The Reserve Requirement for Canadian Banks
I’m not here to write about the crooked banking system the bottom line from how I see it is the world has never seen this type of prosperity before this long by this many nations. The fact that a country like China is booming right now tells you that Fiat currency and capitalism work great together. That being said Canadians and Americans should be aware of how their banking system works so they’re prepared in the event of a financial meltdown.
The Reserve Requirement for Canadian Banks is 0% Meaning Canadian banks can lend out as much money as they please based on the current Canadian laws governing them. Canadian Banks do not need to back the money they lend with anything. However as proven by Jim Flaherty’s decision to intervene in mortgage war which can be found here:
http://www.theglobeandmail.com/report-on-business/economy/housing/flahertys-decision-to-intervene-in-mortgage-war-raises-questions/article9949201/
The Canadian Government does have strong influence on how money is handled in Canada
In the past money was backed by Gold but this system was removed because barter is too slow and it stunts economic growth. When money is back by anything but a promise to pay the world as we know it will slow down drastically because the world economy will be based solely on the markets. Some people believe that a market based system is better than our current system.
I would agree with this statement if we didn’t have Countries if a Countries Money supply is controlled by something like Gold. Most welfare programs would most certainly cease to exist. some of you say ending welfare programs is a great idea well history hasn’t proven this to be the case when majority of the people don’t have food, some sense of security or shelter history has proven that the people will turn on their government
Canadian Banks can print as much money as the Canadian Government allows them too!
With a fiat monetary system in place the governments main concern is putting people to work so they can earn income to take care of themselves. The problem I think our world faces right now is excessive welfare programs in the developed world we are training our youth that some jobs aren’t cool, we are training people that it makes more sense to be on welfare than it does to work a minimum wage job. Also we’re not teaching people about how to create money or create profitable business.
Our current economy because of our fiat monetary system is based primarily on Innovation and our ability to sell. Ipads for example I personally think these things are useless in many ways however Apple has sold this to people to the point mainly people feel like they can’t live without them. Many people living in third world nations many who can’t afford their own homes have smart phones. Luxuries like this would not exist without a fiat monetary system.
I’m not here to say that our banking system is right or wrong what I’m saying is if our monetary system bothers you consider purchasing Gold or Silver. When I say purchase Gold or silver I’m not talking about Gold and silver stocks I mean purchase the physical stuff the coins the bars etc. I’m always amazed how conspiracy theorists spend some much time talking about what’s wrong instead of selling people people what they believe is right that’s why I’m not a fan of conspiracy theorists.
This information about fiat money has long been available for people to read and learn about for themselves. But people aren’t interested in learning about it because they see the prosperity stories of poor people becoming rich overnight in a variety of ways this stuff really does happen and it happens much more frequently now than it did in the past. I’m a believer of minding your own business I know some of you feel it’s you’re duty to educate people about money but truth be told the last thing the everyday person wants to spend time doing is talking about money and how it works!!!