Terrifying Economic Statistics: Canadian Government income support measures provide a lift to household spending – July 21, 2020,
It’s one thing if Government income support measures maintain household spending, it’s something else if government stimulus spending is helping to push Canada retail sales 18.7%! The debt that Canadian households had prior to CVID-19 is still there, the difference now is that a lot of these Canadians aren’t being productive and don’t have jobs.
I was reading in other articles that apparently people were using CERB payments to pay down debt? This might be far from the truth, it might be that the same financially responsible people who have manageable debt used CERB to pay down debt, while the spendthrifts continued to spend.
Being a spendthrift is one thing when you’re working, it’s something else when you’re not. A topic I’ve been writing about for years is what’s going to happen when real inflation comes to Canada? One of the reasons I’m not anti-fiat-money is that the developed world is really rich, developing nations will send us goods and services on consignment, primarily because of respect for Property rights in Western World.
With that said, this doesn’t mean that the prices of in-demand IMPORTED goods won’t go up based on necessity. Canada’s real estate market as an example is artificially created inflation, remove CMHC from the equation and raise interest rates, that silly market will come back to normal.
Of course, the Canadian government will bail out the residential and commercial housing markets in Canada, but Canada’s real estate market is the perfect example of artificially created inflation. The things we import into Canada, we have no control over that. When Brazil decided to stop selling rice to the rest of the world, the price of rice went up and really hasn’t come down since.
As the world’s productivity declines in favor of universal basic income, this presents a real unavoidable inflation problem and being that Canadians are being subsidized to prop up the Canadian economy, while still being in debt and being unproductive, this poses a serious problem.
Sales were up in 10 of the 11 subsectors tracked by the agency, led by motor vehicle and parts dealers, which rose 66.3%, the first increase seen in three months.
General merchandise stores, as well as clothing and clothing accessories stores, also added to the strength seen in May, Statscan said. The only subsector to post a decline was food and beverages, which fell 2.0%, following a record-high increase in March.
Canada retail sales rise 18.7%, June gain could be higher: Statscan | reuters.com
The cost for imported goods are on the rise, but a large portion of the Canadian public aren’t having to buy things with money they’re working for, furthermore and this is the real problem, inflation has really kicked in yet. Being in debt and being reliant on the government Universal Basic Income is a recipe for economic destruction.
I remind the reader, we’re not talking about individuals free and clear of debt receiving government money, no, we’re talking about a people with no job, taking on more debt. At this point, you’d be wise to at the very least consider preparing for the worst, because money can’t hide a lack of productivity, governments can print all the money they want, humanity is becoming less productive! We just had a retail sales boom based on the government giving people money for doing nothing! Prepare yourselves accordingly!
Canada retail sales rise 18.7%, June gain could be higher: Statscan | reuters.com
Interesting times ahead!