It’s possible to completely eliminate the national debt in Canada relatively easily. There are a few simple steps.
- Have the Bank of Canada print money slowly
- Buy back debt slowly, silently, stealthily
- As inflation rises, use money previously allocated to debt payments to destroy $CAD
It’s that easy.
However, I’ll explain the process for the sake of verbosity.
The point is to entirely eliminate all national debt. To do this, you simply need to buy back all that debt. However, you need money to do this. The Bank of Canada has the power to simply print money without borrowing, like they have been doing, and which has impoverished many Canadians.
That point CANNOT be emphasized enough.
Right now, as always in the past, the Bank of Canada has had the power to print money. Period.
However, they’ve been borrowing money at interest, which costs far, far more.
Printing money = inflation
Printing & borrowing money = inflation + massive interest costs
When buying back debt, there are 2 types:
- Canadian dollar denominated debt
- Foreign currency denominated debt
Buying back debt must be done silently, and stealthily. Exchanging large amounts of $CAD for foreign currency is red flag. That must be done slower than buying up $CAD denominated debt. However, it must be done at the same time. The actual rates would depend on mathematical models for how much the $CAD money printing inflation devalued it, and then trying to maximize the debt reduction.
The important point is that other nations/companies/people must NOT realize what is going on – it must be done in secret and stealthily.
The obvious problem is that “money printer go brrrr!” creates inflation and devalues the currency.
This can be mitigated by destroying tax revenues that would otherwise go to debt servicing. After a number of years, the value of the currency would return. Further monetary destruction would further increase the value of the $CAD.
This isn’t hard. It’s just “outside the box”, and politicians never play there.