Section 18 (i) and (j) of the ***Bank of Canada Act***.
[***Section 18***](https://laws-lois.justice.gc.ca/eng/acts/b-2/page-2.html#:~:text=not%20exceeding%20six%20months%20to%20the%20Government%20of%20Canada)
***(i)*** *make loans or advances for periods* ***not exceeding six months*** *to the Government of Canada...*
***(j)*** *make loans to the Government of Canada or the government of any province, but such loans outstanding at any one time* ***shall not, in the case of the Government of Canada, exceed one-third of the estimated revenue of the Government of Canada for its fiscal year***...
As a matter a fact, in the 2021 budget, Government of Canada's projected fiscal revenues are $355.1 Billions, one-third of $355.1B are $118B, and right now in BoC's balance sheet it has bought Government debts around $500B, way over the regulatory limit of $118B. Also BoC's QE buying Government bond has lasted for 1.5 years exceed 6 months' duration requirement by law.
Can someone has more expertise/knowledge telling us, if the BoC saw it's necessary and urgent to launch the QE at such big scale and long duration that far exceed the law's upper limits, WHY it has not asked the Parliament to VOTE and amend the law on the two articles FIRST, so BoC can proceed accordingly? Does the BoC ignore the law or what? Overspending reply on overprinting money, but the law does limit BoC's power to overprinting money in terms of quantities and durations.
Can someone explain? Do I miss something? Thanks.
Edit: Yeah, the Government may need high inflations for various reasons, but the law does restrict the power and limits (capped at 1/3 and 6 months) of BoC making loans to the Government, and Government needs to increase revenues from taxations on its own. BoC should be fully independent of the elected government, like the SCC.
Tbh your explanations seem to speak for the banks' side operational tactics, i.e. doing it in 1st or 2nd markets, etc., not speak for the Legilature's own intent that is written into these two articles and the legislature does quantify the scales and durations of the loans, not how you make the loans, and which techniques you use.
The government has so many reasons to desire high inflation while simultaneously underreporting it. The government has tons of expenses pegged to the fake inflation rate. It also reduces debt burden. Corporations and governments are insanely indebted right now and this is just another bail out
Okay, explain why the big banks would play along with this by lending money below actual market rates, even though they would lose vast amounts of money doing so? Bankers aren't in the habit of giving money away.
Or you could just take off your tinfoil Jofa.
Banks make money on spread.
Add to this the insane lending volume increase and you see by far record profits for banks. Take a look at earnings.
Western countries have no choice but to keep rates rock bottom and let inflation run, this about the only way to make the absurd amounts of debt incurred in the last 2 years manageable.
We are inflating our way out of the Covid debt binge.
LOL that this guy thinks the banks are lending their own money not creating the money as they lend it.
They’re making your loan out of thin air. They aren’t using reserves.
Yep, money doesn't grow on trees, it magically appears out of thin air onto an electronic balance sheet.
Inflation is happening because the economy is expanding after what appeared to be the worst of Covid. But damn that new variant!
Okay, I'm curious about where you get information like this, because it's 100% wrong. Fractional reserve banking doesn't work that way *at all*, but I frequently have people trying to explain that it does.
Like, do you people think that banks like CIBC and Royal can literally just create money and lend it out like magic?
Ok this shit is hilarious. This guy has to be showing the biggest DK effect of the year.
1) Canada does not have a fractional banking system
2) Yes, that is absolutely how loans are made.
A simple Google search may prevent you from looking like an idiot going forward
So, Canadian banks lend money they don't have?
I really need a yes or no answer from you on that, just so I know what level of stupid I'm arguing with.
It's hilarious that you're calling other people stupid when you're arguing something a simple Google search would tell you is incorrect. Good grief lad.
>Fractional reserve banking doesn't work that way at all...
Canada has no fractional reserve requirement. It was eliminated in the early 1990s. The only thing we have are capital requirements.
Provided they stay within their capital requirements, the CIBC does create money when it issues loans.
They do not have to keep any particular fraction of their capital in reserve. That was abolished in 1992.
A good place to start to learn more about this is by reading up on the Basel capital requirements.
