Asset Price Inflation is indeed Inflation: Finance Minister Chrystia Freeland CORRECTLY points out that the fight against the record inflation of the last four decades is primarily a central bank fight – July 17, 2022,
Some of us remember CONSUMER price inflation under Brian Mulroney, the man known for bringing the General Sales Tax(GST) to Canada. Consumer price inflation DESTROYED Brian Mulroney. Canada’s first female Prime Minister Kim Campbell was the direct result of consumer price inflation. To hide consumer price inflation Jean Chrétien, Paul Martin, and Stephen Harper all engaged in economic policies that led to ASSET price inflation.
Interest rates have been on a downward trend, and if we’re to be honest, extremely low-interest rates are the EXACT reason why both Canada and America have federal leaders with extremely LOW financial IQs. The confidence in the U.S fiat dollar system is still very strong, which has led to STRENGTH in the U.S dollar during economic downturns.
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Why this is beneficial to Canada is that the U.S is our largest trading partner, so the weaker the U.S dollar gets, the SMARTER it makes our politicians look. Justin Trudeau as an example, has continued to make doing business in Canada more difficult, but the revenue to his government to SERVICE the debts has yet to become problematic; why? Because the U.S is Canada’s largest trading partner and the lower the Canadian dollar is, the more profitable it is for CERTAIN industries in Canada, whose entire purpose for being here is taking advantage of the cheaper Canadian dollar, which equates to cheaper COSTS for their businesses.
Will Trudeau’s government suffer if ASSET prices decline? Yes, and no! If housing prices come down, there are more Canadians who don’t own a home than there are Canadians who do own a home? So if the housing market crashes, I find it hard to imagine how this would be a NEGATIVE for Justin Trudeau politically. Unlike Donald Trump, the Liberal Party of Canada hasn’t PUBLICLY made statements showing its displeasure with the Bank of Canada.
I’m not a fan of the Liberal Party of Canada, but this post is CENTERED around central banks and their independence? No, even if you want to call it ignorance on the part of Finance Minister Chrystia Freeland, she’s 100% correct on that particular issue. I also agree with Canada’s decision to exempt gas tubines. Consistency you argue? When has the Liberal government of Canada ever been consistent or moral? What they’ve been is consistent towards their voting bloc and their allies.
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Germany created the Russian Warmachine with their DEPENDENCE ON Russian gas, the environmental idiots in Germany wanted Biomass, solar, and wind, and the consequence is that they’re reliant on Russian gas. Germany is an Ally of Canada; both countries are trying to save face for their silly environmentalist movements truth be told, the environmentalists in both Canada and Germany are DOMESTICALLY POLITCALLY based, they have NO intention of changing the world, many of the leaders of these groups are trying to monopolize parts of the energy economy, and they use the ignorance of the youth, to make the younger generations imagine their making the air cleaner.
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It’s all B.S, of course, but when you’re sold on ideal, you’ll fight for the “environmental organizations” you imagine are on your side. Economically, Trudeau already paid for a lot of votes, and he continues to pay for votes, I think some Canadians got some carbon tax cheques in the mail? Trudeau is still buying votes, and my charts show that the price of oil may even CRASH as the economy deflates via recession.
By saying the Central Bank of Canada is free to make its own decisions, Finance Minister Chrystia Freeland can now blame problems in the Canadian economy on the central bank, Putin, greedy business people, etc. I hope you low-IQ Trump supporters comprehend why I don’t like Donald Trump’s central bank stances. The average Canadian doesn’t even know what the Central Bank is; moving forward, Finance Minister Chrystia Freeland can say, “I respect the independence of the Bank of Canada,” and I don’t think there will be ANY drop in support for the Liberal Party because of it.
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Now, I can see support dropping for the Liberals if consumer price inflation rages on because what people tend to forget is during tightening money cycles, the PRIVATE banks aren’t going to lend to people; the private banks imagine will be overleveraged, and Canadians dependent on debt to survive, will feel a lot of pain during these times as their STANDARD of living declines.
If you’re unaware as to why money printing via government is not a good idea, is because debt is SUPPOSED to be reserved for individuals who can turn debt into profitability. When the government goes into debt and sends people with LOW financial IQ’s money, this government debt grows because consumer spending doesn’t grow the economy; INVESTMENTS grow the economy.
If I have a low financial IQ and the government sends me free money it borrowed, I might purchase a video game console, or maybe I’ll take a vacation or lease a car instead of purchasing a cash-flowing asset. Sure I might be maintaining profits for certain industries, but I’m wasting money that could have been used to make me INDEPENDENT of government assistance.
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Direct deposit replaced check delivery, thereby almost making Canada Post OBSOLETE. government TENDS TO shrink as the economy becomes more EFFICIENT, wind and solar which require the government to send to CHEQUE is inefficient and exists only to keep DEPENDENCE on the government alive. Now, why do I bring this up, because Conservative politicians often CONTRADICT themselves, as was the case with Donald Trump, you see it with Pierre Poilievre supporting supply management?
So the Conservative Party sends out mixed messages and shows itself to be just as corrupt as the Liberal Party of Canada. Once you have these sorts of dynamics, in my opinion, what tends to happen is the politician that causes CONSUMER PRICE inflation winds up destroying themselves. What I see happening in the future is the Liberals subtly shifting blame, which I don’t think will matter because the problem the Liberals caused is that they have too many REGULATIONS on the Canadian economy.
So lower real estate prices as an example, won’t necessarily equate to lower rent prices; in fact, there might be fewer projects being built because of a potential economic downturn. Now, if the Bank of Canada lowers rates again, that’s more consumer price inflation? As I like to point out, how long before it becomes completely obvious that the only way out of this mess is AUSTERITY MEASURES? I don’t know the answer to that question.
Canada tells Putin’s technocrats they’re liable for war crimes | nationalpost.com
Freeland said she understood Ukraine’s response but defended Canada’s decision to exempt gas tubines
Interesting times ahead