Tuesday, December 20, 2005

Flaws in the Canadian Banking and Taxation System!

Dennis Tate
834 West Lochiel Lake, RR#5 Antigonish, N.S.
September 28, 2004.
E-mail: tate4242@yahoo.ca


You’ve made my first venture into politics extremely enjoyable. The conversations with many of you have been very encouraging and you can rest assured that I plan to make lots of noise on your behalf over the coming months and years regardless of the outcome of the election on October 16.

I also thank all of you who took the time to place comments in the message board that I started to discuss possible ways to stimulate our local economy.

As I have told many of you, the reason why I am running for the office of Municipal Councillor is because I believe that Canada had a much better monetary and banking system in the past and that we must force our provincial and federal politicians to abandon our present banking system and utilize the taxation and monetary system visualized by the men who drafted the original Canadian Constitution.

Many of you are already aware that our federal government is forbidden by our Constitution to collect income tax, or any direct fax, from us but very few Canadians understand the history of banking policy in Canada and to what degree our system is based on attempts at banking reform in the United States. When you fully understand this question I am certain that you will be angry. I certainly am.

"During the Civil War (from 1861 - 1865), President Lincoln needed money to finance the War from the North. The Bankers were going to charge him 24% to 36% interest. Lincoln was horrified and went away greatly distressed, for he was a man of principle and would not think of plunging his beloved country into a debt that the country would find impossible to pay back.Eventually President Lincoln was advised to get Congress to pass a law authorizing the printing of full legal tender Treasury notes to pay for the War effort. Lincoln recognized the great benefits of this issue. At one point he wrote:"

...(we) gave the people of this Republic the greatest blessing they have ever had - their own paper money to pay their own debts..."

The Treasury notes were printed with green ink on the back, so the people called them "Greenbacks".Lincoln printed 400 million dollars worth of Greenbacks (the exact amount being $449,338,902), money that he delegated to be created, a debt-free and interest-free money to finance the War. It served as legal tender for all debts, public and private. He printed it, paid it to the soldiers, to the U.S. Civil Service employees, and bought supplies for war…..

"Shortly after that happened, "The London Times" printed the following:

"If that mischievous financial policy, which had its origin in the North American Republic, should become indurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without a debt. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of the civilized governments of the world. The brains and the wealth of all countries will go to North America. That government must be destroyed, or it will destroy every monarchy on the globe"......After this was published in "The London Times", the British Government, which was controlled by the London and other European Bankers, moved to support the Confederate South, hoping to defeat Lincoln and the Union, and destroy this government which they said had to be destroyed…...

"In 1972, the United States Treasury Department was asked to compute the amount of interest that would have been paid if that 400 million dollars would have been borrowed at interest instead of being issued by Abraham Lincoln. They did some computations, and a few weeks later, the United States Treasury Department said the United States Government saved 4 billion dollars in interest because Lincoln had created his own money. So you can about imagine how much the Government has paid and how much we owe solely on the basis of interest."

The "Michael" Journal, November-December 1992, page 14, 1101 Principale St., Rougemont, Que. Canada-J0L-1M0

"Unpayable debts

“This means that just to maintain the same amount of money in circulation in our country, year after year, unpayable debts must pile up. For example, if one wants to maintain only $100 in circulation, year after year, by borrowing at 6% interest, the debt will be $106 after one year, then $112.36 after two years ($106 plus the 6% interest), and so on. After 70 years, the debt will have reached the sum of $5,907.59, and there will still be only $100 in circulation.”In the case of public debts, the bankers are satisfied as long as the interest on the debt is paid. Is it a favour they do to us? No, it only delays the financial impasse for a few years since, after a while, even the interest on the debt becomes unpayable. Thus, in the example of the $100 borrowed at 6%, the interest due on the debt will have reached $104.26 after 50 years, which is more than all the money in circulation.”

No wonder then that the national debts of all the civilized countries in the world are reaching astronomical proportions. For example, Canada's national debt, which was $24 billion in 1975, is now over $500 billion, and the interest on this debt costs over $40 billion per year, or about one third of all the taxes collected by the Federal Government; this percentage keeps increasing year after year. So, to satisfy the bankers, the Government must slash all its other expenditures. Will the Government wait until servicing the debt takes 100% of the taxes, to change the system, or will it prefer to let people starve? Moreover, the national debt is only the peak of the iceberg: there are also the debts of the provinces, municipalities, corporations and individuals!”(Michael Journal).

