Pay and productivity

Pay and productivity

Since 1973 there has been a divergence of pay and productivity, contributing to the massive income inequality.

What happened in 1973?

Canada is a text book example. Before 1973, under the McKenzie-King legislature (and the constitution in fact), the publicly-owned (unlike the US Reserve bank) Banque du Canada managed the currency supply.

Control of national currencies

In 1973, under Trudeau premier, the right to create currency was handed over to private banks.

What this means is that all levels of government now have to be indebted to private banks for financing in the country's own currency, which is nothing more than a legal idea, created out of nothing but bookkeeping.

Worse, interest has now to be paid on that artificial (fiat) currency or the assets covering the debt (pension funds, infrastructure, buildings, land) will be seized. It is important to realise that the currency for the interest payments has not been "created", thus it has to be extorted from taxpayers.

An ever increasing percentage of government budgets (the largest single item) is paid to banks as interest for no reciprocal performance. Remember this budget is real effort and assets of taxpayer being handed over.

Money that should have been available for infrastructure.

Quantitative easing

Secondly, this free hand at creating currency has lead to an "exuberant" inflation of currency by the banks in the name of easing, bailouts, etc. (While the US's initial 2008 bank bailout was $760 billion, Canada's was $200 billion). This is simply the taxpayer being placed on-the-hook, under threat of foreclosure, for rampant currency creation, ie., debt.

Each new dollar created of course has purchasing power. This value does not come from the "printing press", but robbed from savings and wages through inflation (more units makes each existing unit less valuable).

Rate of impoverishment

We can only guess at the rates, but less say the inflation of the currency supply (it is parabolic) is about 12% per annum, and the inflation of consumer prices is about 2% (with food and fuel, perhaps 4%).

The difference of 8-10% per year is the rate at which productivity is being stolen from the producers.


Permit me a word on bankruptcies please. Bankruptcy does not mean "cleaning the slate"; bankruptcy means handing over your assets, ie., dispossession.

Bankruptcy is important because the bookkeeping trick requires that interest be paid out of the existing currency supply (loans/debt), thus reducing the currency supply forcing governments to perpetually borrow more just to maintain the currency supply and prevent deflation, and economic shrinking.

Every debt covenant has an asset attached, pension fund, infrastructure, land, etc.

This continual interest payments on our own currencies, requiring more debt to maintain the currency supply will inevitably lead to bankruptcy.

Dispossession of national assets

This simple bookkeeping scam, legislated in 1973, has lead to a volcano of new currency,

• debasing our saving and wages, and
• since currency is now debt, leading to bankruptcy and dispossession of national assets

This is why banks continue to lend to governments who have no hope of repayment, since they are after the real assets such as pensions, land, and infrastructure, not repayment of currency created out of nothing

Usury, debt, interest

Usury, debt, interest

Deuteronomy 23:20
You may charge a foreigner interest, but you may not charge your brother interest, that the LORD your God may bless you in all that you undertake in the land that you are entering to take possession of it.

DISPOSSESSION is the essence of issuing currency as debt at interest.

In an organic monetary system, governments create interest-free currency (as was the case in most democracies prior to 1973), and spends it into circulation via the budget. This was typically done by government-owned, central banks (such as Canada, but unlike the US where the fed is private). Commercial banks are agents of this money, not creators.

Currently all currencies are created the out of nothing by commercial (private) banks in exchange for a mortgage (death pledge) or collateral, issued as debt at interest.

For eg., someone approaches a bank for a loan. The bank does not retrieve the amount from the safe, but creates it out of nothing the minute it has a lien on property or enslaved the labour of the applicant. Suddenly the bank is in possession of an asset and interest income, where a moment before it had nothing.

The same applies to governments who forfeit pensions, land, and infrastructure.

This volcano of new currency, inflates the money supply (not inflation of prices) at the expense of savings and wages, which decrease in value as a result of this inflation.

Since the currency for the interest payments is not created with the loan, there is a drain on the currency supply to pay interest, inevitably leading to bankruptcies, ie., dispossession.

This is also the reason all governments are in more and more debt, since they cannot pay off the loans without exhausting the currency supply leading to economic stagnation and bankruptcies.

Exodus 22:25
If you lend money to my people ... you shall not exact interest from them