Wednesday, December 30, 2020

The Rhymes of History: The 4th Turning and the Great Reset

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As we struggle ever more mightily with COVID-19 we elderly who live alone will have to stop pining for the frequent family and friends get togethers of yore and count our blessings. We are not in a health care facility, at least not yet. We are still capable of taking care of ourselves.  While we may be too old to hit the streets or the forests in protest of wanton destruction, we are not too old to serve our function as elders by witnessing what is happening to the human race.  We are still here to criticize our government when they refuse to represent the people, to talk about our opinions freely, and to even write about them if we take a notion.  

 

When I last posted I was still worried about the central banks going for a banking bail-in solution instead of a bail-out to try to remedy the horrendous mess bankers have deliberately made of our economy.  Not so much now. The bankers and their backers have come up with a potentially even more frightening solution.  Now from the European high- flying elite bankers in Brussels to the smallest countries (including Canada) the words replacing bail-ins or bail-outs is now The Great Reset. What is the Great Reset?  Think of China. And digital currency.

 

Any haphazard China watcher like me knows that now it is almost impossible to buy anything in China with cash.  If you are not hooked up to their digital currency system you will find it extremely difficult to buy or sell anything.  They just don’t have paper money or coins anymore. They pay for everything will their cell phones. Of course this is more efficient and as there are many of the Chinese people still alive who remember what a gigantic mud hole parts of their country was immediately before, during, and after their revolution and dutifully advise their young countrymen and women to be grateful for the modern, highly educated lives they currently enjoy.   

 

So now our own leaders are thinking this Great Reset idea does have great advantages.  With many jobs and even whole occupations being sold out to other countries, mainly China, or simply wiped out in the path of COVID-19 and with automation taking over much of the rest, this appears to the banking elites to be the option they have been looking for. As the smaller banks have not loaned out the hundreds of millions, billions, of dollars the Federal banks have given over into their care, it makes sense to devise a plan to get the money directly to the people and simply bypass the smaller banks. Digital currency is the solution the elite bankers are after now. It will be accompanied by a Guaranteed Annual Income. The Great Reset.  It is coming to Canada soon. The downside is that we stand to lose many of our inherent freedoms as we will all be securely under the thumbs of our governments. Who are taking their marching orders from the central banks of Europe. Does history repeat itself?  Mark Twain remarked that “History doesn’t repeat itself, but it often rhymes”.  I am thinking of Justin Trudeau and his father.  It was Pierre Trudeau who turned his back on the Canadian people.  It was Pierre Trudeau who first flipped The Bank of Canada from a public bank that loaned to the government interest free, to the practice of borrowing from the most rapacious private banks who love compound interest.

 

What does the Bank of Canada have to do with the Great Reset? Aside from making sure Canadian citizens abide by the new rules, not much.  Certainly not much with the present elite European bankers and backers doing the thinking for our country.  In fact, if even a minor politician were asked today if he or she knew why our public bank became private and what could we do to get it back as our public bank would stammer, blush and dismiss you as a Russian bot.  Which brings me to the Forth Turning.  Next time.

Tuesday, November 03, 2020

Organized Chaos: The US Elections and The Bank of Canada

     

Okay, you’ve probably never heard of COMER. If you have , you may have forgotten about them because they haven’t been in the news lately. Too much to worry about right now to think of something you’ve forgotten all about or never heard of. One might think that whoever or whatever COMER was they must have been losers as they have slipped out of Canadian consciousness. And, and in my opinion, they took the Canadian consciousness of our constitutional rights and freedom as well as a near debt free economy along with them. Okay, who or what exactly was COMER and what did they do with the collective consciousness of our freedoms and what do we owe to whom or whatever they were?