Here are some of my own comments from our Sherbrooke Village ezboard community that will help you to tie all these facts and figures together.

(This ezboard community has since been hacked and does not contain all the original posts)

Before this campaign is over I believe that most Sherbrookers will know that they have a very serious decision on their hands.

"-According to the Canadian Constitution, the Federal Government does not have the right to tax income; this right belongs only to the provinces. The Supreme Court confirmed it in 1950.

-For over fifty years, Gerry Hart, a citizen of Winnipeg, used this decision of the Supreme Court, and did not pay any Income Tax;

-The Canadian Constitution of 1867 gives the Federal Government the right to issue its own currency, based upon the resources and wealth of the nation;

-In 1913, the Federal Government injustly gave up this power to create money to private banks, which forced the Government to get into debt to private banks, and this debt has not ceased to grow ever since. (In 1994, the debt of the Federal and Provincial Governments is over $700 billion.)"
(“Michael” Journal).

In the beginning of this thread you read some interesting facts about the monetary policy adopted by President Abraham Lincoln, just before the Civil War. What years are we talking about here?The Civil War lasted from 1861 - 1865.In what year did the Fathers of Confederation draft the British North America Act?As I am sure you know, Canadian Confederation took place in 1867.


Do you think it could possibly be because they were well aware that President Lincoln had come up with a fantastic monetary system and wanted to emulate it in Canada?????

I do.

Do you think that these men realized that the Lincoln policy had saved the American taxpayers billions of dollars in interest payments and they wanted to save the Canadian taxpayers money as well?

I do.


It should.

At first it seems out of this world and impossible that our Federal Politicians are not allowed to put a tax on our income according to the Canadian Constitution, but not if you study the Lincoln monetary system, and realize that the men who drafted our constitution wanted Canadians to have the same advantages.

Before this campaign is over you will know why I have ran for public office and you will know that Sherbrookers are facing an extremely important question on October 16, 2004.

Do the people of Sherbrooke have the courage to potentially ruffle a few feathers in Ottawa in their attempt to shove the faces of our federal politicians in the smelly mess that they have made on our floor?

Do the people of Sherbrooke really want to try to show our Prime Minister and our Federal politicians that the men who drafted the British North America Act were highly intelligent people who had a tremendous advantage over our politicians here in 2004?

Back then, they had a good example to look at, study, and emulate. Here in our time period, ignorance of basic economic principles is essential for advancement in the federal political party system. Sherbrookers, if you want all things to continue as they did last year and the year before that.

If you are too worried to fight for a better monetary policy and banking system, then you certainly don't want to vote for Dennis Tate. You had better cast your ballot for anybody else but. I plan to make some noise over the coming weeks, months and years. If you want to amplify my voice, then maybe you should vote for me for Municipal Councillor on October 16.

"Rage, Rage, against the dying of the light."

The holocaust was highly efficient and over the past twenty years employees in government and industry have been demoted, retrained, multi-tasked, laid off, downsized, and streamlined. Any government employee can tell you that they are now doing jobs that would have been done by two or perhaps three employees three decades ago. Are Canadians heading into another holocaust of sorts??

Think about it.

Is the next logical step a computer chip placed under our skin that will permanently identify us and let anybody in the correct office know exactly where we are at all the time? If you considered this possibility ridiculous twenty years ago, surely you realize that almost anything might happen now?The kind of polite silence that came from our provincial MLA's when federal politicians and bureaucrats decided to close down and tear up our railways will lead to more downsizing, more cutbacks and a higher level of efficiency that is expected of all of us. I think that we may as well make our stand now before it is too late.



Now we come to the BIG Question. What do we do with this information? How do we cause reform in the ridiculous and foolish monetary system that our federal politicians have adopted?

Personally, I believe that we must forward this information to every RCMP officer in Canada and we must set a date for reform in our banking system or we should arrest every uncooperative federal politician in Canada on the charge of “Criminal Negligence Causing Death.” How about January 1, 2006 as the final cut off date for the levying of any direct taxation by our federal “government”? How about turning every penny of direct taxation collected over to our provincial politicians after this date?

