Bank of Canada Admits Justin Trudeau and The Liberal Government Caused Inflation: BoC Governor Tiff Macklem gave insider advice to business leaders not to raise workers’ wages – August 19, 2022,

 

 

First and foremost, I’d rather central banking end; I’d rather interest rates be determined by market conditions instead of central banks setting rates which is entirely political, to begin with. The only reason we have a central bank is to benefit POLITICIANS. Throughout the years politicians have made all sorts of bad decisions, and it’s usually the central banks who bail them out.

Before we go on a Tiff Macklem bashing spree, let’s remind Canada that to date, Stephen Poloz, appointed by STEPHEN HARPER, is still the worst Bank of Canada governor of all time. Being that the Canadian dollar followed the oil prices, there was no reason for Stephen Poloz to lower interest rates other than to make Stephen Harper look good.

Now, would I have preferred Stephen Harper over Justin Trudeau as Prime minister of Canada? Absolutely, Justin Trudeau has been an ECONOMIC nightmare for Canada, but it appears everyone is trying to shift the blame from Justin Trudeau to Tiff Macklem, acting as if Tiff is the first bank of Canada governor who attempted to make the Federal Government who hired him look good?

Recently, Tiff Macklem rightfully told Canadian job creators NOT to raise wages because he plans to tackle inflation, meaning that interest rates are likely to keep rising in the near future. If I’m to be honest, this is why I hate central banking in the first place, because, now people like me have to wait around like sheeple to see how serious Tiff Macklem is about tackling inflation, it appears like he’s serious, but I don’t know what’s in the man’s mind, I don’t know what the future holds.

For myself, to date, I’ve done well in the Canadian MARKETS, primarily because of the buffoonery of Justin Trudeau; when the government starts overregulating the activities of the private sector, it’s pretty easy to anticipate where the money is going to go, however, guaranteed rate hikes from a central bank, is something I have to wait to unfold because obviously, the Canadian market would have jacked up interest rates way higher than what Tiff Macklem is charging and a free market wouldn’t care about climate change or Covid-19.

This political war on climate change and these stupid covid-19 restrictions in a free market would equate to much higher interest rates, which, ofcourse, would have already unleashed a wave of bankruptcies. Now, because the Bank of Canada has so much power, it can slow down bankruptcies and potentially expose Justin Trudeau’s buffoonish economy for what it is, giving Trudeau time to PIVOT to new market conditions.

In most third-world countries that have currencies that garner NO RESPECT in the forex markets, their countries’ socialistic ECONOMIC tendencies often equate to the IMMEDIATE debasement of their currency. Countries like Canada usually don’t have to worry about the global debasement of our dollar, which helps us with TRADE. If as an example, the Canadian dollar was at parity with the Chinese renminbi, all of sudden, a lot of Canadians wouldn’t be able to purchase Made in China goods.

Although a lot of Canadians like to brag that made in China is crap, those very same Canadians would cry a river if made in China, crap was no longer AFFORDABLE. In a nutshell, this is what Tiff Macklem appears to want to accomplish with his rate hikes; he appears to want to get the Trudeau government to change its spending and regulatory behavior.

Because Trudeau’s base is rather clueless about how the economy works, Trudeau is at liberty to change course; the green-socialist-environmentalist crowd is very tiny in Canada, and it’s time for Canada to drop ALL covid-19 restrictions, but there is the possibility that Trudeau will be stubborn and continue on his path of destroying the Canadian economy.

Now a free market would have destroyed Trudeau’s government by now, but Tiff Macklem continues to prop it up. We gat a glimpse into the mind of Tiff Macklem when he states the following.

In the latest news, BoC Governor Tiff Macklem gave insider advice to business leaders not to raise workers’ wages.

At a July event hosted by the Canadian Federation of Independent Business, Macklem said of inflation, “Don’t build that into longer term contracts. Don’t build that into wage contracts. It is going to take some time, but you can be confident that inflation will come down.”

Sabrina Maddeaux: Tiff Macklem wants workers to keep paying for his mistakes | nationalpost.com

Now, for someone like me, those words are quite clear because higher wages equate to a permanent DEBASEMENT of the Canadian dollar. If let’s imagine for a moment the minimum wage is $20 per hour, that means flipping a burger is going to cost an employer $20 an hour per employee, which means Consumer prices have to PERMANENTLY go up. Now, because the foreign exchange markets could care less what happens inside of Canada, the value of the Canadian dollar might remain strong INTERNATIONALLY, meaning that Canadians might have more purchasing power OUTSIDE of Canada than they have INSIDE of Canada.

This could, ofcourse, benefit Canadian businesses greatly BUT could destroy Canada’s DOMESTIC economy. One of the reasons a lot of manufacturing jobs left Canada is because of WAGE hikes. Why should an employer pay a Canadian employee $15+ per hour to assemble a widget when they could get a Chinese, Vietnamese, Mexican, Filipino, etc. to build the very same widget for $$25 a day?

In countries like China, it’s ILLEGAL to set up a labour union; in Canada, we have a labour union culture as a staple of our economy. The Labour union’s sole purpose is to raise wages and use the force of government to destroy private businesses that fail to adhere to their Labour union demands. Now, I don’t know Tiff Macklem personally, so I don’t know what is going through his mind, but reading that statement from him in the Sabrina Maddeaux post, makes me think that Tiff Macklem gets it.

Because for Tiff Macklem to mention wages tells me he understands the damage price controls can have on an economy. Like it or not, we have a market economy; whether people like it or not, Fee market capitalism works; we know it works; it’s worked so well that the Socialists’ entire platform is reliant on its survival.

There always comes a time when the socialists’ OVERREACH, assuming that they have this economics stuff figured out; you can clearly see based on Justin Trudeau’s reckless spending and regulatory behavior that he hasn’t a clue what he’s doing to the Canadian economy. Well, if Tiff Macklem keeps raising rates, Justin Trudeau will quickly get an economics 101 lesson, as his borrowing costs will soar, forcing him to reconsider his Big Government socialist plans,

With that said, I don’t want to get ahead of myself because I don’t know what Tiff Macklem is thinking; I’m merely PROJECTING my personal desires for a normal interest rate environment onto Tiff Macklem and that in and of itself is silly. In closing, what I will say, is that the Sabrina Maddeaux article was an eye opener for me for reasons she didn’t intend it to be.

No offense to wage earners, but a lot of them voted for Justin Trudeau; I don’t understand her angle. We’re going to blame Tiff Macklem for getting apolitical? Well, I’ve been arguing Stephen Poloz is apolitical for YEARS now. In fact, if Tiff Macklem is apolitical, that’s a good thing because Stephen Poloz being apolitical caused Stephen Harper the 2015 election.

Sabrina Maddeaux: Tiff Macklem wants workers to keep paying for his mistakes | nationalpost.com

Interesting times ahead!