In a 2011 Lawsuit against the government of Canada it was alleged that the Bank of Canada was established in 1938 to – among other things – provide interest free loans to Federal, provincial and municipal governments to finance public infrastructure projects. Examples of the projects financed in this way are; the TransCanada Highway, St Lawrence Seaway, electricity projects, pipelines, airports, universities etc. Further benefits of the Bank of Canada is that no interest – or low interest – loans could be made to unstable (failing?) financial institutions in Canada. A lender of last resort if you will.
However in 1974, under the direction of the Pierre Trudeau government, Canada became a member of the Bank of International Settlements (BIS) – a powerful, private Swiss bank which oversees central banks around the world. At that time, the BIS’ Basel Committee insisted on a change. In order to establish financial stability, governments should borrow from private lenders and pay market interest rates – not the interest free rate listed as one reason for the creation of our Central bank.
It is estimated that interest on the accumulated debt to finance public projects paid to those private lenders amounts to $30- $60 Billion per year! From 1974 to 2015 that interest cost has been over $2 Trillion – paid by the Canadian taxpayer.
https://comer.org/wp-content/uploads/2019/03/COMER_NovDec2015.pdf
It was alleged in the lawsuit that it is, in fact, international interests that are dictating Canada’s monetary/financial policy thus determining our economic landscape. In addition, the BIS meetings are secret which would make sense if you do not want the masses to know how the member country’s central banks are being influenced.
Court case filing
https://comer.org/wp-content/uploads/2019/03/COMER-CourtCaseFiling.pdf
I wonder how inflation would fare without the multiple Billion$ paid each year as interest on government debt?
And if Canadian banks in financial trouble could in fact utilize our publicly owned Bank of Canada, why did the J. Trudeau government push through the ‘Bail in” legislation in 2016?
The Basel Committee on Banking Supervision’s mandate is;
“The BCBS is the primary global standard setter for the prudential regulation of banks and provides a forum for cooperation on banking supervisory matters. Its mandate is to strengthen the regulation, supervision and practices of banks worldwide with the purpose of enhancing financial stability.”
Here is a link to the BIS;