Did the Bank of Canada guarantee dollar debasement? Bank of Canada says the economy will likely be scarred by COVID-19 until 2023 – October 29, 2020,
So, it appears the Bank of Canada(BoC) believes Justin Trudeau’s economic policies really are disastrous because the BoC basically said in the year 2023 when most Canadians hope Justin Trudeau will be gone is the year in which the Canadian economy will improve.
Most of the countries in the world with big governments are suffering right now. The EU is going to have to provide stimulus in America it appears to be a State by State problem as most of the Democrat-run States are in economic turmoil, while most of the Republican States are doing a little better, but as most of us in markets know, the results of the 2020 election will determine Americas ECONOMIC vision moving forward.
I believe a Donald Trump will win, which is better for Canada’s economy than a Joe Biden win, however, at this point nobody knows who will win. So what I’ll say as it relates to Canada is that knowing what I know about negative interest rates, the Bank of Canada shouldn’t do it, because the Canadian economy isn’t as robust as most of the countries who are engaging in negative interest rate policies right now.
Canada nationwide hasn’t picked it’s poison as it relates to taxes, some countries, and U.S States abolish income taxes in favor of higher sales taxes, Canada on the other hand hit’s its middle class with both taxes in every province and Canada’s job creators are bombarded with regulations which as turned our nation into a hub for big businesses who can afford the higher costs of doing business.
Canada’s corporatist economic model becomes very problem during an economic downturn because the barrier to entry is too high and lowering the private sector barrier to entry would equate to austerity measures. There is nothing about Justin Trudeau’s cabinet that screams he will be willing to engage in austerity measures, he created a Minister of Middle Class Prosperity and the salary of Mona Fortier is $264,400 per year? Does, this appear to be a government that knows what it’s doing?
Now, I don’t know if the Bank of Canada said 2023 purposely or if he was just saying it to hive himself some wiggle room but as it stands now 2023 is an election year and based on my own research the Canadian economy is headed for a world of trouble before then.
Bank of Canada says economy will likely be scarred by COVID-19 until 2023 | CBC
Interesting times ahead