Bank of Canada slashes interest rates to 1.25%, Canada’s deficit forecasted to come in at $25+ billion in 2020! – March 4, 2020,
Canada has a leadership problem but we’re still being led, Canada has a media problem, but the people who are telling the other side of the story, are the minority and not the majority, Canada has an education problem, Bernie Sanders when describing Cuba, said Fidel Castro helped the Cuban people read and write, yes Bernie, but read and write what? Socialist and Communist dogma, that’s what! In Canada, if Capitalism is being taught at home, it’s certainly not being taught in our Public Schools, the end result is Statism, if the current Wet’suwet’en protests and blockades are a form of Statism and because for the most part a vast majority believe it’s the governments role to micro-manage our lives, a large chunk of Canadians, Liberals, and Conservatives have signed onto the CLimate change socialist agenda!
This is all well and good if Canadians are saving money and not in debt, when you’re productive and not indebt you can try all sorts of wacky ideas, but when you’re in debt and your country isn’t manufacturing much of anything anymore, you’d be wary of a recession. Typically countries work their way out of recession but understand that what I mean by working our way out of recession, it actually means innovating your way out of a recession.
The tech sector and energy sectors for the most part of been the areas in which most money is funneled, however, there are stark differences between the technology sectors and the energy sectors. The energy sector or I should say the Fossil Fuel sectors still consist of entry-level positions, the tech sector, on the other hand, doesn’t. As it stands now Canada’s tech sector is under attack by the establishment of unionised entities, like the taxicab industry or the believers in rent controls, both who see technologies like Uber and Airbnb as threats to their government monopolies.
Canada’s energy sector is clearly under attack and unlike the U.K in which, there’s a conscious willingness to integrate clean energies into their energy sector, Canada’s Liberal Party model is currently set to seek and destroy, with protests, delays, and carbon taxes! There’s been no conscious effort in Canada to build solid infostructure in green energies!
Trudeau has spent money bailing out the media, saving and rehabilitating terrorists, growing the size of government and raising taxes to make life more expensive for the private sector in hopes the public sector in Canada will have their retirements secured. This may seem like something not to worry about until you understand that there comes a time when servicing a deficit at near-zero interest rates becomes unsustainable.
Austerity measures are harder to implement the larger the government gets, in Argentina, a country in which frequently has a currency crisis austerity measures are out of the question, the people in Argentina don’t see the rich greedy size of their public sector as the problem, the Argentine voters see the rich greedy capitalists as the problem. When people are dependent on the government for either Welfare or work, these people will often nod their heads in agreement regardless of the government policy. Adding to the Welfare and public sector problem in Canada is our debt problem. Whether it’ personal debt or Government debt, Canadians are in a lot of debt and this debt is getting harder and harder to service.
Similar to the U.S the Bank of Canada is looking for any excuse it can to lower interest rates, why? Because there’s a great recession coming, no, no, no, not a great depression, a great recession or as I like to call it, stagnation. The housing market in Canada as I’ve stated thousands of times can not deflate, this means rental prices can’t deflate, consumer prices can’t deflate, nothing in Canada can deflate, because most public servants have wages that keep up with inflation, what does this mean exactly? This means that if you can’t make enough money to stay above the inflation rate, you’re going to see your standard of living decrease rapidly even while central bank interest rates might be in negative territory.
What else does this mean? Canadian consumers will be able to make fewer demands, because, well, we don’t manufacture anything, we’re increasingly becoming dependent on imports for the simplest of things all the while the cost to pay for our public sector increases! This is the direction the Canadian economy is heading down, it’s not too late to change this, but it kind of is because most Canadians don’t understand Austrian economics.
In Argentina the people thee don’t understand Austrian economics, therefore when presented with an Austrian economics solution, the people see it as a threat to their culture or way of life. Poverty starts in the mind and change is difficult, the reasoning for the Bank of Canada slashing interest rates is hilarious! But I’m sure most of you reading this, probably assume that getting more Canadians into debt because of the coronavirus is a good stimulant for the economy!
Bank of Canada slashes rates amid coronavirus fears, markets see another cut | financialpost.com
Interesting times ahead!