 

COMER was and still is, as far as I can tell, short for the Committee on Monetary and Economic Reform. It was established in 1986. In 2011 COMER, along with a collection of citizens angry about Canada’s growing debt accumulation when to the Supreme Court of Canada. They wanted to draw attention to the The Bank of Canada’s practice acting as a private bank for other European Banks and domestic and foreign corporations, all demanding high compound interest rates. COMER had a brilliant lawyer, Rocco Galati. Galati pointed out, in no uncertain terms, Bank of Canada Act and a copy of the Canadian Constitution in hand and before the Court, that the Bank of Canada was chartered as a public bank to give interest free loans to the Canadian government’s needs for social and physical infrastructure. Hopes were high. And remained high for the next five years as COMER waged a seemingly endless battle of appeals, court demanded amendments, court dismissals, and court hearings. It was maddening. To have the Supreme Court of Canada make the final ruling in May 2017 that the lawsuit against privatizing the Bank of Canada was not a legal matter. If it was not a legal matter then what was it? The Bank of Canada was clearly breaking the law. But no. The judge ruled it was a political matter. How charming. What an opinion. What a gutless opinion. And furthermore, the judge ruled that there would be no further reporting on the case. The reporters were silenced. The media was silenced. Canadians were silenced. Where does that leave us? Is all hope for a reinstatement of the original mandate for the Bank of Canada lost? Maybe not. There are deep holes in the judge’s ruling that makes his contention that the case was a political one and not a legal one biased, unfair, and ridiculous. And there are supporters in unexpected places. In this time of COVID-19 we need our public bank desperately. Next time.


Friday, October 23, 2020

When and how the Bank of Canada went to hell in a handbakset

 





 

What has the Bank of Canada actually been mandated to do for Canadians? And is the Bank of Canada a public or private bank? 

 

The Bank of Canada started out as a private bank in 1934 but was nationalized in 1938. The Bank has been a public bank since then and functions as our central bank. It advertises itself a public bank, as a Crown corporation. But it isn’t really. Not now. But it used to be. Our public Bank of Canada was originally mandated to lift the standard of living of Canadians by loaning money to the government interest free for capital expenditure. The Bank also loaned to the provinces, interest free or very little interest. When some small interest amount was charged, it went straight back to the bank, and as the Bank belonged to the people, that money went into further expenditures that paid for some pretty wonderful improvements to Canada and her citizens. What improvements? 

 

For thirty years after the nationalization of the Bank of Canada things happened. Big things. Wonderful things. By borrowing from our own central bank the government got the money to construct the Trans-Canada highway, the St. Lawrence Seaway, airports, and subway systems and also assisted a corporation that placed Canada in the forefront of aviation technology, mostly without interest. And it wasn’t only infrastructure projects that benefited Canadians. Professor John Ryan, a senior scholar at the University of Winnipeg, explains. ”During this period seniors’ pensions, family allowances, and Medicare were established, as well as nation-wide hospitals, universities and research facilities.” Pretty impressive stuff, right? Then how come we can’t do things like that now? And why are we now carrying so much massive federal debt? Because things turned bad for our public bank back in 1974. What happened then?

 

Well, Pierre Trudeau, Justin Trudeau’s father, was in power and the bankers from the Bank of International Settlements came to visit our contented country. Remember the Bank of International Settlements? This bank is top dog in the central banking world as it is owned, operated, supported and in turn led by the sixty odd central banks of the western world. The International Bank of Settlements. Remember the name. This bank has affected your life as a Canadian in more ways than you can remember in the past, and is all set up to foist upon us a new money reset whither we like it or not. But back to Pierre Trudeau.

 

When the king lord bankers of The Bank of International Settlements came to visit Canada from Europe they had one view in mind. To get rid of the idea that the nationalization of the public nature of the Bank of Canada, and all the loans that were made to provinces and the nation without interest, was a good idea. To these bankers this was just a crazy idea. Banks were created, in their opinion, to make money. Period. Lots of money. Instead of no interest, as our public bank was practising at the time, they reasoned that the practice could easily be reversed. All Pierre Trudeau had to do was instruct the Bank of Canada that in the future, to get their loans for public expenditures from the private banks with compound interest loans instead of interest free ones as had been practised. All of the sophisticated central banks in Europe were doing this, they said. This way of doing things also curtailed inflation. Canada didn’t want to be kept out of the loop, now did it? 

