The Bank of Canada Interest rate is 1%: Statistics Canada says the annual inflation rate hit 6.7% in March – April 20, 2022,
From my perspective, the Bank of Canada is playing a very dangerous game, but don’t think I’m one of these Libertarian writers who point the blame squarely on the Central Bank, we’re all to blame, the Western world revolves around DEMOCRACY and a lot of voters have voted to grow the welfare state. Well, to meet the demands of the people, the welfare state has grown, not only has grown it’s finally created the inflation the central banks are looking for.
For years and years the central banks have been setting inflation targets that got missed, well now not only have those targets been met, they’ve also been exceeded and typically once the inflation genie is out of the bottle it’s hard to be contained. Wages are prices and price controls are ofcourse the main problem in Western economies. Once wages rise, you can’t bring them down again, so the real problem here is these calls for higher minimum wages and the actual demand for higher wages.
The economy is actually DEFLATING-Consumer Price Inflation is actually Economic Deflation #LateStageSocialism
Unlike gas prices, once the cost of wages goes up they’re not going to come back down again, wages are fixed and people might start burning down cities if a governor, Premier, President, or Prime Minister says to their people, we’re cutting wages. Most private-sector business owners know the game and will often opt to stay out of the wages debate, merely passing the cost increases over to the consumer or shrinking their business, declaring bankruptcy, or selling to a new owner with a different vision, that could include SHORTAGES of the things the prior owner(s) used to sell.
But if the economy is deflating and prices are increasing, what does that mean exactly? It means economic calamity because instead of the money supply being able to shrink with the economy, Government will likely find a reason to BORROW more money to stimulate growth. Austerity measures are all about allowing big government ideas to FAIL, but I expect the people may DEMAND the government do more to stop deflation. Imagining the Bank of Canada is independent of the Canadian Federal government is LAUGHABLE, I personally think the Bank of Canada is raising interest rates so it can lower them in the not so distant future, I’ve been saying for YEARS now that I think Canada will experience NEGATIVE INTEREST POLICY
Why? Because there is NO real demand to cut the size of government, and what we have right now is Canada’s Federal government throwing money at all their problems, think about this for a moment, Canadian mainstream media can not survive without a government handout. The one media organization that is thriving in Canada, RebelNews has been denied the right to be called a news organization? Tyranny aside, does that not sound like Canada is going bankrupt? How dare you make a profit while other news organizations struggle, I will deny you the right to be called a News Organization in Canada?
The Bank of Canada has no interest in fighting Inflation, It’s raising rates to cut them later
I use that RebelNews story to illustrate how BIG the Canadian government is in Canada, and why I don’t see this consumer price inflation problem going away anytime soon. If the Bank of Canada wants to fight inflation rates would be at 7%, why can’t the Bank of Canada raise interest rates to 7%, the Canadian housing market you argue? Yes, that’s one of the reasons, but the real reason is it would DESTROY Justin Trudeau, his Federal Government is running record deficits and most of their “Investments” haven’t panned out.
On the topic of the media, the Canadian federal government is trying to extort Social media companies into paying its failing Mainstream media, why? Because all of this revolves around Canadian Radio‑television and Telecommunications(CRTC) which is a Government agency that people like me argue is the root cause of Canada’s PRIVATE mainstream media being the abysmal failure it is. I’m not sure MSM fails in Canada if CRTC doesn’t have the stupid rules it has?
But because CRTC does exist to REGULATE Canadian content, The Federal Government has to take some responsibility for keeping these failing Private entities afloat. Now, does anyone you know write about these topics? Ofcourse not, because Austerity measures terrify most people, please don’t take away my government perks, I won’t be able to survive. The average Canadian is not mentally prepared for government shrinkage, which equates to people with financial education having to pay CLOSE attention to rises in wages. Minimum wages, unions, etc. this is all Marxist derived and Marxism isn’t compatible with Western society. We’re supposed to be a RUGGED people, Marxism, Socialism turns ALL of us, myself included into serfs of the State.
A lot of people stop reading my articles when I wrote FAVORABLY about the Black Lives Matter protests. why did I write favorably about BLM, when they saw what they thought was an injustice, they burned down their cities, they even seceded (The Capitol Hill Occupied Protest or the Capitol Hill Organized Protest (CHOP), originally Free Capitol Hill and later the Capitol Hill Autonomous Zone). I don’t see that type of passion to shrink government right now from Freedom fighters, so based on the evidence presented to me, I expect the Bank of Canada to raise rates “aggressively” by their standards until something breaks and rates are forced downward when something breaks I think it’s going to be so bad that we’re headed to negative interest rates, which I think will have consumer price inflation getting even worse.
OTTAWA, April 20 (Reuters) – Canada’s annual inflation rate accelerated in March to 6.7%, a full percentage point higher than in February and well above expectations, driven by widespread price pressures, Statistics Canada data showed on Wednesday.
Interesting times ahead!