With CRB Payments Normalized The Bank of Canada said it now expects positive GDP growth in the first quarter of 2021 – March 10, 2021,
So in Canada, a lot of debts are being deferred and a lot of jobs are not being fulfilled, luckily for us, the Canadian dollar via the laws governing our commercial banks are holding up and I suspect they will hold up, the problem is of course inflation related to the various levels of government in Canada, is the main driver of inflation in this country.
Because of a lack of productivity and the strength of the Canadian dollar, there is what I call a lag, in the coming economic collapse. Now, I’m of the belief that when this economic collapse hit’s Canada, the Bank of Canada is going to go negative, unfortunately for Canada, our number one industry which is our energy industry is under attack by our current Prime Minister Justin Trudeau.
So when this economic downturn occurs first in the United States and reaches Canada, the Bank of Canada I believe will have an emergency meeting to bring interest rates lower, the problem is that unlike Japan and Germany, Canada doesn’t have a strong vibrant private sector, we have a 1 trick point economy which means that going negative will come at a huge price to the Canadian consumer, because anyone who pays attention to the U.S and Canadian dollars would know that with current policies there will be no way for the Bank of Canada to get out of negative interest rates without Austerity measures.
Now in America, Jerome Powell has said he will let inflation run red hot, in Canada to the best of knowledge, there hasn’t been a similar statement. So everything is on the table and it’s unlikely that raising interest rates will ever happen in Canada until they’re forced to do it.
Most of Canada’s bills are being paid for by the Bank of Canada, why is this important, why should you care? is because debts will most likely be paid with printed money which means the cost of living as well as taxes are going up for the people who actually work and pay taxes in the private sector of this country, during a DEFLATIONARY period.
Bank of Canada keeps key interest rate target on hold | ctvnews.ca
Interesting times ahead!