Has Canada Entered the Era of Austerity: ‘higher for longer’ Interest Rate Expectations now becoming the Reality as Justin Trudeau’s FISCAL policies yield NEGATIVE cash flow to the economy #LateStageSocialism – September 23, 2023
Political Democracy is set up in a way in which people with a low financial IQ are allowed to vote for the politician of their choice. In the democratic world, most people IMAGINE that bigger is better, so most people will vote for ti make the government larger imagining that a larger government will have more power to CONTROL the private sector.
As an example, let’s say I’m a low-IQ voter who wants things I currently can’t afford, in my mind, I may imagine that these rich capitalists are making things expensive so that I can’t afford them and I want a BIG government to enact laws that makes everything I desire accessible to me.
Now, because I have a low financial IQ, I see ZERO downside to my demands, so when I hear a Justin Trudeau speak, I say to myself, I will vote for this man who claims to make my pipe dream a reality.
Make no mistake about it, in 2015 Justin Trudeau won in a landslide, and even the Left Wing media at the time CLEARLY stated in 2015 that Justin Trudeau’s weakness was the ECONOMY.
Because MONEY is something I write about almost daily, I remember this vividly anyway Long story short, Justin Trudeau became Prime Minister and CANDIDATE Trudeau, stated that LOW INTEREST RATES at the time, equated to a good time to BORROW money.
This was the logic back then, and most Canadians were on board; the problem is that Justin Trudeau is what we call a TRUST FUND BABY. Parents who KNOW their children are bad with money leave their children’s money in a TRUST for a PROFESSIONAL to manage.
Pierre Trudeau, Justin Trudeau’s father, had to have known that his son was irresponsible. There are pictures of Justin Trudeau wearing blackface, and it’s not just blackface; his entire body appeared to have been black, meaning that he went all in on the whole racist depiction of Blacks and South Asians.
It looks like Justin did this while his father was still alive, as Pierre died in 2000, and some of Trudeau’s pictures date back to when he was in high school. So Pierre had to know his son wasn’t responsible.
Yet, Canadians voted to make a man who can’t balance his own checkbook the Prime Minister of a country. For some people, especially the naive, it’s hard for them to imagine a child in a man’s body becoming the leader of a country, but this stuff happens A LOT.
Most people MINIMIZE economics and finances, if I tell someone the Bank of Canada prints money, the average person will say to themselves, well, if the Bank of Canada prints money, why doesn’t every Canadian have enough money to live off of?
This is indeed the problem with modern democracy is that people with low financial and economic IQ’s are in charge. By the way, this is not a Left-Right issue; this isn’t a Liberal-Conservative debate; I always like to bring up the time a local CONSERVATIVE politician came to my front door about 10 years ago and tried to sell me on RENT CONTROLS.
Some Conservative politicians might only be conservative on ONE issue. The problem with Democracy is that there is NO penalty for voters or politicians when they fail to deliver on the OUTCOMES they promised.
Late Stage Socialism is a term I use to describe austerity measures or HYPERINFLATION. Austerity measures as defined by me are slicing government and selling off unnecessary government assets that aren’t generating positive revenue. In the private sector if your business is unprofitable you go bankrupt, in the government if the government is unprofitable, the government borrows money from the CENTRAL BANK, which prints money out of thin air.
Now, you might ask the question if the central bank can print money out of thin air, who cares about the interest rates, the central bank should keep on printing money? Well, you see, this is where financial IQ comes in. As an example, Justin Trudeau decided to declare war on fossil fuels, which included REGULATIONS on polluters and a CARBON TAX for consumers of carbon.
Now, had there NOT been a central bank, this really STUPID idea by Justin Trudeau would have bankrupted Canada in a week or possibly less, but because there’s a central bank, these series of bad ideas were allowed to make the Canadian economy get PROGRESSIVELY worse.
I have to also factor in the FOREX markets, which plays a huge part in all of this. As an example, in Canada, the rental markets are better reflections of the ACTUAL rate of inflation. The price for real estate in Canada has little to do with the foreign exchange value of the Loonie and everything to do with domestic FISCAL policies.
Real estate prices and rental prices are the result of fiscal policies, whereas, an imported gadget is the result of the foreign exchange value of the loonie, and real estate is the result of local, provincial, and Federal FISCAL policies.
This is why in SOME countries their real estate prices are extremely low, but their CONSUMER prices are very high. If your country’s currency is worthless in the global markets, it will be more expensive for you to import goods and services to your country.
It’s the central bank’s job to monitor Canada’s money and because Justin Trudeau’s FISCAL policies are mostly ONLY attracting green energy companies many of which DEMAND cradle-to-grave subsidies from the Canadian government, the Bank of Canada has to keep interest rates elevated to attract capital to the country.
What most people aren’t paying attention to is RUSSIA, even with all the sanctions, the Russian Rouble, their currency is maintaining its DOMESTIC purchasing power. The cost of living in Russia in comparison to Canada, is EXTREMELY low, and the Rouble simultaneously is also maintaining it’s value INTERNATIONALLY in the foreign exchange markets.
I’ve argued that Russia is likely responsible for all the French leaders in Africa kicking the French out; why? Well, based on this ESG movement implemented by the Western Nations, Russia all of sudden became a much better place to invest in for the third world.
The problem with fiat money, central banks, and democracy is that the people will be disincentivized from paying attention to the economy or the finances of their country.
The mere fact that Canadians would even vote for Justin Trudeau is an EMBARRASSMENT. ESG stands for Environmental, Social, and Governance. Those of us who understand economics, know that ESG equates to a BIG GOVERNMENT and more bureaucracy and if you want to be practical, Dictators have more flexibility and less bureaucracy to deal with than does ESG which also has to sell ESG to the population.
The SOCIAL portion of ESG is extremely problematic, in Canada, most UNIONIZED workers have been DEMANDING pay increases to save the planet. Really think about how stupid that sounds.
The world is being destroyed, and I will need a pay increase and more leisure benefits, more JOB PROTECTIONS to participate in saving it. Now, if you have to debate in your own mind why this is ridiculous, well, then you’re part of the problem.
But this is where the world is today, and it’s why I believe Canada could be headed for an era of austerity and if austerity isn’t implemented, next up will be more inflation that eventually leads to hyperinflation.
Interesting times ahead!