REPORTING · 28th April 2011
The final question was Question 11. It concerned the platforms of Maggie Braun and Rod Taylor. He wanted to know why our government was not considering quantitative easing.
Braun explained her party was opposed to quantitative easing. They were suggesting using the Bank of Canada to create money without printing it. They wanted to do this incrementally until 50% of the money was government created money which would allow people to pay off their debt. 95% of the money in the system is currently created by debt. This method will allow them to get out of debt without inflation.
Taylor said he did not support quantitative easing, which would devalue the currency. He supported the use of the Bank of Canada for a specific purpose, to create Canada’s money. The Bank of Canada should make interest free loans to Crown Corporations, Provinces and Municipalities for infrastructure renewal. As the money is repaid, the debt would be retired to avoid inflation.
Roger Benham said quantitative easing would allow the country to look healthy but Canada’s hidden debt has to be paid. The hidden debt has not gone away unless more easing is done which will result in inflation.
Clay Harmon said the government went into deficit to create jobs. Some went into infrastructure. The conservative government has a plan to eliminate the debt over four years.
Nathan Cullen explained he did not know much about quantitative easing but he understood it was using the central bank to pump money into the system rather than use inflationary pressures. It has downsides like having inflation go through the roof by putting more money into the system. The Canadian Banking system is secure. Stephen Harper agreed with merging all the major banks but it did not pass.
Kyle Warwick said quantitative easing did not work, citing Zimbabwe where the money was worthless. He said because the banks did not merge, Canada is able to recover, thanking John Chrétien who banned the merger. If they followed the Conservative advice, Canada would be worse off than the Americans right now.