Quote:
Originally Posted by mikey_the_redneck
Banks are not providing "capital" to anyone. They are lending out a piece of paper and nothing more. They lend out mass sums of money that they do not have, and charge interest for it. They are the root cause of inflation...
Nations can lend themselves money. That's what we all used to do, you know way back when we weren't in massive debt.
"Once a nation parts with the control of its currency and credit, it matters not who makes that nations laws. Usury, once in control, will wreck any nation. Until the control of the issue of currency and credit is restored to government and recognized as its most conspicuous and sacred responsibility, all talks of the sovereignty of Parliament and of democracy is idle and futile."
William Lyon Mackenzie King, 10th Prime Minister of Canada.
|
That quote helped Mackenzie King win the 1935 election. He then formally nationalized the Bank of Canada (that had been created in the previous year), setting up our current economic system as a result. I'm not sure how that makes your point that our government isn't in control of its own currency and debt, just that our governments over the years have decided that private debt is a better option than what you propose.
If our government was to "lend itself money" (i.e. increase debt owed to the Bank of Canada to pay its bills) and either renounce our international debt or pay our debt off with Bank of Canada printed dollars, the result would be an immediate proportional devaluation of our currency on international markets, which would lead to inflation in the costs to purchase all those things that we do not produce ourselves and a cessation of international trade with Canada (in Canadian dollars at least).
This has been done before with results that I wouldn't consider to be positive. See:
http://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe