that control measure, as
was quietly done in Canada in 1991, then to turn around and yell
'inflation!' at the suggestion of Government Created Money replacing Bank
Created Money- the latter being the cause of the inflation- is
absurd.
Effects
The implementation of the Sovereignty Loan
Plan would automatically lead to the phasing out of Canada's borrowing
from all domestic and foreign moneylenders- at the provincial, municipal,
and federal level...
Try our EQ
Test to determine for yourself the enormous
difference it would make if Canadians were relieved of its heavy burden of
(mostly foreign-owned) debt; if this single proposal were
implemented!
However, the Sovereignty Loan proposal would only be the first of several
proposals needed to 'get our house in order'...