<quote> New Money – Both chartered banks and the BOC have a legal right to print new money without specific reason. The BOC has held the ability to print new money since its inception; however, chartered banks did not always have this right. Prior to the leadership of Canada’s 18th Prime Minister, Brian Mulroney, from 1984 to 1993, all banks in Canada were required to maintain at least an 8% reserve. This allowed the banks to lend out the same money approximately 12 times over. Mulroney dropped the required reserve rate to 0%. Thus, banks are able to lend out any amount of money, whether they have something in the way of reserves to back it or not. Though the BOC (Bank of Canada) is the only institution that can literally print money, chartered banks can create money by entering it into a ledger when they issue a loan. <end quote>
********************************** My Comment ****************************************
When the bank loans you money for a personal loan, it doesn’t have to have any reserve money of its own. When a bank lends you money for a Mortgage, it also doesn’t have any money. BUT… when you default on your payment, the bank can foreclose and take your home. thereby gaining your assets (theft). It can also turn around and sell it and make hundreds of thousands of dollars, all…. without investing a single dime… The same thing goes for any item you purchase on credit or any loan.
When you default on a personal loan. the banks don’t lose any money and after a while, they sell your loan to a collection agency for $.10 on the $1.00, who in turn try to go after you for the full amount… Credit cards companies don’t lose money if a person defaults on their payments as they are just a transfer agency. The Banks own the cards and charge 18% + interest, and again, they don’t have to have any money to back the money they use to pay your debts.
The banking system, and I’m not just talking Canadian, I mean any banking system is parasitic in nature, it produces money from nothing and only takes hard earned money from those who toil to earn a living. Politicians know this and are in on the scam as are big business and wealthy individuals, and don’t forget religious organizations.
Food for thought, or not. – Shenreed.