Twelve year old Victoria Grant explains how the Canadian banking system works, and how crooked it it.
This was an interesting video to watch, considering our banking system in the United States is pretty much set up the same way. There are just a couple of observations that I had regarding it.
1. Whether or not a government central bank, or a set of private banks (in our case the Federal Reserve) prints fiat money (money not based on a standard), it still causes inflation and is open to abuse.
2. In the United States, our Constitution gives the federal government the power to print money, NOT A SET OF PRIVATE BANKS. This is in Article 1, Section 8 of our Constitution.
The relevant section is below:
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;
To borrow Money on the credit of the United States;
To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;
To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;
To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;
Where does our inflation come from? Our inflation is basically the result of not being on the gold or silver standards anymore. Now the federal reserve (a set of private banks) can print money any time it wants. If you print a lot of money, inflation is the result. Why can you no longer buy a house for $10,000? A burger, fries and a drink for 25 cents at McDonald’s? A new car for $1,000?
It has all come from us printing money without being tied to a standard.