How Canadians will SUFFER from the Liberal-NDP agreement – September 29, 2020,
The Liberal Party of Canada is still pretending to have a majority government and because the Conservative Party wants no parts in cleaning this mess up right now, the Conservatives Party is avoiding the aggressive approach to politics, instead opting to pot-shot the Liberals where they deem fit.
The Bloc-Quebecois which I remind readers is a separatist party is actually demanding the Liberals restrain themselves from reckless spending. When the bloc-Quebecois cares about Canada’s fiscal situation you know that things are really, really bad in Ottawa.
Jagmeet Singh in his attempt to be relevant is taking a swim in Trudeau’s swamp, which I believe is the wrong move, because if he were smart, he would know that he could be the beneficiary of Trudeau’s failures, who cares if Trudeau won a snap election, the NDP lost a lot of ground to the Liberals, but I guess the real problem the NDP has is that they’re bankrupt.
Political Partys similar to indebted individuals kneel at the altar of government when they’re broke. It’s quite clear to anyone paying attention that the money Trudeau is wasting on all of these newly created welfare programs won’t be paid with an increase in taxes, they’ll be paid by debasing the Canadian dollar.
I’m pretty sure the bloc-Quebecois has already done the math, although a lot of French people subscribe to socialist dogma, they’re not stupid, the French comprehend a market economy. What’s unfortunate for my country is that Trudeau and Jagmeet are pretty boys, who know little about economics and therefore imagine themselves kids in a candy store.
Now, because of the fiat system we’re living under debasement of the Canadian dollar is going to show up wherever government regulations exist most. Ford Motor Company was able to squeak out a deal, which basically forced the various levels of the Canadian government to basically finance their green energy adventure, I would imagine that there will be more deals like this Trudeau’s government will be forced to make in the months ahead.
Now, if your company doesn’t get a deal with the government, you’re going to have to raise prices, because your costs of doing business will be going up, now debasement how I define it differs from inflation because inflation occurs via the market, debasement occurs because of the cost of government.
Hyper-inflation occurs because the cost of government will be impossible to pay for, hyper-inflation occurs after the private sector infrastructure has been hallowed out, Canada is not there yet, we’re not even close to being there yet, where Canada is, is that our protectionist measures as well as our size of government and price tag to service the debts of said government, will not be sustainable unless we cut regulations.
Now, these cuts to regulations, unfortunately for people hoping that Universal Basic Income is on the horizon is actually the complete opposite, what’s going to be put into question is debt servicing, because Trudeau and Singh have officially during a near-zero percent interest rate environment with millions of Canadians having HISTORIAL household debts, that they will have to service at retail interest rate prices, have put Canada in a deflationary spiral.
Now sure the government can send free cheques to everyone, but with every free cheque sent out, that’s more debt that will need to be serviced. The Bank of Canada is already in the junk bond market, with fewer Canadians working and the mere fact that CERB was actually a stimulus to the economy because people were making more doing nothing than they would have made working, all of this equates to a day of reckoning.
When it comes to people getting government cheques for doing nothing, a lot of people are going to be grateful to Trudeau and… Jagmeet Singh wants a piece of this action, the problem is he’s now embroiled in it, Jagmeet has now made himself a swamp creature and the real problem with CERB is the pain the working classes will feel when the Canadian dollar is debased and prices for things start going up and there’s nothing the government can (except for austerity–good luck with that) do to stop it.
It wouldn’t surprise me if Canada started to see shortages of things becoming normalized, even after COVID-19 is gone. Money is supposed to be attached to productivity, this fiat money game we’re all playing is okay until confidence in the system is lost. The cost to start a business is very expensive, the cost for foreign countries like America as an example to sell into the Canadian market is too high and I personally don’t see how the rental prices come down in Canada as long as the CMHC and the Bank of Canada work together protecting the mortgage market.
The price of lumber is rising, a lot of inflationary forces are occurring while the Canadian economy is deflating and if the government attempts to fix this problem by providing liquidity, well, one thing I know for sure is that the banks issuing said debt are going to pass those costs onto the borrower who will pass the cost onto the retail consumer who is already in debt and this is just a preview of the debasement I see coming. Not sure why Jagmeet would want any parts of Trudeau’s disaster, but that’s something he’ll have to learn on his own.
Again I will close by writing that when the Bloc-Quebecois is asking for fiscal restraint, you know something is seriously wrong with the Canadian economy!
How Canadians will benefit from the Liberal-NDP agreement | globalnews.ca
Interesting times ahead!