The Canadian Finance Minister Bill Morneau deceitfully claims and argues that the government of Canada
cannot borrow money from its own public Central Bank (i.e. the Bank of
Canada) for productive government expenditures such as "human capital expenditures" (i.e. health, education, etc) and infrastructure
development because it would result in "excessive inflation..." (Read Hon. Paul Hellyer's Open Letter to Bill Morneau
in response to Bill Morneau's deceitful response on the subject to a Parliamentary petition.)
However, classic economic law clearly states that if economic growth
matches the growth of the money supply, inflation should not occur ceteris paribus (when
all else is equal). In other words, when the aggregate money supply is
equal to the real goods and services produced in an economy, there is no
resulting inflation, whether the money is created by a public bank or
private banks.
Moreover, I have analyzed the official annual inflation data from Statistics Canada from 1938-2014:
(a) From 1938 to 1974: When the Canadian government borrowed all of its
money from the Bank of Canada, the average annual inflation rate was
3,42%.
(b) From 1974 to 2014: After the Bank of Canada joined
the private central banking cartel (Bank for International
Settlement/BIS) and the Canadian government began borrowing fiat money created ex
nihilo (out of nothing) from private banks and from the private financial sector at exorbitant compounded interest rates, the
average annual inflation rate was 4,19% (+23% higher).
Therefore, Bill Morneau's deceitful excessive inflationary claims and bogus argument is contradicted by the historical inflationary record based on official inflationary data and by the empirical evidence.
Also, read the following insightful article that debunks the
incessantly repeated bogus, deceitful and fraudulent claims of the private
banking industry and Bill Morneau regarding inflation using the Bank of Canada as an example.
Worse, as a direct result of borrowing fiat "money" created ex-nihilo from private banks and the private financial sector at exorbitant compounded interest rates, the Canadian so-called "public debt" has since exponentially increased from $24 billion in 1974 to over $600 billion in 2014.
Therefore, Bill Morneau's deceitful excessive inflationary claims and bogus argument is contradicted by the historical inflationary record based on official inflationary data and by the empirical evidence.
Worse, as a direct result of borrowing fiat "money" created ex-nihilo from private banks and the private financial sector at exorbitant compounded interest rates, the Canadian so-called "public debt" has since exponentially increased from $24 billion in 1974 to over $600 billion in 2014.
Furthermore, according to official statistics published by the Canadian Ministry of Finance, Canadian taxpayers paid $28.2 billion in compounded interest on the so-called "public debt" in 2014 alone, representing 10% of total government expenditure for 2014 ($271.7 billion), exceeding health and other social expenditures, employment insurance, children's benefits, Public Safety and National Defense.
As the late Honourable Prime Minister of Canada William Lyon Mackenzie King said and warned on the dangers of
surrendering and granting a monopoly of the Canadian money supply to
private international central bankers:
“Until the control and
the issue of currency and credit is restored to government and
recognized as its most conspicuous and sacred responsibility, all talk
of sovereignty of Parliament and democracy is idle and futile. Once a
nation parts with the control of its currency and credit, it matters not
who makes the nation's laws. Usury, once in control, will wreck any
nation.”
Arya Vrilya
