More Consumer Price Inflation Likely For Canadians in 2022, The Bank of Canada prioritizes protecting Canada’s most wealthy citizens, Liberal Regulations and Hatred For Fossil Fuels will create more inflation – December 21, 2021,
Because of new regulations on the Canadian economy, Canadian fiat dollars are purchasing fewer goods and services and a new word is being normalized in Canada “Shortages”. The problem of shortages creates a whole new problem because regulations can actually accelerate shortage problems and a price-controlled environment creates an inflationary problem because you have to remember our standard of living is dependent on the profit motives of the private sector.
If the producers can’t make a profit because of government regulations, producers will either be sidelined or they’ll relocate their businesses elsewhere. More and more people are beginning to understand why Bitcoin and other Cryptocurrencies are rising in price, the cryptocurrency markets don’t have to adhere to any regulations. Entities that have to adhere to government regulations are finding it harder and harder to make a profit.
I don’t think any of Justin Trudeau’s investments into the economy have born any fruit, deficits continue to worsen under Justin Trudeau and a reminder that deficits were rising under Trudeau pre-pandemic, the pandemic has merely presented Trudeau with the opportunity to spend and regulate the economy even more. I personally do like the term government spending, because government spending is supposed to be government investing, sure I’m against government picking winners and losers or deciding what person or what entity is worthy of government help or a government bailout, but at the very least if we’re going to play this immoral game, it would be nice if the Canadian government made some good investments for a change.
Unfortunately, as we all know the problem with government redistribution schemes, is that they tend to equate to excessive regulations on the economy because in order for government investments to pan out, the competition of their investments must be destroyed.
Because Justin Trudeau has decided the fate of Canada’s oil and gas, in favor of renewable energies that Canadians need to import because our current regulatory policy is such that we can’t even manufacture solar panels or wind farms here in Canada, the cost of living is rising. It’s one thing if the cost of living is rising because labor unions have a monopoly on Canadian manufacturing, it’s something else when the cost of living is rising because Canada is becoming increasingly dependent on IMPORTS.
Even though price controls in a made-in-Canada solar and wind energy revolution would be disastrous for Canadians economically, at the very least we’d have control over the means of production? I disagree with Marxism, but at the very least Karl Marx wanted the means of production kept at home, something the Chinese Communist Party understands quite well.
In Canada, we have a champagne socialist system, in which our economy remains solvent primarily because our rule by fiat currency is CURRENTLY respected in the foreign exchange markets. There’s still a huge demand for Canadian dollars and therefore dumb ideas are allowed to flourish in Canada, whereas if these exact same ideas we’re practiced in Venezuela, the Canadian economy would collapse overnight.
So how then does this nightmare end? In my opinion, it ends when interest rates are forced up, which I suspect will create an atmosphere in which austerity measures are finally CONSIDERED. Now, don’t get me wrong the Left-wingers, as well as the people in debt, are going to kick and scream and find any reason to bring us back to where we are now, but it looks like because of all the regulations on the economy, the inflation genie is officially out of the bottle.
How this will happen in m opinion is that interest rates are going to rise, but because we have a managed interest rate environment, rising interest rates aren’t going to stop inflation, and eventually, I suspect the central bankers will want to bring rates back down, assuming that interest rates aren’t the problem, unfortunately, when the central banks do this they’ll be in for a rude awakening, because, it’s unlikely that within the confines of this regulatory and higher-priced energy environment that private business will be able to bring their prices back down and because low rates equate to more equity for property values. I suspect the cost of living will yet rise again because the currency is being debased for debt and this to me will fuel stagnant growth.
Higher prices for fewer goods and services are actually DEFLATIONARY for the economy, it’s why governments collect fewer taxes with higher prices. The inflation tax is still a tax regardless of how a tax is collected. Anyway, these are the early signs of economic collapse, and don’t assume that this collapse will happen tomorrow, it could take years, the great depression was DECADES long, and not everyone was poor during the great depression, it’s just that the poor got poorer and the rich got RICHER!
Interesting times ahead!