Judgement to be delivered on Bank of Canada funding of debt rather than Chartered Banks.
For Immediate Release December 9, 2013
Toronto, Ontario – The COMMITTEE FOR MONETARY AND ECONOMIC REFORM argues that our publicly owned Bank of Canada, which from its establishment in 1935 enabled the federal government to borrow money in huge quantities essentially interest-free, and to make such funds available not only for its own use, but also for provincial and municipal expenditures. should return to this practice which until about 1975 played a key role in creating Canada’s post-war prosperity and in making possible its social programs.
Changes from the original mandate of the Bank of Canada to borrowing at interest from financial institutions have rapidly since then increased debts of governments at all levels, and served as an alibi for implementing major cuts to social programs.
Believing Canadians now urgently need a renaissance of these powers of our Bank of Canada COMER has called on our federal government to revive the powers of the Bank of Canada to provide funding to all levels of government in Canada, largely with interest-free loans.
COMER‚ launched a claim against the Bank of Canada and Minister of Finance that they have failed in their responsibility by not using these powers.
In August the Federal Court decided as follows: 1. That the Plaintiffs have standing to bring the claim; 2. That the Court has jurisdiction to hear the case; 3. That Declaratory Relief is obtainable in such cases.
The Court also found that the Court essentially does not have the expertise, or is incapable, at the end of the day, to come to a judicial determination of the issue because it is beyond the scope of what a Court does.
This decision has been appealed by COMER as detailed at http://www.comer.org/content/COMER_CourtProceedings5Dec2012.pdf .
On Tuesday, December 10, 2013, the Appeal on a Motion to Strike by the Committee On Monetary and Economic Reform (COMER) will be heard at the Federal Court, 180 Queen Street West, Toronto, 4th Floor. The Hearing will start at 9:30 am and continue throughout the day. COMER’s lawyer, Rocco Galati, recommends that those who are interested be there by 9:00 am.
The Harper Government is fighting tooth and nail to prevent COMER from challenging federal government misuse of the Bank of Canada. Instead of financing public debt (e.g. for infrastructure development ) by selling bonds to the Bank of Canada (which returns interest charges to the government) it issues debt bonds to private financial interests, paying interest to the financiers. This has been going on for nearly 40 years; interest charges for 2012-13 amounted to $29.2 billions while the debt grows with each deficit and is never repaid. It is a monumental scam and the taxpayers foot the bill.
For more information contact:
Rocco Galati Law Firm,
637 College St., Suite 203,
604 Aylmer Crescent,