Bankers will benefit, taxpayers will pay under Trudeau’s infrastructure bank
Usually, infrastructure is funded by the government through taxpayers dollars. It’s one of the things people across the political spectrum generally agree on: Strong infrastructure is essential.
Another thing that has widespread agreement: Giving more power to the banks is a bad idea.
So, the growing concern about the Canada Infrastructure Bank scheme being pushed by Justin Trudeau is certainly justified. The bank directs tens of billions of taxpayer dollars into a fund that will be heavily influenced by Canadian banks, and Canadian consumers could soon be paying tolls to banks to use our infrastructure.
In fact, it won’t even really be “our” infrastructure, because foreign banks could have control over many assets.
Adding to the concern is the placement of the bank. Justin Trudeau ignored bids by Calgary and Montreal to place the Infrastructure Bank in Bay Street in Toronto – the centre of Canada’s banking industry and corporate elite.
The elite are certainly happy with Trudeau. As reported by Bloomberg, “The Toronto Financial Services Alliance welcomed the announcement, noting the city is home to the country’s major banks, several of its largest pension funds and insurance firms.”
The bank is being set up with $35 billion in government funding – which will then supposedly be supplemented by investments from elsewhere. Of course, it’s been set up so that if there are any massive losses Canadian taxpayers will take the hit before the banks lose a dime. It’s the same kind of thinking that was behind the bank bailouts: Socialism for the banks – capitalist competition for the rest of us.
A disturbing alliance of political elites and the banks
Not only does the infrastructure bank give massive power to the banks and put taxpayers at risk, but it’s also being totally politicized. The government is simultaneously making Canada potentially subordinate to big banks, while also concentrating political power over the bank in the cabinet – reducing accountability and setting up a disturbing possibility for unaccountable deals.
As Bloomberg reported, “It gave Trudeau’s cabinet broad power over the bank, including to appoint or dismiss the chair and directors, and to approve the board’s appointment of a chief executive officer, who government will also have the power to dismiss. The finance minister will also have powers over loan recommendations.”
The NDP have called it a “massive privatization bank,” while Conservative MP Dianne Watts asked “Why are the Liberals designing a bank that gives 100 percent of the rewards to their friends and leaves 100 percent of the risk to taxpayers?”
The more Canadians are hearing about the bank, the more concerns are adding up.
The Canada Infrastructure Bank is a huge danger to Canadian taxpayers in its current form. With Trudeau completely beholden – and part of – the elitist class, we can be certain the bank won’t be serving the interest of the Canadians people
Spencer Fernando[widget id="top-posts-5"]