Anyone into economics or investing should really read this article

[djmarkpaul]

Recent figures from Statistics Canada and the Bank of Canada show that the total debt of all levels of Canadian government, individuals, and corporations is 2.27 trillion dollars on which interest must be paid. Canada has a total money supply (credit supply) of 800 billion dollars. Therefore, the debt owing is three times larger than the amount of money we have to pay it off.


Of the $800 billion money supply, only $38 billion is legal tender (bank notes in circulation) which are created by the Bank of Canada interest free. The remainder ($762 billion) is credit created by the major chartered banks as loans (mortgages, credit card loans, home equity loans, business loans, etc) which are considered as deposits and on which interest must be paid.


Thus the Canadian economy is run on a debt based monetary money system, where legal tender amounts to 5% of the money supply and credit amounts to 95%.

Canada is part of a world debt-based monetary system controlled and managed by bankers rather than sovereign governments. It was that world debt based monetary system that was responsible for the Great Depression of 1929. It is that world debt- based monetary system that today is creating the same conditions that lead to the 1929 crash.


John Kenneth Galbraith, in The Great Crash of 1929, chronicled the day by day, week by week, month by month, year by year events leading up to October 24,1929, the day of the crash. He describes the manipulation of the markets by the banks, brokers, and corporate leadership. He describes malfeasance, larceny, and embezzlement that took place in 1929 followed by WWII. They parallel the horror stories of today.


What government practices have been eroding the mandate of our Bank of Canada and creating the massive debt that is three times larger than our money supply??


1. Its increasing failure to use our Bank of Canada. Since 1975, our governments have decreased the use of our Bank of Canada to hold Canada’s debt. Result? A dramatic increase of unnecessary interest. In 1975 the total federal debt was $37 billion. By the year 2000 it was $585 billion. This dramatic increase was due to borrowing money from foreign and domestic banks along with other foreign sources at market rates of interest, rather than borrowing from our own Bank of Canada at nominal rates of interest, the payment of which come back into government coffers as dividends.


In 1975 our own Bank of Canada held about 22% of Canada’s debt. By 1991 it held only 8% of our debt. By 2000, only 5%. Borrowing at market rates ranging from 6% to 18% (in the 80's) from private banks and foreigners rather than at about 1% from our Bank of Canada when 1% comes back to us as dividends was and is foolish, if not treacherous.

2. “Price Stability”. In the mid 80's the Mulroney government initiated a policy of “Price Stability”, i.e., the control of money supply and inflation through the increase or decrease of interest rates rather than requiring the banks to increase or decrease their cash reserves (statutory reserves) with the Bank of Canada.


3. Deregulation of Banks. During the Mulroney years, the government further gifted the banks. They deregulated the banks. That is, government removed the firewalls between banking, stock markets, and insurance. The regulations were there in the first place to protect the public good and the public interest.


Deregulation allowed the banks to gamble in derivatives ( an aspect of securities, instead of the securities themselves), merchant banking (trading and warehousing in entire companies), underwriting (guaranteeing the distribution of a new issue of stocks), stock brokeraging (where many scams and misrepresentation take place), and insurance.

4. Loss of Statutory Reserves. By law (statute) our chartered banks were required to deposit with our Bank of Canada a modest part of the short term deposits they received from the public. This deposit was called a “reserve”. This “reserve” was the price that banks had to pay for the license (right) to be the ones to create most of our money supply, and to profit from that money creation by receipt of interest on that money they created. (The “license to print money”.) We all have experienced the arrogance of financial institutions who act as if this privilege is a God-given inalienable superior right. It isn’t. It is a gift from members of the community of Canada (citizens) via our government which gift we can control and/or revoke if we choose.

5. Further bailouts of banks. Bank deregulation and bank gambling resulted in the bankruptcy of a number of small Canadian banks. In the early’80's a number of minor banks went belly up in a cloud of scandal: Canadian Commercial Bank, Northland, Unity Bank and others. (Bank Heist, Walter Stewart, Ch.9). Depositors were caught. Business loans were caught. The government bailed out the banks paying off the protected deposits by underwriting deposit insurance, and negotiated payback amounts (called workouts) for damage caused by the disappearance of arranged lines of credit.


