Comment 74263

By A Smith (anonymous) | Posted February 12, 2012 at 18:16:18 in reply to Comment 74258

This is from the Bank of Canada...

http://www.bankofcanada.ca/about/what-we-do/funds-management/

Debt Management

The government's public debt (also called domestic debt or federal debt) consists largely of outstanding government securities, such as treasury bills and marketable bonds.

The Bank provides policy advice to the government on the efficient management of this debt and sells the securities at auction to financial market distributors and dealers. The main goal of the Bank's debt-management activities is to help provide stable and low-cost funding to the government.

Did you get that?

The MAIN GOAL... is to provide stable and low cost funding to the government.

In other words, the Bank of Canada uses its power to PRINT money and set interest rates (by purchasing and selling bonds) to ensure LOW COST funds for the feds to spend.

The Bank of Canada is also the feds banker...

"The Bank manages the accounts of the Receiver General, through which almost all money collected and spent by the government flows. The Bank ensures that these accounts have enough cash to meet daily requirements and invests any surpluses in term deposits."

Please answer this...

If the Bank of Canada didn't print money and then allow the feds to spend it, where would Canadians get the money to buy the bonds in the first place?

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