The Bank of Canada drops the “temporary” reference on inflation-Is Canada headed for Hyper-Inflation or Higher Interest rates? – December 9, 2021,
As many of us know, central banks have no idea what’s going on, The Euro-Dollar system is the perfect example of the U.S Federal Reserve losing complete control over the money supply, so the better question is why has it taken so long for consumer price inflation to be a problem? Well, the truth is fiscal policy is the reason, because as I like to point out, money could be ANYTHING, seashells, sh*t on a stick, anything people are willing to accept as money can be money, but if the politicians in charge are idiots, the money supply gets compromised and people start HOARDING things and stop creating jobs.
Justin Trudeau has been a complete disaster for the Canadian economy, however, Canada’s number one trading partner is the face of “Capitalism” and America up until recently wasn’t taxing or threatening to tax Canadian exports, in the manner we tax U.S imports. Canada is considered a resource nation, we in Canada as an example have enough oil to provide for the energy needs of all Canadians, but Canada’s federal government from an economic point of few has decided that it’s better for Canada to import fossil fuels instead of using our fossil fuels.
This is nothing new, Canadian politicians have been at war with Canadian energy for as long as I can remember, but it’s the compounding of regulations that are forcing prices for things upward and because it’s becoming increasingly difficult to make or manufacture things in Canada, the private sector can’t fix any of the problems the government is making worse.
In the real estate sector as an example, they’re currently the beneficiaries of these insane policies, but there comes a time when Canada’s central bank may be forced to make a decision of NORMALIZING interest rates, meaning allowing the market to determine the true value of the Canadian dollar based on fiscal policy or double down on the current stupid policies which are leading to the expansion of the Canadian government.
I believe it was Pierre Poilievre who pointed out how much of Justin Trudeau’s debt the Bank of Canada purchased, the number was almost exact, meaning that non of Justin Trudeau’s spending/investment is wanted by the markets? So without Canada’s central banks, Justin Trudeau’s vision for the Canadian economy would be a total value and Canadians would have noticed it immediately.
Bank of Canada signals worries about inflation, but keeps rate on hold | financialpost.com
Instead, a lot of Justin Trudeau’s failures have been hidden in plain sight, meaning that unless you understand what’s happening, you’d assume the Canadian economy is perfect. Once the inflation genie is out of the bottle, it equates to people fleeing to safety, and as an example, a person can buy a mansion or a very large house in Venezuela for I think the price was 5 ounces of Gold.
Hyper-inflation creeps upon you, and I’m not sure Canadians comprehend that many parts of Europe had their currencies destroyed because they pursued a very similar fiscal policy we’re pursuing now. The EU was only created in 1999 and it was created because most European nations had destroyed their currencies. Currencies are destroyed because of bad fiscal policy, the central bank is merely a symbol of buffoonery in the marketplace.
Central banks have no power, this only becomes apparent once inflation can’t be controlled. I don’t know, nor can I anticipate what Canada’s central bank will do, Canada’s central bank will have to get ahead of this problem by NORMALIZING interest rates, this will force Justin Trudeau to reopen the Canadian economy, cut regulations, etc., but at this moment I think it unlikely the BoC can stomach what that means.
It wouldn’t even surprise me if the BoC went to negative interest rates, I wrote about that possibility months ago. I like to add in closing that consumer price inflation is DEFLATIONARY on the economy. If costs you more money to purchase fewer goods and services, you’re getting POORER! Once it becomes apparent that the Canadian dollar is losing it’s purchasing power at an accelerated rate, people will try to get ahead of the problem by bulk buying.
This is malinvestment because bulk buying is something business people usually do to stimulate the economy, most people don’t like to hoard things unnecessarily. Anyway, I have no idea what can happen but it would be wise to prepare yourself now.
Bank of Canada drops “temporary” reference on inflation | yahoo.com
Interesting times ahead!