Should Central Bankers Blame Voters For Voting In Stupid Presidents and Prime Ministers: Bank of Canada raises its key interest rate to 5% – July 13, 2023
I was personally happy when The governor of the Bank of Canada Tiff Macklem, raised interest rates. I’ve stated in several posts that I’ve preferred Liberal-appointed central bankers over Conservative-appointed central bankers. I prefer Tiff Macklem over Stephen Poloz, who Stephen Harper appointed to keep the Canadian dollar WEAK AND STIMULATE THE HOUSING MARKET.
Now, it’s not a secret when it comes to economics. Justin Trudeau is an idiot; in a nutshell, Justin Trudeau’s economic strategy has been to grow the size of government, increase regulations, and hike taxes. All of these policies disincentivize investment and make it much more difficult for small and medium-sized businesses to grow the Canadian economy.
Justin Trudeau can’t be Prime Minister without Canadians voting for him, so he’s in the position he’s in because of Canadian VOTERS. With that said, it’s easy to blame Tiff Macklem, even though clearly the problem is Justin Trudeau, but since the Canadian people voted for Justin Trudeau, should Tiff Macklem say something?
In the United States, you could listen to Fed Chair Jerome Powell speak, and it’s abundantly clear that Jerome Powell knows that Joe Biden’s silly economic objectives are creating inflation. Still, most Americans voted for Joe Biden, so why would Jerome Powell, want to get in the way of the will of the American people?
You have to remember most people do not blame their elected politicians for economic turmoil; most people imagine that some evil capitalists is behind higher prices when infact, higher prices are the direct result of fiscal policies.
We Do Not Live in a Laissez-Faire Capitalist World Fiscal policy determines economic outcomes.
First off let’s define Fiscal policy
In economics and political science, fiscal policy is the use of government revenue collection and expenditure to influence a country’s economy.
Now let’s define Laissez-Faire Capitalism
Laissez-faire is an economic philosophy of free-market capitalism that opposes government intervention.
once you understand this, you’ll better comprehend that the central banks merely exist to facilitate Keynesian economics
Keynesian economics are the various macroeconomic theories and models of how aggregate demand strongly influences economic output and inflation. In the Keynesian view, aggregate demand does not necessarily equal the productive capacity of the economy.
Most people believe that government intervention in the economy is ACCEPTABLE during certain periods of time and because of this reality, the world abandoned the Gold Standard and embraced Fiat Money, which is legal tender, and there is no law without the GOVERNMENT.
If we’re talking about Laissez-Faire Capitalism, the MARKET determines what money is, and the market has the option of OPTING out of any financial system it chooses without the threat of government force!
You see, although humans like to imagine they’ve reached the pinnacle of our potential, the truth is humanity has merely made technological advancements that will likely help us to get to a higher level of intelligence.
Our current global economic system revolves around POLITICS, and if you love freedom, politicians are typically the scum of the earth that will placate to the desires of the MAJORITY, even if the majority are voting to ENSLAVE or use force to make their opposition do IMMORAL things they don’t want to do.
I hear some people argue that Tiff Macklem or Jerome Powell should stand up to Justin Trudeau or Joe Biden. I respond, well, if they do that, it could come across as central bankers are trying to usurp the will of the people.
Although I prefer Austrian Economics, other humans have the right to prefer Keynesian economics; my thought process on this issue has always been that through the secession of tyrannical laws, humans will inevitably gravitate to where they’re treated best, and as Socrates pointed out Democracy is a skill and therefore in as humans evolve, so should democracy.
Austrian school theorists hold that economic theory should be exclusively derived from basic principles of human action.
I was reading today that Florida is getting unbearably hot because the climate is changing, yet more and more PRODUCTIVE people keep moving to Florida while people seeking welfare and handouts are moving to Democrat States like California and New York.
That’s human ACTION. A lot of PRODUCTIVE people, originally from California have found their way to Florida. However, it’s not a certainty that their VOTING patterns will change!
Why should a central banker stick him or herself in the middle of fiscal policy, which is the direct result of voting patterns? I personally can’t blame Tiff Macklem or Jerome Powell for giving vague and even deceptive responses to questions being thrown at them because it’s not like most voters will change their voting patterns anyway, and let’s call it for what it is; some voters are CRAZY and will seek to harm a central banker even though that voter, voted for a politician whos fiscal policies are leading to consumer price inflation.
Interesting times ahead!