ERROR?
IS CANADA MOVING
AWAY FROM STUPIDITY?

Yesterday, the Canadian government brought down its yearly budget and surprise, surprise, Canadians will get a $58.0 billion tax break over the next five years. This is stunning news and was not predicted by anyone, including me.

Am I wrong? Did the Canadian government go against international orders, orders from the Bank of International Settlements (BIS)? Read on.

I have argued that, generally, governments want to control wealth and income levels by limiting growth - this is done by interest rate hikes, among many tools, which in turn cause stock markets to fall, investment to drop, all while causing unemployment to rise. The downward cycle happens when savings are low and markets are hot and today, in the U.S. and Canada, savings are at historic lows. (Read annual report of the Bank of International Settlements)

The general name for this policy is supply side economics and Ronald Reagan was the first President to really follow this policy, partially on the advice of Milton Friedman.

I argued that Alan Greenspan, in what is a most startling admission, stated that he wants yearly increases to wealth to be limited to yearly increases to income. An announcement like this should have been met with amazement, but instead it was met with yawns.

This simple fact of Greenspans admission is that if wealth rises too fast, the Fed. would put the brakes to the economy, limiting gains you can make on places like the stock market. Since the 1980’s monetary policy has been directed toward keeping wages flat - this is done by resurrecting the so-called inflation monster that lurks around the corner, every time markets rise and people start making money (ie. their wealth increases and they see a chance for greater wages).

Although Greenspan appeared to back off of his wealth observation last Friday, apparently aware that such a bold truth may get people somewhat apprehensive, the fact remains we know WORLD governments want wealth to decrease and they want flat wages, to provide multi-nationals with cheap labour. This allows multi-nationals to grow and their senior executives to get fat - very fat.

After the world business elite caused nations to borrow at an unprecedented pace through the 1970’s, 1980’s and into the 1990’s, people today are afraid of losing their job and are profoundly afraid of the future. They are afraid because they are threatened every day about looming inflation and by "fighting the inflation monster" we end up with job losses, downsizing, amalgamation, bankrupt government retirement plans, tax hikes, increased user fees and interest rate increases. All of this angst and misguided monetary policy adds up to increased wealth for corporations and decreased wealth to individual citizens.

Why Central Banks want to worry about inflation, when in fact their own documents say inflations is not really a worry, is a source of confusion for me. I can only assume they do not expect ordinary people like me to read their rubbish.

We now know that Central Banks, when they see people getting too rich from stock markets, try to limit the increased wealth by increasing interest rates. Greenspan has another tool to stop the market as well -he is considering limiting the margins on brokerage accounts. Margins are credit limits and currently, for every dollar you invest, you can borrow another fifty cents. Greenspan suggested lowering the limit.

How ironic, now, that a debate has started in the world on how governments, essentially because of lower interest rates and lower debt charges, should spend their budget surpluses. Surpluses! Great news!

Oh, the BIS in their annual report cautions governments NOT TO LOWER TAXES with their budget surpluses. Greenspan said this last week. He warned Congress not to lower taxes but to pay down the debt.

Lest anyone wonder about the might of the Central Banks, or the Fed. in the U.S., digest this - a few points increase to interest rates in Canada, and probably the U.S. as well, will bring about budget deficits. In Canada, interest on debt is about $46.0 billion per year - a two percent rise in interest rates will take our $15.0 billion surplus and make it a deficit very fast. Central banks have started to raise interest rates - this is their warning shot to governments about cutting taxes.

It is also the Central Banks cue that they are worried people are getting too rich and they want to limit this - now.

If you think that the government controls monetary policy and interest rate policy, think again - Central Banks are autonomous institutions and much is written about Prime Ministers in Canada who are unable to exercise any power over our central bank. The Fed, is no exception and Alan Greenspan is, without doubt, the most powerful person in the U.S., and maybe the world, today. He holds a lot of power at the BIS.

But, Canada just announced MASSIVE TAX BREAKS - $58.0 billion over 5 years. Our government is a hero. The media have been talking about this all day.

Are they heroes? Janette Pantry, a Chartered Accountant (Canada’s highest designation) was quoted in the Province (one of B.C.’s biggest dailies) today as saying that actually, the Canadian government will be raising mandatory pension contributions (which is actually a tax on an individuals income) each year and over 5 years, Canadians will pay an additional $48.0 billion in this tax. With increases to government user fees, this means the effect of the huge tax cut announced yesterday will make people “only a little better off.” It might actually be worth 10 dollars per month.

