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(7) Of Candidates and Negative Campaigning To read Dr. Tremblay's new book The
Code for Global Ethics and to order
the book, click on: Canada
et Europe (en français) Also, read: The
New American Empire New
Why is the
Government Not Borrowing from the Central Bank?
Posted,
Monday, January 23, 2012 2:49 pm
I am currently working on a paper on the federal public debt. As a
result of my research, indications are that the (Canadian) government, up
until around 1974, appeared to borrow up to half of their shortfall
requirements from the Bank of Canada. Apparently, since the profit on money
creation was so high, most of the government interest payments came back as
dividends from the Bank of Canada, effectively amounting to a minute cost of
borrowing. After around 1974, the government appears to have changed its
borrowing policy and apparently began borrowing from the private sector,
paying the then current interest rate with no dividend returns. After over
100 years, the accumulated federal debt by 1974 was only about $22.5 billion,
despite having dealt with two world wars, a depression, and the instigation
of many social benefits such as Universal Health Care. Sometime in the
mid-1970s, however, the debt began to skyrocket to where it is today at
around $578 billion and climbing (see figure below from Table 385-0010, Stats
Canada). It is my understanding that much of that now huge debt is essentially
accumulated interest on interest. I would appreciate it if you could help me by answering the
following questions or perhaps guide me to where I might find the answers:
. Obviously, the graph
suggests that some change in government policy occurred around the mid-1970s.
Can you tell me what change occurred to cause the debt to change from
essentially linear growth over a 100+ year period to exponential growth
virtually overnight?
. It appears from what I could
ascertain from my research that the government began to borrow all its
shortfall from the private sector rather than continuing to borrow a
significant portion from the Bank of Canada at much lower costs. If this was
the case, can you explain the reasons for this obvious change in policy?
. Were there pressures from
the private sector, the IMF, or the World Bank? Others?
. It is difficult to
understand any MP voting to allow tax dollars to go to the Private Sector
when they had a mechanism by which they could instead continue to go towards
public goods such as health care or infrastructure maintenance for the
benefit of all Canadians. Were there reasons given by the government of the
day for the apparent change in policy?
0. Would such a policy change
be simply a decision made by the Minister of Finance or would Parliament have
to be involved? In either case, where would I most likely find the background
information to such a policy change? Neil ______________ Answer by R.
T.: I am
presently traveling, and can only give you a few answers to your numerous
questions. Generally,
the ratio of public debt to gross domestic product (GDP) is equal to the
yearly government deficit as a percentage of GDP divided by the percentage
nominal growth of GDP multiplied by 100. For example, if the % of deficit to
GDP is 4% and the nominal growth rate of GDP is 4%, then, over time, the
public debt will equal 100% of
GDP. The decision
to borrow from the central bank (i.e. print money) or to borrow savings from the economy depends on the
expected rate of inflation and on how the Canadian dollar is behaving on the
currency markets. If there are
deflationary pressures in the economy and if the Canadian dollar is somewhat
strong, the central bank can lend to the government with no fear of
inflation. However, if inflation expectations are high or if there are price
bubbles in the economy and/or if the Canadian dollar is weak, such
inflationary financing of the government deficit could accelerate the
inflation rate, leading to fast inflation and even hyperinflation as some
countries like Germany have experienced it in the past (1922-23) and as a
country like Zimbabwe experiences it today. In 1974, the
world and the Canadian economy were in the middle of the first oil shock and
wages and prices were exploding after the international price of oil quadrupled.
Some wage and price controls were introduced in Canada, a throw-back to the
war period during which price controls and rationing of goods were
instituted. I would like
to think that inflationary financing became impossible around 1974 and only
borrowing savings from the rest of the economy or from abroad was open to the
government of the day. The minister
of Finance and the cabinet make that kind of decisions, in consultation with
the Bank of Canada. Therefore,
you are right. There is a mechanism to sometimes finance government deficits
with newly printed dollars. This mechanism usually is too dangerous in normal
times. That's why the government dissaving has to be matched with borrowed
savings from the private economy. New
Inverted
Totalitarianism
Posted,
Monday, January 23, 2012, 6:40 pm
You
thoughts and perspectives are always welcomed. Considering
your recent article entitled "Of Candidates and Negative
Campaigning", I thought you may be interested in this article
that originally dates back from 2003. I thought that you would find it
interesting. Our southern neighbours need to wake up to the propaganda
machine if democracy is to survive. JP New
Street War!
