This is not an in depth look at the Bank of Canada. This is merely intended to arouse the interest of the readers with the hope that what they find here will spur them on to their own quest for the truth.
Let me start with a statement from the Bank of Canada'a own web site.
A special type of Crown corporation
The Bank was founded in 1934 as a privately owned corporation. In 1938, it became a Crown corporation belonging to the federal government. Since that time, the Minister of Finance has held the entire share capital issued by the Bank. Ultimately, the Bank is owned by the people of Canada.
The last sentence here reports that, "Ultimately, the Bank is owned by the people of Canada." The problem though, seems to be that The Bank operates as if it was a private bank. Private banks lend money (at interest) into circulation whereas public banks spend money into circulation. Lending money at interest always creates a situation were more money must be returned to the lending institution than was originally borrowed. This practice creates a never ending and a continually growing debt. Spending money into circulation creates no debt. This practice merely facilitates the constant strong growth of a society. It also eliminates the ability to "make" money with money.
The old saying, "If it walks like a duck and quacks like a duck" probably holds true here. The only reason to lend money at interest is to.
- make money with money,
- to bind people to a debt, thus enslaving them, or
- both.
In the case of the Bank of Canada number three seems to be the case.
But before we get off the topic of ownership here is an email from the Bank of Canada that states that the Bank is not a public corporation.
I have added a couple of questions in green.
Sent:
To:
Subject:
I hope the following answers the questions in your E-mail of March 14 to Bank of Canada Public Affairs.
1. The Bank is not a public corporation. All shares are held by the Government of Canada.
2. The Bank of Canada Act does not provide for the appointment of elected representatives the the Board of the Bank.
3. The Bank has no powers under section 18 to make loans to the federal government and to Provincial governments. It is not the Bank’s role to be a source of financing for Governments and this power has only rarely been exercised (on two occasions that I am aware of, when a government has been in dire financial straights.) The Bank has no power to make loans to the Federal Government and to Provincial Governments. Does that mean that it broke the law on the two occasions it did? Corporations whether public or private must have a mandate to do what they do. No mandate, no action. Besides, all our governments are in dire straights now so they all qualify.
4. The Bank issues notes by selling them at face value to financial institutions, who then put the notes into circulation. What does a financial institution use to pay for a $20.00 bill? A $20.00 bill????
The Bank also buys surplus notes from financial institutions What does the Bank of Canada use to buy these surplus note? Does it buy a surplus $20.00 bill with a non-surplus $20.00 bill? Something sounds fishy here. and destroys notes which are of poor quality. Each note is a claim against the Bank. The Bank accounts for notes on its balance sheet as liabilities.
The Bank also buys surplus notes from financial institutions What does the Bank of Canada use to buy these surplus note? Does it buy a surplus $20.00 bill with a non-surplus $20.00 bill? Something sounds fishy here. and destroys notes which are of poor quality. Each note is a claim against the Bank. The Bank accounts for notes on its balance sheet as liabilities.
5. Subsection 23(b) means that the Bank may purchase shares of the BIS or make loans on the security of BIS shares. It does not authorize the Bank to borrow from the BIS. If the bank has complete authority to print as much money as it wants, why does it ever need to buy the shares of the Bank for International Settlements? It needs no security to make loans to other financial institution as these other institutions "buy" money at face value.
I hope this information is of help to you.
Number one states that, "The Bank is not a public corporation. What determines if a corporation is public or private is the simple fact of ownership. If the Bank of Canada is owned by the people of Canada then it must follow that it is a public corporation. But the Banks own spokesperson denies this. But the next thing he says is that, "All shares are "held" by the Government of Canada." Now it is important to realize that the holding of something does not necessarily imply ownership. The fact someone asked you to hold their wallet while they went for a swim does not mean you now own the wallet. The ownership still remains with the one you're holding it for. So the ownership of the Bank of Canada shares would depend on who the Government of Canada is holding the share for.
When we look into that we find that the Bank Act states:
CAPITAL AND SHARES
17. (1) The capital of the Bank shall be five million dollars but may be increased from time to time pursuant to a resolution passed by the Board of Directors and approved by the Governor in Council and by Parliament.
