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Rocco Galati challenges Bank of Canada to offer interest-free loans
Key Excerpts from Article on Website of CBC (Canada's public broadcasting system)
Posted: January 10th, 2016
http://www.cbc.ca/news/business/rocco-galati-challenges-bank...
Rocco Galati has taken on a case for a group called the Committee for Monetary and Economic Reform, or COMER, which wants the central bank to return to the practice of lending federal and provincial governments interest-free money for infrastructure. "They felt it was important in the face of the financial sector meltdown in 2008, the banking meltdown, and the drastic reduction and elimination of human capital infrastructure such as health care, universities and basically the stuff that the Bank of Canada from 1938 to 1974 funded," Galati, [a Toronto lawyer], said. The Bank of Canada was set up in 1935 in the wake of the Great Depression to provide a means for settling international accounts and to provide interest-free loans to government to finance infrastructure investments. But in 1974, the central bank stopped providing interest-free loans to government so it could join the Bank for International Settlements, a kind of central bank of central banks. Galati argues that from then on private banks became government's lender, contravening the act that established the central bank. He has launched legal action, beginning in 2011, to rule on the constitutionality of the central bank's current role. His argument is that private banks are dictating the terms of Canadian debt, usurping the role of the Bank of Canada. "My hope is that the court declare that the government is bound by the legislation and cannot simply hand over that decision-making to foreign private bankers," Galati said.
Note: Don't miss the excellent video on this case at the link above. For more along these lines, see concise summaries of deeply revealing news articles about corruption in government and in the financial industry.
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