Posted,
Monday, January 16, 2012 3:03 am
Hereditary kings and queens were stripped of power; constitutions
and democracy introduced, only to be hijacked by today's rogue elite,
starting in December 1913 big time, with their control of the Fed,
sending 18-25 year olds to their deaths in their rigged/illegal
wars, where deserters are shot in 1913 while deserters will get
heavy jail sentences today. Today's 16-25 year olds see right through this monstrous scam and when
they go to war on the streets in the USA, in Canada and in the EU27,
they know they are doing this for themselves, to claw back what they no
longer have, being a future under the rogue elite and they will win this
street war and rid society of this rogue elite, but not without many casualties
and they know that too. Today's part
hereditary G6 rogue elite is no different from the hereditary rogue
elite in North Korea, just a little bit more polished and visually cunning,
hiring politicians to do their dirty work and staying totally out of the
limelight themselves. J.
N. ________________________ Answer
by R. T.: Yours
is a nice and truthful comment. Indeed,
after thirty years of “trickle down” economic politics, we are
back to the “Robber Barons” era of the 1890s. New
Torture in
Brasil
Posted,
Monday, January 16, 2012, 8:17 am
I would like you to look at this beautiful photo. A
travessia de Dilma da tortura à vitória It is the current president of Brasil (Dilma Roussef) in her 21
or 22 years, and facing a military dictatorship interrogation –after
days of torture- back in 1970 in Rio de Janeiro, Brasil. The photo remained at a limbo- was made public only less
than two months ago and is meaningful. Look at the attitude of the army
officers (at interrogation). Indeed a long way, but people show who they are. SDS ___________ Answer by R.
T.: I
can imagine how the military treated her. Bullies with guns are the same all
over the world! Nouveau
L'argent
domine la politique aux Etats-Unis!
Affiché,
le samedi 14 janvier 2012, 5:55 pm
Merci
pour l'excellent article (comme toujours) du Dr. Tremblay. On
ne peut qu'être d'accord avec la conclusion à l'effet que
l'argent joue un rôle prédominant dans la politique
américaine. C'est très déplorable car c'est
l'idée de démocratie elle-même qui en est
sérieusement ébranlée sinon anéantie. De plus,
il est tout à fait pernicieux de faire des campagnes de
publicité négative; cela dévie l'attention des vrais
enjeux (entre autres choses). René ________________ Réponse
de R. T.: La raison
pour laquelle je me préoccupe de ce qui se passe dans la politique
américaine est dû au fait que leurs tactiques nous arrivent
tôt ou tard au Canada (plus le fait que j'ai deux livres qui se vendent
aux États-Unis). En fait, les conservateurs de Stephen Harper ont
engagé une firme de relations publiques de Chicago pour diriger leur
campagne négative lors des élections du 2 mai dernier. Ce n'est
qu'un début. Depuis que les conservateurs de Harper ont aboli le
financement public des partis politiques, les grosses contributions
privées font prendre le haut du pavé lors des prochaines
élections. New
The Problems
of our Democracies
Posted,
Friday, January 13, 2012, 11:52 am
A talk radio host summarized Americans as being naive and Canadians as
hyper-delusional. Like you I am a Canadian but that characterization
resonates with me. Election debates are carefully correographed and orchestrated by a
controlled media. This year just like every the beginning of every
election there is a field of globalist candidates for the electorate to
select from. The true agenda of each is essentially the same. In other words
on significant issues candidates cannot be differentiated. Show me one,
other than Ron Paul that does not want war with Iran. Each
candidate fields carefully sanitized questions from a debate
moderator covering esoteric issues that are not relevant to the
welfare and future of Americans or their nation. The debates, rarely
need to circumvent significant issues as they are shielded from
investigative reporters who might dare ask penetrating
questions. Even in public forums, your question must be vetted before
you are allowed to ask it. For example questions about issues like the
following are never asked: - abolition of the central banking cartel ie. the Federal Reserve, and
fractional reserve lending and fiat based currency. - The Deficit - election campaign funding and reform - Investigations into corruption and ratings frauds, mortgage fraud,
bank bailouts to cover derivatives speculation, flash trading and Indictments
against the perpetrators. They can't even indict John Corzine. - GATT and WTO and how to restore a level playing field in global
trade. - Restoring Glass Steagle, regulating derivatives and hedge funds.