(2) The capital shall be divided into one hundred thousand shares of the par value of fifty dollars each, which shall be issued to the Minister to be held by the Minister on behalf of Her Majesty in right of Canada.
We see that section 2 states that the shares are "held" by the Minister (of finance, Mr. Jim Flaherty) "on behalf of Her Majesty in right of Canada." It certainly does not say that they are held for the people of Canada. Maybe we could get the minister of Finance to request the Government amend the Bank of Canada Act to read, "the people of Canada" instead of, "Her Majesty in right of Canada. Then there would be no doubt. You think? All government are desirous of being transparent, or so they say.
As an aside, I wondered about the tag on, "in Right of Canada." What do these four words mean? Well after sending many emails to various Government departments I finally got back this answer from:
CeremonialetSymboles-CeremonialandSymbols@pch.gc.ca.
Hello Mr. Ealing,
As the living enbodiment of the Crown, The Queen of Canada,[42] the sovereign is regarded as the personification, or legal personality of the Canadian state.[n 8with the state therefore referred to as Her Majesty The Queen in Right of Canada ,[n 9 or the Crown in Right of Canada.] The body of the reigning sovereign thus holds two distinct personas in constant coexistence: that of a natural-born human being, The Queen of Canada, and that of the state as accorded to her through law, Her Majesty The Queen in Right of Canada.
It turns out that "in Right of Canada" is not a tag on at all. It's part of the full Corporate (Legal) name of the Crown.
Back to the question of ownership. As I see it the Bank of Canada is a private Bank who's shares are held by the Finance Minister for the Legal Corporation called, "Her Majesty the Queen in Right of Canada." The Bank of Canada operates like a private Bank because it is a private bank. There is no other reason for this.
Private Banks have one result. In 1936, a Catholic Priest by the name of Father Charles E. Coughlin wrote a book entitled, Money! Questions and Answers. He claimed at that time that Private banks would lead us to the following:
1. Private individuals will coin money for their own personal gain.
2 Corporations organized for production, such as automobiles, steel and textiles, will be under the domination of the private money creators.
3. The government itself will be dominated by the money plutocrats.
4. The press, dependent upon advertising received from banker-dominated corporations and commercial houses, will continue to deceive the people.
5. The educational system will continue to ostracize the truths of economics from our schools.
6. The citizens, weighed down by the unbearable costs of war and depression, will be inclined to blame a democratic form of government and unwittingly relinquish the liberties already won for the bare necessities of life, which the plutocrats will allow them only at the sacrifice of liberty. Dictatorship will necessarily ensue.
Turns out that he was 100% right. Democracy has also turned out to be a dictatorship where the only control the citizens have is who will be their dictator for the next Four or Five years.
Part of Father Coughlin concluding statement in his book is:
Without economic freedom, both physical and political liberty are meaningless. Their existence depends almost totally upon financial freedom. It is essential that we Americans recapture our sovereign right of coining and regulating our money and of foreign coin. It is essential that we cease paying tribute to the Federal Reserve Banks who create our money out of nothing and lend it into use with an invisible tax appended to it. It is either your money or your life.
What Father Coughlin said about the American people is true of Canadians as well. It is essential that we Canadians recapture our sovereign right of coining and regulating our money. It is essential that we cease paying tribute to the Bank of Canada who creates our money out of nothing and lend it into use with an invisible tax appended to it.
Father Coughlin was a Christian and his message was aimed mainly at Christians. My message is aimed at everyone alive; all with a religious belief and all without one. This corrupt economic system has no regard for race, religion or gender. It enslaves us all.
