Have You Looked at Your Grocery Bills Lately?
You’re in the grocery store and notice that the packaging for various products such as cookies, canned goods and frozen items is getting smaller and smaller. You also notice that the prices for most items have increased since the last time you shopped. Why is that?
In the 1970s, a person could walk into a convenience store and purchase a bottle of soda pop and a bag of potato chips for twenty-five cents. Today, one would pay about $3.00 for these same items. That is an increase of over 1,200 percent! Did the potatoes and other materials needed to make these products actually go up this astounding amount?
No, actually, we are experiencing the hidden tax called “inflation”. What causes inflation? A flawed monetary system that enriches the private banks and impoverishes the people with horrendous debt and, as we noted, staggering inflation!
So, how does our monetary system affect you and your wallet?
Simply put, our federal governments, since the Pierre E. Trudeau era, have colluded with the private banks and permitted the private banks, rather than the Bank of Canada, to create our currency. As a result, almost all of our currency is put into circulation as “debt”, as the private banks purchase bond issues from the government of Canada, which means we Canadians have to repay the “principal” on the bonds plus “compounding interest”. Is it any wonder our national debt is approaching a staggering $1 trillion?
What will irk you even more is that the private banks create our currency out of nothing. It is all digital money with nothing backing it. They call it “fiat” money and it is based upon the principle of fractional-reserve lending, where banks are permitted to loan out a fraction of what they have just created out of nothing. For example, if the bank made a loan for a mortgage for $100,000 and the fractional reserve rate set by the government is 10%, the bank can make a new loan to someone else for $90,000. If one carries this formula through, the bank enjoys a “multiplier effect” of about nine times the original loan, while collecting interest on each level of loan!
Even more frightening is what happens when the government via the private banks puts more money into circulation via this methodology: it dilutes the value of the currency already in existence!
Let’s say you are having a dinner party for ten people but 100 people show up instead. You have made a delicious soup to feed your 10 guests but in order to accommodate 100 people, you have to add a significant amount of water, thus diluting the soup to the point where it is almost tasteless. The same effect occurs to our currency when more currency is created.
Thus, the purchasing power of our dollar actually decreases when more currency is put into circulation, which is this hidden tax we mentioned earlier called “inflation”. That is why products go up in price. Our dollar is able to buy fewer and fewer of the materials needed to make the product for which they were intended.
That is why we encourage all Canadians to become advocates of monetary reform. If we do not want our children and their children to be left with a massive national debt to pay off (all unnecessary if the Bank of Canada were to fulfill its mandate to create our currency debt free) and inflation that makes it impossible for them to afford to buy a home, then we need to speak up and support individuals and organizations that understand this cause and advocate change.
Here are a few sources to get you started on your journey to become a monetary reform advocate:
COMER versus The Bank of Canada
Press for Truth – COMER versus The Bank of Canada
The Canadian Action Party
The only political party of which we are aware that advocates monetary reform
12-year old Victoria Grant speaks out against our corrupt monetary system
The Crime of the Canadian Banking System – Bill Abram
What’s Your Cloud News Site
Image source: Wikipedia