 

Evidently not. At least Pierre Trudeau didn’t want that. He began the practice of privatizing the Bank of Canada and that is what we have had from that day to this. There are a good many people who think this was woefully wrong, the cause of our massive public debt, and loss of Canadian wealth. Did you ever wonder about the difference in interest rates the banks give you on savings (1 or 2 per cent) and the interest on past due credit cards (18-19 per cent)? This is why the banks hate anything that even smells of public ownership. But if Pierre Trudeau could make such a drastic change in Canada’s fortunes in 1974 by just instructing the Bank of Canada to change one of its policies, then Justin Trudeau could give instructions to return to the bank. A lawsuit has been fought over this – trying to legally force the government to return the Bank of Canada to its 1938 mandate. And what the judge had to say was very interesting. Next time.

 

 

Saturday, October 17, 2020

A Very Serious Tiff Indeed

 

The tiff is over our climbing housing prices. There seems to be some sort of a serious difference of opinion between Tiff Macklem, who is the Governor of the Bank of Canada, and government policies, about whose responsibility it is to address the problem of soaring house prices. Macklem told a virtual audience at the Global Risk Institute last month that “The Bank of Canada is aware that its policies are inflating house prices, and it (the Bank of Canada) is going to keep an eye on the country’s heavily indebted households”. However, in a speech just a few days ago, he made it clear he plans to do nothing about it as the Bank of Canada would continue with its current policies “in place for a long time”. His parting shot...”But if too many Canadian households start to become dangerously over-leveraged, policy makers have several macroprudential tools they can use...”

 

What the heck even are macroprudential tools? Even without knowing about those, it’s clear we are being told to stop looking to the Bank of Canada for relief of sky high housing prices, and to look to the Trudeau government. I think we all may be forgiven for thinking that the Bank of Canada was part of the Canadian government. Our Bank of Canada that masquerades as a Crown institution is, in reality, a private bank. I’ve talked previously about how our current Prime Minister’s father, Pierre Trudeau, engineered it that way in consultation with the central banks of Europe. Even though it went totally against the charter for the Bank of Canada.

 

So our public bank that is supposed to watch out for the welfare of Canadians is in reality a private bank that pays out dividends to shareholders like regular banks do. Well, I am happy at least that Justin Trudeau cares enough, it seems, to be getting checks out to out of work Canadians that may suffer the most from the tiff between Tiff Macklem and the Trudeau government.

 

The bank shares in the Bank of Canada are now owned by private persons and money markets, some domestic and some foreign. But just try to find out exactly who the share owners are other than other banks and “large institutional investors”. Blank wall. And the weird thing is that the Bank of Canada is the only government institution that is authorized to print money. And how did the Bank of Canada get this much power? So much power that it seems to be almost totally independent of the government it is supposed to serve?

 

Trudeau can only spend from the tax base. He can’t just print more money like the Bank of Canada can. The Bank of Canada is not the only institution that create money in Canada. All of the chartered banks do it. When anybody goes in for a bank loan and is approved, the bank doesn’t give the borrower the money the bank already has from deposits. Oh, no. The bank just creates the new loan money out of thin air by simply clicking on a few computer numbers and opening a balance sheet for that much money. Then that thin air compound interest money is loaned out again, and again, and again with taxes on every movement. No wonder the banks, especially the central banks, get so rich, no matter what is happening to us, like paying most of our income for housing. How do we get our Bank of Canada - which propelled Canada into the 20th century with no interest - back into Canadian hands? Next time I will show how the Bank of Canada actually worked under its original public charter. And why we desperately need it now in these times of a second wave of Covid-19 which is threatening the Canadian people and their ability to have stable housing.