Bank Of Canada May Go Back To Sovereign, Debt Free Money.

Posted on February 6, 2015

by Jerry Alatalo

aaa-42Journalist, monetary reform activist and documentarian Bill Still recently reported on what he describes as “good news from Canada”. According to Mr. Still, a Canadian organization called Committee on Monetary and Economic Reform (COMER) has experienced success in its lawsuit against the central Bank of Canada.

For readers in America, note that the Bank of Canada and the U.S. Federal Reserve are different in that the Canadian central bank is essentially owned by the Canadian people – a public bank, while the central bank of the United States is owned and controlled by a private banking cartel.

Canada’s bank was nationalized in 1938, and for decades issued debt-free money to finance a number of large projects, including airports, subways, a national pension fund, the national health system, various infrastructure projects, and related initiatives for Canadian society’s necessities.

From the time of the Bank of Canada’s nationalization in 1938 until 1974 when the government decided to convert from debt-free money creation to borrowing through the sale of bonds, inflation – in contradiction to predictions by the so-called “gold bugs” – has never emerged as a concern or problem.

In the three years after 1974 and the switch to debt-based money creation for Canada, inflation rose dramatically, and the Canadian people saw the prices of everything climb, especially home prices. The lawsuit brought by COMER and two individuals, calling for the repeal of the 1974 decision, asks that the Bank of Canada return to the debt-free money creation mandate in place from 1938-1974.

Apparently, the government/Bank of Canada has no other option in fighting to prevent a successful COMER lawsuit but to go to the Canadian Supreme Court, which will occur at a future date not yet certain. From Bill Still’s perspective, if COMER prevails in Canada’s Supreme Court in this huge case, such a decision would send “shock waves” through the world’s central banking system.

Worth noting is that the Harper government in Canada has allegedly suggested strongly to the country’s mainstream media to suppress reporting on the possibly historic, world-consequence legal case. The attorney representing plaintiff COMER against the Bank/Government of Canada throughout the legal proceedings starting in 2011 seems to think a form of “gag order” has been directed toward Canada’s largest broadcast corporations.

****

For more information, visit www.comer.org

(Thank you to Bill Still at YouTube)

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15 thoughts on “Bank Of Canada May Go Back To Sovereign, Debt Free Money.

    1. Carol,
      Same problems with debt-based money creation, perhaps for Canada not much longer. Made contact with Bernie Sanders on Brunch With Bernie hosted by Thom Hartmann some time back, asked him for comments on global trillion dollar/year tax haven/evasion industry, and if it was time to nationalize the privately owned Federal Reserve. He talked about Boeing, GE etc. earning billions and paying zero taxes, but not a word about nationalizing the Federal Reserve. For some reason, probably because politicians have a desire to stay alive, nationalization of the Fed is taboo. The U.S. government creates 3% of the money supply – coins. The other 97% is created by private banks as debt, when the government could create paper currency – 100% of the money supply – debt free, without interest, by spending it into the economy. Greece will probably exit the euro and return to the Drachma. The US should exit the Fed and return the power of monetary creation/control to the people in the form of a public central bank/public utility.
      Thanks,
      Jerry

      Like

      1. I’m not sure that Greece exit euro. Many Spaniards (I’m Spaniard) think Spain should leave the euro as well, if there is a change in the government, but it seems that would cause a worsening in economic situation, at least in the first year. Of course, now we know that it would have been much better not to come into the euro, but it’s not easy to decide if now it’s better to continue or to exit. The euro was a trap that is destroying Europe, it was easy to come into and now it’s extremely difficult to leave it.

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        1. Samuel,
          Nice to meet you. You are certainly correct about it not being easy to decide to continue or exit. It seems the original agreement creating the Eurozone was in fact a trade deal like the currently proposed Trans-Pacific Partnership (TPP) and Transatlantic Trade and Investment Partnership (TTIP). All three designed to essentially control the rules for entire populations signed on to the agreements. Real sovereignty for Spain, Greece and other nations with privately-owned central banks would entail taking that immense money control power away from private owners and establishing public banks owned by all the people in the particular country. Governments can issue their nation’s money; only deceptive ingenuity has allowed private interests to gain control and profit for decades. Each nation has enough accountants, attorneys, economics and finance graduates/professors to build a public utility-style central bank. Watch Bill Still’s “The Secret of Oz”, Charles Ferguson’s Academy Award winning documentary “Inside Job”, and one gets a good grasp of how the financial sector operates. Visit http://www.publicbankinginstitute.org for information. Greece, Spain and other nations can conduct an audit of every debt/loan contract to determine how much is odious/illegitimate, hence not the current government’s responsibility to repay. Thanks for your comments, once again good to meet you, and best regards.
          The 2011 documentary film “Debtocracy” explains odious debt for the average person in a way that is easily understandable:


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          1. Thanks for all the information, Jerry. I had watched ‘Inside Job’ already, and will watch the others that you say. We hope to do an audit in Spain, as you say, and to establish public banks, but only if the new party Podemos (which has been compared with Syriza) win next elections, it would be impossible with current government.
            Nice to meet you too, and thanks for your comment.

            Like

  1. This is excellent news indeed. New Zealand also had sovereign money between 1938 and the early 80s. There’s a very strong sovereign money movement here, as well as two political parties supporting the end of bank-created debt based money (The Social Credit Party and the New Economics Party).

    I’ve shared this post with all my New Zealand friends through Facebook and Twitter.

    Like

    1. Stuart,
      It should be very interesting to watch how global movements for monetary reform grow and progress. As one who places little to no focus on separation-producing “isms” but sees every human being in reality passengers on the same boat, it simply seems morally wrong that the international privately-owned banking/financial sector has, and continues to, profit mightily at the expense of low wealth average citizens and entire nations when it doesn’t have to be that way. The United States government, for example, pays some $100’s of billions per year of interest on the national debt, when, if the central bank were a public bank/utility, there would never arise any necessity for the government to borrow a penny. Bill Still’s documentary films “The Money Masters”, “The Secret of Oz” and “Jekyll Island” are some of the better productions which explain the history of money creation for average citizens in an easy to understand way.
      Thanks for sharing the rare but encouraging news out of Canada,
      Jerry

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  2. Jerry, a reader says the following to me:

    —–

    They didn’t ‘win’…

    “the appeal and the cross-appeal will be dismissed without costs.”, was the result.
    http://decisions.fca-caf.gc.ca/fca-caf/decisions/en/item/100762/index.do

    This is however a really important case!

    More info here:
    http://www.reddit.com/r/canada/comments/2urk7e/every_canadian_should_read_this_we_just_sued_the/

    They have 60 days to start from scratch it seems.

    —–

    Do you have time to take a look, and see what you make of it?

    Like

    1. JoAnn,
      It seems that the important place to focus for Canadians, or any person seriously interested, is on what happened in the Canadian Parliament in 1974 (or whatever 70’s year the financial change occurred) which transformed the Bank of Canada from non-borrower to borrower from privately-owned banks money creation status. One would think that legislation in 1974 became presented, debated and voted on/passed by Canada’s lawmakers. Canada’s political environment in 1974 may have been the same as now in America, where conservatives hold such a numerical power advantage they can pass anything they want. So, the 70’s Canadian Bank of Canada mandate-altering legislation seems where the answers are. Only became aware of plaintiff’s website comer.org yesterday, but perhaps there is information there referencing what really happened in 1974/70’s.
      The COMER group seems credible and informed after reading their reasonable articles, and not likely to enter into a “frivolous” legal battle.

      Liked by 1 person

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