by D’Arcy Craig Milligan

 In 1981, the banks reduced credit to zero or near-zero and over a short period raised the prime lending rate to a mafia-level of more than 21%. The bankers’ actions broke businesses, closed farms and destroyed families while parliament looked the other way.

But it wasn’t all bad news. Amidst the shambles of a broken economy, the monetary reform movement again took life; just as it had during the Dirty Thirties.

        Many came to understand the sleight-of-hand that perpetuated usury and debt. They began to see through the black magic of debt creation and the awesome power that banks had hijacked from our elected government.

They also saw the simplicity with which a fiat money system worked to the immense advantage of a few at the expense of millions.

People began demanding honest money.

Organisations like Sovereignty Loans, the Committee for Monetary and Economic Reform, Canadians for Constitutional Money, World Sceptre Challenger and the Canada Party began to carry their message to the people, but were met with a strange phenomenon; MPs weren’t willing to take action. They weren’t even willing to open up the subject of monetary reform to debate.

Individual presentations and delegations were met with indifference, scepticism or even outright hostility. They were told, as if with one voice, that their arguments were worthless and their facts distorted, even when these were backed up by inarguable statistics, irrefutable logic, historical evidence and documentary proof.

One was left wondering how they could all be so unified in their rejection of monetary reform; often using identical phrases to describe their opposition.

Now we know!

The attached exposé proves that parliamentarians were drawing their counter arguments from one source; a Special Report written by a Senior Analyst with the Parliamentary Research Branch of the Library of Parliament, under the title, Money Creation for the Funding of Public Spending.

         The Report, printed in May 1998, was designed as a guide for ill-educated MPs facing awkward’ questions on debt-money creation by a growing number of monetary reformers; some of whom like Paul Hellyer, a former Deputy Prime Minister of Canada and the late Professor Emeritus (Econ.), John Hotson  carried considerable political and academic weight.

            But there is a problem; the Report is full of errors and misleading arguments. It contains such half-truths as "Money is not created by chartered banks...the essential ingredient in the money creation process is always the deposit with the bank..." (p.3); "The money creation process in deposit-taking institutions starts with either capital or a deposit" (p.7) and "All the bank earns is the difference between what it gets on the loan and what it costs to attract the deposit..." (p.8).

No wonder MPs didn't understand the cogent arguments and desperate need for monetary reform.

Not surprisingly, the author of the Report and the Research Branch of the Library of Parliament distanced themselves from the views expressed, affixing the Report with a special note insisting that the contents were Not to be Published.

Now that the document has been leaked via a parliamentary source, we invite you to read it for yourself.

It's our belief that the Canadian public, who paid for the Report with their hard-earned taxes, deserve to know the truth. We are publicly exposing it for what it is; a piece of criminal malfeasance by a public employee now probably enjoying happy retirement at Canadian taxpayers' expense. 

The Scoop