The system is broken! John Maynard Keynes and Milton Friedman both erred when theyassumed it was self-regulating. It has to be managed by governments on behalf of all the people. Our government has to use its sovereign power to liberate us from being slavesto debt.We therefore demand that you table your austerity budget – an idea that was tried in the1930s and failed miserably – and adopt a new deal for Canadians. So that you will knowexactly what we mean and want, we have spelled it out for you as follows.
A SOCIAL CONTRACT BETWEEN THE GOVERNMENTAND PEOPLE OF CANADA
In view of the fact that our present banking and financial system is unstable,unsustainable and basically immoral, we the undersigned, on behalf of all Canadians,demand that the federal government use its constitutional power over all matters pertaining to money and banking by forthwith taking the following action to benefit allCanadians.1. The government of Canada should print fifteen non-transferable, non-convertible,non-redeemable $10 billion nominal value Canada share certificates.2. Simultaneously the Justice Department should be asked for a legal opinion as towhether the share certificates qualify as collateral under the Bank of Canada Act. If not,legislation should be introduced to amend the Act to specify their eligibility.3. The government should then present the share certificates to the Bank of Canada thatwould forthwith book the certificates as assets against the liability of the cash created,and deposit $150 billion in the government’s bank accounts. The federal governmentshould immediately transfer $75 billion to the various provinces and territories inamounts proportional to their population, with the understanding that they would help themunicipalities, as appropriate, so there would be no need to cut back on essentialservices, or sell valuable assets.4. Amend the Bank Act to reverse the 1991 amendments that eliminated the requirementfor the Canadian chartered banks to maintain cash reserves against their deposits and provide the Minister of Finance, or someone acting on his or her behalf, the power to setthe level of cash reserves for banks and other deposit taking institutions up to a maximumof 34%, provided the increase, beginning in fiscal year 2013/14 is not less than 5% per annum until the new 34% base has been established in 7 years. This will ensure thatthere will be no inflation resulting from the government-created money.5. Repeat the action prescribed in Sections 1 and 3 above in accordance with thefollowing schedule. (a) 2014/15 $150 billion of government-created money (GCM);(b) 2015/16, $150 billion GCM; (c) 2016/17, $125 billion GCM; (d) 2017/18, $125 billion GCM; (e) 2018/19, 50% of the estimated increase in GCM to bring bank reservesup to 34% by the end of fiscal year 2019/20 (likely to be an amount greater than $100 billion); (f) 2019/20 the remaining amount of GCM to increase bank reserves to 34%(again likely to exceed $100 billion).