Private debt

Wilson maintains that privatization of the debt in 1970 did not solve the inflation problem since it remained high for several years after.

I refer to Bill Wilson’s letter to the editor of June 16 (‘Debt privatization’).

He maintains that privatization of the debt in 1970 did not solve the inflation problem since it remained high for several years after. However, he chose not to mention that his information source also showed it to decline to a low average of 2.5 per cent over the following 32 years,1.5 per cent over the last 5 years.

Wilson clings to the Utopian idea that the government could have continued to lend from the Bank of Canada following 1974 at no cost. There is a cost and that cost is inflation. Since the Bank of Canada is a Crown corporation owned by the government, it follows that when it creates money to cover government debts, it’s tantamount to the government lending money to itself. The bank simply could no longer create the huge amounts required without compromising its own chief mandate of regularizing the currency and controlling inflation. Wilson seems not to have recognized this, but fortunately the government of the day did, as did successive governments.

I ask people to refer to Dr. Ronald Kneebone, professor at the University of Calgary and his analysis of the situation titled “Why doesn’t the government print money to pay off the debt.”

Wilson’s diatribe on greedy banks enslaving citizens wrongfully gives the impression Canadian banks may have responsibility for the public debt. A study of the debt (see financial journalist davemanual.com) shows chief holders are Canadian pension funds, insurance companies, mutual funds, investment dealers and a wide spectrum of owners Canadian banks and near banks hold a mere 12 per cent.

Colin BartlettParksville

Just Posted

Parksville Qualicum Beach crime report: Thieves pilfer laptops, tools, big-screen TV, cash and more

Oceanside RCMP received 256 complaints between Sept. 29 and Oct. 5.

BC Ferries crew member taken to hospital after getting struck by bow doors

Two sailings between Horseshoe Bay and Departure Bay were cancelled

Controversial SD69 discussions continue regarding field trips requiring air travel

Some Qualicum district students believe motion takes away too much from experience at school

Pole-climbing thieves pilfering wire in Parksville Qualicum Beach area

Repairs are costly and thefts jeopardize public safety

Qualicum Beach council discusses helping out Orca Place residents

Town considers offer of temporary jobs in the future

ELECTION 2019: It’s so close, it could come down to who turns out to vote

Black Press Media’s polling analyst on the origins of predictive seat modelling in Canada

Jack’s Devils beat Quinn’s Canucks 1-0 in NHL brother battle

New Jersey youngster scores first career goal against Vancouver

Two charged after owner’s wild ride through Kamloops in his stolen truck

Crystal Rae Dorrington, 37, and Derrick Ronald Pearson, 32, facing multiple charges

Judge orders credit union’s bank records for Kelowna social worker facing theft allegations

The man is accused of negligence, breach of contract, fraud and a conspiracy with Interior Savings

Leaders pour it on with rallies, boosts for candidates as campaign reaches peak

The federal election campaign has reached a crescendo

Allegations of racism lead to ministry investigation at Vancouver private school

St. George’s School was contacted over what the school describes as ‘deeply offensive behaviour online’

Not a political question: Thunberg calls for climate action in Alberta

Edmonton police estimated the size of the crowd at about 4,000

Zantac, the over-the-counter heartburn drug, pulled in Canada, U.S.

Health Canada also investigates possible carcinogen in some ranitidine drugs

B.C. public safety minister says cannabis edibles not in stores til January

Mike Farnworth says he wants regional issues considered when it comes to licensing

Most Read