Consumer Price Inflation is running rampant in Canada and it’s causing problems for Canadians in debt (The numbers look like a recession) – March 1, 2022,
As most people are well aware, the mainstream media does its absolute best to put a positive spin on negative news, and if we’re to be honest with ourselves, why shouldn’t they? It’s your job as an individual to do your own independent research, to figure out what’s really happening, because nobody likes to read doom and gloom all day, in fact, people might stop reading articles and tuning into the news if the only thing the news does is spew doom and gloom every single day, even if it’s true
With that said when I read that “Canada’s economy grew 6.7% in the last three months of 2021 on an annualized basis, beating analyst forecasts of 6.5%” a few questions I have to ask is where is this growth coming from? and did the Canadian economy contract prior to this growth? The answer to these questions as of March 1, 2022, is that the Canadian economy shrunk prior to the last three months of 2021 and most of those jobs haven’t returned.
Canada’s economy starting around the year 2020 was put on pause for something known as Covid-19, the Canadian government led by Justin Trudeau rewarded a large chunk of Canadians with free money for NOT working. This free money called The Canada Emergency Response Benefit (CERB) in economic terms rewarded some Canadians for not working during the covid-19 pandemic. Furthermore, Canadians were also granted permission not to pay rents, mortgages, and other debts for a period of time of I think at least 3 months. I don’t remember how long these debt deferrals were allowed, but it happened.
Why Justin Trudeau did this was to avoid the Canadian economy from crashing, once you understand the hidden economic deflation in the Canadian economy, you’ll better understand the consumer price inflation numbers. So to be clear, the money printing coming from the bank of Canada is Quantitative Easing and buying up the Canadian government’s debts.
With that said the retail banks in Canada aren’t lending money out indiscriminately, meaning, that regulations coming from Ottawa that are leading to higher gas prices are forcing Canadian consumers to spend more to consume less. This consumer price inflation can obviously come across as the economy growing? But the truth of the matter is more money is being spent to consume and produce less, which has recession written all over it. Worse than a recession, if the numbers continue to look the way they do we could be headed for a depression.
I write this so, you won’t be caught off guard. If you understand the business cycle or even the great depression, it’s imperative to understand that the great depression didn’t equate to poverty for everyone, it mostly equated to poverty for the people who couldn’t navigate their way through it. Furthermore, the great depression wasn’t solved via sound economics, the great depression ended because of the world war.
Once you understand that the great depression ended because of the world war, you’ll start to understand why America defaulting on the Gold Standard, led to more bad economic policies from Western governments. We’re in an era in which there are “carbon taxes” and regulations on fossil fuels to help the government’s GDP numbers.
These taxes and laws are destroying jobs and raising the costs for business people, who if they want to stay in business are passing these costs onto to consumers. Unlike governments, if businesses can’t at least SERVICE their debts, they’ll go bankrupt, bad government central planning destroys private businesses, on the flipside bad government ideas can actually help grow the size and influence of the government.
But you see consumer price inflation can hide economic realities until they can’t! I personally see a wave of potential bankruptcies and consumer proposals coming to Canada in the not-so-distant future. This might not even make the mainstream news, but you’d be wise to pay attention to reports of bankruptcies and financial hardships because it will be a sign we’re in a recession and potentially headed to a depression.
“While the clouds darkened a bit before the end of the year … GDP posted a surprising 0.2% advance in January despite the Omicron wave and all of the associated job losses,”
Canada’s economy seen growing in January after strong fourth quarter | reuters.com
Interesting times ahead!
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