Most people, if they think of monetary policy at all, think that it’s too complicated for “ordinary folk” to understand. It’s not. It really all comes down to two simple, easy-to-understand facts: 1 – If we always create Canada’s money as debt, Canada will always be in debt. The Government of Canada is supposed to create the nation’s money. But it doesn’t. Instead, Ottawa borrows its money from the big chartered banks. The result of doing this for 75 years is the stunning fact that we now owe nearly half a trillion dollars on what was originally only 37 billion dollars of public spending. All the rest is interest on interest! Every year, we pay about $42 billion in interest on only $37 billion of debt. There’s a word for that sort of fiscal policy: stupid! 2 – We cannot ever get out of debt until the government of Canada returns to having the Bank of Canada create Canada’s money supply. Let me repeat: The Government of Canada is supposed to create the nation’s money. But it doesn’t. Instead, the Government of Canada borrows its money from the big chartered banks. Here’s how it works: Every year, the federal government needs more than $200 billion. So Ottawa tells the Bank of Canada to create more than $200 billion worth of Treasury Bills. Treasury Bills (T-Bills) are government bonds: the government borrows the money it needs, when it could create that money. Do you understand that? Our federal government is borrowing the money it needs, when it could create that money itself. The government promises the banks that the taxpayers will repay the loan. The Bank of Canada, which is owned by the people of Canada, sells those Treasury Bills to the banks at a discounted price: the banks buy $200 billion worth of T-Bills, or bonds, for $198 billion. Where do the banks get that money? They make it out of thin air! Then they charge us interest on it. But unlike other bonds, on T-Bills, the interest is paid up front. The banks put $198 billion into the Government of Canada’s bank account, then they sell $200 billion worth of government T-bills, guaranteed by the taxpayers, on the bond market. They’ve made $2 billion just for handling cash they manufactured with only a few strokes on a computer keyboard. The result is rich banks, and a government that is perpetually in debt. Is that hard to understand? No! Does it make sense? No! Of the nation’s 18 registered political parties, only two—CHP Canada and the Canadian Action Party—even mention this problem. All the rest, including both Liberals and Conservatives, are willing to continue renting Canada’s money from the big banks. Of the nation’s 18 registered political parties, only one—CHP Canada—is pro-life, pro-family—and promotes sound, government-created money.