Jagmeet Singh Appears Content With His Junior Prime Minister Role. This equates To Justin Trudeau likely Being Prime Minister Until 2025, But The BoC is already giving up its INFLATION fight – April 9, 2023,
It’s funny, cringy, and irritating listening to NDP Federal leader Jagmeet Singh make statements nowadays; in many instances, Jagmeet Singh sounds like he has no idea what he’s talking about; however, he does appear confident that he has Justin Trudeau under his control.
Justin Trudeau gets to pretty much govern as if he had a majority, even though Justin Trudeau never cracked 40% voter support, which is an embarrassment considering how much energy the media spent attempting to present his father as the best thing that ever happened to Canada. In the U.S., even if you hate the Republicans, Donald Trump still managed to get 46% of the total votes.
When Trudeau legalized pot, he couldn’t reach 40%, and one would assume that his popularity would have grown since then, but it hasn’t; Trudeau actually lost the popular vote TWICE, which gives you an indication as to why the Federal Government of Canada appears to be so INCOMPETENTLY managed.
This post is mostly about the Bank of Canada and what some imagine is its FIXED position to hold interest rates where they are at 4.50% in hopes for them to be lowered at a future date when this pesky inflation eventually subsides.
My view on this matter is that based on the current BIG GOVERNMENT agendas of both Jagmeet Singh and Justin Trudeau, there is no way for inflation to subside, how I calculate things, we will have a consumer price INFLATIONARY recession.
I argue we’re already in a recession now, so what we’re experiencing is NOT being labeled a recession because not only are government statistical data being altered to the BENEFIT of the Federal government, the DEFINITION of a recession has changed.
There are MANY people who don’t believe that government regulations on economic output impact the BEHAVIOR of the private sector; these types of individuals imagine preventing a recession with “WEALTH EFFECT” news.
What I’m getting at is that for some “experts,” all they think is necessary is for the media and the government to send out POSITIVE WORDS, and the participants in the economy will change their behavior to the benefit of the government.
Even in China, this doesn’t work; what works in COMMUNIST China is cutting red tape; for many, it’s hard for them to comprehend that it’s EASIER to do business in COMMUNIST China than it is to do business in Canada.
When Trudeau said he admires China’s basic dictatorship, what Trudeau may not understand about dictators is that in order for them to remain in power, they have to either be extremely brutal to the people under their thumb or the people have to see a means to an end.
In China, for some, their greatest achievement will be for them to become ranking members of the Chinese Communist Party; for others, it’s to accumulate enough wealth to get the hell out of China.
To show you that the people in China do have some power, a lot of the women in China are REFUSING to have children, as it is viewed as a hindrance for them to pursue their personal careers. This is also a problem in Canada because of PRIOR Canadian governments who promised cradle-to-grave welfare.
So if there is cradle-to-grave welfare, why should I complicate my life with a child? So in Canada, without immigration, similar to China, there would be a POPULATION decline.
The evidence of what BIG GOVERNMENT does to a people is quite clear, this problem exists in Japan and many parts of Europe, the only time humans tend to have a lot of children is when they’re in poverty or in a capitalist economy VOID of a welfare state.
When you understand specific basic facts about human nature, you can comprehend why some economic thinkers imagine positive thinking can create a recession-proof economy.
The truth is humans were put here to live, and if the government gets in the way of humans being PRODUCTIVE, you will get recessions and depressions. The Bank of Canada’s role in all of this is to remind the government that there’s a reason why free market capitalism works; capitalism works because the GOVERNMENT and political democracy have a role, and that role is NOT to overindulge in economic affairs.
If the government gets to involved in the economy, humans will change their behavior, and those behavioral changes almost always equate to LESS economic output.
What’s actually happening to the Canadian economy is that its DEFLATING; what is confusing to most p[people is that the Canadian economy could be deflating, but prices of things are getting more expensive.
Well, if you’re confused about why deflating leads to higher prices, it’s because the MONEY we use is politicized; in the past, when money was backed by a commodity or productivity, money couldn’t PRINTED.
Politicians, ofcourse, didn’t like this because this didn’t allow politicians to promise voters a cradle-to-grave WELFARE state. So in the modern economy, we have legal tender laws and fractional reserve banking laws, which allow banks to LEGALLY print money as long as that Private Bank on paper is SOLVENT.
But what happens when the government starts to harass the Private bank’s most profitable clients? Forcing those clients to change their business; well, then you get a recession or a depression until private businesses can find a way to find profitability in the new normal.
The main reason inflation is running rampant is because of Justin Trudeau’s carbon tax and his war on fossil fuels; this regulation on Canada’s energy sector has money that USED TO go to productive means, now being sent to Ottawa for Justin Trudeau and is his favorite lobbyist groups to spend the money in the way they feel is best.
While this is happening, although the energy sectors in Canada will be profitable, they’ll be less likely to take RISKS as they did in the past, and this will count as missing revenue for the private banks, which also equates to less revenue for Canada’s central bank.
Because Trudeau will most likely be Prime Minister until at least 2025, I think it would be wise for the Bank of Canada to keep raising rates on Justin Trudeau to hint at him that there is something wrong with his economic policies, but what I think the Bank of Canada is imagining is that Bond Market is signaling recession and therefore the Bank of Canada is praying for positive data so it can LOWER rates.
For me, this is an indication that inflation is going to keep running hot for the next few years, and there’s no appetite for the Bank of Canada do anything about it. So welcome to the new normal.
Interesting times ahead