Comments on: Canada bailed out our banks while you were watching hockey http://aaronjford.wordpress.com/2008/12/07/canada-bailed-out-our-banks-while-you-were-watching-hockey/ There are only 2 things in this world, the truth, and the obstruction of the truth. Mon, 08 Dec 2008 17:51:08 +0000 http://wordpress.com/ hourly 1 By: Aaron Ford http://aaronjford.wordpress.com/2008/12/07/canada-bailed-out-our-banks-while-you-were-watching-hockey/#comment-28 Aaron Ford Mon, 08 Dec 2008 17:51:08 +0000 http://aaronjford.wordpress.com/?p=183#comment-28 You are right about Canada not being have the Gold Standard, but the pieces of paper in your wallet are still supposedly backed by the BoC, which in turn is backed by it's assets. Something is backing your money, and that something is the assets of the BoC and the word of the Canadian government to honor your money as something with value. In sum, the BoC assets that serve as a guarantee on your paper money have been severely damaged and cheapened. Even the free markets did not want to touch them for anything less than a significant discount to what the BoC paid/lent for them. Thanks for stopping by to comment. You are right about Canada not being have the Gold Standard, but the pieces of paper in your wallet are still supposedly backed by the BoC, which in turn is backed by it’s assets. Something is backing your money, and that something is the assets of the BoC and the word of the Canadian government to honor your money as something with value.

In sum, the BoC assets that serve as a guarantee on your paper money have been severely damaged and cheapened. Even the free markets did not want to touch them for anything less than a significant discount to what the BoC paid/lent for them.

Thanks for stopping by to comment.

]]> By: yorksranter http://aaronjford.wordpress.com/2008/12/07/canada-bailed-out-our-banks-while-you-were-watching-hockey/#comment-26 yorksranter Mon, 08 Dec 2008 09:16:54 +0000 http://aaronjford.wordpress.com/?p=183#comment-26 <em>The $20 you’re holding is backed by various assets held in the vaults of the Bank of Canada in Ottawa.</em> This isn't true, though, is it? Canada doesn't have a gold standard. The $20 you’re holding is backed by various assets held in the vaults of the Bank of Canada in Ottawa.

This isn’t true, though, is it? Canada doesn’t have a gold standard.

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