(John kenneth Galbraith) Canada’s economist expert can give us a generalization of who truly controls our economy “The process by which banks create money is so simple the mind is repelled." It is the banks that have the ultimate control over the value of our dollars; they conjure money into existence with the creation of new bank credit. In its simplest form our current monetary system encourages Poverty, and debt. And without debts in our society there would be no money. At the flick of a switch Hyper inflation could result in millions of people losing their entire life savings. And in a political bid to resurrect the country from a recession, our governments solution is to borrow more money at the expense of the people at a compounded interest rate from private banks. So why is this system in use today? Anticipating our future and creating potential solutions can surely diffuse and diverge our current predisposition to a global economy of financial ruin.
Let’s take a systematic look at the monetary system. If say the monetary system was to start at the depositor. And the depositor was to make a deposit of 1000$ the bank would then pay the depositor a very low interest. In a personal interview with Matt, a representative for TD Canada Trust, the everyday savings account interest rate is .25% annual interest, Which would work out to an annual estimated interest of 2.5$ a year, On a thousand dollar loan/deposit to the bank, Minus any fee’s. The bank then can take your deposit and loan it out to someone else for a higher interest rate. Again in the personal interview with matt. Matt stated there is no one rate the banks lend out at. So we decided to take a look at mortgages. After summing up all the rates it was concluded that the average lending rate is 3.68% annually. So let’s take another look at our 1000 dollar deposit. If the bank decided to combine our money with another depositor or multiple depositors, Then at the average lending rate the bank...