Interest Free Debt? Why not.

I’ve been exploring my beliefs about money, abundance and scarcity. Money, and the lack of it, triggers a great deal of anxiety in me. I’ve got good idea of the core beliefs I have about money…I can either have my health, friendships, community, or I can have work and have money, there is only so much to go around, money can separate me from other people, etc.

Now, I’ve started exploring the cultural and collective institutions that have contributed to my experience and beliefs. And one of them is how the government spends money, takes on debt, etc. The main messages I am getting from our governments are that there is only so much to go around, that cuts are needed to ensure future prosperity. Yet, I am bothered by that.My reality is that there is plenty to go around, we can live in a both/and world.  So, I started poking around and found this video. It is  the most succinct description of the collusion between banks and governments to keep us in a scarcity mind set. Twelve-year-old Victoria Grant (Cambridge, Ontario), gave this lecture at a recent Public Banking Institute conference in Philadelphia.

I have learnt that prior to 1974, all three levels of government could borrow money from the Bank of Canada at zero interest. The government could use the  interest free loans  “human capital” expenditures (education health, other social services) and / or infrastructure expenditures.  (For more details http://actionparty.ca/news/monetary-reform/canada-debt-free-is-it-possible-/)

Interest charges on Canada’s public debt – money borrowed by the federal government over the years and not yet repaid – cost $30.9 billion. That’s about 11 cents of every tax dollar spent. (Source Department of Finance Canada 2011). More of our federal income is spent on the debt than on health transfers to the province. How crazy is that?

A huge change can be make to the Canadian financial landscape without a wholesale change of legislation and regulation. How cool is that?