Prime Minister Trudeau made a serious error in the 1970's.

[DennisTate643]

"We never should have privatized our debt and turned it over to the

private banks, we should have kept it in the hands of the Bank of Canada,

at least a major part of it, because then we would have been paying

interest back to ourselves." (NDP Leader Jack Layton)

[DennisTate643]

"We never should have privatized our debt and turned it over to the

private banks, we should have kept it in the hands of the Bank of Canada,

at least a major part of it, because then we would have been paying

interest back to ourselves." (NDP Leader Jack Layton)

[usernameisrobert]

please look at the youtube video The Crime of the Canadian Banking System 1/4 this explains what i mean, better than i can describe in the comments...

[usernameisrobert]

it was NOT a mistake. it was done intentionally...Trudeau sold us down the river so that the international banks could take over our money supply and enslave us to a debt that we will never be able to pay back...they have done this in virtually every country in the world...only a very few countries have managed to prevent this from happening...i believe the list is comprised of the 'villains' of the world...such as cuba, venezuala, iran and n.korea...i wonder why they are considered villians...

[ChristopherMarlowe]

This is a very important point. Most of the gov deficit ends up being compounded interest.

No government should have to borrow money from private banks; they should spend money into existence. When banks loan money, they are creating money. 90% of money comes into existence as a private loan from a bank.

Canada had it right for 40 years, and then through it away. Canada can go back to the old system, but it requires public will and knowledge. This video is very helpful in that respect.

[derfowvayer]

This is correct, however, I have to say I partially disagree with you on the gold standard. Although, theoretically, a currency is not needed to be on a metal standard, doesn't a metal standard keep governement spending in check? Furthermore, wouldn't a metal standard all but eliminate inflation, something that is rather chaotic to the poor and people on fixed incomes? Besides, to my knowledge, there is not a single paper currency that has survived the ravages of time.

[DennisTate643]

@derfowvayer // Thank you for your comments Derfowvayer. I do agree that linking a currency to a metal standard could tend to keep government spending in check and could therefore reduce inflationary pressure.

Personally though I do prefer that we link government spending to the production of food, especially in a manner that could global warming and directly address the problem of one billion people being hungry. I ran into a theory lately that a human life is worth more than a galaxy.

[DennisTate643]

@derfowvayer// I agree with this theory and believe that this basic idea should become the foundation for the economy of every nation of this earth.

[boots920]

What legislation changed the gold ratio from 25% to 0%

[DennisTate643]

@boots920 Good question but the most important backing for the Canadian dollar by far is the productive capability of Canadian workers which is profoundly multiplied by the astonishing amount of natural resources at our disposal as well as by the calibre of our technology, the quality of our roads, a reasonably good health care system, etc., etc...

[boots920]

@DennisTate643

No the question was when did the ratio go to 0 and who and what party was in charge ?

[DennisTate643]

@boots920 I'm not certain at this moment but I will make a wild guess and say P.M. Brian Mulroney and the Progressive Conservatives?!

[DennisTate643]

From 1940 to 1970 the Government of Canada put roughly half of the total money supply into the economy through loans issued through the federally owned Bank of Canada. Provincial and municipal governments could borrow the money to build roads, schools, hospitals and sewage treatment facilities at zero or one percent interest. In 1970 we changed our system and since that time our national debt has spiraled out of control.