The Governor of the Bank of Canada has almost unlimited power since he can facilitate and control the direction of the economy without reference to Parliament. …The head of the Bank of Canada is the Governor, who is appointed by the bank's (independent)

board of directors (rubber stamped by Cabinet). The governor is appointed for a seven-year term, and cannot be dismissed by the government…..In practice, the governor sets monetary policy independently of the government.

The Board is composed of 12 Directors from outside the Bank, plus the Governor and the Senior Deputy Governor. The Deputy Minister of Finance sits on the Board as a non-voting member. The outside Directors come from across Canada and provide an important link to the various regions of the country. Directors are appointed for three-year terms by the Minister of Finance and may be reappointed at the end of their terms. If an appointment decision is delayed, Directors continue to fulfill their responsibilities as Board members until a new Director is named.

“The Bank is not a government department as it performs its activities at arm's-length from the government. The Governor and Senior Deputy Governor are appointed by the Bank's Board of Directors. The Deputy Minister of Finance sits on the Board of Directors but does not have a vote.”

WILLIAM LYON MACKENZIE KING: "Until the control of the issue of currency and credit is restored to government and recognized as its most conspicuous and sacred responsibility, all talk of the sovereignty of Parliament and of democracy is idle and futile...Once a nation parts with control of its currency and credit, it matters not who makes that nation's laws...Usury once in control will wreck any nation"

Mark Carney

So, now Paulson wants undisputed power to move quickly forward, "clean and decisively" to legislate action that would favor even more private control over the US markets. …This is the man who has linkage to all the ex Goldman executives now sprinkled strategically throughout the financial and political power bases in the US, Canada ( Mark Carney, Gov. Of the Bank of Canada, former GS ) and Europe.

NOTE: the chairman of the board (individuals selected from across Canada who have very little experience in central banking…if any) makes a “recommendation” to the board. So, in effect, that person more or less selects the new Governor. Is he easily influenced from outside sources?

OTTAWA, Oct 4 (Reuters) - Senior finance ministry official Mark Carney was named as the incoming Bank of Canada governor on Thursday and immediately pledged to stick to a policy of keeping inflation low.

Carney, a former investment banker at Goldman Sachs, is just 42 and will be the youngest central banker in the Group of Eight leading nations. He replaces David Dodge and starts his seven-year term on Feb. 1, 2008…

Before joining the public service, Carney had a thirteen-year career with Goldman Sachs in its London, Tokyo, New York and Toronto offices. His progressively senior positions included co-head of sovereign risk; executive director, emerging debt capital markets; and managing director, investment banking. He worked on South Africa's post-apartheid venture into international bond markets, and was heavily involved in Goldman Sachs's work with the 1998 Russian financial crisis.[5]

While at the Department of Finance, Carney oversaw the federal Conservative government's plan to tax income trusts at source. The Department of Finance also eliminated a 15% withholding tax on foreign leverage buyout loans and created capital insertion rules that restricted growth on Canadian trusts. These changes assertedly created conditions that favored foreign entities which purchased Canadian Income Trusts and were not required to comply with rules that restricted growth.[7][8]

Under the current process for appointing a new governor, Flaherty works with an independent panel drawn from the central bank's board of directors to vet candidates. The final choice must be approved by Harper's Cabinet.

"He doesn't have a long track record of public statements, so we can't say whether he's dovish or hawkish," Mr. Porter said. "So markets will take time to know the new governor to see if there are any changes in policy down the line."

Mr. Carney's appointment was something of a surprise. He was selected over Paul Jenkins, the Bank of Canada's senior deputy governor who was the odds-on favourite among Canadian economists to take the job. Mr. Carney is the senior associate deputy minister at the Department of Finance.

Mr. Carney left Goldman Sachs in 2003 to join the Bank of Canada as a deputy governor, after being recruited by Dodge. However, in 2004 he was seconded to Finance, where he rose to the No. 3 job.

"Mr. Carney is superbly equipped to lead the Bank. We are confident that he can take on the challenges of the Governor's role in promoting the economic and financial welfare of Canada over the next seven years." – Jean-Guy Desjardins, chair of the Special Committee of the Board of Directors, Bank of Canada, Oct. 4, 2007.