Removing the revolving doors between Wall Street, regulatory bodies and the
Treasury. Abolition of the revolving doors between big pharma, GMO food producers
and the FDA. - An outcomes based educational system designed to dumb down the
general population. Instead we couch the reality in flowery, feel good
language like "no child left behind". - Wars and how to get out of them. - The use of D/U weapons and how this is affecting our troops and
environments of areas where they are used - How to restore a shredded Constitution - Breaking up the media cartel and restoring journalism to the status
of the 4th estate. - What about the amnesty program both parties want that nobody talks
about. - What are they spraying in the atmosphere and why? Why do
corporations like BP and banks get special treatment. - Expose the global warming scam and the fraud that carbon taxes,
payable to bankers represents. - Real Unemployment and how to create long term jobs in the US. People that try to inject real issues into the campaign,
like Ron Paul get marginalized. Having said this, the issues that we are constantly exposed to
are: -fighting terror and keeping America safe without admitting
that the southern border is wide open. - abortion - patriotism and fuzzy rhetoric about what a great nation America
is when all but Ron Paul support the destruction of America. Candidates are unwilling to debate substantive issues, so
the debates eventually devolve into personal attacks, since their
backgrounds is the only differentiating factor. . Both parties are controlled by the "same powers to
be" at the upper levels. Candidates, unless they are ultra rich, depend
on the "Powers to be" for financing. Apart from Romney and Ron
Paul, all candidates have skeletons in their closets, so that they can be
blackmailed and controlled if they step out of line. Just as the Mafia
requires would be members to pull a heist or assassinate an enemy as an
initiation ritual to ensure loyalty, the PTB are not much different. The
"PTB" would be delighted to have Obama, Perry or Gingrich as
President but not Romney because he has no "baggage", hence a
missing element of control. The PTB are also aware that the public has been
dumbed down, passified and programmed through television, fluoridated
water, GMO foods, vaccines, and a deterioriating educational system. The
population is hooked on debt and are on a economic treadmill, just treading
water. They are focused on paying bills, worried about job security and
terrorists and deceived into believing what they are told on the nightly
news. Their escape is the television set. They want to escape reality for a
few hours and be entertained by the plasma screen. They want to laugh. They
do not want to be educated. They prefer mindless personal attacks on
candidates as opposed to an intellectual discussion of substantitive issues.