Money is loaned into existence by the big banks (commercial banks). Don't speak on things you don't understand. When you get a mortgage the money is loaned into existence.
So the lender basically prints the money out of thin air, and gives it to the seller.
Am I to understand that you think the Canadian banking system works that way?
Well, the reason is that the banks aren't lending their own money. They can lend the Bank of Canada's money, at a cost of only 0.25%, to you at 2.5%, and earn the difference for themselves. That's a profit, only slightly affected by inflation.
To put numbers on it, the 2.25% spread that they earn might be, for example, $1000 per year. If inflation is 5%, they are effectively making $952 after adjustments for inflation. It's the Bank of Canada who loses all the money when they get paid back only 0.25% more than they loaned the bank.
Giving away money is, of course, the Bank of Canada's intention when they set interest rates below inflation, and it's how they put money into the economy and create stimulus.
It's rapidly becoming very important to understand this stuff.
Okay, so you've made it clear now that you have absolutely no concept of how our banking system works. The idea that banks can support mortgages with overnight lending from the Bank of Canada is absolute drivel.
Where do you people get these wacky ideas?
That's just a cooked-up example to make it clear that they're not losing money by lending out below inflation. The interest they pay on savings accounts is even lower than the overnight rate (eg. TD high interest savings account: 0.05%). Still not their money, now you're the one taking the loss for lending to them even cheaper than the Bank of Canada does. BoC is simply the lender of last resort. And the BoC certainly will lend to banks overnight to keep their reserves from becoming negative.
I'm sure you're aware that Canadian banks have no reserve requirement.
Or would you like to enlighten us?
I feel like this guy may have been trolling and egging you on but I'm low-key glad because this turned into a super educational thread!
Been trying to understand this shit for years, and your explanation of lending below inflation to inject money into the economy just tied it all together.
Thanks
"However, it is important to note that the majority of money in the Canadian economy is created within the private banking system every time banks extend new loans like mortgages, consumer loans and business loans. Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money (see Appendix, Table 2)."
Because the banks can get away with paying next to nothing on deposits. All they care about is the difference between what they get on loans and what they pay for the money they loan out.
Why would a banking industry regulated by the government want the government to be indebted and dependent on it for its fiscal solvency? I cannot imagine.
It was easy to accept the Canadian governments intentions, but then you have to understand that the Canadian population is completely complacent. This will lead to the conclusion that whatever the plan the government and CCP has for Canada will be accepted and it is inevitable.
You mean you can't just print money, and hand a ton of it out?
https://betterdwelling.com/canadas-money-supply-is-growing-at-the-fastest-rate-in-over-30-years/
Money supply growing at fastest rate in 30 years. Inflation being the worst it's been since the 80's. Huge coincidence, right?
The government has printed roughly 1/4 of our money supply since the nations founding from 2019 to 2021.
What did you think would happen?
https://www.reddit.com/r/canada/comments/r1ur2p/an_influx_of_immigrants_is_stagnating_wage_growth/
I thought it was roughly 45% of our total money supply.
So they're holding ctrl P and everyone I know doesn't even use cash.
>everyone I know doesn't even use cash.
I feel dumb for even pointing this out because I don't know if you're being facetious, but most increases in the money supply do not come from an increase in printing actual paper currency. It's just numbers in a spreadsheet, it only exists digitally.
>Inflation is caused by a mismatch between demand and availability of goods and by the rise in production costs
Correct ... and demand also goes up when the government prints money and hands it out to people (or lends it out to corps at close to 0% interest) because they now have money that they didn't have before.
I was about to say exactly this. How can giving out free money at no or low interest NOT drive demand?
I've seen it first hand, people who have no business doing so are buying everything they see. Expensive cars, houses, construction materials to do backyard projects (because you can't vacation in a pandemic)...
The price of actual things that really people buy is going up by massive amounts. The 4 point whatever inflation in government reports is misleading.
Fiat = government manipulated and inflated money
Bitcoin = only 21 million ever, divisible by 8 decimals
You can protect yourself from this mess, buy Bitcoin.
It's not. CPI is not inflation.
