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