Canadian Inflation reaches 3.7% in July 2021: Justin Trudeau’s Corporatist Spending Spree might force the Bank of Canada to Raise Interest Rates – August 18, 2021,

The root cause of economic DEFLATION are higher prices, the money, the gold, the bitcoin doesn’t matter in the grand scheme of things, what matters is how much will it cost you to purchase what you want. If you’re currency, your gold, or your bitcoin buys you fewer things today than it bought you yesterday, you will buy less and the economy will deflate.

When the economy deflates, the only tool at the Government’s disposal is money printing. Because money printing leads to rapid inflation, in most western countries, instead of the government printing money, the distribution of money is often left up to the private banks in the form of loans.

In order for the private banks to loan money, the Central bank, which in Canada is called the “Bank of Canada” usually has to lower interest rates and buy stuff to put on its Bank of Canada balance sheet. When the Bank of Canada does this it makes the price of goods and services more inexpensive because now the Bank of Canada is an economic competitor to the Canadian voter.

When the Bank of Canada buys something or creates an atmosphere in which the haves can buy even more stuff, the have-nots suffer because there are now fewer things to buy in the real economy, furthermore because the Bank of Canada is not consuming anything physical, the Bank of Canada’s asset purchases distort the Canadian economy.
Now, although most put the blame on the central banks, I put the blame on the politicians, because as an example in Canada, our private banks are already heavily regulated, based on the conditions of how Canada is governed are retail banks operate in the manner they should, the issue in Canada is that our public sector is hopelessly insolvent and there is not coherent plan to Canada out of debt.

A reminder to Canadians that Justin Trudeau’s weakness has always been the economy, Justin Trudeau has an extremely low financial IQ and it’s reflective of how spends money as the Canadian Prime minister. Almost all of Justin Trudeau’s borrowing revolves around political gains, when you observe most of the corporations who benefit from Justin Trudeau’s borrowing, there’s no return on investment for the Canadian taxpayer.

When a government borrows, it does so with the intent of a return on investment, if there’s no return on investment interest rates go up. Now, because Canada has the luxury of being one of the world’s reserve currencies, inflation takes longer here than it would if let’s say we were the nation of Colombia or Argentina, but, let’s not confuse the forex value of the Canadian dollar with the domestic value.

Domestically prices in Canada are rising and they’re rising a lot more than 3.7% in July because a lot of food in Canada is getting smaller but the price remains the same, that’s not counted in the inflation data, energy price increases aren’t counted, more Canadians are being rewarded for not working is not being counted, there are several factors not included in the reported inflation data, which means fewer people are going to understand how to solve an economic collapse in the Canadian economy when it occurs.

The lack of financial education in Canada worries me the most because ignorance produces poverty! Canada’s left is the majority and most of them are ignorant financially, Leftists tend to be the most violent during deflationary cycles, Leftists also want easy answers for decades of financial disasters. This is what’s not being talked about and probably won’t be talked about once the Canadian economy comes to a grinding halt!

By grinding halt I mean the normalization of interest rates, what happens when inflation really takes off is that everything changes, because you have to understand that there are beneficiaries of PRICE inflation, Canada has a preview of that with the real estate markets, well, what happens if food becomes the next Canadian real estate market? or Energy? or clothing? Or cars? once those prices go up, they can only come down via government regulation cuts, potentially cutting welfare programs, if the government doesn’t shrink, the newly inflated prices for things is the new standard price of things and therefore the working class Canadian gets screwed!

Because the money they’ve worked can buy them fewer goods and services, meanwhile the real tax cheats, you know those people on Welfare, see little to no loss in their standard of living, this often leads to more people working less, I’ve seen this story play out in third world countries over and over again. Western societies are supposed to REWARD hard work, not reward welfare, personal and corporate welfare are the results of bad economic policies and Justin Trudeau has been by far the worst Prime Minister for Canada’s economy.

Inflation rate spikes to highest level in a decade, at 3.7% in July |

Interesting times ahead!