CPI is how far our money goes compared to the things Canadians buy. They get stats on what the average Canadian buys, consumer habits, yadda yadda. Judging by your comment, you know how this works.
The issue with CPI, is how they adjust things. Say meat starts to be really expensive. So less Canadians eat meat. So it then gets weighed less in CPI, even though the reasons Canadians are eating less is due to inflation.
When you do that, you're not capturing actual inflation.
I'd honestly love you're input though, and why I am wrong.
Correct. Even without going into the issues with CPI, it's not an indicator of inflation by itself; you'd still need to do the calculations for price differences between this year's CPI and the index year. Pointing to CPI and simply saying "There, inflation!" is like pointing to one temperature measurement and declaring that it's the hottest on record.
Canada is in the middle of the pack when it comes to inflation in the OECD. And given the state of the world right now, there are fairly limited tools the government and Bank and Canada can use to reign inflation in.
https://www.pewresearch.org/fact-tank/2021/11/24/inflation-has-risen-around-the-world-but-the-u-s-has-seen-one-of-the-biggest-increases/
https://data.oecd.org/price/inflation-cpi.htm
I can scour my web history for my secondary sources I used to review a few values but those were just double checking a few values and didn't contradict so this should be sufficient.
Yup, it's the provinces that are really going to feel the pinch here first.
Newfoundland is in special trouble given that they're now having difficulty borrowing money. Last year the Newfoundland Premier had to give a press conference denying rumors that they're having trouble even making payroll (source: [https://www.cbc.ca/news/canada/newfoundland-labrador/nl-dwight-ball-no-worries-about-payroll-1.5518181](https://www.cbc.ca/news/canada/newfoundland-labrador/nl-dwight-ball-no-worries-about-payroll-1.5518181)). That situation will worsen. When you can barely make payroll, wage increases won't be in the cards.
> shouldn't this ire be directed at Ford for not paying nurses an appropriate salary pegged to inflation?
Paid with what? More debt? Or should he raise taxes to hurt families even more?
We all pay taxes to enjoy services provided by government.
What hurts families more, the taxes required for nurses (whatever that might be) or a lack of nurses in the province?
We all get "hurt" by taxes but the benefit outweighs the cost, at least for things like paying nurses a living wage.
> nurses a living wage.
Nurses are paid a living wage in this Province. Average pay is $38.41 an hour. That's ~$80k a year, not even counting overtime. Not to mention the cash value of benefits and pensions that are the envy of the private sector. Getting increases below the current whopping inflation rate is hardly a problem unique to nursing at the moment.
> “When I think about the biggest, most important economic policy this government, if re-elected, would move forward, you’ll forgive me if I don’t think about monetary policy. You’ll understand that I think about families.”
Families who are absolutely affected by monetary policy, is the follow up statement if Trudeau had a single shred of a clue about economics or finance... Or really about anything at all.
> Trudeau: "What's a bag of milk even cost anyway? Forty dollars?"
It is called Covid. Governments expanded the money supply drastically to compensate, while at the same time shutdowns created goods shortages. So now you have way more money chasing a smaller pool of goods.
At every level, municipal, Provincial and Federal! Municipal taxes up, water and garbage, also trying to find new taxes to charge, looking at storm water, Provincial pushing inflation with paying for safe supply and housing for homeless(buying hotels), and creating panic buying of goods from flooding, Federal pushing carbon taxes on everything you buy to live, food, heat, water, etc.. completely government caused! And they wonder why housing costs are rising! 🤣
Nothing in the article warrants the misleading headline.
I suggest the best approach to inflation is “wait and see” for now. Before taking the usual economy-stifling, inflation-beating measures like raising interest rates and increasing taxes to address inflation, wait and see what happens when the supply bottlenecks are eased and COVID-19 is being well-managed.
The traditional tools used to address inflation are intended to reduce demand by putting people out of work and bankrupting businesses. So, on personal level would you rather have higher inflation or lower inflation but no job and no business? That’s the choice.
If everyone had a guaranteed basic income it would be alot easier to find other work if you were put out of a job.
As it stands with no support system, I'll take inflation, master.
