The Crime of the Canadian Banking System 4/4

Over the past 4 years, the Canadian people have paid $137.4 billion in interest on money borrowed from private banks whereas the Bank of Canada could legally print the public's money into existence rather than borrowing it at interest. "They've paid out this huge sum because our government has failed to abide by the law." Abram, a retired high school teacher and activist on Vancouver Island, B.C., explicates the trick of fractional reserve banking

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News & Politics

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• Bill
• Abram
• fractional
• reserve
• banking
• bank
• canada
• Vancouver
• money
• debt
• snowshoefilms
• yoryevrah
• federal
• commentary
• nwo
• chemtrails

[flahr1]

People are so screwed up today, how do we reverse this?

A time is coming though and soon...

[nclusiau]

Very very interresting. I can see that so far, people don't seem to care. Thank you sir for telling the truth and thks to the person who shot that video.

[VaudevilleRant]

@Bored197272 Part 1 of 12) First off, I need to correct myself. After doing some research for my upcoming video on this topic, I've discovered that I was partially wrong about something. (I appologize to everyone here for that) I stated in an earlier comment: "the Bank of Canada issues an interest bearing Bond to a comercial bank & injects that money into the system as new Canadian currency." However ever this is a missunderstanding (and a common one here on the internet).

[VaudevilleRant]

@Bored197272 Part 2) As per the Bank of Canada's website, they do not take on the responsabilty of creating new money, rather they "attempt" to regulate it. However, they are highly involved when it comes to printing it in its physical form. But they are not responsible for the actual growth of Canada's money supply in both physical notes & electronic form.

[VaudevilleRant]

@Bored197272 Part 3) I was accurate though, in saying that Canada's money is created by the public/commercial banks that opperate in this country every time they issue a loan (except things like mortgages I think). So what Bored197272 initially said does apply and can easily be sumed up by making this statement: Canada's version of the United States' Federal Reserve is merely the Fractional Reserve Banking system itself.

[VaudevilleRant]

@Bored197272 Part 4) In other words, replace the Federal Reserve with every public/commercial bank in the US, and you end up with the same arrangment that we have here in Canada. To summarize, there are 2 instances Canadian currency is created, both using the same method. Scenario 1) You or I, or any busness/company takes out a loan from any financial institution. Scenario 2) The Canadian Government (both provincially & federally) takes out a loan to cover various expences.

[VaudevilleRant]

@Bored197272 Part 5) Canada does not actually use it's bonds to add to the money supply as they have a HORRIBLE rate of return. Now, in both of those scenarios, the money that is loaned out is essentially newly created money. Since our banks are not required to keep a reserve, that money being loaned does not have to be logged in "the books" as having come out of a "reserve", because there isn't one.

[VaudevilleRant]

@Bored197272 Part 6) Yes, banks do keep cash on hand for potential withdrawels, but bear in mind, that money isn't on "the books" as a "reserve" since our banks reserves are legally "0" (thanks to Brian Mulruney). And what's worse is the fact that the money that's been borrowed will eventually be deposited into another bank, and when that happens, it will be put on the books as new money since it is after all, a fresh new deposit to the bank recieving it.

[VaudevilleRant]

@Bored197272 Part 7) Additionally, our government does have the option of borrowing money from the Bank of Canada. (up to 33% of projeced revenue for the Federal Gov, & 25% for the provincial Gov, and at little to no interest) But it chooses not to. Instead, it borrows money from the same banks we do at a higher interest rate than the Bank of Canada would charge. And yes, the money they borrow is also new money.

[VaudevilleRant]

@Bored197272 Part 8) You asked: "if money is created/spent by the GOV on infrastucture, then where/how does new money get injected in to the financial system?" The answer ti that is actually hidden with in your question. Lets say, for example, that the federal Gov calls on the Bank of CAN for it's loan equalling 33% of it's projected revenue. And add that money to all the Taxes & GST's and other such funds that are collected yearly from the public (busness & people).

[VaudevilleRant]

@Bored197272

Part 9) Then they take say 60% to 70% of that lump sum and pay down debt (which if they only owed the Bank of CAN, would be minimal compared to where it's at today). Then, the remaing would go into infrastucture (roads, transit, schools, parks, etc.) Well there's your answer: they have to pay a Company to take on those projects. Like a Contractor that employs people to build those things.

[VaudevilleRant]

@Bored197272 Part 10) So that company will deposit some of that money into a bank, and the rest will be deposited into a bank by it's employees once they're paid be their employers. And the best part about infrastucture projects is that over time it pays for itself (unless it's maintanence).