Re: With economy so bad, Bank of Canada my revert to printing money, Julian Beltrame, April 06
[url=http://ca.news.yahoo.com/s/capress/090406/national/economy_money_supply]http://ca.news.yahoo.com/s/capress/090406/national/economy_money_supply[/url]
The Bank of Canada creates money to buy the bad loans of private banks so that the banks can lend again. The banks often lend this money back to government at municipal, provincial and federal levels. Would it not make sense for the Bank of Canada to lend money directly to cities, provinces and the Federal Government for infrastructure spending? Any interest paid on these loans would revert back to the taxpayers who are the owners of the Bank of Canada. The question is: What is the purpose of the Bank of Canada? Is it to serve Canadian taxpayers, or is it to bail out the banks every time they get into trouble by creating new money for them to lend at interest back to government?
Larry Kazdan,
Vancouver, B.C.