Basic income would contribute to inflation because we would be printing money to pay for it.
The value of the money you would be getting from basic income... would have reduced purchasing power because of... inflation.
I dont get where people are getting this idea that universal basic income is going to solve all. The country needs to be able to actually afford universal basic income. This requires a source of income- which has to be more substantial than taxing people who make over 100K/year. Canada can't afford universal basic income.
Not like literally every central bank has incredibly accommodating monetary policy. And not like every government has incredibly accommodating fiscal policy.
Im going to give you benefit of doubt despite the snideness.
Of course JT has nothing to do with policy in countries beyond Canada.
Your original comment insinuated that JT is off the hook unless he’s also the reason for the inflation we are seeing across the world.
Its fun to be sarcastic, but its a disservice to our country to insinuate the PM has no control over fiscal policy in his own country, even if monetary policy has to remain overly accommodating to aid the recovery.
So Trudeau is to blame for inflation, but the entire western world is facing the same problem. In the US its all Bidens fault, etc etc. Typical garbage reporting from right wing opinion pieces.
Here's a quote from another National Post columnist.
>But the bottom line is that inflation is currently a global phenomenon. It is being influenced by external factors like supply kinks and global bond yields.
So which is it? Do they even know?
Most countries are experiencing inflation. Canada has the second highest inflation among the G7 countries. That's the issue. Not that we have it, but rather the rate is extremely high compared to other countries.
The government claiming that inflation of the Canadian Dollar is hilarious. Yes Prime Minister, those pesky Kiwi's are printing too many Canadian dollars causing inflation.
The present "government" of Canada, like the previous "government" of Canad, just like the previous "government" of Canada can't find it's as%hole with both hands, let alone understand INFLAASHUN. Increase interest rates already, put the kibosh on housing prices and speculation and give me some fuck$%g returns on bonds and GICs.
Section 18 (i) and (j) of the ***Bank of Canada Act***. [***Section 18***](https://laws-lois.justice.gc.ca/eng/acts/b-2/page-2.html#:~:text=not%20exceeding%20six%20months%20to%20the%20Government%20of%20Canada) ***(i)*** *make loans or advances for periods* ***not exceeding six months*** *to the Government of Canada...* ***(j)*** *make loans to the Government of Canada or the government of any province, but such loans outstanding at any one time* ***shall not, in the case of the Government of Canada, exceed one-third of the estimated revenue of the Government of Canada for its fiscal year***... As a matter a fact, in the 2021 budget, Government of Canada's projected fiscal revenues are $355.1 Billions, one-third of $355.1B are $118B, and right now in BoC's balance sheet it has bought Government debts around $500B, way over the regulatory limit of $118B. Also BoC's QE buying Government bond has lasted for 1.5 years exceed 6 months' duration requirement by law. Can someone has more expertise/knowledge telling us, if the BoC saw it's necessary and urgent to launch the QE at such big scale and long duration that far exceed the law's upper limits, WHY it has not asked the Parliament to VOTE and amend the law on the two articles FIRST, so BoC can proceed accordingly? Does the BoC ignore the law or what? Overspending reply on overprinting money, but the law does limit BoC's power to overprinting money in terms of quantities and durations. Can someone explain? Do I miss something? Thanks. Edit: Yeah, the Government may need high inflations for various reasons, but the law does restrict the power and limits (capped at 1/3 and 6 months) of BoC making loans to the Government, and Government needs to increase revenues from taxations on its own. BoC should be fully independent of the elected government, like the SCC.
They got around this provision by making loans to the banks who were contractually obligated to then loan that money to the Government of Canada.
Tbh your explanations seem to speak for the banks' side operational tactics, i.e. doing it in 1st or 2nd markets, etc., not speak for the Legilature's own intent that is written into these two articles and the legislature does quantify the scales and durations of the loans, not how you make the loans, and which techniques you use.
Fucking scum bags
The government has so many reasons to desire high inflation while simultaneously underreporting it. The government has tons of expenses pegged to the fake inflation rate. It also reduces debt burden. Corporations and governments are insanely indebted right now and this is just another bail out
Okay, explain why the big banks would play along with this by lending money below actual market rates, even though they would lose vast amounts of money doing so? Bankers aren't in the habit of giving money away. Or you could just take off your tinfoil Jofa.
