We need to take back national debt

The recent letter by Neil Dawe (Money From Nothing, Dec. 12) defends well the position often espoused by letter writer Russ Vinden in his letters: that the public national Bank of Canada has the charter and the means to create money to lend to the government of Canada.

The situation is similar to the U.S. Treasury, which, unlike the Federal Reserve private central bank, is empowered directly by the U.S. Constitution to print money. There is no need for private banks, central or otherwise, to finance a sovereign government.

As we have seen around the world, private banks have greatly debt-burdened with compounded interest the citizens of various countries like Greece, Ireland, Spain, U.S.A., Canada, etc.

If the citizens are forced to be the guarantor of sovereign national debt for private banks charging compound interest — citizens being the ultimate good faith and credit of a country — then why don’t citizens simply bypass the private process and create the needed money out of nothing for themselves and without the interest via a public national bank: a process like the Bank of Canada was chartered to do?

How to eliminate the stranglehold that private banks have on sovereign nations is the real process to determine. While other countries like Russia and Hungary have dismissed private central banks and established public ones, perhaps the best known example is Iceland.

The people of Iceland dissolved their government, instituted a new one with a new citizen-oriented constitution, rejected their foreign bank debt as odious under international law, and prosecuted and jailed both the corrupt government officials responsible for the debt as well as bank officials — the latter were just handed prison sentences up to five years. Needless to say, Iceland’s harsh path initially caused their country considerable financial upheaval, but their worst is behind them and they are now in real financial recovery.

Perhaps the best path may be this: to repay the private bank principal — but not the compounded interest — with public bank debt. In short, for the Bank of Canada as an example, we would have a situation returned to the early 1970s, and the private banks repaid for their unnecessary substitution for the bank. In this way, in a zero sum game, fair play is preserved all around and the usurious, odious compound interest debt eliminated.

Derrick Grimmer


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