Bank system flawed

Before this change in policy around 1975, the federal government financed much of its public debt through the Bank of Canada with nearly interest-free money.

Russ Vinden is right about the unpayable debt and crippling interest we’re burdened with simply because Canada no longer funds its public debts through the Bank of Canada (The News, Sept. 30).

Before this change in policy around 1975, the federal government financed much of its public debt through the Bank of Canada with nearly interest-free money.

The federal debt was then about $22 billion, this after over 100 years of governance and the completion of massive public projects such as the national railway system, Trans-Canada Highway, St. Lawrence Seaway and the instigation of UIC, OAP, and universal health care.

Today, some 36 years later, the federal debt is nearly $570 billion and the government is cutting projects and services.

This year, the interest we’ll pay on the federal debt will be close to $37.5 billion ($103 million each day) and there will be little public benefit to show for that unconscionable spending. Our tax dollars pay the interest to private lenders such as banks, when the interest payments could be going to the Bank of Canada and ultimately back to government coffers minus administration costs — basically interest-free money.

And how much is $103 million? It’s funding that could pay for 30 MRI units; construction of seven small hospitals or four high schools; salaries for over 500 doctors or 1500 nurses or tuition fees, books, and room and board for over 6,500 university students. Just one day’s interest on the debt!

What competent MP of the day, fully understanding the implications of this policy change would have voted for such a scheme? How is creating massive public debt in the best interests of the country? And how could discerning MPs allow this retrograde policy to continue today?

Perhaps it’s time to write Dr. James Lunney and ask if he has the courage to raise the issue with his caucus with the intent of correcting this misguided policy.

Neil Dawe, Parksville

Just Posted

John Furlong told the Vancouver Board of Trade on Feb. 20, 2020 that he thinks the city could and should bid for the 2030 Winter Games. (CP photo)
The Co-op gas station at Whiskey Creek is burning after a camper van burst into flames just before 4 p.m. on Thursday, June 17, 2021. (FACEBOOK PHOTO)
Exploding camper van torches Highway 4 gas station between Qualicum Beach and Port Alberni

Highway traffic blocked after Whiskey Creek gas station erupts into flames

Morningstar Golf Club in Parksville will host the 2021 B.C. Junior Golf Championships. (PQB News file photo)
Morningstar Golf Club in Parksville to host 150 of B.C’s top junior golfers

Provincial boys and girls championship begins June 28

Hannes Grosse, left, and Iris Steigemann, right, as they prepared for their 'Moments of Silence' exhibit. The father-daughter duo are showing at The Old School House Arts Centre in Qualicum Beach until June 26. (Submitted photo)
Cortes Island artists exhibit at Qualicum Beach’s TOSH in first father-daughter show

Both artists will be present at shows on Friday, June 25 and Saturday, June 26

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

The pilot of this single-engine propeller plane was unhurt after crash-landing in a Como Road orchard Friday, June 18. Photo: Laurie Tritschler
Plane crash lands into Grand Forks orchard, pilot injured

RCMP have secured the crash site, pending investigation by Transport Canada

A tenant walks in front of her home on Boundary Road on Friday, June 18, 2021 after it was destroyed by fire the night before in Chilliwack. (Jenna Hauck/ Chilliwack Progress)
Family homeless after fire rips through Chilliwack house

Turtle rescued, no one seriously hurt following Boundary Road fire in Chilliwack

Wild rabbits are all over Chilliwack, but people often think they’re someone’s lost pet and try to ‘save’ them. But the owner of Chilliwack’s Reptile Room says good intentions can have bad consequences for wild animals. (Photo by THE CANADIAN PRESS)
Owner of Chilliwack’s Reptile Room asks people to leave wild animals in the wild

Amber Quiring says people who think they’re helping are actually doing more harm than good

Photos displayed at a vigil for former Nanaimo outreach worker Amy Watts, whose body was found June 3 and whose death RCMP are investigating as a homicide. (News Bulletin photo)
‘We need to do better,’ says mother of woman killed in Nanaimo

Vigil held for former outreach worker Amy Watts, whose body was found downtown June 3

Thousands of protesters make their way through the downtown core during a Black Lives Matter protest in Ottawa, Friday June 5, 2020. THE CANADIAN PRESS/Adrian Wyld
MPs’ study of systemic racism in policing concludes RCMP needs new model

Chair of the House public safety committee says it’s time for a reckoning on ‘quasi-military’ structure

A case filled with packages of boneless chicken breasts is shown in a grocery store Sunday, May 10, 2020, in southeast Denver. THE CANADIAN PRESS/AP-David Zalubowski
One million chickens euthanized during labour dispute at Quebec slaughterhouse

Premier says waste amounts to 13 per cent of the province’s chicken production thrown in the garbage

Premier of Manitoba Brian Pallister speaks at a news conference at the Manitoba Legislative Building in Winnipeg on Wednesday, April 7, 2021. THE CANADIAN PRESS/David Lipnowski
Provincial leaders want more federal money for health care, plan to meet in fall

Premiers ask Ottawa to increase its share of overall health spending to 35 per cent from 22 per cent

Most Read