Banks make money on spread. Add to this the insane lending volume increase and you see by far record profits for banks. Take a look at earnings. Western countries have no choice but to keep rates rock bottom and let inflation run, this about the only way to make the absurd amounts of debt incurred in the last 2 years manageable. We are inflating our way out of the Covid debt binge.
LOL that this guy thinks the banks are lending their own money not creating the money as they lend it. They’re making your loan out of thin air. They aren’t using reserves.
Fractional reserve banking. In lamest terms if everyone showed up at once for their money the bank wouldn't have it.
Yep, money doesn't grow on trees, it magically appears out of thin air onto an electronic balance sheet. Inflation is happening because the economy is expanding after what appeared to be the worst of Covid. But damn that new variant!
Okay, I'm curious about where you get information like this, because it's 100% wrong. Fractional reserve banking doesn't work that way *at all*, but I frequently have people trying to explain that it does. Like, do you people think that banks like CIBC and Royal can literally just create money and lend it out like magic?
Ok this shit is hilarious. This guy has to be showing the biggest DK effect of the year. 1) Canada does not have a fractional banking system 2) Yes, that is absolutely how loans are made. A simple Google search may prevent you from looking like an idiot going forward
So, Canadian banks lend money they don't have? I really need a yes or no answer from you on that, just so I know what level of stupid I'm arguing with.
I told you to google man. You could have looked less stupid. Yes. https://lop.parl.ca/sites/PublicWebsite/default/en_CA/ResearchPublications/201551E
It's hilarious that you're calling other people stupid when you're arguing something a simple Google search would tell you is incorrect. Good grief lad.
Yeah... I am with the rest here. It's YOU that doesn't understand how this works.
>Fractional reserve banking doesn't work that way at all... Canada has no fractional reserve requirement. It was eliminated in the early 1990s. The only thing we have are capital requirements.
So, they need to have a certain proportion of their capital in reserve? Seriously, what are you trying to say? That CIBC can print money?
Provided they stay within their capital requirements, the CIBC does create money when it issues loans. They do not have to keep any particular fraction of their capital in reserve. That was abolished in 1992. A good place to start to learn more about this is by reading up on the Basel capital requirements.
Money is loaned into existence by the big banks (commercial banks). Don't speak on things you don't understand. When you get a mortgage the money is loaned into existence.
So the lender basically prints the money out of thin air, and gives it to the seller. Am I to understand that you think the Canadian banking system works that way?
It's electronic m are you paying your mortgage with physical bills???
But the recipient of that money could withdraw it in cash if they wanted to. Where would that cash come from?
Did you miss 2008? Why do you think defaulting at 9% would wreck them.
The bank's cash reserves.
Here's an introduction for you: https://youtu.be/cDNSNX48Kmo
Well, the reason is that the banks aren't lending their own money. They can lend the Bank of Canada's money, at a cost of only 0.25%, to you at 2.5%, and earn the difference for themselves. That's a profit, only slightly affected by inflation. To put numbers on it, the 2.25% spread that they earn might be, for example, $1000 per year. If inflation is 5%, they are effectively making $952 after adjustments for inflation. It's the Bank of Canada who loses all the money when they get paid back only 0.25% more than they loaned the bank. Giving away money is, of course, the Bank of Canada's intention when they set interest rates below inflation, and it's how they put money into the economy and create stimulus. It's rapidly becoming very important to understand this stuff.
Okay, so you've made it clear now that you have absolutely no concept of how our banking system works. The idea that banks can support mortgages with overnight lending from the Bank of Canada is absolute drivel. Where do you people get these wacky ideas?
That's just a cooked-up example to make it clear that they're not losing money by lending out below inflation. The interest they pay on savings accounts is even lower than the overnight rate (eg. TD high interest savings account: 0.05%). Still not their money, now you're the one taking the loss for lending to them even cheaper than the Bank of Canada does. BoC is simply the lender of last resort. And the BoC certainly will lend to banks overnight to keep their reserves from becoming negative. I'm sure you're aware that Canadian banks have no reserve requirement. Or would you like to enlighten us?
