Analysis; Bank of Canada and Taxes
Ahnimus
Posts: 10,560
After learning about the banking system in the U.S. I've become interested in our Canadian system. In this thread I intend to perform research and an analysis of our Canadian banking system and the tax revenue and expenditures. Feel free to join me in my analysis and provide information pertinent to the topic.
I necessarily have the passion for writing this, and you have the passion for condemning me; both of us are equally fools, equally the toys of destiny. Your nature is to do harm, mine is to love truth, and to make it public in spite of you. - Voltaire
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The bank of canada generates seigniorage revenue from the printing of money. In recent years that has been approx. $2.2 billion per year, $130 million of which was used to finance the Bank's general operating expenses. The remainder $2.07 billion was transfered to the Receiver Generalurl=http://www.bankofcanada.ca/en/backgrounders/bg-m3.html]2[/url.
Canadian currency does not get it's value from gold or any other standard. Canadian currency only has value because it is accepted as standard trading materialurl=http://www.bankofcanada.ca/en/backgrounders/bg-m1.html]3[/url.
The average inflation in Canada since 1992 has been 1.6%, with a high of 12.4% in 1981 and 2.7% in 2000url=http://www.bankofcanada.ca/en/backgrounders/bg-i1.html]4[/url.
CAD/USD Exchange
Lowest (21/01/2002)
$1 CAN = $0.6179 US
($1 US = $1.6184 CAN)
Highest (21/08/1957)
$1 CAN = $1.0614 US
($1 US = $0.9422 CAN)
References
1. Bank of Canada: Who we are
2. Bank of Canada: The Bank in Brief - Seigniorage Revenue
3. Bank of Canada; The Bank in Brief - What is Money?
4. Bank of Canada: The Bank in Brief - Inflation and Price Stability
Apparently our national debt is owed to Canadian Citizens. Canadians who purchase bonds and stuff. 25% of our debt is owed to private foreign investors.
Still a much better situation than the U.S. too bad it's risen from $321.5 billion in '85 to $701.1 billion in '04
http://www.fin.gc.ca/dtman/2003-2004/dmr04_2e.html
So, a Canadian buys a bond and the Country owes them money, but since they are a Canadian citizen they are also paying back the debt through taxes. So they are handing themselves cash? They probably end up with less money after it goes through the system. I don't get it.
The head of the Bank of Canada is the Governor, who is appointed by the bank's board of directors. The governor is appointed for a seven-year term, and cannot be dismissed by the government. In case of a profound disagreement between the government and the bank, the Minister of Finance can issue written instructions for the bank to change its policies. [2] This has never actually happened in the history of the bank to date. In practice, the governor sets monetary policy independently of the government.
ds
And no one makes me close my eyes
So I throw the windows wide
And call to you across the sky....
Can you ever win on bonds? The only purpose of bonds is to off set any spending and to credit that spending to the people buying the bonds. It is a good thing in my mind what bonds try to do. But as the banks are allowed to lend out 10 (or it could be a lot higher) for every one they bring in. When the line between fantasy and reality becomes to big and you don't have responsible people turning the valve off, it becomes one big mess.
I agree the fractional reserve banking system is bogus. President of the USA Andrew Jackson tried to fight the system with his "greenbacks" but lost to the private banks during war time.
hmmm, I believe it, if it's true. I'm finding it hard to find hardcore facts probably because I'm not hitting the right links. It's a lead anyway. I found a document showing the national debt but it was all broken down. I guess I have to add it all up.