Justin Trudeau Has Only One Plan To Deal With Historic Consumer Price Inflation DEFICIT SPENDING: Low-Income Renters Will Receive One-Time $500 Payment From The Federal Government – June 24, 2022,

From what I’m observing the Federal Liberal Party of Canada, has a very interesting method of dealing with record-high CONSUMER price inflation. Unlike most, I make sure I explain the differences between consumer price inflation and asset price inflation. For years in Canada, asset prices were going up, so assets like detached houses and condos kept rising in value, this obviously gave a lot of consumers more leverage to borrow money.

Currently, consumer prices have been rising, due in large part because the Canadian federal government has declared war on fossil fuels. a lot of people call our fiat currency the PETROL dollar because many consider fiat money backed by the price of oil. Whether labeling Canada’s fiat money the petrol dollar is fair, doesn’t matter, the bottom line is that the COST of doing business in Canada, continues to rise as the cost of oil rises.

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Because of these rising costs, the markets are telling the government that they’d be wise to start CUTTING back on government spending because even WHEN interest comes back down, it’s not a guarantee there will be SUPPLY of STUFF on the market and prices people we’re accustomed to in times prior. In this environment, what it looks like to most of us is that we’re headed for SHORTAGES fo stuff like oil

Deputy Prime Minister outlines government’s Affordability Plan for Canadians | canada.ca

There could be an abundance of consumer goods hitting the markets, but if let’s say the price of oil CRASHES in the next few months, which it very well could, OIL suppliers might start cutting back as CONSUMER demand declines. Now, although this doesn’t seem like that big of a deal, for domestic oil production it certainly is, because THE COST of drilling is expensive and if consumer spending is down, behavior surrounding oil production, could very well change to adjust to market conditions.

By that, I mean a crash in oil prices, which could soon equate to oil shortages, or a lagging spike in prices because domestic oil production is far more expensive than it is now, and foreign oil producers like OPEC will have more control over oil prices than it has now. The current political climate of oil production is that Western governments want to phase it out? All well and good, but the bills are paid in Canada by Oil, and if the government is disinterested in using it’s prior tax windfall in paying down the deficit now? You can only imagine what will happen to the deficit in by the end of 2022.

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Also regarding Low-Income renters? What does that mean exactly, People on Welfare or people reliant on the government to pay their bills, are they considered low-income renters? I consider low-income renters as people with JOBS finding their cost of living going up. If you don’t have a job, I personally don’t consider you low-income, I’d call you NO-INCOME, and if you’re able-bodied and not working you’re a tax cheat as none of the taxes you paid came from your LABOUR.

I’m seeing a pattern with Justin Trudeau’s Liberals, it’s easy for them to THROW money at problems, but they struggle to fix REAL problems. As I’ve stated in other posts, Canada has a lot of Federal Crown Corporations, in places where countries like the United States have Government Agencies that are on the Federal Government balance sheet. This allows the Federal government of Canada flexibility to focus on other things.

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The Canadian Passport office is the Federal government’s responsibility, as an example, Canada Post and even the CMHC have their own separate websites, but Services Canada is found on Canada.ca, making it Justin Trudeau’s responsibility.

Trudeau says passport delays are ‘unacceptable,’ promises the government will ‘step up’ | cbc.ca

Why are there so many problems at Canadian airports and Passport offices? I’m not EXACTLY sure, but I argue it’s the direct result of Justin Trudeau’s REGULATIONS on the workforce? Federal workers or employees employed under the Federal Government have to adhere to very STRICT guidelines, one of the reasons a lot of people avoid working in heavily regulated environments, is the ease in which you could be in violation of said regulatory guidelines.

The flipside of this are employees, who use regulations to their advantage, potentially NOT SHOWING up for work, when they don’t meet the guidelines set forth by the regulators. I remember the Passport offices being backed up from when Paul Martin was in power, I’d ALWAYS show up to get my Passport related issues solved MONTHS in advance and I’d leave my house at 5 am so when I got there I’d be amongst the first in line.

This was BEFORE Justin Trudeau, so I can only imagine what’s happening now. Because Justin Trudeau’s government throws money at problems, they haven’t felt the need to fix existing problems. I doubt Justin Trudeau’s cabinet even thought about the Passport office or the airports, when they created their new regulatory frameworks, in fact, I could argue the Freedom Trucker’s protestors were doing Trudeau a favor.

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With that said, you can see, from the article below, that Justin Trudeau and the company, like the idea of THROWING money at problems, not fixing them, which should serve as a potential dire warning if this consumer price inflation problem continues. a fair warning to the reader, once oil prices CRASH, Left-wingers are going to consider it a victory, not understanding that what comes next will likely be oil SHORTAGES!

Will the coming oil shortages look more like what happened under Jimmy Carter? or will the Canadian dollar and other fiat dollars simply BUY LESS domestically? I can’t say, but if the price of oil crashes, be warned that will be a crash in ASSET prices, a lot of businesses’ livelihoods are reliant on artificially high asset prices, which revolve around consumer activity.

Costs are what they are and a crash in ASSET prices does not mean that oil prices will remain low, it just means companies are going to RESTRUTURE their cost and output structures to meet the demands of the market. What I’m getting at here, is that the worst-case scenario might be unfolding right now, while the Canadian government is set to unleash another round of stimulus spending.

 

 

Other measures include:

  1. Enhancing the Canada Workers Benefit,

  2. Plans for affordable early learning and child care,

  3. A 10% increase to the Old Age Security benefit,

  4. The rollout of dental care coverage for lower-income Canadians, beginning with children under 12,

  5. Indexing other benefits to inflation.

Low-Income Canadian Renters Will Receive A One-Time $500 Payment From The Gov’t In 2022 | mtlblog.com

Interesting times ahead