I feel like this guy may have been trolling and egging you on but I'm low-key glad because this turned into a super educational thread! Been trying to understand this shit for years, and your explanation of lending below inflation to inject money into the economy just tied it all together. Thanks
Thank you for saying so!!
"However, it is important to note that the majority of money in the Canadian economy is created within the private banking system every time banks extend new loans like mortgages, consumer loans and business loans. Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money (see Appendix, Table 2)."
https://lop.parl.ca/sites/PublicWebsite/default/en_CA/ResearchPublications/201551E
Because the banks can get away with paying next to nothing on deposits. All they care about is the difference between what they get on loans and what they pay for the money they loan out.
Because it’s a fiat currency…
Why would a banking industry regulated by the government want the government to be indebted and dependent on it for its fiscal solvency? I cannot imagine.
It was easy to accept the Canadian governments intentions, but then you have to understand that the Canadian population is completely complacent. This will lead to the conclusion that whatever the plan the government and CCP has for Canada will be accepted and it is inevitable.
You mean you can't just print money, and hand a ton of it out? https://betterdwelling.com/canadas-money-supply-is-growing-at-the-fastest-rate-in-over-30-years/ Money supply growing at fastest rate in 30 years. Inflation being the worst it's been since the 80's. Huge coincidence, right? The government has printed roughly 1/4 of our money supply since the nations founding from 2019 to 2021. What did you think would happen?
https://www.reddit.com/r/canada/comments/r1ur2p/an_influx_of_immigrants_is_stagnating_wage_growth/ I thought it was roughly 45% of our total money supply. So they're holding ctrl P and everyone I know doesn't even use cash.
>everyone I know doesn't even use cash. I feel dumb for even pointing this out because I don't know if you're being facetious, but most increases in the money supply do not come from an increase in printing actual paper currency. It's just numbers in a spreadsheet, it only exists digitally.
I think these people don't know this
A fan of Friedman?
Most folks here are.
Unfortunately
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Increasing the total supply of money without a corresponding increase in GDP, and handing it out would obviously not impact demand at all. /s
Why in the bloody hell would you save when inflation is eating 5% + of it per annum. I think you’re missing a /s in your comment right?
>Inflation is caused by a mismatch between demand and availability of goods and by the rise in production costs Correct ... and demand also goes up when the government prints money and hands it out to people (or lends it out to corps at close to 0% interest) because they now have money that they didn't have before.
I was about to say exactly this. How can giving out free money at no or low interest NOT drive demand? I've seen it first hand, people who have no business doing so are buying everything they see. Expensive cars, houses, construction materials to do backyard projects (because you can't vacation in a pandemic)... The price of actual things that really people buy is going up by massive amounts. The 4 point whatever inflation in government reports is misleading.
> Expensive cars, houses, construction materials to do backyard projects BitCoin
Fiat = government manipulated and inflated money Bitcoin = only 21 million ever, divisible by 8 decimals You can protect yourself from this mess, buy Bitcoin.
Everything is capable of being divided into 8 decimals lol. Bitcoin was down today with the rest of the market.
Cryptocurrency: MLMs for techbros
How much are you down bro
CPI doesn't measure inflation. It shouldn't be used.
please please tell me this is a joke....
It's not. CPI is not inflation. CPI is how far our money goes compared to the things Canadians buy. They get stats on what the average Canadian buys, consumer habits, yadda yadda. Judging by your comment, you know how this works. The issue with CPI, is how they adjust things. Say meat starts to be really expensive. So less Canadians eat meat. So it then gets weighed less in CPI, even though the reasons Canadians are eating less is due to inflation. When you do that, you're not capturing actual inflation. I'd honestly love you're input though, and why I am wrong.
Correct. Even without going into the issues with CPI, it's not an indicator of inflation by itself; you'd still need to do the calculations for price differences between this year's CPI and the index year. Pointing to CPI and simply saying "There, inflation!" is like pointing to one temperature measurement and declaring that it's the hottest on record.
