Rocco Galati challenges Bank of Canada to offer interest-free loans

[Herbert]

If a moderator knows how to make this non - You Tube video play live on the forum please do so.

I encourage ever Canadian to listen to this 20 minute video. You will learn a lot about Canada and the Bank of Canada. Canada is the only country in the world with a PUBLIC central bank. Every other country has a PRIVATE central bank. It makes no sense that our governments should be paying interest set by foreign banks, for infrastructure money. It is, in fact, illegal.

Pierre Trudeau implemented this mistake in 1974 under pressure ( some say he was blackmailed). The result was inflation and a lower standard of living for Canadians. The government argues the reverse but time has proven them blatantly wrong.

When asked why more lawyers have not taken up cases to protect the people from acts of government, his reply was 3-fold.

1) All lawyers have a dream of being appointed to the Supreme Court of Canada. His actions have let him out for such consideration.

2) Most lawyers have not been properly educated in minding the integrity of governments; keeping parliament within the limits of its power. He has made over 100 applications to teach law in Canadian universities and never been called for an interview.

3) No one gets rich bringing law suits to protect the people from government. He is out of pocket in the thousands of dollars when he defends poor people.

http://www.cbc.ca/player/play/2666703251/



http://www.cbc.ca/news/business/rocc...offer-interest...

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 [under Pierre Trudeau] 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.



His clients have been dismissed as conspiracy theorists, but Galati argues the law is there to support their case.

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.

History of infrastructure funding

Projects like the St. Lawrence Seaway and the Trans-Canada highway were funded in this way, and the central bank also underwrote Canada's Second World War effort as well as the building of hospitals and universities.

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.

Is government bound by original act?

"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.

"What the government then does is up to the government, but they can't simply arbitrarily say 'no never again' when the law is there and the history of the reason for creating the Bank of Canada is there."

The Committee for Monetary and Economic Reform takes the view that having the Bank of Canada provide funding would eliminate interest payments on the national debt — a huge burden for the Canadian taxpayer.

Galati agrees the case is a strange and quixotic one, but he's built a career on holding the government to the law.

"It wasn't arcane for me, it's in the law," he said.

And he acknowledged it will probably earn him few friends. He'll never be made a judge or even sit on a law faculty. And it will be a long fight.

"Well, most struggles to enforce the law are. I mean, often, I've had cases that have gone 12 years, successfully at the end of the day, because the government simply wants to ignore the law," he said.

"That's the system we have, and when they do, the only people that can force them to abide by the law are the courts."

Marc Nadon case

Last year when Prime Minister Stephen Harper nominated Nadon to the Supreme Court, Galati stepped in, saying the move broke the rules. Few expected him to win. But in a surprise decision, he did.

"I saw an attempt to pervert and subvert our independent judiciary, which is the last bastion of balancing the rights of the citizens against the rights of the government and making sure that the government doesn't turn into a dictatorship," he said. "If you can stack the court and corrupt the judiciary, well, that's it."

Galati said he believes Parliament has become ineffective in checking the power of government and the courts are the only recourse.

[The One]

CBC cut their post of this short!
Here is the text of the very important last 90s they cut:

"We used this Bank of Canada interest free loan mechanism to pay for WWII, the Transcanada Highway, the St. Lawrence Seaway, and all the explosion of all the universities, and hospitals and schools that were built in the '60's up until '74...and you know what, it didn't affect inflation rates in the least. In fact, the inflation rate since 1974 til now are much higher than '38-'74."

This has cost taxpayers over $1 trillion dollars:
http://rabble.ca/columnists/2015/04/c...

Source: https://www.youtube.com/watch?v=zo9xAUOrIxg