Bank of Canada Governor Tiff Macklem said on Wednesday Canada’s economy needs investment from the government? Expect More MalInvestment From Justin Trudeau leading to More Consumer Price Inflation – February 10, 2022,
So Tiff Macklem made an interesting statement Wednesday, February 9, 2022, when he basically opened up about ending Quantitative Easing. If money counterfeiting by Canada’s central bank comes to an end, Trudeau will have o do what he’s been unsuccessful at doing throughout his entire term as Prime Minister of Canada-make a profit.
Justin Trudeau prior to the pandemic was spending more than he was making, during the pandemic, Justin Trudeau in an attempt to rule by fiat, called an early election to hopefully win a majority government, he did not win a majority government, in fact, fewer voters showed up to vote for him in 2021, than they did in 2019, and this was after Justin Trudeau’s vote-buying schemes.
The method Justin Trudeau took to battle covid-19 was to borrow money and pay Canadians not to work, I can assume Justin Trudeau imagined that by buying votes, he would be more popular than ever with voters, turned out Trudeau was wrong, so not only did he put Canada in more debt, his prior regulations and prior spending are now resulting in consumer price inflation.
Because remember as an example infrastructure spending is supposed to help businesses to be more efficient which would then lead to more revenue, but that’s not what Trudeau spent money on during the pandemic, Trudeau’s spending has mostly been about vote-buying, climate-and-Social Justice causes, all of which have made the cost of living more expensive.
Because the cost of doing business is more expensive in Canada because of Justin Trudeau’s Covid-19, Climate change, and Social justice regulations on the Canadian economy, Justin Trudeau now finds himself with an inflation problem that the Bank of Canada has to interpret as a growing economy. You have to understand that during regular times consumer price inflation is supposed to signal that the Bank of Canada is supposed to normalize interest rates.
But the Bank of Canada of course wants to do this as slow as possible, because, let’s ignore the Asset price appreciation in things like the real estate market for a moment, the real problem with the Bank of Canada raising interest rates is that the servicing of Justin Trudeau’s government debt is going to explode, which as we all know, could equate to AUSTERITY measures. Most Canadians, don’t understand the PAIN of austerity measures and it’s unlikely they will experience it, what’s likely to occur is that inflation runs rampant.
Obviously, Tiff Macklem isn’t going to scare Canadians with talks about rampant consumer price inflation, but that’s what I suspect is going to happen in the future. As I’ve been stating for months now, what I suspect to happen in the not-so-distant future are BANKRUPTCIES! Bankruptcies WITH NEAR ZERO PERCENT INTEREST RATES!
Bankruptcies also equal to SHORTAGES, because you have to see the writing on the wall, it’s not just about businesses being forced to raise their prices, the problem is also going to be about consumers’ inability to pay the higher prices.
Canada’s economy does not need more stimulus, but rather more investment from both government and businesses to build up supply capacity to meet strong consumer demand, Bank of Canada Governor Tiff Macklem said on Wednesday. People tend to forget how indebted the Canadian consumer is. There was this myth about Canadians saving money during the pandemic, sure they were saving money, but they also weren’t paying down debts, they weren’t cutting costs, thy were merely enjoying the benefits of not having to spend money going to work.
Well, The Canada Emergency Response Benefit (CERB) is over and if Justin Trudeau decides to launch another Universal Basic Income program, you have to understand that he’s accelerating consumer price inflation, because similar to CERB, a UBI equates more consumer price inflation and more shortages. In both Canada and America, more people have QUIT their jobs, fewer productive people equate to HIGHER prices. Venezuela and Cuba tried UBI already.
If you go to Venezuela and Cuba, you’ll notice that most people in these countries DO NOT WORK! The governments in both of these countries, punish citizens for being capitalistic, meaning that if you manage to make a lot of money in Venezuela, or Cuba, the government will seek to redistribute what it imagines as your excessive earnings to people who do not work. This disincentivizes people from working and also creates a BRAIN DRAIN!
So when the Bank of Canada says the government needs to invest more, I remind the reader that Justin Trudeau to date has been a horrible manager of the Canadian economy.
Bank of Canada: Economy needs more capacity investment, not stimulus | reuters.com
Interesting times ahead!