A North American dollar

[Widow]

From the Canadian Action Party website:

Should Canada merge its currency into that of the U.S.?
by George Crowell, updated on 10:52 PM, May 30, 2007

If Canada should allow its currency to be merged with that of the U.S., it would surely lose its publicly owned Bank of Canada. Through the Bank of Canada, which was established in 1935, the federal government has the power to borrow money in huge quantities essentially interest-free, and to make such interest-free funds available not only for its own use, but also for provincial and municipal expenditures.

On The Current , May 28, there was discussion prompted by a comment last week from David Dodge, Governor of the Bank of Canada, who said that a unified currency with the U.S. is possible. In this discussion, with views for and against this development, there was no mention of what many informed Canadians see as the primary reason why Canada should keep its own distinctive currency, and should never allow currency union with the U.S..

If Canada should allow its currency to be merged with that of the U.S., it would surely lose its publicly owned Bank of Canada. Through the Bank of Canada, which was established in 1935, the federal government has the power to borrow money in huge quantities essentially interest-free, and to make such interest-free funds available not only for its own use, but also for provincial and municipal expenditures. Such borrowing enabled Canada to get out of the Great Depression and to finance its participation in World War II. Continuance of this practice until about 1975 played a key role in creating Canada's post-war prosperity and in making possible our enviable social programs. As federal governments have increasingly catered to the private commercial banks, this practice has greatly declined. Government indebtedness with huge interest payments has resulted, and our social programs, which, we are told, we can no longer afford, have been under attack.

Our governments across Canada must presently give priority to paying more than $60 billion each year out of our tax receipts for interest to private banks and money-lenders. Through borrowing from the Bank of Canada this expense could be vastly reduced. If we lose the Bank of Canada, we will lose this extraordinary potentiality just at a time when public expenditures are especially urgently needed to protect our environment from such dire threats as global warming, and when our public infrastructure requires major repair and rebuilding, to say nothing of all kinds of needs to strengthen our social programs--especially medicare. We have underused and misused the Bank of Canada. Rather than lose it altogether in a currency union with the U.S., we need to revive its full usefulness in support of creative public policy.

We are told that borrowing from the Bank of Canada would be inflationary. We recognize that inflation could occur if the money-creation powers of the private banks were not restrained while the Bank of Canada again created a larger portion of our money supply . Therefore we insist that the reserve requirement for the private banks, which was surreptitiously eliminated in 1991, be restored to the Bank Act. This would enable the federal government through the Bank of Canada to reduce the amount of money that can be created by the private banks while increasing the amount created by the Bank of Canada to meet
public needs. Even without using the Bank of Canada for interest-free loans, we need the reserve requirement to help in the fight against inflation. At present the only tool available is raisiing interest rates--which first augments inflation before beating it down by driving the economy into recession. The reserve requirement is a far more kindly method for resisting inflation.

Some of us for many years have been urging politicians, primarily at the federal level, to resurrect the lending power of the Bank of Canada. Why is there so little response on this crucial issue? Some prefer the system as it is, some do not sufficiently understand the issue, some feel the issue is too complicated for the public to understand, and some probably fear backlash from the private banks. Now that the possibility of merging our currency into that of the U.S. is increasingly advocated in the centres of power, it is urgent for Canadians to understand clearly what they stand to lose--and what they could gain. I hope that The Current and other CBC programs will facilitate thorough discussion of this crucial issue.

Thank you.

George Crowell (a member of the Committee on Monetary and Economic Reform,
http://www.comer.org )

www.canadianactionparty.ca

[W0X0F]

A common currency is coming. Emotions and blips (the current weakness in the greenback) aside, globalism, trade and the freedom of movement around the globe will eventually mean a single currency. The Euro was designed to equal the $US. Now it's somewhat ahead. They will balance and will become interchangable. The economic difference between us, the Americans, western Europeans, Australians, Japanese, Koreans and south/central american countries is diminishing rapidly.

Many of you on this site are frequently in the States and in other countries. No doubt you have come to see that basically we (humanity) are much the same. What we called "the third world" is catching up. They are working towards our standard of living at a rapid pace. (please, I know that there are still many people making no more than a subsistance or less living) I can think of no better example than India where a booming economy is creating more and more that have a modest middle class living.

As the world becomes smaller and the disparities among peoples decreases, it is inevitable that there will be a single currency.

Between here and there will come a series of consolidations. The Euro is first and it is expanding. A North American currency is the next best bet. Throw in an Australian and or NZ $. Japan and Korea are a good bet as well.

It will happen. Get used to it because the only variable is the timing.

[2R]

I thought Alberta had it's own money allready .Ralph Bucks i heard someone say .Did he not give billions of them away to his oil and gas buddies .If he lost any more money the Liberals would nominate him for a Senate seat

[Dex]

Well, if "it is inevitable that there will be a single currency" why wouldn't we just join the Euro?

[Gurundu the Rat]

Somebody, using logic, not knee-jerking or rants, please explain to me in terms a pilot can understand why this is so bad. Please.

Because the federal reserve is apparently privately owned by a select few individuals and The bank of Canada is owned 100% by the government of Canada. Chew on that for a while and see what you come up with.

[Phaedrus]

I am definitely against merging our currencies, and it seems that almost no one around here is in favour of the idea.

I have to agree with those who maintain we'll have NO control over any monetary policy, and become defacto US states. There are many positives I can see to such a merger, but I still don't want it. Without a currency, an army and a secure border, you don't have a real country, IMO.

That being said, I am 100% certain that it will happen anyway within 10 years. Also, someone suggested merging with Europe instead (!) which is a way worse idea. But at least it would allow you to get in another shot at the Americans.

Eerily, it seems the world is shaping up exactly as Orwell wrote in 1984, only 30 years later.

[Dex]

Also, someone suggested merging with Europe instead (!) which is a way worse idea.

You missed my point.

[GilletteNorth]

Hazatude: Does this make porn cheaper?

I love your post Haz, gets right to the heart of the matter