Page 26 - HQ May June July 2020

u even make surpluses by downloading its deficit onto Government having spent only $37 billion (8.75% The COVID-19 pandemic: when
provinces and municipalities, forcing them to increase of the debt) for actual goods and services.)
their own provincial debts accordingly. Yet the tactic Fortuantely, more and more people understand
has not prevented the increase of the overall debt. this fraudulent scheme of creating money as a debt. confidence reaches its lowest level
When Canada was founded in 1867 (the union example, Mr. Gilbert Vik of Cathlamet, Washington,
of four provinces — Ontario, Quebec, New Bruns- wrote a few years ago, this very interesting letter:
wick, and Nova Scotia), the country’s debt was $93 “For every person in our country, there is
million. The first major increase took place during $20,000 of money in existence. Sounds good! But
World War I (1914-18), when Canada’s public debt there is $64,000 of debt! Apply your $20,000 to the
went up from $483 million in 1913 to $3 billion in debt, and that money will cease to exist, leaving
1920. The second major increase took place dur- you without any money and $44,000 of debt. Your
ing World War II (1939-45), when the debt went up options are to forfeit your assets or borrow more
from $4 billion in 1942 to $13 billion in 1947. These money to attempt to pay. You cannot borrow your-
two increases may be explained by the fact that the self out of debt!
Government had to borrow large sums of money in
“Since the method of money creation is itself
order to take part in these two wars. the cause of the ever-increasing debt, it is not pos-
But how can be explained the phenomenal in- sible to correct the problem using any method that
crease of these last years, when the debt almost in- deals with money after it has been created.
creased ten times, passing from $24 billion in 1975
to $224 billion in 1986, in peacetime (then $671 bil- “Working harder will not correct it. Working
lion in 2018), when Canada had no need to borrow longer hours will not correct it. Having a job for
for war? It is the effect of compound interest, like everyone in the family will not correct it. Neither
in the example of the island in The Money Myth Ex- raising nor lowering wages will correct it. Full em-
ploded. ployment will not correct it. Less spending will not
Debts of federal governments represent huge correct it. More spending will not correct it. (And
sums, but they are only the peak of the iceberg: If the list goes on...)
there are public debts, there are also private debts! “The only thing that will correct it is the one
The Federal Government is the biggest single bor- thing that is sacrosanct in the media, in education,
rower, but not the only borrower in the country: in politics, and, yes, even in our social circles. The
there are also individuals and companies. In the only thing that will correct it is to strip private com-
United States, in 1992, the public debt was $4 tril- panies (banks) of their power to create money as
lion, and the total debt was $16 trillion, with an debt at interest, and to adopt a method of money
existing money supply of only $950 billion. In 2020, creation whereby the United States Treasury cre-
the debt of the U.S. government reached $25 tril- ates money as credit!
lion, which gives you some idea of what the total “This issue is the key issue to the financial
debt is... future of our nation and world! This chicanery is
In his November 1993 report, Canada’s Auditor practiced throughout the world! We must turn an
General calculated that of the $423 billion in net entrenched, centuries old financial establishment
debt accumulated from Confederation to 1992, only on its ear! Read about it. Study it. Understand it.
$37 billion went to make up the shortfall in program Talk about it. Then raise some hell!” The best way
spending. The remaining $386 billion covered what to do all that is to get people around you to sub-
it has cost to borrow that $37 billion. In other words, scribe to MICHAEL!
91% of the debt consisted of interest charges, the Alain Pilote

We hope to offer a Study Session on Economic Democracy
In Light of the Social Doctrine of the Church in Rougemont, Can-
ada beginning September 20 until September 26. The Annual
Congress will follow September 27 until September 29 and the
Siege of Jericho, a time of prayer, from October 1 to October
3. Please contact us in advance to register and to ensure this
schedule has not changed. There is no cost to attend.
The monthly meetings in Rougemont, Canada have been
cancelled since March 2020 due to government restrictions
on assembly. These regularly scheduled meetings will resume
when allowed. Please contact us to confirm.

26 MICHAEL May/June/July 2020 www.michaeljournal.org