Shouldn’t politicians be held accountable for taking the reigns of government in a manner similar to how a school bus driver bears a certain responsibility when he or she sits behind a steering wheel?

I believe that they should certainly be held accountable and I do believe that the judges in each case should perhaps consider having some mercy on each of these defendants because certainly most of our politicians have almost no understanding of the economic theory of underconsumptionism, the monetary plan behind the British North America Act/Canada’s Original Constitution or the effects of our flawed monetary policy on Canadians, not to mention on the lives of kids in the third world.

I believe that the massive government spending cutbacks in health care and in our Canadian Armed Forces, over the past several decades, has certainly resulted in many premature deaths in Canada? It could even be argued that General Romeo Dallaire might well have been instrumental in warding off the genocide in Rawanda but, every major decision in Canada has been profoundly affected by our flawed monetary system. We have defined ourselves as essentially bankrupt in order to please a small but powerful segment of our population.

I believe that government spending cutbacks in our RCMP and in our Coast Guard is partly to blame for the fact that perhaps two thirds of the drugs that reach American cities come into North America through secluded and difficult to police areas of the Nova Scotia coastline.

If our federal politicians are not partly to blame in all this, then who is?

Oh, incidentally, I believe that our somewhat less than courageous provincial politicians had better help us to rip the power of direct taxation away from our federal government and give this power squarely back to our provincial governments as originally designed in the British North America Act or we should have them up on similar charges as well.

Then again, you could always leave this to be dealt with by a certain somebody else!

“But the cowardly, unbelieving,…and all liars shall have their part in the lake which burns with fire and brimstone, which is the second death.” (Revelation 21:8) (Personally I’m hoping like hell that ultimately this is a metaphor for guilt because I know that I would be feeling major guilt right now if I hadn’t tried my best to warn you all about this. On the other hand those negative near death experiences are kind of scary!)

Do you know why Canadians enjoy a relatively high standard of living in comparison to the rest of the world?

Our parents and grandparents prayed, fought tooth and nail for and many died young for each one of the incredible blessings that most of us take for granted!

Are you willing to step up to the plate and try your best to do something about all this?

Here is what Mr. Jimothy Mason, an American who is planning a run for the Presidency in 2008 said after reading my theories:

Ø Jimothy, what do you think, can you fit this information into yourcampaign for President of the United States??

Sir Dennis,
Not only can I "fit it in" but I feel that God is telling me
that I would be wise to make this a central piece of my platform!

It's going to take me awhile to absorb everything because, yes, thunder has

And I feel that you are an invaluable resource to this group and to me



“Jimothy Mason, 2008 Republican Candidate for the U.S. Presidency”


Basically, underconsumptionism, is the idea that in a technologically advanced economy, the sum total of the wages paid out to all workers involved in the creation of consumer goods, will never be as high as the value of the goods that they can produce. Globalization and the lessening of trade barriers between nations can cause the discrepancy between the supply of funds in the hands of consumers, and the total global level of production, to become almost incomprehensible.

This quotation from a Lubavichter Jewish website sums up the question quite well:

"1. The first thing Moshiach does is do away with bad marketing."
"That's the true villain that has held us back all these years. Ask any
consumer electronics or computer engineer. We could all own household robots to
do our work. We could be consuming less than 10% of the natural resources we
consume now if it weren't for those nefarious busy bodies who market quantity
rather than quality. Given the true needs of most people and the productivity
possible with modern technology, we should all be working an average of 2.5
hours a week. What's responsible for the other 60+ hours? Bad

"Moshiach's marketing people will get people's minds back on the right
track. Thinking about real quality of life. About their relationship with the
earth and with their bodies and their souls and the people around them. Once
that's done, just about everything else we need to create paradise is here

Incidentally, I cannot possibly stress enough how dangerous these ideas are potentially.

We are the grandchildren of the people who killed every passenger pigeon. The unwise application of this theory can lead to drastically increased economic activity and such high levels of consumption that we end up causing irreparable damage to the environment. Widespread understanding of this theory could potentially lead to the most massive military buildup in history as well.

