High interest rates focus on the revenue of a parasitic class.Historically the financial system has been structured in favour of moneyed interests, that is, creditors.

High interest rates focus on the revenue of a parasitic class.Historically the financial system has been structured in favour of moneyed interests, that is, creditors.

A tight-money policy reinforces inequality in two ways. Its high interest rates disproportionately reward the rich, and the resulting unemployment disproportionately punishes the poor.

Even before winning its majority, Harper's Republican-styl e Conservative party - well to the right Canada's traditional Progressive Conservative Party - managed to win minority governments with less than 40 per cent of the popular vote.

The statement, "The debt problem has become so extreme that we have no choice but to cut social spending" is presented as an objective assessment of our situation. But can you imagine a media commentator making the following assertion? "The debt problem has become so extreme that we have no choice but to raise taxes on the rich."

For society to function some kind of reasonable balance has to be stuck between the competing interests of creditors and debtors. Although the mandate of the Bank of Canada was to maintain a delicate balance between encouraging growth and fighting inflation, the Bank opted to focus exclusively on fighting inflation. In doing so it came down heavily in favour of those with financial assets to protect, and against those whose primary need was employment.

The basic issue is whether the financial elite or the government on behalf of the people should have the profit from creating money.