The Canadians screwed their fiat system also?

Nick Rowe: If the Bank of Canada adjusts the nominal interest rate or monetary base to keep inflation at the 2% target, or if it changes that monetary policy target, it knows that this will affect the flow of seigniorage profits it pays to the government, and it knows that the government will sooner or later adjust taxes or expenditure so that the Long Run Government Budget Constraint remains satisfied. We saw this happen in 1995.

How much of the ink and paper does the government take up there, all of it?

This was my point, Those are not profits.  Money 'earned' by the fiat corridor banker becomes ink and paper.  If government steals the incoming money and recirculates then the fiat function will only go one way.  How many lending and savings banks will participate in the corridor banking function if they know government always has its hand in the till? None, the fiat banker up there, like the one we got, has never been able to gather excess inventory from the economy!  One might think the central bankers would mention this glaring error now and then. The central bank does not want to be in the tax business, especially performing tax duties for its member banks. So the fiat banker will keep its income low, and so the process of handling excess cash defaults to the shadow banking system. Excess inventory of the ink and paper is kept in the personal account of George Soros, and I guess Canada has hired him as Secretary of Money imbalances The government of both England and the US hire the guy on a regular basis.