More Signs of Economic DEFLATION: Consumer price Inflation in Canada could go higher Saskatchewan farmers and agricultural associations say inflation and supply shortages are causing their input costs to spike – April 4, 2022,
Canada’s current Prime Minister has employed some novel tactics to deal with the Russia-Ukraine war, that from my point of view, is more about virtue signaling and less about economics. Former U.S President Donald Trump played the role of debt collector regarding NATO, prior to the Russia-Ukraine invasion the 45th President argued that countries like Canada needed to pay their fair share to NATO.
Justin Trudeau was one of the Politicians that got caught openly mocking the 45th President when Trump requested that Canada and other countries contribute the agreed-upon amount to NATO.
Well it appears, Donald Trump had nothing to do with Trudeau’s decision not to contribute his fair share to NATO, because Trudeau has pulled the same stunt under President Joe Biden, which makes one ask the question, why does, Justin Trudeau continue to talk tough, while not paying his bills?
Even with the billions of new dollars promised by the Liberals’ defense policy for new aircraft, ships, and other equipment, Canada is projected to fall short of NATO’s target
Justin Trudeau hasn’t had a majority government since 2019 and even under his majority government, Trudeau struggled with corruption, with that said the Liberal Party of Canada and the NDP made a deal, so Justin Trudeau could rule as if he held a majority and because of this deal, NDP Leader Jagmeet Singh says his caucus would be against the federal government moving to increase its defense spending to hit NATO’s target of two percent of GDP.
I bring this up because Canada’s federal government continues to talk tough on Russia, if you read the article below, you have to ask the question, hold Russia accountable how? Canada can’t even commit to paying 2% of its GDP to NATO and Canada’s military is already severely under-financed. The last big news many of us heard about Canada’s military is that Trudeau, wanted to purchase USED fighter jets from Australia? Once you understand this, you’d assume NATO would be a priority?
Canada condemns Russia for ‘murder of civilians’ in Bucha, will hold regime accountable | globalnews.ca
Canada’s Prime Minister Justin Trudeau and other world leaders condemned Russia on Sunday for its recent attack on the Ukrainian town of Bucha, where reportedly 300 civilians were killed.
Making matters worse is that Trudeau continues to increase the Federal government deficit, meaning that more of the money he plans to use for social spending will be used to pay down the debt, or actually I should say NOT pay down the deficit, which is ofcourse is contributing to consumer price inflation.
Now, I like to point out consumer price inflation from the point of view of a clueless politician. For a clueless politician, consumer price inflation equates to more government spending, and most importantly more REGULATIONS on the economy. Capitalism is inherently deflationary, however SOCIAL SPENDING, as well as socializing the economy via regulations is INFLATIONARY.
As an example, let’s say that as Prime Minister I force employers in Canada to obey my carbon tax laws, because I believe the earth is warming and the private sector is to blame, which raises the cost of doing business, let’s say that I as PM decide that Women and other minority groups are being treated unfairly and I demand the private sector to obey my regulations on their business that force them to be more sensitive to needs of people I consider “oppressed”.
Well, the cost of doing business goes up again for businesses, making matters worse let’s say as Prime Minister I also decide to increase welfare spending, thereby making some groups of people/voters make the decision, that they shouldn’t work or shouldn’t be working as hard because the government is paying out such generous welfare benefits, this also makes it harder for the private sector to find workers, which also equates to the people who do work, deciding to JUSTIFIABLY ask for a pay raise.
All of these additional regulations and social spending promises on the economy lead to consumer price inflation. Furthermore, as Prime Minister, I decided that people who disagree with methods and make their complaints public should be deemed suspected terrorists, so I freeze some of their bank accounts WITHOUT a court order, thereby alienating a large chunk of my population, and also putting the world on notice, that if you disagree with the Canadian governments means of dealing with any virus, you too might find your CANADIAN bank accounts frozen, all of these social initiatives may also equate to Canadians deciding to be LESS productive.
Then to make matters worse, Russia decides to retaliate against the Western world by withdrawing or changing the rules regarding the commodities its people supply the world? What happens then? If I’m, to be honest, I don’t know what happens, then, but I assume there will be more consumer price inflation, which could lead to economic deflation.
What I’m getting at here is that there comes a time when you have to pay the piper and in a fiat monetary system, that equates to rising inflation. Some imagine that inflation is transitory or that disinflation is coming, I guess, we’ll just have to wait and see, but most of the additional costs on the Canadian economy will be permanent for as long as Justin Trudeau is Prime Minister and if there’s a commodities price boom, it also equates to all of Trudeau’s social spending and additional regulations on the economy being even more expensive.
Interesting times ahead!