Bank Of Canada Prepares For Currency Wars: Joe Biden is really bad for the U.S Dollar, Weak Canadian economy requires central bank inflation – November 11, 2020,
It will be obvious to everyone 6 months in Joe Bidens Presidency that he’s bad for the U.S dollar. The boneheaded move current U.S President Donald Trump made was talking down interest rates while he was President. Jerome Powell while the American economy was booming was doing what he was supposed to do which was to raise interest rates to reflect the recovery, but Donald Trump went to war with Jerome Powell and Powell capitulated and interest rates began going down BEFORE coronavirus infected the world.
This boneheaded move by Trump even pissed me off and I think it had a lot to do with many on Wall Street turning their backs on him. I admire Donald Trump, but messing with my money is No, No. Anyway, this was the same boneheaded move former Conservative Canadian Prime of Canada Stephen Harper made when he made Stephen Poloz the Governor of the Bank of Canada and this too cost Stephen Harper the election.
Well, if you ask me Wall Street, Trump trying to play God of the markets set the stage for Joe Biden. Now Joe Biden from a market standpoint is an idiot, it’s unlikely he’ll even know the negative effects of his policies which I think many will be executive orders will have on the U.S dollar.
The markets and central banks all over the world are light years ahead of Joe Biden and are already gearing up for the inevitable. The rich tend to get richer and the poor poorer under Democrats and because Republicans or Conservatives don’t behave as they should, the Republicans will be left to clean up the mess, which is what happens in Canada also.
The U.S dollar was rising under Donald Trump until Jerome started to cut interest rates, this gave Trump’s stock market an artificial boost which I have to remind the reader, Joe Biden and Barack Obama took credit for. A lot of Democrats believe that Trump’s economy was merely the beneficiary of Barack Obama’s genius, unfortunately, there was no recovery under Barack Obama, there were only currency wars, which facilitated stock buybacks.
The bad news for Biden is that the economy was stronger under Obama than it is now, now would be a good time to have Donald Trump as president, now is not the time for a green new deal, higher taxes, bigger government, and more regulations that will lead to weaker U.S dollar.
Joe Biden has malinvestment written all over his policy decisions and what will happen is the market will wait for Joe Biden to start messing up the economy before the U.S dollar selloff begins, now I personally can see the currency wars ensuing the moment Joe Biden starts to do Progressive things as President.
But the Central banks of the world will have to react swiftly because you have to remember that we’re in a deflationary environment and liquidity will do nothing to goose the economy, what will goose the economy is the stimulus spending but Biden’s return on stimulus spending based on his expensive highly taxed regulatory environment will net no positives for the U.S economy, which equates to a falling U.S dollar, which is debasement, which is currency wars.
Now, this may surprise Canadians, but Canada’s lower federal corporate taxes may bode well for us, I don’t know if it will help our employment situation, but it will help us to have more corporations parking their money here. All of this will equate to more entities hoarding Canadian dollars, but this is bad for Canada’s Federal government because Public Services are financed by artificially lowering the Canadian dollar, but because Trudeau is such a bad Prime Minister for the Canadian dollar, debasing the Canadian dollar is going to hurt Canada’s poor and middle class the most.
Furthermore expect a spike in oil prices, which means that when Canada engages in currency wars, the cost of living in Canada will spike as the Canadian dollar is worthless. The world is going to fight back against higher oil prices and this is where I see the Canadian dollar dropping to historically low levels.
Once the price of oil takes off, all sorts of things are going to happen, that nobody can predict, the global consumer is broke and if the cost of energy rises, I can’t foresee how the markets interpret that, what I do know is higher energy prices will soak up the stimulus spending and this is what most people confuse when they imagine indebtedness.
Indebtedness an indebted nation and hyper-inflation don’t mix, indebted nations and the rich getting richer is the likely scenario. The reason why Barack Obama bailing out Wall Street as so damaging to the world economy is that the producers have all the wealth, they have the means of production, their debt is different from retail consumer debt, so this why it always comes back to austerity measure for me. The reason Socialism is making a comeback derives from Barack Obama bailing out Wall Street and Donald Trump being a smarter version of Barack Obama.
Private companies dependent on the government for survival have to fail, the size of government has to shrink, welfare spending has to be cut, the price of gold has to come down, the issue is the road to get to this place requires one government entity somewhere in the world saying we’ve had enough of this nonsense and pulling the plug.
When a country or an individual is in debt, it requires a high IQ individual to navigate their way out. When it comes to the economy Joe Biden is an idiot and everyone knows it. There are a lot of Progressive idiots running the global economy today and they will be exposed now that Joe Biden who leads from behind is President of the United States, as was the case under Obama, the currency wars might be subtle.
Interesting times ahead!