Well Written Article: Franco Terrazzano: The Canadian Federal Government need to end their lockdown subsidies-the feds aren’t projected to balance the budget until 2070 – January 20, 2022,
Debt feels good until you have to pay it back, two was stand out to me on how debt will be paid back and both ways are going to be painful. The first way, my preferred way of paying back Federal Debt is to shrink the size of government. Lot’s of government employees exist that don’t need to exist, I’d fire most of them and cut most of their pensions, furthermore, I’d end a lot of these stupid regulations because regulations on Canadian businesses create an economy in which entire INDUSTRIES don’t exist.
For a pro-labor-union moron, their thinking is “if you can’t afford the union wage you don’t deserve to be business” it’s time to end these idiotic Left-Wing ideas, a lot of great companies that used to pay taxes in this country DON’T manufacture anything in Canada anymore all because of that stupid slogan, that became FEDERAL law.
Now, obviously, the minimum wage helped to create more pro-labor union rules and regulations, which equated to taxes being paid via INFLATION instead of strengthening the Canadian dollar, and labour pool, which by the way also would have equates to LOWERING the cost of living. Instead, the Canadian economy is ass-backward, we’re raising the cost of living which equates to the likelihood that debts will be paid by DEBASING the Canadian dollar.
Which to me signals that more than likely debts will be paid by debasing the Canadian dollar, which means that all though it may sound ridiculous right now, maybe a bag of discounted bread costs $10 Canadian dollars in the not too distant future. That’s the easiest way for the government to pay down debt. Now, for some people they imagine that debasing the dollar is a good thing, unfortunately debasing one’s currency tends to lead to more tyranny and more government regulations.
In the United States, as an example, nobody talks about how the minimum wage(FDR), The Great Society(LBJ), and other Left-wing initiatives decimated the Black fragile family. Black people had only been made whole in the United States in the 1960s by that, I mean Black people were only considered equal to whites in the U.S after MLK, and maybe to overcompensate them, LBJ deemed it wise to give them some sort of permanent government welfare, which allowed women to kick their husbands out of the home because all of sudden overnight it made more economic sense via “The Great Society”, for a woman to be single.
So all of a sudden America becomes a place in which it’s harder for a young person to find a job and easier for a single woman to be on government welfare? Furthermore, women can vote, why would a single mother, vote to have her government welfare taken away? So now when you look at both American and Canadian society, you’re noticing a trend that women in politics aren’t as smart as they used to be because they don’t need to be, the perceived government safety net is there.
Chance are these government safety nets will remain there, the issue, of course, will be the dwindling labor pool, because if you know anything about welfare, what kills the welfare State are incentives, more government regulations equate to fewer people willing to do certain jobs, so in time this lowers the standard of living.
A lot of people imagine that immigration will solve problems created by government regulations, by immigration will actually accelerate the problem, because a lot of immigrants once they get here want the same welfare that existing Canadians have. I find the Canadian pension system as an example unacceptable, someone can move to Canada CONTRIBUTE NOTHING to the country and get welfare for life? Who in their right mind thinks this is sustainable? Combine that with Universal Health Care and you quickly see the multitudes of economic problems arising in the near future.
Currently, lockdowns are all the rage, but I like to point out that it was prior welfare programs, that created the thinking that no matter what the government does the economy will be fine. If interest rates were normalized, we’d have to deal with this virus, point blank period, we had zero percent interest rates during the good times.
What’s that you see, we had to make sure the housing market didn’t crash? HUH? Are you stupid, now interest rates remained low, so politicians could avoid AUSTERITY MEASURES! Barack Obama didn’t want to be the guy to take the punch bowl away, Stephen Harper also wanted to get re-elected, Liberal Republican, Democrat or Conservative, nobody wants to be contraction prime minister or president of their country.
It was Republican Richard Nixon, who saved “The Great Society” by cutting ties to the Gold Standard. Most Americans at the time had no, idea what the Gold Standard represented, why should Nixon, be the one to educate them? Nixon took the easy out and defaulted on America’s debts without most Americans even noticing.
Debasing the currency is commonly the easiest and most immoral way to pay for stuff and this has consequences, Hitler rose to power because Germans didn’t want to pay their debts, ignorance is bliss, and humans like easy answers. So although I’d prefer austerity measures all signs point to a debased loonie. This means, you’d be wise to prepare for it now, what I think is likely to happen is a few controlled Bank of Canada(BoC) rate hikes only to bring rates back down again.
Why? because regulations on the economy won’t allow prices to come down. We have climate change taxes, employers have to pay higher wages, all sorts of welfare subsidies that keep pace with inflation, like pensions and other things, there are sorts of manipulated price signals created by the Federal government that won’t allow price deflation, furthermore, the BoC rate hikes are going to be a few basis points, it’s not like BoC rate hikes are going to keep pace with inflation or make up for 2020 inflation, now, this all window dressing for an excuse to bring rates down in the future.
Interesting times ahead!