As food prices skyrocket in Canada, Current Prime Minister Justin Trudeau and his government have only one answer, Borrow more money at now Much Higher Interest Rates From The Bank of Canada – January 18, 2023,
One of the terms or combinations of words used by media and others that really annoys me is “Government Spending.” These words allow the listener or the observer to imagine that when the public is taxed to benefit the public sector, the public isn’t making an INVESTMENT. When the public allows the government to take over an industry completely, it’s because the voting public IMAGINES that the government can do a better job than the private sector at delivering a particular product or service.
As an example, in Canada, the voting public imagines that the government is better suited to take over health care, so it’s for this reason private health care in Canada is almost non-existent for those who want it EXCLUSIVELY. Now, in some respects, Canada’s universal health care is better than health care in the United States, but in many more ways, it’s actually far worse, as a lot of Canadians imagine universal health care is FREE and therefore abuse it.
The reason why I have to talk about Jagmeet Singh in this post is that Justin Trudeau DOES NOT have a majority government, meaning that Canadian voters didn’t actually vote for the current agenda in its entirety; in fact, the voting numbers show that the Canadian voting public voted for GRIDLOCK because on paper the NDP and Liberals did have different agendas, as an example, Universal Dental Care was not part of the Liberal platform.
Most associate the Liberal Party with CORPORATISM and associate the NDP with Democratic Socialism; under a Democratic Socialist system, the supporters of that system want the governments to have the levers of control over almost every aspect of the market economy. As an example, as food prices continue to skyrocket, Jagmeet Singh and his supporters don’t imagine that Jagmeet and Justin’s war on fossil fuels has anything to do with rising prices instead, they convince themselves that CORPORATE GREED is the culprit and if only Jagmeet Singh had more POWER, he could use the FORCE of government to bring food prices down.
Now, any person with common sense knows that PRICE CONTROLS via the government lead to SHORTAGES of things because if you want to argue that CORPORATE GREED is currently fueling this corrupt economy, well, what happens, when the greed corporations can’t make any PROFITS? Suppose these greedy corporations decide that they will stop selling things to Canadians because Jagmeet Singh and his supporters don’t like greed in the country.
Well, when Hugo Chavez banned corporate greed, eventually, Venezuela struggled to get the bare necessities, and being that Hugo Chavez had little knowledge about business, the Chavez government was UNABLE to fill the void left by the greedy corporations. People, including Left-wingers who understand the IMPORTANCE of a market economy but want the government to do more often opt for the Liberal Party of Canada Corporatism model, which currently has decided to wage war on fossil fuels.
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This war on fossil fuels waged by Justin Trudeau includes not only restrictions and regulations on fossil fuels but a regressive CARBON TAX paid for by Canadian CONSUMERS and producers. So you can imagine the producers in Canada getting taxed and then passing the cost over to the consumers, who pay an additional tax.
Now, with all this new revenue the Canadian government is getting, you’d expect to be seeing some results at least as it relates to transitioning to an alternative RELIABLE and viable energy source, but so far, nothing. You also have to see the stupidity in Justin Trudeau’s plan because one would expect he’d give the private sector a reasonable time to adjust, so at the very least he could collect more revenue, but instead, he’s causing the private sector to go bankrupt which is DWINDLING his tax base.
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Now, from the Bank of Canada’s perspective, Justin Trudeau is becoming a RISKIER borrower, and it’s for this reason that the Bank of Canada has to raise interest rates on Justin Trudeau because you have to remember the idea of going into debt is be PROFITABLE on the other end. For example, if I go into debt to purchase a cash flow-producing house that I rent out to tenants, my tenants are supposed to SUBSIDIZE my mortgage payments.
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Well, with Trudeau, all of his “investments” are in the NEGATIVE. When people say Government spending, they mean government investing; the private sector can build and maintain roads; however, if the private sector does this, you’d have to pay a TOLL to use the road; most Canadians prefer the government handle the roads and so long as the government does just a good a job as the private sector, all is well.
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The issue is that Justin Trudeau and his partner Jagmeet Singh are HORRIBLE investors, and they’re making the people they’re supposed to represent poorer. Canada has a supple management scheme with dairy, and currently, without Justin Trudeau going into debt, Canada’s supply management would have to raise their prices higher than they are now.
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So even DOMESTICALLY, Justin Trudeau has created a disaster; the Bank of Canada, in my opinion, also has to keep rates up because if the Loonie falls, the cost IMPORT foods into Canada might skyrocket; that would be an IMMEDIATE impact by the way as food needs to be imported in daily. The only answer Justin Trudeau to date has had for consumer price inflation is to borrow more money, which really does remind you of what a TRUST FUND baby would do once they’ve spent all of their parents money.
LILLEY: As food prices skyrocket, Trudeau government has no answers on inflation | torontosun.com
Interesting times ahead!