I believe that our politicians and intellectual elite decided to not clearly explain these concepts, even to our university students, because they knew that we humans tend to take such information and channel it first into warfare. They perhaps consider that we, the ignorant masses, neither deserve nor could handle the tremendous power inherent in such knowledge. On the other hand, I personally cannot imagine any possible way to prepare for a time of warfare and natural disasters, unless our political leaders comprehend the implications of this theory. Joseph led Egypt to store massive amounts of grain for potential times of trouble but our leaders tell our farmers to burn excess grain to attempt to keep the prices high. Don’t believe any politician who tells you that it is impossible to get prepared for rough times ahead.

And the LORD said, Behold, the people is one, and they have all one language; and this they begin to do: and now nothing will be restrained from them, which they have imagined to do. (Genesis 11:6).

So how should our Canadian federal government finance federal spending?

Ninety eight percent of all money in circulation is never printed. It is nothing more than a number on a ledger. I believe that our federal government must again use the bank of Canada to put perhaps half of the money supply of Canada into circulation through loans to the provinces and municipalities of zero or perhaps one percent interest. This is what we did from 1940 to 1970 but then we changed our system and adopted the American model. I assume because of pressure from the United States.

It has been estimated that we could have saved sixty five billion dollars in interest payments, in the one year of 1995, if we had went back to our wartime monetary and banking system. Instead of having a deficit of roughly thirty billion dollars for that year, we could have had a surplus of thirty five billion dollars.

Each year, the debt owed as interest on all loans in the economy, is a vastly higher sum than the interest paid to depositors by all banks in Canada. Unless this higher number is put into circulation by our Bank of Canada, by order of our federal politicians, then we end up with a total figure for government, business and personal debt, that is vastly higher than the total amount of currency in circulation. The men who drafted our Canadian Constitution had planned for our federal politicians to be forced to address this problem by forbidding that they engage in any form of direct taxation.

If you held the power to legally print the Canadian dollar, would you be so stupid as to get yourself a trillion dollars into debt?

This is not rocket science, this is just a matter of realizing that the men who drafted the British North America Act, were onto something that most of our political leaders are too busy kissing babies and shaking hands to find out the simple truth about.

So Sherbrooke, do you want this information thundered or whispered?

The choice is yours.

I sincerely thank you for giving me so much of your time.

Warmest Regards,

Dennis Tate
p.s. On September 29, I e-mailed this article to virtually every reporter at the Halifax Herald. Sooner or later I’m going to run into some Canadians willing to put forth the effort to make this information public knowledge. (Thank God, I’ve already met some concerned Americans). After October 16, I plan to explain how this information can be applied on the small scale, the microeconomic level. If you have the internet, I’ve already told you about a few possible methods on your Sherbrooke Village ezboard. A businessman once said that he often needed to come up with two hundred ideas on how to solve a problem before he found the one that really worked! What do you think of idea number one?


At 6:20 PM, Blogger Dennis Tate said...

Before you can run for a political office you may have to receive a certain number of nominations. Previous to distributing the main writing shown on the previous page I passed out many copies of the following writing. When I went back and talked to people I soon had my required number of signatures from the Sherbrooke area.

Dennis Patrick Tate
834 West Lochiel Lake,
RR#5 Antigonish, N.S., B2G-2L3
August 29, 2004.

To all residents of Sherbrooke district, Guysborough
County, Nova Scotia.

Warning, there is real danger that four years from
now, a majority of you may well decide to elect me
as your local Municipal Councillor. I sure wouldn't
blame you one bit though for deciding on October 16,
2004 to reelect, Mr. Dunbar. If I were in your shoes,
I think that is probably what I would choose to do myself.

In the coming weeks, and over the next four years, I
plan to build you a very impressive internet discussion
forum where we bring up every conceivable method to
greatly improve the economy of the entire St. Mary's
Municipal District. I will greatly appreciate your help
with this ezboard community.

If you will just send me an e-mail I will show you step
by step exactly how these ezboard discussion forums
work. I can't say that they are exactly simple but they
certainly produce the most interesting and impressive
type of internet forum that I have discovered so far.

Why am I so serious about becoming involved in
local municipal politics?

