More Signs of DEFLATION-Negative Interest Rates Coming To Canada? Canadian Economy Struggling Pre-Pandemic, The Bank Of Canada is Struggling To Keep Interest Rates Down, But It can’t normalize them – July 15, 2021,

Often is the case with central banks and central planners is that the look at the MACRO data, instead of the microdata, private investors are the people who should pay attention to macro data, because the goal of a private citizen is to enrich themselves, the role of central planners which include central banks is to enrich the POOR and MIDDLE class, the upper-middle class and rich don’t need a central bank.

The demand for a central bank came as the result of the poor voting for politicians who promised to increase the role of the state to legalize the theft of private property. Political Democracy is all about the redistribution of wealth, which is why even some rich people don’t oppose a central bank.

But whenever I read about central planners basing their decisions on the MACRO data, it’s clear to me that either they’re ignorant or they’re intentionally trying to mislead the public. Price inflation hurts the Working middle-class and the Working poor the most. Under a goal standard, central bank mismanagement is often felt immediately. however with fiat money(confidence money), in this digital era, the central banks have been able to prolong an economic collapse.

Via technology, the global economy has been very resilient, because most technology companies can hire fewer domestic employees, the money continues to roll in, the problem, however, is that the domestic economy, namely Canada’s ability to manufacture goods is sinking. Canada is quickly resolving into a service sector economy.

As an example recently digital sale taxes have begun getting collected and what’s being ignored is that this is DEFLATIONARY for the Canadian economy. Forget about the merchants for a second, digital sales taxes equate to a loss of purchasing power for Canadian consumers. Instead of $100, the Canadian consumer now pays $113 this in addition to all the other taxes Canada’s poor and middle class have to pay for.

Being that the cost of living in Canada, in general, is rising it’s going to get easier for every Canadian retailer to slowly raise their own prices, you have to also remember that via other taxes Justin Trudeau has added like the carbon tax for example, this is added tax and burden for Canada’s private sector, sure many businesses in Canada have been reluctant to pass these costs onto consumers, but if Canada’s working class is in a position to demand higher wages and this popular sentiment is embraced by Canada’s general population, then it will be easier for private-sector employers to justify raising prices on consumers.

From my vantage point, the Canadian economy is DEFLATING and in order to prevent deflation, more central bank liquidity will be necessary. I like to remind people not to put the working poor and folks dependent on Government Welfare cheques in the same category. People on Welfare to pay for currency debasement

When working for the government you’re supposed to be paying close attention to the MICRO data. The real tax cheats are the people who offer nothing to the Canadian economy. A person who is on welfare is a 100% consumer, even when they’re spending money, they’re actually spending someone in the private sector’s money.

Being that all levels of Government in Canada are HOPELESSLY in debt, and adding more regulations to the private sector is popular politics at the moment, what’s actually happening is more fiat money is being used to purchase fewer goods and services.

Public Sector workers are a fixed cost for a SHRINKING private sector meaning that if it’s more expensive for the private sector to grow, there’s a good chance that it won’t grow, or if it grows, there is a chance it may grow in a manner that isn’t beneficial to the central planners. All of this shows me that if there’s an interest rate hike it will be short-lived. There is no chance in my opinion that interest rates will be NORMALIZED!

Meaning that I find little to no value in what the bank of Canada is forecasting. If anything I would argue the clock is ticking for NEGATIVE INTEREST RATES! Now keep in mind the definition of GDP = Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period.

I like to point out that new taxes and new regulations imposed by Justin Trudeau, ignore prior taxes and regulations by his predecessors, which led to a steep decline in Canada’s private sector’s ability to produce. I mentioned the tech sector because although Tech might be growing in Canada, it’s very easy to outsource tech jobs.

Some CANADIAN companies in the Tech sector like it they’re having a hard time finding Canadian talent because it’s cheaper for them to outsource. We’re headed for deflation and a UBI or newly government-imposed regulations can’t save the day.

The Bank is now projecting GDP growth of 6% for Canada in 2021, 4.5% in 2022 and 3.25% in 2023.

Bank of Canada keeps pressure off borrowers, but the clock is ticking |

Interesting times ahead!