Introduction
Bank of Canada
Monetarism
Unbelievable!
Believe It!
Ideology
Article 18
Ex. 1/Ex. 2
A Vision
Conclusion

Two Unbelievable Facts!

We now consider two unbelievable facts. They are so astonishing that most people simply won't believe them!! Indeed, they really do defy the imagination!

Unbelievable Fact # 1: How Money is Created.

Money is created out of nothing.
Myth: it's based on Gold: Not so! The Gold Standard was abondoned years ago.
-Well....it's not quite created 'out of nothing': it's created out of a faith based on the credit of a nation: otherwise, it would be worthless. If I give you a $20 bill, you believe (have faith) that you can use it as a medium of exchange to buy other goods or services. Moreover, there are two ways to create money (out of essentially nothing).

GCM (Government Created Money), created by the federal government. People understand this method. Most people when asked would say, "well, the government creates money." That's true. But how MUCH of the money supply each year does the government create? About 5%. That's all. So who creates the rest?

BCM (Bank Created Money): the private banking system. How does the private banking system "create" money? Simple! But unbelievable! Bear in mind that MONEY IS CREATED OUT OF NOTHING. So, when you make that $30,000 loan at your bank for a new truck, that amount is typed into you bankbook. Seconds earlier it didn't exist! Now YOU owe that money TO the bank, + interest!
Myth: the money for your loan is somehow "backed" by deposits on-hand in the bank where the loan is made... Not so!

You, as a citizen or a business, don't have a choice. Much though you might like to, you can't create money. You have to borrow your money from the private banks.

Unbelievable Fact # 2: The Government's Choice

But governments have a choice! The federal government can EITHER create its own debt-free and interest-free money (GCM) OR borrow it AS debt, and AT interest from the private banks (BCM). The provincial and municiple governments can choose to borrow, at low interest rates, from EITHER the Bank of Canada OR borrow from the private banking system at substantial interest rates.

GUESS WHICH CHOICE OUR GOVERNMENTS MAKE??
YOU GUESSED IT! Some 95% of our money is created as BCM
-UNBELIEVABLE!!

You may say, "-So what? Some abstract argument about 'how money is created' doesn't effect me, anyway..."
-Oh yes it does! You'd better believe it!

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