Ellen Brown: Imposing austerity on Canadians could have been avoided

”Why are governments paying private financiers to generate credit they could be issuing themselves, interest-free?”

Between 1939 and 1974, the government actually did borrow from its own central bank.  That made its debt effectively interest-free, since the government owned the bank and got the benefit of the interest.”

The difference is simply that a publicly-owned bank returns the interest to the government and the community, while a privately-owned bank siphons the interest into its capital account, to be re-invested at further interest, progressively drawing money out of the productive economy.”     
Ellen Brown

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