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’s Arrowsmith Lodge and Cokely Manor celebrate 50 years

Week of ‘60s-themed activities starts on April 26

UPDATE: Missing kayakers located safe and sound in Welcome Bay

Pair were reported missing April 22, in vicinity of Lasqueti Island

Review: The Magic of ‘Almost, Maine’

ECHO Players production runs through May 5 at the Village Theatre in Qualicum Beach

Coombs farm auction returns April 28

CFI hosts 41st annual auction

What’s age got to do with it? B.C. couple with 45-year gap talks happy marriage

An Armstrong couple that has 45-year age gap began turning heads after being featured on show Extreme Love.

WATCH: South Vancouver Island shooting an ‘isolated and targeted’ incident, say police

One person in custody, another fled following shooting and crash on West Shore

Woe, Canada: Bruins down Maple Leafs 5-1 in Game 7

No Canadian teams left in Stanley Cup playoffs

Defence accuses officer of ‘incompetence’ in trial for B.C. man accused in daughters’ murder

Double murder trial for the Victoria father accused of killing his two young daughters continues

B.C. men challenge constitutionality of Canada’s secret no-fly list

Parvkar Singh Dulai says he received a “denial of boarding” notification under the no-fly program last May 17

Murder on B.C. property didn’t need to be disclosed before sale, court rules

Buyer had tried to break contract after learning a man with ties to crime had been murdered there

B.C.’s largest Vaisakhi festival target of threatening Facebook post: Surrey RCMP

Police say they are investigating the posts on Facebook, after local MLA forwarded screenshots

Pug life: B.C. town boasts waggish list of dog names

Freedom-of-information request lists most ‘pupular’ dog names registered in White Rock

VIDEO: Duncan-Nanaimo’s Funkanometry bow out of ‘World of Dance’ with ‘After Hours’ routine

Judges praised them as entertainers, and urged them to work a bit more on their dancing

Most Read