The Petrodollar Bank of Canada says interest rate increases may be over, but…Current Prime Minister of Canada, Justin Trudeau, hasn’t signaled that he will end his war on Fossil Fuels – December 8, 2022,
One of the reasons I’m AGAINST a GOVERNMENT Gold standard is that the markets will find a way to attach the value of money to something, the data suggests the U.S. dollar is the world’s reserve currency and most people price the U.S dollar on the price of oil. The Canadian dollar is declared a world reserve currency by the powers that be, but when push comes to shove, if there’s an economic downturn, most people will bet that the markets will pile into purchasing U.S dollars, meaning that prices for imports into Canada could become volatile if Canada’s central bank SUBMITS to inflation.
According to the article I point to below, Canada’s central bank is giving up on its inflation fight, which is a very bold move because what if inflation hasn’t stopped? When I look at China, I think people are overreacting to the protests because the Chinese people don’t appear to be protesting to overthrow the Chinese Communist Party; the people appear to be protesting because their central planners are overreacting to Covid-19.
What I’m getting at here is that if China comes back online, the demand for OIL is going to skyrocket, which could easily and quickly lead to a SPIKE in oil prices, and if oil prices rise, will that not lead to more consumer price inflation? Or am I missing something here? Last time I checked, Justin Trudeau is planning to raise the carbon tax in 2023; if GLOBAL oil prices remain where they are now, won’t the carbon tax make energy prices more expensive, and won’t private businesses and public entities pass those costs over to consumers, creating more consumer price inflation?
Canada’s supply management system currently requires GOVERNMENT SUBSIDIES to keep consumer prices down. Now, by government subsidies, I’m referring to more expensive DEBT servicing costs for Justin Trudeau’s government which is costing taxpayers because more taxes are going to SERVICING Justin Trudeau’s ever-growing debt.
The profitability of ANY public sector entity or monopoly relies on a booming private sector. Until there’s a viable replacement for fossil fuels, it’s a guarantee that consumer price inflation will continue to rise. So when I read that the Bank of Canada is considering changing its approach to interest rate hikes, it signals to me that the Canadian dollar will be DEBASED, so Canadians should consider that the DOMESTIC purchasing power of their currency might see a sharp and permanent decline starting in 2023.
“Looking ahead, Governing Council will be considering whether the policy interest rate needs to rise further to bring supply and demand back into balance and return inflation to target,” the bank said in a statement.
Interesting times ahead!