The following was borrowed from: http://www.michaeljournal.org/
Some of the most frank evidence on banking practices was given by Graham F. Towers, Governor of the Central Bank of Canada (from 1934 to 1955), before the Canadian Government's Committee on Banking and Commerce, in 1939. Its proceedings cover 850 pages. (Standing Committee on Banking and Commerce, Minutes of Proceedings and Evidence Respecting the Bank of Canada, Ottawa, J.O. Patenaude, I.S.O., Printer to the King's Most Excellent Majesty, 1939.) Most of the evidence quoted was the result of interrogation by Mr. “Gerry” McGeer, K.C., a former mayor of Vancouver, who clearly understood the essentials of central banking. Here are a few excerpts:
Q. But there is no question about it that banks create the medium of exchange?
Mr. Towers: That is right. That is what they are for... That is the Banking business, just in the same way that a steel plant makes steel. (p. 287)
The manufacturing process consists of making a pen-and-ink or typewriter entry on a card in a book. That is all. (pp. 76 and 238)
Each and every time a bank makes a loan (or purchases securities), new bank credit is created — new deposits — brand new money. (pp. 113 and 238)
Broadly speaking, all new money comes out of a Bank in the form of loans.
As loans are debts, then under the present system all money is debt. (p. 459)
Q. When $1,000,000 worth of bonds is presented (by the government) to the bank, a million dollars of new money or the equivalent is created?
Mr. Towers: Yes.
Q. Is it a fact that a million dollars of new money is created?
Mr. Towers: That is right.
Q. Now, the same thing holds true when the municipality or the province goes to the bank?
Mr. Towers: Or an individual borrower.
Q. Or when a private person goes to a bank?
Mr. Towers: Yes.
Q. When I borrow $100 from the bank as a private citizen, the bank makes a bookkeeping entry, and there is a $100 increase in the deposits of that bank, in the total deposits of that bank?
Mr. Towers: Yes. (p. 238)
Q. Mr. Towers, when you allow the merchant banking system to issue bank deposits which, with the practice of using the cheques as we have it in vogue today, constitutes the medium of exchange upon which I think 95 per cent of our public and private business is transacted, you virtually allow the banks to issue an effective substitute for money, do you not?
Mr. Towers: The bank deposits are actual money in that sense, yes.
Q. In that sense they are actual money, but, as a matter of fact, they are not actual money but credit, bookkeeping accounts, which are used as a substitute for money?
Mr. Towers: Yes.
Q. Then we authorize the banks to issue a substitute for money?
Mr. Towers: Yes, I think that is a very fair statement of banking. (p. 285)
Q. 12 per cent of the money in use in Canada is issued by the Government through the Mint and the Bank of Canada, and 88 per cent is issued by the merchant banks of Canada on the reserves issued by the Bank of Canada?
Mr. Towers: Yes.
Q. But if the issue of currency and money is a high prerogative of government, then that high prerogative has been transferred to the extent of 88 per cent from the Government to the merchant banking system?
Mr. Towers: Yes. (p. 286)
Q. Will you tell me why a government with power to create money, should give that power away to a private monopoly, and then borrow that which parliament can create itself, back at interest, to the point of national bankruptcy?
Mr. Towers: If parliament wants to change the form of operating the banking system, then certainly that is within the power of parliament. (p. 394)
Q. So far as war is concerned, to defend the integrity of the nation, there will be no difficulty in raising the means of financing, whatever those requirements may be?
Mr. Towers: The limit of the possibilities depends on men and materials.
Q. And where you have an abundance of men and materials, you have no difficulty, under our present banking system, in putting forth the medium of exchange that is necessary to put the men and materials to work in defence of the realm?
Mr. Towers: That is right. (p. 649)
Q. Would you admit that anything physically possible and desirable, can be made financially possible?
Mr. Towers: Certainly. (p. 771)
More home work. Please take an hour and a half and watch the video found at the link below. Then ask yourself if this is the kind of economic system you want to leave to your children, grandchildren, etc.
Please take an hour and a half and watch this movie; at least the first 14 minutes; you'll at least get one good laugh for the day. Then ask yourself if this is the economic system you want to leave your children, grand children, etc. You will see how completely ignorant our politicians are as to how our economic system works. Pass it on to others as well. It may be the best medicine for our sick economy.
Keep checking back to this site. There is a plan of action in the works that will be announced in January once all the pieces are in order. Your participation is needed.
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david.ealing@gmail.com
