There is a lot of miss-information concerning where our tax dollars really go. Some say that they go to pay for "roads, doctors, provide for police, create parks, help ensure clean water, etc...." Statistics in the Auditor's General 1998 report show that of the 577 billion dollar debt of the Canadian Federal Government only 37 billion was directly due to program spending. The remaining balance of the debt, 540 billion dollars, was directly due to compound interest on this debt. The federal government has been collecting over 72 billion dollars in direct taxation and 42 billion dollars (the single largest expense of our government) is going directly to interest payments on this debt.

When the federal government has been in need of money for public spending, history has shown us that they simply borrow it. They accomplish this by issuing bonds or treasury bills though the Bank of Canada, which is owned by our government. Our government then sells these documents to the private chartered banks. These banks initiate a liability in the account of the federal government in the amount of the bonds issued. In other words, the national debt just increased. But this money had to come from somewhere in order for private banks to purchase bonds or treasury bills in the first place. Where do the private banks get the money? THE BANKS CREATE THIS MONEY OUT OF NOTHING! Why should the Canadian Government with the Constitutional right to create 100% of the nation's money, give over 95% of that privilege away to a private monopoly of banks and then BORROW THAT SAME MONEY BACK WITH INTEREST? This very question was asked by G.G. McGeer of Graham Towers, the first Governor of the Bank of Canada, in 1939.

According to authors Professor Gordon F. Boreham and Richard H. Leftwich, in a University Economics textbook called Economic Thinking in a Canadian Context, (Page 389) there is no need to increase the National Debt in this manner. Keeping in mind, that the money supply needs to grow by a certain amount every year, here is what they have to say:

The printing of new paper money to finance a deficit has the virtue of not increasing the interest-bearing debt of the federal government. It achieves approximately the same results as does borrowing through the sale of government bonds to the central bank; that is, it increases the money supply. Nevertheless the idea of the government printing new paper money to finance a deficit is appalling to most people - primarily because they have seen countries misuse the printing press, flooding themselves with money and creating runaway inflation and financial chaos. The conclusion is that the printing press is at fault when the blame should be placed on those responsible for using it. Guns or automobiles are also dangerous in the hands of irresponsible people.

The practice of actually printing new money when an increase is needed in the money supply is as sound economically as the practice of creating new bank deposits through the sale of government bonds to the central bank and to chartered banks with excess reserves. The soundness (or unsoundness) of either method rests entirely with those responsible for using it - that is, with federal Department of Finance officials, Bank of Canada officials, and Parliament. The direct printing of new money has the virtue of increasing neither the national debt nor the annual interest charges on that debt. Its use requires both responsible conduct and a great deal of knowledge on the part of the Finance Department and Parliament, but these requirements already rest on both.

There appear to be two reasons why many people prefer the debt-increasing method of financing deficits. First, it is not generally understood that the money supply is increased in the process. This reason obviously has no merit. Second, those who do understand the process of money creation hope that adverse reactions to the total size of the national debt will serve to control the extent to which new money is created. The debt itself is thought to force those responsible for increasing the money supply to act with restraint. Two final observations are worth stressing here. First, over time the national debt could be paid off rather easily if this were genuinely desired. All the elements of the process have been discussed above. Growth in the volume of goods and services being produced in the economy generates a need for a growing money supply. The additional money could be created by the government via use of the printing press and injected into the economy through debt retirement, or the paying off of maturing government bonds, in whatever amounts are consistent with economic stability. Second, this method is not associated with the acceptance of "social credit" economic theory. It is presented solely as an alternative to borrowing to finance budgetary deficits.


In order to pay back this borrowed money to this debt- financed money supply, the Federal government must tax us all. Most importantly, the interest on this "funny money" is never created to begin with! As such, it is mathematically impossible to ever pay off the federal, provincial, municipal or private debt in Canada, which is now well over TWO TRILLION DOLLARS!

Over 95% of the new money in Canada is created out of thin air by the banks, as a debt to them. Compound interest to these crooks is not only responsible for over 90% of our countries debt, it is also solely responsible for inflation. This system of money creation is an unlawful breach of section 91(14-20) of the BNA Act of 1867. The Canadian Federal Government is duty bound to create the nation's money supply, interest and debt free.

Canadians should all know that most of their taxes go to paying compound interest on a non- repayable debt. Our government has pledged to under fund all our social programs, tax us all into bankruptcy and then foreclose on our country's real assets to support this system.

How does the government get away with such ILLEGAL actions as borrowing money from people who illegally create it, when they could and should be legally creating it themselves? Simply by salting the media with false fears of national disaster, such as

Why, then, does the government with the authority to legally create money give away their power to a private monopoly of banks? And why do they borrow the money back paying interest rates that drive the country to the brink of bankruptcy?

Because a government which is run by 'party politics' is easily bribed by the moneyed interests to give away that power. It's the same old story: "He who pays the piper, calls the tune." Because most people are deceived and unaware that a secret 'private mint' banking system is going on behind their backs.

This is obviously all about "POWER." This money is used to buy up political parties, politicians, T.V. and radio stations, newspapers, non -profit foundations, government agencies, multi-national companies, you name it. Any organization that exercises influence in our communities has been a target for control and they have a lot of our money to acquire that control.

You and I can help make a change together through education helping one Canadian at a time. Where there is education there is awareness to help out people in need to make a difference. When you educate the masses you start influencing the political system. There is great power in numbers!

Henry Ford said; "If the people understood the banking system today, there would be a revolt in the streets tomorrow." It is high time for us to return to a legal banking system. Education and the administrative legal process will help us protect and assert our lawful rights!



Let's start an epidemic!!