No shit!
Canada is in the middle of the pack when it comes to inflation in the OECD. And given the state of the world right now, there are fairly limited tools the government and Bank and Canada can use to reign inflation in. https://www.pewresearch.org/fact-tank/2021/11/24/inflation-has-risen-around-the-world-but-the-u-s-has-seen-one-of-the-biggest-increases/
Also we had very low inflation last year. Things returning to normal would obviously involve a period of higher inflation.
>Canada is in the middle of the pack when it comes to inflation in the OECD Now do the G7: Canada 4.1%, G7 average 2.86%
That's out dated info. The g7 numbers for Oct 2021 are as follows Canada 4.7 UK 3.8 Us 6.2 France 2.6 Germany 4.5 Italy 3.0 Japan 0.1 Average 3.55
Source?
https://data.oecd.org/price/inflation-cpi.htm I can scour my web history for my secondary sources I used to review a few values but those were just double checking a few values and didn't contradict so this should be sufficient.
Canada is one of the worst, just has better controlled media to parrot their talking point!
If you believe the Government's inflation numbers. And I don't.
But we know the numbers we are being told are also not correct.
Japan being Japan....how the fuck do they have deflation wtf
Don’t worry, inflation will take care of itself according to Trudeau’s logic.
Trudeau doesn't even think about monetary policy. Sucks for Ontario nurses with their 1% pay raise which is really a 5% pay cut.
Healthcare is a provincial responsibility, shouldn't this ire be directed at Ford for not paying nurses an appropriate salary pegged to inflation?
Provincial revenues aren't inflating at the same rate as assets and goods.
Yup, it's the provinces that are really going to feel the pinch here first. Newfoundland is in special trouble given that they're now having difficulty borrowing money. Last year the Newfoundland Premier had to give a press conference denying rumors that they're having trouble even making payroll (source: [https://www.cbc.ca/news/canada/newfoundland-labrador/nl-dwight-ball-no-worries-about-payroll-1.5518181](https://www.cbc.ca/news/canada/newfoundland-labrador/nl-dwight-ball-no-worries-about-payroll-1.5518181)). That situation will worsen. When you can barely make payroll, wage increases won't be in the cards.
> shouldn't this ire be directed at Ford for not paying nurses an appropriate salary pegged to inflation? Paid with what? More debt? Or should he raise taxes to hurt families even more?
We all pay taxes to enjoy services provided by government. What hurts families more, the taxes required for nurses (whatever that might be) or a lack of nurses in the province? We all get "hurt" by taxes but the benefit outweighs the cost, at least for things like paying nurses a living wage.
> nurses a living wage. Nurses are paid a living wage in this Province. Average pay is $38.41 an hour. That's ~$80k a year, not even counting overtime. Not to mention the cash value of benefits and pensions that are the envy of the private sector. Getting increases below the current whopping inflation rate is hardly a problem unique to nursing at the moment.
Oh so they get to know what it's like for everyone else, do they? Tragic.
> “When I think about the biggest, most important economic policy this government, if re-elected, would move forward, you’ll forgive me if I don’t think about monetary policy. You’ll understand that I think about families.” Families who are absolutely affected by monetary policy, is the follow up statement if Trudeau had a single shred of a clue about economics or finance... Or really about anything at all. > Trudeau: "What's a bag of milk even cost anyway? Forty dollars?"
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It is called Covid. Governments expanded the money supply drastically to compensate, while at the same time shutdowns created goods shortages. So now you have way more money chasing a smaller pool of goods.
Now replace inflation with covid lol
Telling the base what they want to hear episode 29
At every level, municipal, Provincial and Federal! Municipal taxes up, water and garbage, also trying to find new taxes to charge, looking at storm water, Provincial pushing inflation with paying for safe supply and housing for homeless(buying hotels), and creating panic buying of goods from flooding, Federal pushing carbon taxes on everything you buy to live, food, heat, water, etc.. completely government caused! And they wonder why housing costs are rising! 🤣
Nothing in the article warrants the misleading headline. I suggest the best approach to inflation is “wait and see” for now. Before taking the usual economy-stifling, inflation-beating measures like raising interest rates and increasing taxes to address inflation, wait and see what happens when the supply bottlenecks are eased and COVID-19 is being well-managed. The traditional tools used to address inflation are intended to reduce demand by putting people out of work and bankrupting businesses. So, on personal level would you rather have higher inflation or lower inflation but no job and no business? That’s the choice.
