The problem is that interest is charged at the origin of money. This is caused by our federal government giving away the right to issue and put into circulation our total money supply. It has given this right to the private chartered banks. Under this system all money now comes into circulation as a debt to the private banks. The private banks charge interest on this money. This interest becomes an additional debt above the principal we borrow. This addition cannot be paid because no money is issued to pay it. If you borrow this addition you go deeper into debt. If you pay the interest out of the principal, this reduces the money you borrowed and the debt cannot be repaid. Furthermore, it reduces the money supply and causes a depression. In both cases we pile up a mountain of debt that cannot be paid. The interest on these mountains of debt is large and ever-increasing because of compounding interest. This causes inflatation which is passed on to the consumer. Those that have the power to pass this interest cost on to the consumer not only cause additional inflation but force the consumer to go even further into debt. With the added interest costs there is not enough money left in circulation to buy all the goods and services available.

What is fooling so many well-meaning people is that they have been led to beleive that they are doing well under this system. For example:

(1) In order to solve the problem, the government must take back the right they have given the private banks to issue the country's money supply. The benefits of this one reform would be tremendous. Money could be put into circulation DEBT AND INTEREST FREE. This would mean that the government could pay back its debt and save the people $BILLIONS in INTEREST PAYMENTS and therefore $BILLIONS IN TAXES for the People. Furthermore, everytime the G.N.P. would increase, the government could issue new money to the amount of the increase of goods and services. This means that many of the government services could be provided without taxation. The reduction in taxes would not only stop inflation but reverse it.

(2) Putting the banks on a 100% reserve would stop the private banks from creating money. What is more, the banks would have to cash in their bonds as their reserves would be increased. This would reduce the national debt tremendously without it costing the government a single dollar, because the government would pay for the bonds with money that cost the Bank of Canada nothing except the cost of printing.

Thomas Edison said, "It is absurd to say our Country can issue bonds and cannot issue currency. Both are promises to pay, but one fattens the userer and the other helps the People. If the currency issued by the People were no good, then the bonds would be no good either."

The money issued to the federal government can be put into circulation in a number of ways. One of the first should be to pay off the national debt and save BILLIONS in interest charges which continue to be exorbitant. This reduction in government expenditure could then provide the necessary services that the People need.

Secondly, the money could be spent into circulation by giving government services without taxation.  For example, if the money spent on building schools, hospitals, government buildings and on providing pensions and family allowances were spent into circulation rather than borrowed by the government, it would stay in circulation, until it was worn out and then it could be replaced at a very small expense. Today, however, money is borrowed by the government into circulation and withdrawn leaving the principal of the loan unpaid to be compounded, exasperating the problem year by year.

If, however, the money were spent into circulation, the people receiving this money would own it and when they used it to buy the necessities of life, the money would keep circulating. In a few years, the money in circulation would all be debt and interest free. Once the governments, the corporations, and the small businesses, as well as individuals, would all be free of debt, the saving to the people would be in the hundreds of billions. This is not a dream but can become a reality, if we the people, take action.