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(media.greatawakening.win)
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Canadians are hugely naive in largely thinking about debt from private central banks. The Bank of Canada was nationalized by the Mackenzie King government in 1938. King took the Keynesian message to heart and created interest-free money to help the country overcome the Depression. In 2010, Canadians paid $165 million daily in interest charges on governmental debt of $519 billion โ this is equivalent to $136 a week from a family of four. According to Richard Priestman and Connie Fogal, between 1939 and 1945 the Bank of Canada produced 62 percent or more of the national money supply interest-free. From 1945 to 1975 the Bank of Canada provided a significant proportion of capital for public needs โ at a nominal rate of about one percent. A major source of low-cost capital to lend was the private Canadian banks that were obliged under Keynesian policies to hold statutory reserves interest-free in the Bank of Canada, which the public bank could then lend out for public works and benefits. Over many years this put over $120 billion in interest-free money at the disposal of the Canadian government. Inflation and speculative lending could be reined in by the Bank of Canada requiring the private banks to increase their statutory reserves to slow down credit expansion where necessary. Total federal debt in Canada was only $37 billion in 1975, and 22 percent was owed to the Bank of Canada. However, following the lead of Thatcher and Reagan, the Brian Mulroney government (read the book On the Take), which came to power in 1984, moved away from the statutory reserve system to so called โfree marketsโ and the deregulation of the banking sector. Real long-term interest rates on Canadian government debt, which were 0.7 percent in 1980, escalated to 8.4 percent in 1984. After the policy shift, interest payable to the private banks on borrowing rose to levels from $5 billion to $8 billion a year on loans that had previously been virtually interest free. Interest rates on government debt rose to ranges of 6 to 18 percent in the 1980s, and the public debt soared to $408 billion in 1991 and then to $585 billion in 2000 and Trudy has taken it to levels thought impossible.