6. “Cooking the Books”- thereby undervaluing Canada’s worth. Until 2004, the Canadian government was “cooking its books” - an accusation made by Canada’s own Auditor General in 1999. Our government kept deceptive books. They used cash flow accounting when they should have been using accrual accounting (capital budgeting). They pretended that assets did not exist which did exist. For years, except for Crown corporations, governments did not show the full asset side of their balance sheet, but rather showed mostly the liabilities. What this meant was that the value of what Canada has was grossly misrepresented. They made it appear that we were more indebted than we actually were by failing to show the correct assets to balance or offset the liabilities. Government was writing off assets like a bridge or a building in one year, and then showing them on their books as $1.00 value. It was by this method that government pretended a building or land was worth very little and then sold it off to private ownership at bargain basement prices.

So what is to be done? As we witness again the collapse of the world economic structure arising in the return to banker management and control, we must work even harder to force a debate like those of the ‘30's that did successfully shape the economic structure in Canada for 50 years. We must work to get people and political parties imbued with a knowledge and comprehension of the power inherent in the control of money and credit. It is important to understand how the money issue is an integral part of globalization and the very means responsible for impoverishing the people of the world.



Full article @:

http://www.canadianactionparty.ca/Ma...nguage=English

***
In short, how do you feel about private bankers regulating our economy instead of our own government?

[esoter1c]

Yeah like, I'm totally into like, the economixs, I like, pwn econominxs.

Yeah, thanx 4 teh post eh, It pwns and stuff.

[SEAN!]

Originally Posted by djmarkpaul

Recent figures from Statistics Canada and the Bank of Canada show that the total debt of all levels of Canadian government, individuals, and corporations is 2.27 trillion dollars on which interest must be paid. Canada has a total money supply (credit supply) of 800 billion dollars. Therefore, the debt owing is three times larger than the amount of money we have to pay it off.


Of the $800 billion money supply, only $38 billion is legal tender (bank notes in circulation) which are created by the Bank of Canada interest free. The remainder ($762 billion) is credit created by the major chartered banks as loans (mortgages, credit card loans, home equity loans, business loans, etc) which are considered as deposits and on which interest must be paid.


Thus the Canadian economy is run on a debt based monetary money system, where legal tender amounts to 5% of the money supply and credit amounts to 95%.

Canada is part of a world debt-based monetary system controlled and managed by bankers rather than sovereign governments. It was that world debt based monetary system that was responsible for the Great Depression of 1929. It is that world debt- based monetary system that today is creating the same conditions that lead to the 1929 crash.


John Kenneth Galbraith, in The Great Crash of 1929, chronicled the day by day, week by week, month by month, year by year events leading up to October 24,1929, the day of the crash. He describes the manipulation of the markets by the banks, brokers, and corporate leadership. He describes malfeasance, larceny, and embezzlement that took place in 1929 followed by WWII. They parallel the horror stories of today.


What government practices have been eroding the mandate of our Bank of Canada and creating the massive debt that is three times larger than our money supply??


1. Its increasing failure to use our Bank of Canada. Since 1975, our governments have decreased the use of our Bank of Canada to hold Canada’s debt. Result? A dramatic increase of unnecessary interest. In 1975 the total federal debt was $37 billion. By the year 2000 it was $585 billion. This dramatic increase was due to borrowing money from foreign and domestic banks along with other foreign sources at market rates of interest, rather than borrowing from our own Bank of Canada at nominal rates of interest, the payment of which come back into government coffers as dividends.


In 1975 our own Bank of Canada held about 22% of Canada’s debt. By 1991 it held only 8% of our debt. By 2000, only 5%. Borrowing at market rates ranging from 6% to 18% (in the 80's) from private banks and foreigners rather than at about 1% from our Bank of Canada when 1% comes back to us as dividends was and is foolish, if not treacherous.

2. “Price Stability”. In the mid 80's the Mulroney government initiated a policy of “Price Stability”, i.e., the control of money supply and inflation through the increase or decrease of interest rates rather than requiring the banks to increase or decrease their cash reserves (statutory reserves) with the Bank of Canada.


3. Deregulation of Banks. During the Mulroney years, the government further gifted the banks. They deregulated the banks. That is, government removed the firewalls between banking, stock markets, and insurance. The regulations were there in the first place to protect the public good and the public interest.


Deregulation allowed the banks to gamble in derivatives ( an aspect of securities, instead of the securities themselves), merchant banking (trading and warehousing in entire companies), underwriting (guaranteeing the distribution of a new issue of stocks), stock brokeraging (where many scams and misrepresentation take place), and insurance.