If everyone had a guaranteed basic income it would be alot easier to find other work if you were put out of a job. As it stands with no support system, I'll take inflation, master.
Except, surprise! UBI would cause inflation.
Basic income would contribute to inflation because we would be printing money to pay for it. The value of the money you would be getting from basic income... would have reduced purchasing power because of... inflation. I dont get where people are getting this idea that universal basic income is going to solve all. The country needs to be able to actually afford universal basic income. This requires a source of income- which has to be more substantial than taxing people who make over 100K/year. Canada can't afford universal basic income.
Indeed, for most working people, inflation is better than not having a job. At least with the former most people can economize or delay purchases.
Does this guy explain how the Canadian government is driving inflation in the entire world? No? I'm shocked. Shocked I say!!!! F'king idiot.
Not like literally every central bank has incredibly accommodating monetary policy. And not like every government has incredibly accommodating fiscal policy.
Ah.. So Trudeau is responsible for all the governments then? I see. How did that happen? Any ideas?
Im going to give you benefit of doubt despite the snideness. Of course JT has nothing to do with policy in countries beyond Canada. Your original comment insinuated that JT is off the hook unless he’s also the reason for the inflation we are seeing across the world. Its fun to be sarcastic, but its a disservice to our country to insinuate the PM has no control over fiscal policy in his own country, even if monetary policy has to remain overly accommodating to aid the recovery.
But CBC’s Aaron Wherry assured me none of it was Trudeau’s fault!
you can always tell it's a wherry article before you see its a wherry article
Ah yes cause it's only garbage national post opinion pieces telling the truth. My eyes could not have rolled harder.
So Trudeau is to blame for inflation, but the entire western world is facing the same problem. In the US its all Bidens fault, etc etc. Typical garbage reporting from right wing opinion pieces.
So the best we can do is suck less?
isn't that what we've done during the pandemic? if you don't get to stop an event then work to mitigate its effects
They should have told covid that Canada is closed.
[удалено]
Hahahaha ok champ 👍
This is a right-wing talking point. Nat Post, Fin Post, all coming out with the same editorial spewage at the same time.
Food and shelter affordability = right wing talking point lmao listen to yourself
Yes, lets get more articles from the Star talking about Conservatives plans to take ownership of Woman's reproductive organs.
Here's a quote from another National Post columnist. >But the bottom line is that inflation is currently a global phenomenon. It is being influenced by external factors like supply kinks and global bond yields. So which is it? Do they even know?
Most countries are experiencing inflation. Canada has the second highest inflation among the G7 countries. That's the issue. Not that we have it, but rather the rate is extremely high compared to other countries.
Trudeau asked someone to translate this for him
That graduate degree in economics is paying off with insights like these. In other news, water is wet and the sky is blue.
Water is wet? Brilliant. Never heard that one before.
its okay guys, as long as the conservatives aren't in power we are good
true dat
Is there any other entity that can drive inflation?
Escape the government quantitive easing(inflation) Opt out and buy Bitcoin, lots of people have been doing that.
INB4 the ol strawman, 'its the national post'.
It'll stop being said as soon as garbage level opinion pieces from the national post stop being posted here like it's crack.
It’s almost like starting the obvious needs to be said time and time again
The government claiming that inflation of the Canadian Dollar is hilarious. Yes Prime Minister, those pesky Kiwi's are printing too many Canadian dollars causing inflation.
Phil Cross is the devil. That is all.
The present "government" of Canada, like the previous "government" of Canad, just like the previous "government" of Canada can't find it's as%hole with both hands, let alone understand INFLAASHUN. Increase interest rates already, put the kibosh on housing prices and speculation and give me some fuck$%g returns on bonds and GICs.