Allow me to quote directly from:
Sherbrooke Village

"On January 12, 2001 I flew to Quito, Ecuador where my wife Maria Jose is from. We had met through christianmatchmaker.com back on August 8, 2000 and I simply had to go meet her. Once I got there I decided to not use my return ticket that was valid for February 12 and I actually stayed until August 14, 2002 when finally Maria Jose could return to Canada with me."

"While in Quito I personally witnessed children and many poorer people rooting around through garbage bags for something that perhaps they could eat or possibly sell so that they could purchase food. For the first few months while I was in Quito I was teaching English for a small Christian school and with a monthly salary of $150 I usually could not help these people very much, if at all. Well now I am back home and I feel responsible to do something for these kids."

"It is my theory that there are some fairly serious flaws in Canadian monetary policy and in our banking system. I believe that although we are a relatively small area we theoretically could demonstrate the application of a better banking system on the microeconomic level. If we succeed in doing this we can not only improve and stimulate our own local economy, we could potentially become somewhat of an example to any economically depressed area on how jobs can be created without assistance from a powerful central government."

p079.ezboard.com/fsherbrookevillagefrm9.showMessage?topicID=1.topicHistoric Sherbrooke Village, THE REALITY SHOW.

By actually getting involved in politics at the local level, by running for the office of Municipal Councillor, I automatically am given a much larger soap box from which I can legitimately begin to argue with Mr. Peter MacKay, with Prime Minister Paul Martin, and with every elected official in our nation, that Canada historically had better monetary policy, a better banking system, than we are presently using here in 2004. I will be able to present my case that certain critical elements of wartime monetary policy must be used again in our time, or it will be almost impossible to accomplish the lofty goals that each political party has for our nation.

The high level of unemployment and relative poverty in the St. Mary's District is largely due to a lack of understanding of monetary policy by our elected officials and by each of us. Back in 1994 I was finally introduced to critical information that radially changed my view of what potentially could be accomplished by our nation.

Given a situation, where human beings have overcame the language barrier, have greatly increased their level of technological capability, have decided upon a difficult or lofty goal and are determined to accomplish that goal, there are few limits on what actually can be achieved.

"And the LORD said, Behold, the people [is] one, and they have all one language; and this they begin to do: and now nothing will be restrained from them, which they have imagined to do." (Genesis 11:6).

If you seriously think that you are able to disprove this statement, or limit the meaning here to negative or evil accomplishments, then I challenge you to present your case on www.ezboard.com, Sherbrooke Village.

Did you know that from 1940 to 1970, Canada had a monetary policy, banking system, where our elected federal government, used our central bank, The Bank of Canada, to give low interest rate loans, usually of zero or one percent interest, to all provinces or municipalities that were building up their infrastructure?

Did you know that it has been estimated that for the one year of 1995 for example, it has been estimated that had Canada had went back to this method of creating roughly one half of our total money supply in this manner, THAT WE COULD HAVE SAVED SIXTY FIVE BILLION DOLLARS IN INTEREST PAYMENTS?

You probably didn't know that but the scary thing is that our elected officials and our most influencial thinkers on economic policy seem to be unaware of this fact also.

Since our federal deficit for 1995 was roughly thirty billion dollars, this one measure could potentially have given us a budget surplus in the range of thirty five billion dollars.
In my opinion, Canadian federal spending cutbacks in our health care system, in our Armed Forces, education, the changes in the Unemployment Insurance Program and in foreign aid, can all be traced to the fact that our politicians and our leading economists do not comprehend or know how to apply the economic theory known as "underconsumptionism."

If I had not seen this theory explained so clearly in a few publications I would have no idea how our situation could be drastically improved either.

By volunteering to sign my form 11, Section 44, Nomination Paper for Mayor or Other Council Member, you will be greatly aiding me to present my case that there is indeed no logical reason why St. Mary's District cannot be the first Municipality in Nova Scotia to achieve relative full employment.

"My people are destroyed for lack of knowledge." (Hosea 4:6).
If five individuals from the Sherbrooke District will volunteer to sign my nomination form, then I plan to run for Minicipal Councillor for the Sherbrooke area in the St. Mary's District, municipal election, to be held October 16, 2004.

Thank you immensely for your time and I greatly look forward to hearing, and reading, your comments, criticism and suggestions.

Warmest Regards,

Dennis Tate


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