With a united Wildrose Independence Party in Alberta and Jay Hill at the helm of Wexit Canada, the independence conversation has gotten serious. A May 2020 poll conducted for the Western Standard found that 45 to 48 per cent of Albertans supported independence. That’s real close to a 51 per cent tipping point. Though, for a lot of Albertans, independence is only an opportunity to lean into Ottawa for a fair deal on equalization and the constitution..There is enough support for a fair deal to build a solid footing for Western independence, but that foundation will be useless if this house is framed using the Canadian dollar..The Canadian dollar is consistently hitting new lows every year when measured against indicators like the consumer price index, which measures the price impacts of inflation caused by the Canadian government’s manipulation of the money supply. .An independent West (or just Alberta) should reject a foreign government (in this case Ottawa) devaluing its currency. Unlike Quebec sovereigntists – who want to continue using the Canadian dollar – Westerners would be better off with their own currency, a Western dollar which is free of manipulation..Junior high civics classes have conditioned Canadians to trust the government with the money supply as a noble endeavor, that the marketplace can’t provide a product sound enough to be used as a medium of exchange or a store of value. The federal government took that trust and printed up a trillion dollars in debt for all kinds of corporate welfare programs. Most recently, to give to their buddies in the mainstream media and WE charities, or to conduct the massive Covid-19 vote-buying welfare scheme, and they’ve done it at the expense of impoverishing those who trusted them with what little wealth they had. All while the marketplace has given us a product that is sound enough to be a medium of exchange and a far superior store of value – gold. .The Canadian Dollar was backed by gold until 1914 when the Finance Act was passed. This allowed the dollar to be artificially devalued to fund the First World War. The dollar reached a new all-time low measured in gold at the end of 2019 from which it will never recover..A fair deal on equalization, or better yet, the end of equalization is a great thing, but if the West keeps the Canadian dollar, the door to unfair treatment by Ottawa will always be open. The ability to manipulate the money supply is akin to a tax. Instead of confiscating the actual dollars – like they do with equalization – they are confiscating the value of a dollar. They are stealing purchasing power. As Western provinces have historically out-performed Eastern ones when it comes to productivity, a tax on purchasing power disproportionately affects the West..If Albertans or the entire West succeed in achieving independence, it would be foolish to continue paying the inflation tax to Ottawa. .While the West does not have the gold to completely back a currency yet, it isn’t necessary to get the ball rolling. The Western dollar can be pegged to the price of gold at a rate similar to the Canadian dollar and legislation will be required to restrict devaluation by Western governments. As Canada continues to devalue the loonie, our share of the Canadian debt – which would presumably follow us into independence – will be wiped out by inflation..Here in the West, people are dumping dollars and turning to gold. Remember that Western Standard poll? Having a gold backed Western dollar on the table is enough to tip the scales towards independence..Even for those not convinced that independence is the right course, Westerners should be demanding sound money as part of a fair deal with Ottawa. What’s the point of keeping those equalization dollars if the money itself is worthless?.Darcy Gerow is a columnist for the Western Standard
With a united Wildrose Independence Party in Alberta and Jay Hill at the helm of Wexit Canada, the independence conversation has gotten serious. A May 2020 poll conducted for the Western Standard found that 45 to 48 per cent of Albertans supported independence. That’s real close to a 51 per cent tipping point. Though, for a lot of Albertans, independence is only an opportunity to lean into Ottawa for a fair deal on equalization and the constitution..There is enough support for a fair deal to build a solid footing for Western independence, but that foundation will be useless if this house is framed using the Canadian dollar..The Canadian dollar is consistently hitting new lows every year when measured against indicators like the consumer price index, which measures the price impacts of inflation caused by the Canadian government’s manipulation of the money supply. .An independent West (or just Alberta) should reject a foreign government (in this case Ottawa) devaluing its currency. Unlike Quebec sovereigntists – who want to continue using the Canadian dollar – Westerners would be better off with their own currency, a Western dollar which is free of manipulation..Junior high civics classes have conditioned Canadians to trust the government with the money supply as a noble endeavor, that the marketplace can’t provide a product sound enough to be used as a medium of exchange or a store of value. The federal government took that trust and printed up a trillion dollars in debt for all kinds of corporate welfare programs. Most recently, to give to their buddies in the mainstream media and WE charities, or to conduct the massive Covid-19 vote-buying welfare scheme, and they’ve done it at the expense of impoverishing those who trusted them with what little wealth they had. All while the marketplace has given us a product that is sound enough to be a medium of exchange and a far superior store of value – gold. .The Canadian Dollar was backed by gold until 1914 when the Finance Act was passed. This allowed the dollar to be artificially devalued to fund the First World War. The dollar reached a new all-time low measured in gold at the end of 2019 from which it will never recover..A fair deal on equalization, or better yet, the end of equalization is a great thing, but if the West keeps the Canadian dollar, the door to unfair treatment by Ottawa will always be open. The ability to manipulate the money supply is akin to a tax. Instead of confiscating the actual dollars – like they do with equalization – they are confiscating the value of a dollar. They are stealing purchasing power. As Western provinces have historically out-performed Eastern ones when it comes to productivity, a tax on purchasing power disproportionately affects the West..If Albertans or the entire West succeed in achieving independence, it would be foolish to continue paying the inflation tax to Ottawa. .While the West does not have the gold to completely back a currency yet, it isn’t necessary to get the ball rolling. The Western dollar can be pegged to the price of gold at a rate similar to the Canadian dollar and legislation will be required to restrict devaluation by Western governments. As Canada continues to devalue the loonie, our share of the Canadian debt – which would presumably follow us into independence – will be wiped out by inflation..Here in the West, people are dumping dollars and turning to gold. Remember that Western Standard poll? Having a gold backed Western dollar on the table is enough to tip the scales towards independence..Even for those not convinced that independence is the right course, Westerners should be demanding sound money as part of a fair deal with Ottawa. What’s the point of keeping those equalization dollars if the money itself is worthless?.Darcy Gerow is a columnist for the Western Standard
