In addition to all this, there is nowhere near enough new spending to meet essential needs. Bank of Canada Governor Poloz has been quoted as saying that there is about a $50 billion shortfall from the slide in the oil industry. In addition, as the provinces have made clear, there is not enough new money for health care. There is not enough new money for urban transportation. The same is true for affordable housing, in addition to municipal infrastructure.
Top that off, as Cindy Blackstock has so eloquently pointed out, the government is defaulting on its responsibilities to aboriginal children. It’s the same story right across the board with a shortfall in essential spending in the order of $100 billion, without including the department of defence.
There is only one way to meet all of these needs and that is for the Canadian parliament, which has the full constitutional authority over money and banking, to get the Bank of Canada to crete the necessary funds as it did so successfully from 1939 to 1974. And Minister Morneau is not telling the truth when he says that would be “excessively inflationary”. It was not during those 35 Golden Years, and it would not be again if privately owned banks were required to hold the new money as cash reserves against their deposits.
So there is a practical, painless solution to our vexatious problems if parliament ended the private banks monopoly on creating money – which is nothing more than a computer entry – and re-instated a system of sharing the money-creation function that worked so well for the best 35 of the last hundred years.” Hon Paul Hellyer