4. Loss of Statutory Reserves. By law (statute) our chartered banks were required to deposit with our Bank of Canada a modest part of the short term deposits they received from the public. This deposit was called a “reserve”. This “reserve” was the price that banks had to pay for the license (right) to be the ones to create most of our money supply, and to profit from that money creation by receipt of interest on that money they created. (The “license to print money”.) We all have experienced the arrogance of financial institutions who act as if this privilege is a God-given inalienable superior right. It isn’t. It is a gift from members of the community of Canada (citizens) via our government which gift we can control and/or revoke if we choose.

5. Further bailouts of banks. Bank deregulation and bank gambling resulted in the bankruptcy of a number of small Canadian banks. In the early’80's a number of minor banks went belly up in a cloud of scandal: Canadian Commercial Bank, Northland, Unity Bank and others. (Bank Heist, Walter Stewart, Ch.9). Depositors were caught. Business loans were caught. The government bailed out the banks paying off the protected deposits by underwriting deposit insurance, and negotiated payback amounts (called workouts) for damage caused by the disappearance of arranged lines of credit.


6. “Cooking the Books”- thereby undervaluing Canada’s worth. Until 2004, the Canadian government was “cooking its books” - an accusation made by Canada’s own Auditor General in 1999. Our government kept deceptive books. They used cash flow accounting when they should have been using accrual accounting (capital budgeting). They pretended that assets did not exist which did exist. For years, except for Crown corporations, governments did not show the full asset side of their balance sheet, but rather showed mostly the liabilities. What this meant was that the value of what Canada has was grossly misrepresented. They made it appear that we were more indebted than we actually were by failing to show the correct assets to balance or offset the liabilities. Government was writing off assets like a bridge or a building in one year, and then showing them on their books as $1.00 value. It was by this method that government pretended a building or land was worth very little and then sold it off to private ownership at bargain basement prices.

So what is to be done? As we witness again the collapse of the world economic structure arising in the return to banker management and control, we must work even harder to force a debate like those of the ‘30's that did successfully shape the economic structure in Canada for 50 years. We must work to get people and political parties imbued with a knowledge and comprehension of the power inherent in the control of money and credit. It is important to understand how the money issue is an integral part of globalization and the very means responsible for impoverishing the people of the world.



Full article @:

http://www.canadianactionparty.ca/Ma...nguage=English

***
In short, how do you feel about private bankers regulating our economy instead of our own government?

im interested in economics, i have a BA in the shit(along with a sociology major), im also studying to become an investment advisor and to the take first level of the chartered financial analysis exam this december.

my qualified opinion is that what you write is garbage, there are some legitimate concerns regarding EXCESS money supply/liquidity in the global economy as well as excess debt/lowered savings rate in the AMERICAN economy but this article touches on non of this and infact states the opposite of what is actually the real current empirical concerns of most economists and investors. For your information money supply in relation to debt is of no consequence, it is not the money supply of a country which determines its ability to pay its liabilities. GDP in relation to debt is a far better measure of the overall ability of the economy to cover its debt, as for that level it is presently at a historically low level and is increasingly being reduced atleast in canada atleast. as for personal levels of saving, they are admittedly low but atleast in canada they are not at crisis levels. you dont even know what the role of the bank of canada is in the economy nor the reason this debt has acculated. besides debt is essential.

once again youve shown that you dont really know what your tlaking about, instead you preach pseudo intellectual theory with minimal basis in reality or established and credible lines of thought. you always tlak about how we are being oppressed and conned by leaders and figures who have vested interests but it seems that you too have fallen prey to individuals with vested interests who have a semblance of intellectual authority.

p.s cash flow accounting is far more accurate then assest accounting, cash flows are what matter, and are far more easily measured at market value then assests such as inventories, buildings an excetra which are less liquid in nature and in times of economic downturn may prove to be liabilities. nor do you understand how the bank of canada operates, what its role is, and why their was government deregulation of banks and why that deregulation is essential for the survival of canadian finacial institutions as well as the continued sustainable growth of our economy. shit man you really dont understand anyhtign do you?

p.ps the financial/banking system si probably the most highly regulated institution in society even with the deregulation of the 80's. i for one however would like to see more regulation in one area, currently each province and teriroty has their own securities commisions which are entirley self regulating. this means that when i apply for my license i have to apply in each individual province that i wish to practice in and submit myselfs to their own unique rules. fuck that, id rather have a national body regulated by the government so i can work anywhere in canada, this woulkd be good for advisors and investors as it would improve enforcement against unethical advisors. the good thing is its likely that this new nationally body will be implemented in the next few years (check this http://www.wise-averties.ca/main_en.html it will interest you) it would be even better if this federally regulated body also was supranational so i could get a license and work anywhere in the world with little intereference, but that would be a propgation of gloabliaztion which you would oppose even tho you want more regulation.

