Thursday, December 9, 2010

The Fed Bailed Out Canadian Banks

I've always maintained – without a shred of proof – that Canadian banks would be on a secret Fed-bailout list. I found it hard to fathom that our financial system was somehow immune to the recession. I know Flaherty bought some bad mortgages, but was that it?

Apparently not.

A week ago the Federal Reserve released a list of international banks that “tapped” into US funds. Who's on that list? The Bank of Nova Scotia, the Bank of Montreal and the Royal Bank of Canada to name a few.

I wonder what the Bank of Canada's role was in this, if any. A lot of the Canadian anti-government activists I've met point that the Bank of Canada can issue loans interest free. They point out that the State can print fiat money by means of further nationalizing the Bank of Canada. The State can restrict private banks from practicing fractional reserve banking while spending all it wants on public works programs. Am I the only one that sees a problem with this?

The answer should be obvious,

End the BoC.

Legalize free banking.

...and dismantle Parliament too.

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