Inflation just over 2 per cent for the whole year: It’s fine, says bank governor

You can read this post in full be clicking the link below:
http://business.financialpost.com/pmn/business-pmn/inflation-just-over-2-per-cent-for-the-whole-year-its-fine-says-bank-governor

Well, again it appears those in charge of regulating the economy appear to be out of touch with the realities of the situation. Wage growth is not over 2% so how is inflation a good thing? Inflation is only a good thing if you’re in debt, which should be a strong indicator that Canada is reaching the end of this cycle. The BoC has backed itself into a corner, it can’t get out of. There were complaints regarding Jim Flaherty’s warnings about what Canada is experiencing now. The only business sector benefiting from this artificially low interest rates along with the added taxes and regulations added by the Liberals is the real estate sector.

This ability to get more credit has not only caused inflation for individuals it’s also caused inflation for businesses, which ultimately equates to stagnant wage growth as private sector employers will be reluctant to increase the wages of any worker, whether the employee is hard working or not. Under the Liberals the government has grown and the manufacturing sector has shrunk. The Liberals have periodically praised their job numbers, and minimizing the reality that most of jobs that are being created are indeed, government jobs.

A bigger government has to be supported by a growing private sector and well, so far that’s not the case and these policies being instituted by the Bank of Canada are going to lead to economic chaos is the years ahead, there really is no telling when the collapse will occur, but in Venezuela it happened with a food shortage, because the Venezuelan government had been so dependent on their Oil sector and when the Oil markets crashed so did their petrodollar. Well as more restraints are put on Canada’s energy sector we could be headed to a similar disaster because besides energy Canada isn’t exporting much of anything. Our gold mine right now is Toronto and Vancouver real estate and if that Lenders or creditors every feel like the Canadian market isn’t in their best interest and they begin to exit well let’s just say all hell will break loose, which is why Poloz is stuck. I will finish again by saying that former Jim Flaherty warned us about this.

Interesting times ahead!!