3.4 trillion dollars in overdraft loans: Positions of members of Payments Canada (commercial banks)
Large Value Transfer System (LVTS):
https://progressivemoney.ca/our-central-bank, scroll down to the link for Payments Canada and follow the instructions.
Government Bond Purchasing Program (GBPP):
Bank of Canada balance sheet:
The Bank of Canada continues to provide funding for the following programs the Provincial Money Market Purchase program (PMMP), Contingent Term Repo Facility (CTRF), Bankers’ Acceptance Purchase Facility (BAPF), Standing Term Liquidity Facility (STLF). 261 billion dollars have been created so far, is it necessarily a bad thing? Given our current banking and financial system, I don’t think so.
The Bank of Canada’s responsibilities could be expanded to include direct funding of programs beneficial to the general public which would be consistent with its present mandate to promote the economic and financial welfare of Canada. Austerity is not an option!
I just checked the BoC website and they have resumed publishing the weekly and monthly series balance sheets again but they do warn that there may be delays in posted certain data submissions. I am keeping track of all the BoC funding and operations for future reference. Using the current weekly series and comparing it to when the first expansion of the balance sheet (let’s call it what it is, money creation) started which was around March 18, 2020, they have created over 195 billion digital dollars. You would think this would be a huge story, however, the press just like the majority of the public do not understand how the money creation process works or who it benefits. I am not a conspiracy theorist but based on my own experience when researching or directly asking questions to authorities about how the money creation process works there seems to be reluctance on their part to acknowledge the reality of it.
Bank of Canada link to its balance sheets:
Money creation by the Bank of Canada to purchase securities and provide loans to commercial banks. April 9th update: https://progressivemoney.ca/videos-an...
Another round of QE: https://progressivemoney.ca/another-r...
New ways of doing business: https://progressivemoney.ca/how-can-w...
UK central bank becomes first in the world to adopt direct monetary financing to fund government spending during the coronavirus crisis. This move demonstrates once and for all that the government need not depend on private markets to finance its spending.
The summary document below includes the main points covered in the meeting with the Selkirk economics staff. It also includes excerpts from the textbook fallacies page.
Gathering local support and attending IMMR conference in Copenhagen in the month of March.
The first hurdle to overcome is to dispel common myths about where money comes from. For example, most people think when acquiring loans from banks, the banks simply lend out deposits from other customers that are not currently using that money or other assets that they hold. Would you agree with that assumption? Yes, continue, No, where do you think the money comes from?
It’s funny, actually one of the best arguments against this popular misconception is anecdotal. For example, in your own experience has your savings account suddenly dropped $1000 and you went to the bank and asked why this happened? And they responded by saying, “Oh we didn’t think you needed that money right now so we lent it out”, have you ever heard of that happening to a family member or a friend? If no, where does that money come from? (We are strictly talking about savings or demand deposit accounts, not investment or pooled funds accounts)
Before I go further I am going to preface what I am going to say with a quote by a Canadian born economist named John Kenneth Galbraith, “The process by which banks create money is so simple that the mind is repelled”.
This is how it works. When you walk into a bank looking to acquire a loan and the loans officer is satisfied you are a good credit risk, meaning that it is likely that you will pay it back. That loans officer simply types that digital money into existence! That money does not come from anywhere; it is brand new digital money!
Ok, so that is how money is created what’s the problem? The problem is that this extraordinary privilege has been given to privately owned commercial banks by our federal government. Banks are just like any other business and are profit motivated which means all other considerations are secondary. For example, the environment, healthcare, and education just to name a few.
We as a people need to take more control of where money flows.
A Royal Commission or a general inquiry should be convened to expose the existing weaknesses in the current monetary system and move to a more stable and fair system for the many, not just the few.
How Money Creation is tied to our National Debt: All the data presented in this video can be accessed on the documents page. Also, the text has been highlighted in areas for ease of reference.
An important piece of information missing from the speech was that prior to July of 1994 there were reserve requirements meaning that commercial banks were required to hold a certain percentage of reserves relative to the amount of liability deposits which is consistent with the money multiplier model in the textbook. However, empirical research initiated by Basil Moore (Moore 1979, 1983, 1988a, 1997, 2001) and later independently corroborated by numerous researchers, including Kydland and Prescott (1990) discovered that banks extend credit first and then go looking for reserves later, exactly opposite to what is suggested in the textbooks.