MONEY

Money is created by the governments making loans from the national banks, the argument is that it should be interest free and owned by the people, such as the Bank of Canada prior to 1974,while the taxes in the current private central banking system are paying the interest on the government loans with citizens registered as the corporations, the birth certificate, against whose future earnings the lending is done as the collateral.

The created money is in reflection of the total economic activity. For example, if the government decides to build the bridge at the cost of $500 million dollars then the national bank makes this money available to the government who then delivers it to the companies and workers, as far as the national budgets are concerned, the national bank's role is to estimate, make available, and control the total monetary supply in the economy where cash representing around one third of the total monetary volume in the Canadian economy.

The national banks then control the interest rate, traditionally set at 3% above the inflation rate. The interest rates are now and have been for a while below the inflation rate, which is, again, highly irregular and unusual, because it has to be above the going inflation rate, not below it, and that is due to the whole basic premise of capitalism, where the capital is the holy grail -- the private property is sacred and making profit for the owners -- thus, if the saving of money capital is made, it would grow in time, which would depend on the interest rate set slightly above the going inflation rate, in traditional sense as it was done until the recent time, and not lose its value as is the case now with the personal savings, RSPs, etc. 

Thus, for example, if the inflation is at 5% and the interest rate is at 0%, then it would mean that in a saving account with $10,000 at the end of the year would remain $9500 and so on until there is nothing left. 

The reason being for it is that the super rich are robbing in the open the lesser rich along with the middle class by increasing inflation while keeping the interest rates low, hence, we can extrapolate the situation when they had their fill and raise the interest rate, which would bring the whole house of cards down, as the governments would be in critical deficits and the marshal law or a paradigm shift would require.


Live! Prosper! Be Well!

AB