The U.S Mid-Terms and Canadian Finance Minister Chrystia Freeland: Canada won’t turn to “slash and burn” economics, Freeland intends to tax, spend, regulate and grow the government (Consumer Price Inflation) – November 7, 2022,
In preparation for writing this post I read 2 Global News articles, and in a nutshell, I quickly figured out why Global News ESPECIALLY is on the verge of bankruptcy without financial assistance from Canadian taxpayers. The Global News articles I pointed to made little effort to address the economics of Democrat and Liberal agendas of Canada and the United States, instead in both articles I point to, the attempt by the two writers Sean Boynton and Rachel Gilmore direct their focus on the Conservatives and Republicans both of who at the time of me writing this have 0 power in Ottawa and Washington D.C.
The Global News articles I point to below focus entirely on trying to coerce their reader into imagining that Liberals and Democrats are good and Conservatives and Republicans are evil. For folks like myself, who focus on finances and the economy, there’s no value for me to gain from the two global news articles I point to in this post, and I mention this because this is an example of why the Federal Government should not be picking winners and losers in the economy.
Global News, ESPECIALLY, is on the brink of collapse, and I finally figured out why, I’ll take a glimpse of a Global News article at times, and Global News does break some major stories, but usually a News outlet gives its readers a REASON to check them out minus the politics, but Global News clearly does not understand that. As an example, I get some valuable FINANCIAL and economic information from CNN.
Sure, on the political side of things, CNN leans far left, but when you actually read SOME of their articles, there’s VALUE in them for people like me. With Global News, I felt like I was reading propaganda; in the article below, Global News, is still trying to link the 42-year-old illegal alien from Canada, David Depape who allegedly hit Paul Pelosi with a hammer to Far-Right politics.
Now, I comprehend that most Canadians aren’t following that story, but as a mainstream media outlet, I thought by November 6, 2022, Sean Boynton would have gotten the facts straight. Instead, Sean Boynton writes an article in which he’s preaching to the choir. By that I mean if Global News a PRIVATE COMPANY, is attempting to take market share from it’s competitors, I would assume it would at least be more creative in trying to bring people on the centre to their side.
I mention for the reasons of the U.S Mid-terms in which the Canadian economy is compromised either way, primarily because of the stance of Finance Minister Chrystia Freeland. Economically Finance Minister Chrystia Freeland said some very serious things that, from what I observed GUARANTEE more consumer price inflation.
In the Global News article I point to below, Rachel Gilmore of Global News, does her best to show the brighter side of Freeland’s tax, spend and regulate economic theory, attempting to make it appear as though a powerless Pierre Poilievre words are going to change the outcome of Chrystia Freeland’s future plans of the economy.
With Pierre Poilievre, he’s merely pointing out the obvious, but Canada’s economy rests in Chrystia Freeland’s hands. What should concern you about what Chrystia Freeland plans to do is, that she and Trudeau have ZERO intention in cutting any Federal Government regulations during a period in which the Bank of Canada is raising rates.
To date, Prime Minister Justin Trudeau’s spending plans have led to RECORD Federal government deficits; I like to point out that government spending should be called Government INVESTING; people started calling it government spending because governments have a HORRIBLE track record for shrinking their financial balance sheets to make their economies run more smoothly, because of the reality people started labeling government investing as government spending.
So, Freeland’s plans include MORE government spending, government regulating, higher government TAXES(carbon tax), and government hiring a larger workforce in an economic environment in which the Bank of Canada is being forced to raise rates to FIGHT consumer price inflation. I’ve heard some argue that the Central banks are raising rates to give themselves the wiggle room to lower rates in the near future; sure, this could be true, but the problem is that lowering interest rates doesn’t address CONSUMER PRICE INFLATION.
Consumer price inflation appears to coincide with the war on fossil fuels. Now, if it’s true that consumer price inflation is the result of excessive GOVERNMENT regulations on Fossil Fuels, it’s a clear sign that until an VIABLE alternative to fossil fuels is discovered, consumer price inflation is BAKED-INTO consumer price inflation moving forward.
Now, this might APPEAR to give the Federal government more revenue, but in case you’re not paying attention, OPEC+, in response to this WESTERN war on fossil fuels is actually CUTTING supply to keep their profits higher. In Canada and the United States, a lot of energy companies in the fossil space are being disincentivized to invest in fossil fuels via regulations, so you for myself at least, I’m seeing a world in which the economy shrinks, which COULD mean unless the Canadian dollar is DEBASED, government revenue will shrink.
Now, if you’re in government, and the Canadian dollar is debased, it might APPEAR initially that you’re getting more tax revenue, but increases in tax revenue will likely be met with Canadian wage earners and people on fixed incomes DEMANDING higher pay. Already in Ontario, some public sector workers are DEMANDING higher pay, now, based on what I’m seeing, these workers are demanding higher pay PREMATURELY because if they strike a deal now, there’s no telling where consumer price inflation might be headed in the future.
I’ve been writing that I see austerity measures in the future, meaning that the larger the government gets, the more FIRINGS of public sector workers we’re likely going to see in the future. By the firing of public sector workers, I could also be talking about certain government entities either being phased out or PRIVATIZED.
Although the period in which I’m writing this post, this might not make much sense to people, but the future, from how I see it is less about politics and more about FINANCES. Put it this way; if there was no central bank and Canada couldn’t issue its own currency, this country would not only be bankrupt, it would require SERIOUS restructuring to even SERVICE its debt obligations.
If Canada were a business, no private bank would want anything to do with the current Canadian government. Current Bank of Canada governor Tiff Macklem was chosen by Justin Trudeau, and if we’re to be fair to Tiff Macklem, he’s done EVERYTHING he could to accommodate Justin Trudeau’s SPENDING plans; I remind the reader that Tiff Macklem has yet to FIGHT inflation, he’s raised rates, yes, be he hasn’t raised rates ABOVE the inflation rate.
Because Tiff Macklem has yet to fight inflation, I can only assume that Chrystia Freeland takes this as a sign it’s time double down on their tax, spend and regulate agenda, meaning that Chrystia Freeland sees a pot of gold over the rainbow. In closing, I want to remind people that former U.K Prime Minister Liz Truss was neither a believer in Thatcherism or Reaganomics; in many ways, Liz Truss was a lot like Chrystia Freeland, the only difference being was Truss didn’t want to RAISE taxes. Chrystia Freeland wants to raise taxes(carbon tax).
What people tend to forget about Ronald Reagan and Margaret Thatcher are the AUSTERITY components of their economic theories. Reagan especially cut government during a period of RECORD inflation and record-high interest rates. Sure Reagan wasn’t perfect, but he allowed Paul Volker to raise interest rates above the inflation rate while Reagan SLICED government spending and sliced government red tape on economic activity.
So, when I read the writer of the article below attempting to POLITICIZE the finances, I want to remind the reader that Liz Truss, along with her finance minister, were more similar in practice to Justin Trudeau and Chrystia Freeland than they were to Ronald Reagan and Margaret Thatcher. The difference is that Liz Truss was smart enough to STEP DOWN once she realized that AUSTERITY was the only way to STOP consumer price inflation, whereas Chrystia Freeland appears CLUELESS about what she’s just proposed.
I can’t predict what the Canadian dollar will do on the forex markets, but I suspect it’s going to have a lot less purchasing power domestically. It’s hard for me to get $0.60 USD for $1.00CAD out of my head. But we’ll have to wait and see. Because of Canada’s increased reliance on imports, if the Canadian dollar goes into free fall internationally, if you think consumer price inflation is bad now, you wait until the government can’t manipulate food prices by subsidizing its supply management entities.
Interesting times ahead!