The Corporate Climate Change Agenda Will Make Western Countries More Reliant on Imports: The Bank of Canada Looks Set to Raise Interest Rates – October 30, 2021,
The immorality of zero percent interest rates is one thing, many of us who understand Austrian economics, know that this zero percent central bank fraud along with Quantitative easing better known as counterfeiting fiat currency is unsustainable. But what I’m certain most people have forgotten is why the architects of Western civilization, did everything in their power to limit the FUTURE size of government.
When Ceasar took over Rome, the Senate kill him, because Ceasar had attempted to make himself a PERMANENT dictator of Rome, Rome had enough problems with the senate, a dictator meant certain doom. Because we have rule by decree money, also known as Fiat money accepted worldwide, the U.S government has been successful in helping the world to weaponize money.
Countries all over the world currently use fiat money, but what makes this system work is the belief in the U.S dollar, or better put, the belief that the Federal Reserve knows what it’s doing. Well, shortages are shortages, nobody how much money a central bank prints, once the numbers STOP making sense to the private sector, inflation happens. Not only is there a labor shortage, but there are also unnecessary regulations on all western economies that people don’t even question anymore.
These NEWER regulations exist primarily because interest rates are pinned at zero. Government spending should actually be called government INVESTING, it’s been called government spending because it’s no longer profitable for the society these governments are supposed to be serving. So as we all observe in Canada, deficits are rapidly increasing and often is the case the Bank of Canada(BoC) as well as other central banks, will consume these governments debts, but when the BoC does this, it allows the wild spending and the crazy over regulating of the economy to ACCELERATE, because after all why should Justin Trudeau stop spending or regulating the economy if the Bank of Canada rewards him with the ability to spend more?
Now, when the Bank of Canada rewards our political class by buying it’s debt, you have to remember that the Central Bank is finding this money, to lend to the government by buying up PRIVATE assets in the Canadian economy, which then drives up ASSET prices in Canada. So private investors in Canada feel smarter as their asset prices rise in value. But the reality is that asset prices in Canada aren’t rising in value, the Canadian fiat dollar is LOSING its value.
Now, what most people ignore about Donald Trump was his REGULATORY policies, all the crazy stuff Trump said or did is irrelevant, his cut to regulations, actually proved to be a big boost to the U.S economy and if you ask me, something similar to what I Trump did regarding regulations is in the future of most Western nations.
Now do I think there will be loud elaborate statements about austerity measures? No, I just think it’s going to be something that’s forced on politicians because the bottom line is that most people are ignorant about economics and nothing will hurt the establishment more than SHORTAGES. Now, shortages in Canada might differ from shortages in the United States, because the shortage problem in the United States is a systematic problem that stems from labor unions trying to force contractors and Gig workers into being employees who are forced to pay INCOME TAXES.
Canada has no such problem, our shortage problems are the direct result of stupid energy policies and of course our tariff policies. Both are easy fixes, but more than likely these changes will happen behind the scenes and not wide out in the open. Regarding the potential rise in rate, Canada is heavily dependent on exporting things to the United States, and Joe Bidens America first policy which is Joe Biden adhering to the demands of American Labour Unions if successful will change Canada’s approach to dealing with America.
In Case Canadians haven’t been paying attention, Justin Trudeau hasn’t changed taxes, his first fall-guy Bill Morneau is no longer Finance Minister, I’m not sure if it’s pure ignorance on Morneau’s part, but the Paul Martin Liberals when designing this corporatist Canadian economy, changed the corporate tax laws for good reason and to interrupt that would be disastrous for the Canadian economy.
Currently, it appears that the new Minister of Environment and Climate Change of Canada Steven Guilbeault will be Trudeau’s second fall guy. Because he’s being put in a position to fail. If Interest rates rise, energy prices aren’t coming down, they’ll be going up while asset prices come down and this obviously is going to anger a lot of Canadians.
My case for Negative Interest rates
My personal opinion is that the Bank of Canada along with a number of other central banks interpret what’s happening all wrong, transitory, or temporary inflation they believe will be stopped when they push interest rates up a few BASIS POINTS. But based on my research, the problem is the cost of living, which is primarily the fault of the government.
Now, some will argue that the money supply is allowing this to happen, I agree, but not completely, I believe there has always been a demand for a FIAT MONETARY system and you’d be ignorant to imagine otherwise. Financial ignorance is financial ignorance and just because there’s a Gold Standard won’t change this demand for fiat money. When you understand that, you comprehend that central banks imagine that they’re in control of the problem.
What I think the central banks minimize are the RISING costs of doing business, especially in countries like Canada reliant on IMPORTS, this inflation will not stop and I think when asset prices start to crash, The Bank of Canada is going to make the mistake of Negative Interest Rates. You have to understand that a lot of consumer spending is reliant on their ability to obtain CREDIT!
Now, I personally do believe there’s a possibility to a temporary return to a Gold Standard but the road to get there, will be one of kicking and screaming because we’re in a progressive era in which people don’t think that government regulations are a cause for concern.
Having a Gold Standard is an austerity measure and it will be something that’s forced to stabilize prices. In the meantime, the assumption is that the economy is NOT deflating, because after all fiat prices are going up? How could the economy be deflating when prices are going up? Well Fiat money isn’t real money fiat money is based on confidence and higher prices in fiat money equate to people losing confidence in the system.
This corporate climate change agenda is going to create all sorts of unforeseen problems for the Canadian economy and we’re only in the early stages of it!
Interesting times ahead!