What does it mean to say "nationalized the bank of canada"?it was done by prime minister william lyon mckenzie king does that mean that our money creating system does not work like that of the USA? does it mean that banks are not permitted to create money based on the fractional reserve policy and that government does not borrow money from the bank on... | |
In my opinion, the Bank of Canada is similar to the US Federal Reserve in that both are independent governmental organizations.
The main difference seems to be that the Federal Reserve is not audited by the federal government and does have the Chairman appointed by the president but does not have a governmental cabinet member (minister) sitting on the board. In Canada it seems that the government has inside knowledge of the dealings of the board where in the US, much of that is secret from the president, the cabinet, and congress.
http://bankofcanada.ca/en/about/are....
In pure simple terms, the government dictates the operations and the decisions that are implemented by the Bank of Canada. The government sets the key rates and money policies. Nationalization becomes important when private firms make decisions that increase their liability thereby further destabilizing the money markets in their respective countries.
Nationalization might seem autocratic, but Britain has gone the other way - privatizing previously nationalized industries - and the country as a whole is now really messed up, because a private concern is obviously profit based.
Nationalization is the act of taking an industry or assets into the public ownership of a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being transferred to the public sector to be operated by or owned by the state. The opposite of nationalization is usually privatization or de-nationalisation, but may also be municipalization.
In a simple word: The goverment takes the money and you can´t touch it unless they allow you to.
