Interest on Canadian public debt costs $170-million a day

Interest on public debt costs $170-million a day


Canadians paid $170-million per day in 2008/2009 in unnecessary interest on federal, provincial and municipal debt. The cost for 2009/10 and subsequent years will likely be higher.

These costs are reflected
in taxes, fees, cut-backs in public services such as education and
medicare and deterioration of infrastructure such as roads, sewers,
water lines and affordable housing.

If our government had been using its own Bank, the Bank of Canada, as it should have for the past 35 years, we would not be in this situation. From 1867 to 1974, the accumulated federal debt amounted to
$18-billion, and during that time we paid for two world wars and other
smaller ones, built the trans-Canada highway, contributed to
construction of the St. Lawrence Seaway, built housing, provided funds
for our veterans to go to school, brought in the Canada Pension Plan and
made Medicare a national service.

In 1974 the government, which had been borrowing from its own bank since 1938 at near zero interest, decided to borrow less from there and more from the private sector at market rates of interest. The result was
a huge increase in federal debt from $18-billion to $588-billion in
1997, with a total debt for all levels of government of over
$900-billion.

In 2009 federal debt stood at $464-billion, but by 2015 it will be up to $622-billion. Federal debt charges, currently at $31-billion, will grow accordingly and based on previous figures the total debt charges
for all levels of government will be about double the federal charges.


Economists tell us there are only three ways to reduce the deficit: grow the economy, raise taxes or cut expenses. We could cut back on public services such as health care, education, housing and
infrastructure. That would save a bundle, but it would also make life
for most Canadians much more difficult.

BUT WAIT!


Instead of cutting services we could cut interest paid on the public
debt. The federal government can do this by borrowing from its own Bank
at near zero interest, and to prevent the creation of too much money it
can bring back the statutory reserves. This would lead to a reduction in
the profits of the commercial banks and less income for holders of
government bonds, but most Canadians would be unaffected.
Government's indebtedness to private financiers gives that sector undue influence on government policy, leading to decisions which benefit the interests of the private sector foremost rather than
that of the community as a whole.


To reduce the influence of the private sector and to save taxpayers billions of dollars every year we should only elect politicians who support using the Bank of Canada for financing public
debt and restoring the statutory reserves.


Richard Priestman
Committee on Monetary and Economic Reform,
Kingston Chapter

March 7, 2010

Views: 57

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Doc Vega commented on Doc Vega's blog post Is this proof that the story about Charlie Kirk's assassination is false?
"Less Prone as usual the official version of the truth does not match the evidence and is labeled…"
16 hours ago
Less Prone commented on Doc Vega's blog post This Memorable Anthem Given by Nick Freitas Hit the Nail on the Head Please Listen!
"Charlie Kirk was getting very critical against Israel and had turned down a lucrative deal from the…"
23 hours ago
Doc Vega's blog post was featured

The Army of Government Launched Psychopaths

They walk among us in most college towns. They seem relatively reasonable until political…See More
23 hours ago
Less Prone favorited Doc Vega's blog post Is this proof that the story about Charlie Kirk's assassination is false?
23 hours ago
Less Prone commented on Doc Vega's blog post Is this proof that the story about Charlie Kirk's assassination is false?
"Have to sign in to YT for this. So. What I do is to go to https://ytdown.io/en/ and download…"
yesterday
Doc Vega commented on Doc Vega's blog post Was a Planned Civil War Averted?
"cheeki kea, you are spot on. The old guard is about to collapse! "
Thursday
Doc Vega commented on Doc Vega's blog post Alligator Creek and a Japanese Massacre
"cheeki kea, the Japanese thought they could expand their empire and exact enough damage on the US…"
Thursday
Michelle Reichert favorited Burbia's video
Wednesday
cheeki kea posted a video

NEW DOCUMENTARY - Dissent Into Madness

TRANSCRIPT AND SOURCES: https://www.corbettreport.com/dissent-into-madness/What if the delusions of the dissidents are in fact real? What if their paranoid f...
Wednesday
cheeki kea commented on Doc Vega's blog post Alligator Creek and a Japanese Massacre
"Japan served themselves up no favours by inching out into the South Pacific as they soon found out.…"
Wednesday
cheeki kea commented on Doc Vega's blog post Was a Planned Civil War Averted?
"Their plans did not work out because we are the news now, and the old news is the enemy. "
Wednesday
Doc Vega posted a blog post

Alligator Creek and a Japanese Massacre

The year is 1942 just a few months after the Pearl Harbor disaster. Despite losses suffered by the…See More
Tuesday
Doc Vega commented on Burbia's video
Thumbnail

CHARLIE KIRK WAS CNP! JOSH REEVES 9-11-25

"With all due respect this guy comes off as a drunken asshole and he didn't even  know who…"
Sep 29
Doc Vega posted a blog post

Was a Planned Civil War Averted?

We are living in sadly historic times where good and evil are in battle all the time. Not that this…See More
Sep 28
Sandy posted a photo
Sep 28
Less Prone posted a video

President Trump addresses U.N. General Assembly - FULL SPEECH

President Donald Trump speaks at the United Nations General Assembly in New York City.Full video here: https://www.c-span.org/event/white-house-event/preside...
Sep 28
Burbia posted a video

2 MIN AGO: Western Provinces MAJOR New WEXIT Announcement - Canada EXPLODES!

In a stunning turn of events, Western provinces just made a major new WEXIT announcement — and it’s shaking the foundations of Canadian unity. Is Western sep...
Sep 27
Doc Vega posted a blog post

How You Provoke a Civil War

In the world of counter intelligence which is simply one aspect of many pertaining to asymmetrical…See More
Sep 26
Burbia commented on Burbia's video
Thumbnail

CHARLIE KIRK WAS CNP! JOSH REEVES 9-11-25

"I don't follow as much with Josh Reeves than I use to. He seems to be a documentary producing…"
Sep 25
Burbia posted a video

CHARLIE KIRK WAS CNP! JOSH REEVES 9-11-25

DONATE-paypal-dayglow76@yahoo.comCashapp-reevesradioVenmo-Josh-Reeves-61FILMS AND AUDIOBOOKS DOWNLOAD STORE-https://store.payloadz.com/results/242828-josh-re...
Sep 25

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted