Canada Emergency Response Benefit (CERB) will pay $400 a week for up to 26 weeks – August 20, 2020,

 
So the Liberals will finance about 4 million people not working for the next 6 months. according to the story below Government officials estimate about one million people will need the new workers’ benefit that replaces the CERB, and three million will go onto the simplified EI program.

Now I even simplified this grant, because if you read it, it’s more money than I’m discussing in this post. Now, usually, the government of Canada is able to pay most of its bills via taxation, but after this move, clearly, the Canadian government will be paying most of its bills via liquidity from Canada’s Central bank.

Taxes collected via productivity are a lot different from taxes that are generating via some sort of stimulative effect, so a blind person will clearly see debasement of the Canadian dollar as the way these bills will be paid, but worse than debasement will private banks willingness to lend, I’m not sure liquidity will benefit the Canadian economy when over 4 million people in Canada will have an artificial pay increase for the next 6 months.

Most of the people who will receive CERB never demanded this amount of money in the private sector and even as the Canadian dollar is debased, they still might not demand $2000 per month. The cost of living differs from province to province and from city to city and this CERB plan from how I read it is going to inflate incomes and cause more distortions in the market place that all PRODUCTIVE Canadians will have to pay for.

The good news for Canada’s productive is that in my opinion, the crash will be deflationary, Canada will have a cash problem as servicing the debts of the country will be printed by the government and default on by many citizens. Most Canadians don’t know what debasement or deflation is, but they will learn!

Liberals to replace CERB with new benefit, simplified EI program at cost of $37B | nationalpost.com

Interesting times ahead!