[esoter1c]

Originally Posted by SEAN!

im interested in economics, i have a BA in the shit(along with a sociology major), im also studying to become an investment advisor and to the take first level of the chartered financial analysis exam this december.

my qualified opinion is that what you write is garbage, there are some legitimate concerns regarding EXCESS money supply/liquidity in the global economy as well as excess debt/lowered savings rate in the AMERICAN economy but this article touches on non of this and infact states the opposite of what is actually the real current empirical concerns of most economists and investors. For your information money supply in relation to debt is of no consequence, it is not the money supply of a country which determines its ability to pay its liabilities. GDP in relation to debt is a far better measure of the overall ability of the economy to cover its debt, as for that level it is presently at a historically low level and is increasingly being reduced atleast in canada atleast. as for personal levels of saving, they are admittedly low but atleast in canada they are not at crisis levels. you dont even know what the role of the bank of canada is in the economy nor the reason this debt has acculated. besides debt is essential.

once again youve shown that you dont really know what your tlaking about, instead you preach pseudo intellectual theory with minimal basis in reality or established and credible lines of thought. you always tlak about how we are being oppressed and conned by leaders and figures who have vested interests but it seems that you too have fallen prey to individuals with vested interests who have a semblance of intellectual authority.

p.s cash flow accounting is far more accurate then assest accounting, cash flows are what matter, and are far more easily measured at market value then assests such as inventories, buildings an excetra which are less liquid in nature and in times of economic downturn may prove to be liabilities. nor do you understand how the bank of canada operates, what its role is, and why their was government deregulation of banks and why that deregulation is essential for the survival of canadian finacial institutions as well as the continued sustainable growth of our economy. shit man you really dont understand anyhtign do you?

p.ps the financial/banking system si probably the most highly regulated institution in society even with the deregulation of the 80's. i for one however would like to see more regulation in one area, currently each province and teriroty has their own securities commisions which are entirley self regulating. this means that when i apply for my license i have to apply in each individual province that i wish to practice in and submit myselfs to their own unique rules. fuck that, id rather have a national body regulated by the government so i can work anywhere in canada, this woulkd be good for advisors and investors as it would improve enforcement against unethical advisors. the good thing is its likely that this new nationally body will be implemented in the next few years (check this http://www.wise-averties.ca/main_en.html it will interest you) it would be even better if this federally regulated body also was supranational so i could get a license and work anywhere in the world with little intereference, but that would be a propgation of gloabliaztion which you would oppose even tho you want more regulation.

Quoththeraven.

[SEAN!]

Originally Posted by 3507321C

Quoththeraven.

do you have anyhting intelligent to say?

[L0ungeLizarD]

First of all bankers have always controled the government and second all this debt stuff is BS.....the USA has sooo much debt, how are they gonna pay it off?? Just print more bills....remember debt is an illusion and so is being very rich. What i mean by that is if everyone took all of their money out of the banks at once the banks would all be bankrupt because all those money figures that are on the bank tellers screen are simply just figures their not actuall money. Thats how bankers control the world yes money is real but when u think about it its really worth nothing....afterall water and air are free but we cant live without them

[esoter1c]

Originally Posted by SEAN!

do you have anyhting intelligent to say?

Right back at ya champ.

[The_acidhouse]

Originally Posted by SEAN!

once again youve shown that you dont really know what your tlaking about, instead you preach pseudo intellectual theory with minimal basis in reality or established and credible lines of thought.

Funny. I have a background in economics and immediately concluded the same thing.

Either we are both brainwashed by the state or there's a trend developing here.

[Flip]

I like the really shiny coins...

[djmarkpaul]

Originally Posted by SEAN!

do you have anyhting intelligent to say?

I just mad trolled you, your mind is weak and simple. So where are you gonna stick the micro-chip, the hand or forehead?