If you think Gas Prices Are High Now: Prime Minister Justin Trudeau will increase his carbon tax by $10 to $50 per tonne of emissions on April 1, 2022 – February 28, 2022,
As of the time of me writing this post, Vladimir Putin has decided to invade Ukraine, Putin made this decision primarily because as of the time of me writing this the Russian government has a small amount of debt. Russia’s debt ratio is one of the lowest in the world at 19.48% of its GDP. Russia is the ninth least indebted country in the world, whereas Canada per capita is one of the most indebted countries in the world.
Canada’s debt is problematic because of the debt servicing costs, which I like to remind readers, is the real problem when CONSUMER price inflation starts to run rampant. The upcoming carbon tax hike by Justin Trudeau’s government equates to more money being spent on energy, even if a person argues that there will be a tax credit at the end of the year, the problem will be the additional costs consumers and existing debtors will have to pay after April 2022.
A jump from $10 per ton to $50 per ton while gas prices are already at record levels, could lead to all sorts of problems, but the problem I see as the most problematic will be debt servicing, because you have to understand that there’s a cost to going to work and if that cost of going to work increases, the employed person will actually be losing money, furthermore if you’re saying to yourself, not a big deal I live in a city, I have a fixed mortgage or rent controls for your apartment, you’re ignoring heating and/or air conditioning and rising food prices.
This new inflation tax Trudeau will soon unleash on Canadians, is going to cause all sorts of economic problems and because of what’s happening in Ukraine and existing economic problems, this carbon tax is going to hit a lot of Canadians by surprise. Lastly, I have to point out that the numbers show that natural economic forces were going to cause inflation in Canada anyway and the bank of Canada’s response to inflation has been to consider raising interest rates a few basis points.
What this means going forward, is that the rich will be the only beneficiaries of Trudeau’s polices, because if you’re a poor or middle class person in debt, the interest rate hike will merely be window dressing, the Bank of Canada will basically be taking a stance that says, we’re going to raise interest rates gradually and if the market doesn’t like it, we’re going to lower them again.
Business bankruptcies spiked in the last months of 2021, driven by food service, accommodation and construction sectors | thestar.com
The rise in business bankruptcies that the industry has been warning about may have finally begun.
From my perspective, the bank of Canada has already lost control of the situation, the only good news is that bankruptcies haven’t started to rise as of yet. My projection is that bankruptcies and consumer proposals will start to rise in the coming months if something isn’t done to stop inflation. Now, I’ve been calling for negative interest rates, for some time now, because there’s no escaping what’s about to happen, it’s not like Canadians are indebt a few thousand dollars, no we’re talking about Canadians making less than $200K per year sometimes millions of dollars in debt.
Have you ever seen a $700,000 mortgage? Do yourself a favor and check that debtor’s monthly mortgage payments and you’ll get a better understanding of what I mean when I talk about debt servicing costs being a huge problem for Canada in the coming months and years. As the cost of living rises debt servicing becomes very difficult and the way Canada’s economy is structured, a lot of Canada’s middle class will be the people who will be hit the hardest.
Poor people usually can’t take out much debt, it’s usually the middle class that are the targets for debt, business bankruptcies lead to job losses, and job losses hurt people in debt the hardest. Trudeau has rewarded a lot of people for NOT working during the pandemic, recently there was a Truckers convoy in which Trudeau would have been wise to listen because although Trudeau didn’t like the idea of being bullied into ending mandates, the truckers were actually trying to help the economy he’s governing.
I also heard some of the truckers in the freedom convoy were already in debt, one of the moves Justin Trudeau made during the Freedom Convoy protests was to freeze the bank of accounts of some of the participants, well when I did my research into the topic, the reason why this didn’t stop many of the protestors was because they HAD NO MONEY in the bank, in fact, many of the truckers were already in debt on the verge of bankruptcy when they decided to participate in the Freedom convoy.
Do you see where I’m going with this? record low-interest rates, a shrinking job market, debt servicing costs already a problem, and more guaranteed inflation coming to Canada. Consumer price inflation is the direct result of government regulations. In a free market, the problem is DEFLATION, because in a free market void of government interventions, there exist no carbon taxes, there exists no government preventing pipelines from being built, in a free market there is no central bank, keeping interest rates artificially low to make the Prime Minister look good.
a free market lowers consumer prices, as greedy capitalists look to steal market share from their competition, government regulations INCREASE prices, and the Canadian government denies consumers the ability to choose between renewables and fossil fuels. The Canadian government has chosen that it wants to phase out fossil fuels and the bank of Canada has decided that it wants to reward debtors with low-interest rates, this all equates to more consumer price inflation. So anyone reading this best to be prepared for more government infused consumer price inflation that is likely to accelerate after April 2022
GOLDSTEIN: Trudeau’s 2022 climate plan — more carbon taxes | torontosun.com
Prime Minister Justin Trudeau will increase his carbon tax by $10 to $50 per tonne of emissions on April 1, 2022 — up 25% from this year’s $40 per tonne levy — rising to $170 per tonne in 2030.
Interesting times ahead!