Question from Reader

Question:
I just read your note from the Occupy our Bank site and I then sent them a note asking the question below. Perhaps you could help…

Can you direct me to any information about what happened in 1974 to change the way the government funded projects. It appears to have happened in the US at the same time and thus the same questions; how did it happen, what occurred, who was involved.

Any help or references would be appreciated.

Thanks for your attention and your article.

Answer:
Hello
You’ve asked the right guy.
Here’s the timeline of events that strangled our public bank’s splendid usefulness :
From the mid-’60s, banks unhooked themselves from those onerous regulations, term limits(4 yrs), interest rates(capped @ 6 %), reserves stashed at the Bank of Canada not earning any interest and dictated by the BoC governor to be maintained somewhere between 8 and 12 % of their loan portfolio. (The latter meant restricting the money creation to between 12 and 8 times the reserves.)

Joining the Group of 7 meant coming under the dictates of the BIS -a privately owned central bank in Basel, Switzerland that serves as a central bank for all private banks. No more interest free money for the government to spend into the economy (as was done so superbly 1940s, 1950s, 1960s). Capital reserves fixed at 8%

The “pillars” of finance –trusts, investment, insurance were each targeted for takeover. Simply put, money creation was privatized. Trust companies were forced to lend prudently and manage prudently since they depended on the interest differential between CDs (GICs) and mortgage rates.
So, with “thin air ” sourced money, banks could create 12 X their reserves, lend recklessly for mortgages and invest in 3rd world debt.
No money-tightening “jawboning” from the hand-picked governors at the B of C.
Inflation ran rampant. Prime rate hit 22%. Since the government deficits were funded by the chartered domestic banks, foreign banks and the IMF –at INTEREST The modest national debt of $20 Billion escalated and the interest compounded. First pillar to fall was the trust industry. Yes, their interest rate differential went negative! Banks scooped up the falling trust companies for peanuts and got the wealth management divisions free. e.g., Royal Bank stole Royal Trust.
Next pillar targeted was clearly the investment industry. Bankers imagined that because they learned banking in 3 weeks, they could understand securities (stocks and bonds) as quickly. So, they paid whatever it took to acquire or link to
major underwriters and investment brokers. Perfecting this CONFLICTING interest took some time, but developing the mutual
fund component sped it along.

I think I’ve answered your inquiry, but you do have my email.
Jerry Ackerman
P.S. The US “FED” is neither Federal or does it have reserves. It’s a private
central bank designed to serve the interests of private banks.
Best refs : Ed Griffin “The Creature from Jekyll Island”, Ellen Brown “Web of Debt”

12 Responses to “Question from Reader”

  1. billig a kasse Says:

    Thanks , I have recently been searching for
    info approximately this topic for a while and yours is the greatest I’ve came upon till now.

    But, what about the bottom line? Are you certain about the source?

  2. Martin Says:

    Yes, we are certain about the source(s).

  3. billig akasse Says:

    Thanks for sharing such a fastidious opinion, piece of writing is fastidious, thats why i have read
    it entirely

  4. fagforening Says:

    Pretty nice post. I just stumbled upon your weblog and wished to say that I’ve truly enjoyed browsing your blog posts.
    In any case I’ll be subscribing to your rss feed and I hope you write again very soon!

  5. a-kasser Says:

    I am really pleased to read this weblog posts which includes plenty of
    helpful information, thanks for providing these information.

  6. kasse Says:

    Thanks for a marvelous posting! I truly enjoyed reading it, you can
    be a great author. I will be sure to bookmark your blog and will come back later on.
    I want to encourage that you continue your great writing, have a nice
    evening!

  7. Luigi Fulk Says:

    Great commentary! Absolutely descriptive.

  8. Tyson F. Gautreaux Says:

    Excellent feature! Remarkably informational.

  9. a-kasse Says:

    Very good blog you have here but I was curious about
    if you knew of any user discussion forums that cover the same topics discussed
    in this article? I’d really like to be a part of online community where I can get opinions from other knowledgeable people that share the same interest.

    If you have any recommendations, please let me know.

    Thank you!

  10. Martin Says:

    We can look into adding a forum to the site. We will keep you posted.
    Others that are interested in a forum please leave a comment.

  11. billigt mobilabonnement Says:

    Wow that was strange. I just wrote an very long comment but after I
    clicked submit my comment didn’t show up.
    Grrrr… well I’m not writing all that over again. Anyhow,
    just wanted to say wonderful blog!

  12. Martin Says:

    Sorry new user comments need to be approved manually. This keeps spam and off topic comments out.

Leave a Reply

You must be logged in to post a comment.