Current Canadian Prime Minister Justin Trudeau and his HORRIBLE fiscal Policy Bank of Canada warns it may need to raise rates again – September 11, 2023
In my personal opinion, Canada SHOULD be the first country in the Western world that should start implementing austerity measures. Canada had a BLOATED government problem prior to Justin Trudeau becoming Prime Minister.
I remember reading articles about CANDIDATE Justin Trudeau and how simple he made his economic solutions sound to Canadians. Regarding financials and economics, based on my research, most Canadian voters are either believers in Keynesian economics or Marxism.
Canada’s voters overwhelmingly vote for Left Wing and Far Left political Parties, which is why Canada’s Conservative Party feels the need to move further to the left to appease the WELFARE demands of the average voter.
Justin Trudeau has been the worst prime minister for the economy in my lifetime, and he still managed to tie Jean Chrétien(a liberal), who was one of my favorite LIBERAL Prime Ministers. Below is the results of a poll taken from a Left Wing Newspaper which asked respondents, “Who is Canada’s favourite prime minister?”
- Pierre Trudeau – 20 per cent
- Stephen Harper – 17 per cent
- Jean Chrétien – 11 per cent
- Justin Trudeau – 11 per cent
- Brian Mulroney – 8 per cent
- Paul Martin – 3 per cent
- Joe Clark – 2 per cent
- John Turner – 1 per cent
- Kim Campbell – 1 per cent
Justin Trudeau with all the damage he’s caused still managed to make top 5, which I’d argue should tell you everything you need to know about where the Canadian economy is heading.
So I imagine the only reason a lot of these respondents ranked Trudeau so low is because of the CURRENT state of the economy, which is entirely his fault, but in the minds of a lot of people, they might assume that the economic downturn in Canada, has little to do with Trudeau’s fiscal policies and more to do with a string of bad luck.
In case you’re unaware, most Left Wingers actually HATE the Left Wing Media that caters to them because in their minds, the government isn’t doing enough or the government isn’t giving them enough welfare.
On the Flipside, the Right Wing merely wants BALANCED news, and they likely consume the same amount of left-wing news content as Left Wingers, however, they consume left-wing news for entirely different reasons.
What I’m getting at here is that austerity measures aren’t on anyone’s radar; one of the benefits to Stephen Harper was that he was a much better MANAGER of the Jean Chrétien economy given to him.
Stephen Harper was NOT one to slice government; for the most part, he restructured it to make run more efficiently, and I like to remind people of the reason Brian Mulroney was at #5. Brian Mulroney refused to get rid of a lot of the destructive Pierre Trudeau fiscal policies; instead, he too tried to be a better manager of it.
The reason why I write that the Jean Chrétien Liberals were my favorite Liberals was because austerity was part of their platform, and as corrupt as those Liberals were, they did deliver on slicing portions of the government.
Justin Trudeau on the flipside, didn’t only raise taxes and grow the size of the government he also championed more regulations. If you’re unaware, this is a real reason why the Bank of Canada is being forced to raise interest rates.
The initial role of government wasn’t to get involved in the economy; the government is supposed to exist to PROTECT our liberties and freedoms. Once the government began meddling into the economy, it became a BUSINESS.
In the private sector, if you want to BORROW MONEY for an idea you have, the interest rate you’re charged is dependent on your ability to service and repay your debts without requesting more.
In economics and political science, fiscal policy is the use of government revenue collection and expenditure to influence a country’s economy.
Fiscal policy is based on COMPETENCE; if as an example, a leader of a country wants to charge a Carbon Tax, said politician is supposed to generate a POSITIVE return from the Carbon tax. Under Justin Trudeau, this hasn’t happened; instead of a positive return, Justin Trudeau’s carbon forced his government to borrow even more money.
That would be like me owning a store charging my customers higher prices and then losing money in the process. Raising taxes isn’t as simple as some would imagine; Justin also promised to continue to buy votes while he raised taxes, so you’ll often hear Trudeau’s cabinet BRAG about how they’re sending Canadians cheques in the mail for fighting climate change.
Well, however, he wants to frame his failed fiscal policies; the bottom line is that his government is losing money. I’m usually on the fence about the role of the Central Bank. Some say it’s the central bank’s role to tell the Prime Minister that their fiscal policies are HORRIBLE, but I’m of the belief that this is not a central bank problem and this is actually a DEMOCRACY problem.
Because if I’m an ignorant voter who imagines that the Bank of Canada has this magic money tree, and it appeared that the Bank of Canada was being hostile to my Prime Minister, I would NOT blame Justin Trudeau for his horrible fiscal policies; I’d instead blame the Bank of Canada for making the cost of money more expensive.
Ignorance is bliss, and if I’m ignorant about something, I could BLAME whoever is most convenient, and if I’m 11% of Canadians who like Justin Trudeau, then I could conveniently blame the Bank of Canada for everything WRONG Trudeau did to the economy.
Late Stage Socialism for me is a period in which a choice is made between austerity or hyperinflation. Austerity is selling off government assets and shrinking the role of government in the economy, and hyperinflation is a 100% government creation.
Prolonged hyperinflation will not exist in a financial system based on FINITE resources. Prolonged hyperinflation only exists if the monetary system is based on something infinite.
Central Banks can print as much money as they want; the problem with printing money is what the GOVERNMENT decides to do with it. Most people tend to ignore what happened in Venezuela.
Venezuela, a country rich in oil, its government, instead of fixing its FISCAL policies, went on a crusade to DESTROY its private sectors, regulating taxing and spending everything it could find, which eventually made its economy more than 95% reliant on IMPORTS to sustain itself.
Then one day, the price of Oil fell, making hoarding the Venezuelan bolivar useless, if there’s no INTERNATIONAL demand for your currency, that equates to only Venezuelan citizens wanting to hoard Bolivars, so the currency went into free fall, and because the mechanisms were already in place for the government NOT to fight inflation, domestically and internationally their currency became WORTHLESS.
You see, once you chase away business with bad fiscal policy, your government becomes more reliant on the central bank. So, in Canada as an example, the central bank has to pay close attention to foreign exchange markets because Justin Trudeau, with his war on fossil fuels, has created a HOSTILE work environment for Canada’s private sector.
Now, if long term, this works to Canada’s benefit, that’s one thing, but in the meantime, it’s becoming increasingly more difficult for domestic and international PRIVATE businesses to turn a profit in Canada, and therefore it’s the Central Banks’ role to offer the world higher interest rates for holding Canadian debts.
So when the Bank of Canada warns it may need to hike interest rates further, it’s actually telling Justin Trudeau that there is something about his cabinet’s fiscal policies that are destroying the Canadian economy.
Interesting times ahead