Canada’s Broken System: Debt, Taxes, and the Lies of Economic and Environmental Crises

By Tom Marazzo, Captain (Ret'd) Canadian Army

Canada’s economic system is crumbling under the weight of a fractured monetary framework. Built on a fiat currency system that demands endless growth, rising taxes, and unsustainable debt, this model is a house of cards. The federal government is projected to spend $54.1 billion annually on interest payments—a staggering $6.2 million per hour—to service its debt. This colossal expense underscores a deeper truth: no government—regardless of political affiliation—can truly solve the economic crises we face today until this core issue is addressed.

At its core, the fractured monetary system is built on an impossible foundation. To illustrate, imagine there is only $1 in existence in the entire world. If I loan you that $1 at 10% interest, you now owe me $1.10. But since there’s only $1 in existence, how will you ever pay back the extra $0.10? You can’t. That’s the crux of our economy. Money is created as debt with interest attached, but there is never enough money in circulation to cover both the principal and the interest.

This oversimplified example highlights the fundamental flaw in the fiat and fractional reserve banking system: it demands perpetual borrowing and growth to create the money required to pay back prior debts. The result? Governments, businesses, and individuals are caught in an endless cycle of borrowing to repay borrowing. Today, our federal government has trapped Canada in this system, owing banks $54.1 billion in interest payments per year.

The worst part of this? You are being taxed to death to pay back loans the government never asked you if you wanted to take out. Worse still, you’re being forced to pay for interest that doesn’t even exist in the system. This is the foundation of the fractured monetary system that governs our lives.

The Vicious Cycle of Debt and GDP Growth

To meet these massive obligations, the government relies on perpetual GDP growth. This creates a vicious cycle:

1. Resource Consumption: Economic growth requires producing more goods and services, often demanding increased extraction and depletion of natural resources.

2. Tax Revenues: A larger economy means more taxable income, corporate profits, and sales. Without continuous growth, tax revenues decline, making it impossible to service the national debt.

This cycle locks governments into a strategy of "growth at any cost." Slowing or stabilizing GDP growth would risk fiscal collapse, making meaningful reforms politically and economically untenable.