This is the entertainment the masses crave. People today, cannot read literature. They have been trained to think
in 30 second sound bytes. Their attention span is extremely limited. Critical
thinking is handled by the media. People love to watch shows like "Jerry
Springer, American Idol, Judge Judy etc." all showing people at their lowest
common denominator. People have been conditioned to be entertained by
showing humanity at it's lowest level. It makes them feel superior in the
process. Politics too, is just another variant of this type of entertainment. I
could not waste an hour of my life watching these debates because I learn
nothing about the real issues , nor do I learn anything about
the integrity, honesty or real character of any of the candidates. Besides, I
am not interested in having the networks dispense their biased opinions of
how well each candidate did. Personally, the election process is a sad testament to how pathetic,
and self centered humanity has become. If it is not on the news it is
not credible.They have no interest or the time to research the reality that
is presented to them. The media is complicit in the creation of this false
reality designed to deceive humanity. They are complicit as much by what they
report as by what they do not report. Candidates too
by avoiding real issues. I believe that this election will likely be won by Obama. Why? Because
the PTB support but do not trust Romney and would prefer another candidate in
spite of Romney's efforts to please them. Perry fumbled, and it is
doubtful he will recover. Newt is a globalist favorite. He supports carbon
taxes, open borders, loss of sovereignty and all the globalist
agenda although you have to buy his books to find this
out. His character is tainted and flawed, and he is a slick talker. He
is the ideal candidate for them; smoothe and corruptable. The big chink in Romney's armour is his Mormon Religion. In the
south it is a big issue amongst the Christian fundamentalists. This could be
his undoing and will most definitely be a liability going into the nomination
process and certainly the election. If he gets the nomination, his religion
will be used against him going into the election. This can only
work for the benefit of the man nobody knows anything about, Obama. The mentality of the American people is reflected in the people they
elect. A pro abortion Nancy Pelosi claims she is doing the work of Jesus. She
is the one who coined the phrase "lets pass the bill so we can find out
what's in it." Lloyd Blankfein, head of Goldman Sachs said at the height
of the crisis " Goldman Sachs is doing god's work". This is the
same institution, that created the flash trading program that it claimed
could result in market fraud if it fell into the wrong hands. The whole system is so flawed Dr. Tremblay. On one hand you have a
naive public who attributes the same standards and principles that they
live by to their leaders. This same public relies on a corrupt and deceptive
media to provide them with accurate and factual information so that
they can make informed decisions to help guide their lives. A gullible
public is willing to take their leaders and media at face value. When
they realize that they have been lied to and duped they are willing to extend
a second opportunity to them. They want media stories to be short and simple. The media and leaders know very well the limitations of the
population. Important but damaging pieces of legislation which, by law, must
be conveyed to the public can only be found in weekend papers when
nobody is paying attention or buried at the bottom of page 21. This is an old
game. The Federal Reserve Act was passed at christmas in 1913 when most
legislators were home for holidays. The PTB have modelled human behaviour for decades and can predict
exactly how the population will react to events. Airport scanners are there
not for security but to condition the population to accept orders from
authority figures. People do not realize that the majority of politicans are sociopaths
at best and psychopaths at worst and could care less about the public
interest. Tell me which candidate inspires you as a great leader? Obama's
policies are simply an extension of the George Bush agenda. As I indicated
both parties have the same management. It is like the difference between
Pepsi and Coke. When asked to re-open the investigation into 9/11 Obama
refused saying we have move ahead. When asked to investigate Bush for
unlawful torture and war crimes he continued. The biggest joke of all is
Obama getting the peace prize. The PTB have through mind control created the public psychology we
witness today. The public will continue to be entertained througout the
campaign and will elect a new president who will continue the same policies. This time though with rising unemployment and inflation people will
finally get it a year into the next adminstration. The will finally realize
that they are living in a fascist state and they will get angry. Today they
sense something is wrong but in mid 2013 their resentment will turn to anger
but the legislation to drop the hammer on the public, like the National
Defence Authorization Act and SOPA legislation to control the internet will
be long in place; ready and waiting. If you have not already seen this
video I encourage you to watch it. You may not agree but I am sure you will find it thought provoking. When
the public realizes that they need a leader, the leader will appear. The
public has not reached that point of desperation yet. Rick, ________________ Answer by R.
T. Indeed, it's
hard not to conclude that our political systems are flawed. Mind you, you
must remember that, in Canada, Stephen Harper's Conservatives (under the
advice of a Chicago public relations firm) have adopted the American type
“gotcha politics” during the May 2, 2011 election. I think that
things will get much worse as negative campaigning is bound to increase in
the future with billionaires controlling most of everything in our supposed
“democracy”. New
Who Counts
the Votes?
Posted,
Thursday, January 12, 2012, 3:43 pm
This
is a good article, but in addition to the last sentence that "The money
is decisive factor in American politics " which is true, but in this
campaign cycle there are other factors-The Deybolt machines which can be
programmed for favorite results (as Stalin said "It is important who
counts the votes.) Also a media bias & manipulations during debates &
exposure of candidates to the public! On the Canadian network CBC, you rarely
hear about Ron Paul as on lots of American stations. Ludvik The
New American Empire (Amazon.com) |