Solutions

Re-Nationalize the Bank of Canada: A Simple Solution That Could Change Everything

Every single day, $126 million dollars vanishes into a financial system that does very little or nothing to benefit the average Canadian. This is how much we spend servicing a national debt that shouldn’t even exist. With Canadians feeling the pressure of inflation with less money in their pockets, and the 2023-2024 fiscal year seeing $47.3 billion allocated just to interest payments, it begs the question: why are we playing this game? Especially when there is a simple and proven solution that we once used for almost 4 decades: Nationalize the Bank of Canada.

A History of Prosperity Without Debt

Let’s rewind the clock to 1938, when the Bank of Canada was nationalized under Prime Minister William Lyon MacKenzie King. The Canadian government took control of the central bank, meaning it could directly borrow money for national projects without having to pay interest to private institutions. This was an essential tool in financing the nation’s growth, particularly through periods of economic crisis such as the two world wars.

In addition to spending hundreds of billions of dollars to fight these two world wars, Canada accomplished many other incredible feats such as building the Trans Canada Highway and the St. Lawrence Seaway Project. We also became socially minded by implementing universal healthcare, old age pension family allowances and many other great programs that once made Canada a shining beacon of prosperity to the world community.

All of this was accomplished without adding debt to the nation’s balance sheet because the money was created for the public good, not to enrich private banking and corporate institutions.

Enter the Debt Spiral

In 1974, under the ‘leadership’ of Pierre Trudeau, the decision was made to allow private banks to lend money to the government, transferring control of money creation to private institutions. This move handed over Canada’s financial sovereignty and ushered in an era of compounding debt, higher interest rates, and ballooning deficits.

Today, Canada’s national debt stands at over $1.2 trillion, and the average Canadian worker is contributing more than $2,800 each year just to service that debt. Why? Because the government no longer controls the means of money creation. We borrow from banks who profit from the interest, putting a financial burden on every citizen, every year.

(Side note: Pierre Trudeau/Justin Trudeau – See a pattern?)

So, what could $126 million a day do for Canada? If the Bank of Canada were once again nationalized, we would stop paying interest on money that is essentially created out of thin air and use that money to benefit the people directly.

Consider the possibilities: better healthcare, more affordable housing, education for all, sustainable infrastructure projects, and higher wages. With the billions that we currently funnel into private banking profits, the Canadian government (or any government under the Central Banking System) could be investing directly into the well-being of its citizens. Instead of relying on the whims of global markets and foreign investors, we could create and control our own currency to serve our own people.

Why Haven’t We Heard This From Politicians?

If the numbers are so clear and the benefits so obvious, why isn’t this a major talking point in Canadian politics? The answer is frustratingly simple: the current system benefits powerful financial interests who profit from the interest Canadians pay on this debt. Private banks, foreign investors, and other financial elites have a vested interest in maintaining the status quo. As a result, Canadian politicians may be hesitant to challenge a system that aligns with the interests of these powerful groups.

This isn’t a left or right wing issue; it’s a matter of national sovereignty and financial independence. Most Canadians don’t realize that their tax dollars are being funnelled into interest payments to private institutions instead of funding public services.

What We Can Do:

• Increase public education on how the Bank of Canada used to work and why it changed. (share this video)
• Support political movements that advocate for monetary reform.
• Pressure MPs and policymakers to re-examine the 1974 shift away from public financing.

It’s time to take control of our financial future. Why continue paying private banks when we could be using that money to invest in our people?

A Future of Prosperity for All

Imagine a future where every Canadian child is born with a legacy of opportunity, not debt. Right now, the Canadian National Debt burden averages out to over $30,000 for each child born in Canada today. But what if, instead of this financial burden, every child was born with the potential to be born a millionaire?

Nationalizing the Bank of Canada is not some radical idea—it’s a return to a proven model that worked for decades. It’s a model that allowed Canada to grow, prosper, and develop without becoming burdened by debt.

If we make the simple but bold move once again, we can begin a new chapter in Canadian history—one where the nation’s wealth is used to benefit its citizens, not a handful of private interests. It’s time to take back control of our own financial future, stop the unnecessary debt payments, and build a nation that works for the people where Canadians can thrive now and for generations to follow.

We CAN do better

(Heck, lets go one step further and ban interest all together)