I shouldn't have said growth but rather inflation.This quote is hidden because you are ignoring this member. Show Quote
I shouldn't have said growth but rather inflation.This quote is hidden because you are ignoring this member. Show Quote
Ironically, raising taxes increases inflation, not stifles it.This quote is hidden because you are ignoring this member. Show Quote
Inflation of what? Asset inflation? Price of goods inflation? Because with the latter, the BoC will have no choice but to raise the prime rate, because if the price of goods rises, it means that the CAD$ is worth less, because less people outside of Canada are demanding our goods and services, and that lowers the demand for the dollar, and that can spiral into the price of goods inflating even more, and the only way to stop that is to raise the prime rate so that non-Canadians buy our debt.This quote is hidden because you are ignoring this member. Show Quote
Oh BTW, the price of goods has been inflating.
I'll add a bit more:
We are basically in the same pickle as what Trudeau Sr did. It's the reason why from the late 70s to the mid-90s rates were so high here.
We are already seeing this. Check provincial bond rates. Some provinces are selling bonds at almost 10% (heck, maybe they are now, I haven't checked in a month or so).
The difference these days is Alberta. Our oil and gas brings in a tremendous amount of foreign currency, thank jebus. Transmountain has to be finished ASAP so that we can export even more.
Last edited by suntan; 02-13-2021 at 11:43 AM.
Nothing I disagree with here. I'm pointing out that policymakers are viewing things much differently this time. They have gone all-in on MMT magic beans and we don't quite know where that takes us. It's not good though.This quote is hidden because you are ignoring this member. Show Quote
The provincial bond thing is interesting. Canadian provinces carry a large portion of our total debt load as far as I know. So we have subnational debt at significant quantities. I see the provincial-national spread as the market indicating their belief as to whether the feds would ever bail out provincial debt - interested in your thoughts there.
Having said that, if federal yields start to rise to any degree then we run into a fiscal crisis pretty fast. I think our federal debt load (and the americans) is quite sensitive to bond yields at this point.
Either way, Canadians are going to find out the hard way, and probably soon, that being a millenial green snowflake is mutually exclusive to living in a country with a bunch of free services funded by exports and OPM.
We do actually know where that takes us, as this is the same song and dance played out by countries like Hungary, Germany, Poland, Venezuela, etc in the past. Just using a fun new name to pitch the same shitty idea. You can't print your way out of debt, it just leads to all of us standing in bread lines and starving.This quote is hidden because you are ignoring this member. Show Quote
Ordinarily, yes - but because CAD is so dependent on the 'black ops' known as American dollar, which itself is tied to, and manipulated, in incalculable ways, there is no direct path, as above.This quote is hidden because you are ignoring this member. Show Quote
One of the key terms I have seen mentioned more lately, is money velocity, as a metric to pay closer attention to.
You're going to have to pick a side when it comes to the importance of velocity of money.This quote is hidden because you are ignoring this member. Show Quote
If we are simply praying and relying on the US devaluing their dollars as much as we do, we are still in big trouble.This quote is hidden because you are ignoring this member. Show Quote
Yes I'll finally become a millionaire and then use that millions for one shopping trip for a week of food.This quote is hidden because you are ignoring this member. Show Quote
Can't wait.
yes, there is no consensus on the short term implications. But in totality, the global financial system IS heading for a reset/collapse, but HOW it manifests is TBD.This quote is hidden because you are ignoring this member. Show Quote
definitely in trouble, however as Harper mentioned, the inflation is starting in places where the average consumer isnt noticing as much.This quote is hidden because you are ignoring this member. Show Quote
Frog in a pot of boiling water is the analogy that I keep hearing. Warm it up slowly enough and maybe we won't even notice that we're all f*cking broke.This quote is hidden because you are ignoring this member. Show Quote
Unfortunately there is nothing slow about how Trudeau is destroying our fiscal system.This quote is hidden because you are ignoring this member. Show Quote
Originally posted by Thales of Miletus
If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
Originally posted by Toma
fact.This quote is hidden because you are ignoring this member. Show Quote
That is because to him it is all just one giant public trust fund. It's why budgets balance themselves. He is used to the bank account magically replenishing every time it hits empty and thinks that's normal.This quote is hidden because you are ignoring this member. Show Quote
Definitely. They're only pulling a few levers every other adjustment.This quote is hidden because you are ignoring this member. Show Quote
Adjust min wage (look like hero's), next Adjust tax rates (tax rich and middle class more, look like bigger hero's.), next adjust tax brackets so capture more people into the higher brackets along with the min wage group.
They're slowly going at it but pulling the wool over everyone's eyes.
Like City of Calgary lowering speed limits. Small steps at a time. Soon we're all getting passed by escooters.
It seems 60% of Canadians are enjoying their "spa bath" as the water heats up - Lib/NDP/Green still polling over 60% despite the colossal spending and vaccine F'ups (not to mention We-Gate & SNC-gate): https://newsinteractives.cbc.ca/elec...racker/canada/This quote is hidden because you are ignoring this member. Show Quote
Agreed. Liberals still poised to form next government. Voters that matter not worried.
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Come on over to Team Shred-Confederation guys!
The water isn't so warm.
Sure is salty though!
Just kidding. I think we need eastern Canada just about as much as we need herpes.
Convince the SW of BC and I'm in.This quote is hidden because you are ignoring this member. Show Quote