nn"No sovereign government should ever, under any circumstances, borrow any money from any private bank."
nn--John Hotson, Prof. of Economics, University of Waterloo, Emeritus

The Problem

Rather than borrowing, as it could do, a significant proportion of the money it may need (over and above that provided by revenues) as all but interest-free money from the Bank of Canada, our federal government borrows almost exclusively from commercial banks, at commercial compound-interest rates. The results of this choice- have been a disaster. [See class action lawsuit.]

As the pie shows, we, our children, grandchildren, and on will, through our taxes, be paying the interest alone, in perpetuity, on the principal- forever. How did this happen? The Bank of Canada was created in 1934, and nationalized in 1938. It served Candians well-- until the mid-1970s...
At that time, our government chose to create its money through commercial banks- at compound interest.

From that point on, as the chart to the left shows, Canadian government debt- skyrocketed.
This UNCONSTITUTIONAL choice was made behind closed doors, with no public debate, no media commentary, and no consultation with MPs or MPPs, many of whom, to this day, do not understand the significance of this SHIFT of control of the government money supply from public to private hands.

NOT JUST CANADA, but all major Governments have made the same choice. The result is that the life-blood is being choked out of our social systems- worldwide- to pay down what amounts to entirely unnecessary debts!
One expert puts it this way:

"The very idea of a government
that can create money for itself
allowing private banks
to create money
that the government then borrows
and pays interest on
is so preposterous
that it staggers the imagination."


--John Hixson, "It's YOUR Money!"