Brian Lewis, the reporter covering this aspect of the budget story, notes that yesterday’s budget is “also a glitzy show of smoke and mirrors by these Wizards of Ottawa.”

How bad is it in Canada? We are one of the most desirable places to live in the world, after-all.

Well, I said previously Canada is the BIS global experiment. Since 1988, Canada has embarked on tax policies and monetary policies to flatten wages, lower wealth and raise taxes. The policies followed by Canada are all found in BIS annual reports and our Central Bank Governor can always be found walking the corridors of power within the inner circles of the BIS (www.bis.org).

Lets look at some figures, supplied by Statistics Canada, a federal government statistical centre (www.statcan.ca):

In 1980, average per family income, after taxes, was $43,55.00. In 1997, it had fallen to $39,131.00. Maybe not as surprising as this number, is the fact it is on a government financed chart - our government doesn't even care we know about this decrease as they boldly pronounce it on their web site. Wow.

In 1993, the average married couple earned, combined, $44,802.00. In 1997, the average married couple earned, combined, $44,350.00. More proof wages are stabilized and even dropping. This is from yet another government chart.

As incomes dropped, total consumer credit, or the amount people borrow for loans, credit cards, and NOT including mortgages, rose from $118,544,000,000.00 in 1995 to over $164,000,000,000.00 in 1999. This is a massive increase in debt - is it no wonder people are worried about losing jobs?

Residential mortgage credit rose from $336,154,000,000.00 in 1995 to $409,337,000,000.00 in 1999.

Debt is increasing, and increasing massively. This should be a worry, particularly if we see rises to unemployment. It will cause bankruptcies and in Canada, we set records with personal bankruptcies over the last 10 years.

Of course, following the BIS lead, and the surprise admissions form Alan Greenspan, we will see rises in unemployment in the next year or so. World economic elites don't want us to have more wealth. This will cause more unemployment and more bankruptcies and more strife for the working class.

What about savings?

In 1994, Canadian banks had $28,439,000,000.00 in cash and deposits. In 1998, the figure was $11,450,000,000.00. This is a substantial decrease.

Starting in 1997, Canadians put away less for retirement than previous years.

In Canada, taxfilers (they are not called taxpayers anymore because, while you may fill out a tax form each year, you may not pay tax because of things like write-offs, etc.) are able to contribute to a Registered Retirement Savings Plan (RRSP). The limit is determined by the previous years earnings.

In 1991, 29% of Canadians put away their RRSP limit. In 1997, 12% of Canadians put away their limit. This means that Canadians cannot afford to save.

One last statistic - from 1992 to 1998 corporations have been putting more into government coffers through corporate income taxes. In 1996/97, corporations contributed 7.5% of the total revenue base to government through corporate taxes. Thank goodness for that increase because in 1992/93, they put in 4.2%.

The change, of course, is due to massive profits and should be expected, but did you know this - some 20 years ago, corporations in Canada contributed about 50% of the government revenues.

So you have the Canada experiment - taxes are up, way up. 90% of government revenues come from individuals, up from 50%. Wages are flat or dropping. From 1980, incomes in Canada have dropped and at the same time, all taxes have risen substantially. Savings are their lowest levels in years. Individuals can't put away money in their retirement funds. Personal debt is at the highest levels ever.

These figures don't lie - they are from our government web sites. (If you think our government cares, read my last article posted here on Prime Ministerial power)

I said last week that a Royal Bank economist predicts our standard of living will fall to 50% of the U.S. About 15 years ago we had a bit better standard of living (medicare, unemployment insurance, wages, taxes, etc.) and today, we have fallen behind. All because we are the world order experiment.

What is amazing, however, is that the same process is starting in the U.S. and elsewhere. The Canadian experiment is proving a huge success and is likely to be a big hit in the U.S.

Perhaps the Americans will read their government sponsored charts and instead of sitting back like ridiculous sheep, will rise and call their government on the lies and distortions.

The world economy is being run by a select few (10 chosen ones on the BIS) and David Icke has given you a forum for enlightenment. Use it or face what we have in Canada.

private News report from Canada



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