Spending, Debt and the Rise of Inflation in Canada
 

Inflation in Canada is now over 7% - as the price of food, homes and especially gasoline just keeps getting more expensive.

But what is the cause of all this inflation? What can be done to bring it under control?

And is Canada on track for a long, painful recession the likes of which have not been seen for 40 years?

Featuring interviews with Pierre Poilievre, Preston Manning, Philip Cross and more!

https://www.youtube.com/watch?v=c3G77OJ8Q24&t=5s

Thanks for posting. Great video explaining the disastrous fiscal and monetary policies that have led to the current state. MMT is being proven to be a complete disaster.

From 'Macroeconomics Fifth Canadian Edition' Oliver Blanchard & David Johnson

"changes in the level of money were neutral in the medium run: They had no effect on either output or unemployment but were reflected one for one in changes in the price level. We see here that a similar neutrality result applies to changes in the rate of growth of money. Changes in nominal money growth have no effect on output or unemployment in the medium run but are reflected one for one in changes in the rate of inflation.

Another way to state this last result is that the only determinant of inflation in the medium run is adjusted money growth. Milton Friedman put it this way: Inflation is always and everywhere a monetary phenomenon. Unless they lead to higher nominal money growth, such factors as the monopoly power of firms, strong unions, strikes, fiscal deficits, the price of oil, and so on have no effect on inflation in the medium run."

Poilievre vs Trudeau regarding questionable expenditures:

https://www.youtube.com/watch?v=OHFb0jxScA0

But what is the cause of all this inflation?

Circumstances beyond our control, higher interest rates will just make the effects worse.

Grizz

Joe Biden

[QUOTE=IronNoggin;4569916]Inflation in Canada is now over 7% - as the price of food, homes and especially gasoline just keeps getting more expensive.

But what is the cause of all this inflation?

the federal reserve

Consider 200 Billion of the spending wasn't for the pandemic and 100 mil probably went out of the country
Then their was bad vaccines and all the money to people living their mom's basement its not hard to figure out that inflation would go off. Inflation was not helped by speculators in stocks and real estate, and I thought they would let inflation run hot till basically people could not buy things and cut back, but apparently people cpuld not stop spending.

At least Canada is not the UK, or half of Europe but we could have severe recession if not depression.

Foreign policy combined with unsustainable social programs will milk us dry. It’s well under way.
Enough said!

The Turds clueless spending and budget will balance itself Bs ,that’s what happen when you have bunch of people kind running the country:angry3:. Expect long term pain :scared:

This is what happens when the dope leading the country isn’t concerned with monetary policy or fiscal responsibility

That and a moron as a finance minister. Perfect team.

Printing endless supplies of money (with no backing).
Chief cause in Canada.
Trudeau, and Freeland are fine with that, and continue to do so today.

And yes, it is going to get worse. Much worse.

Nog

Referencing the "Who Got Rich" incident posted above:

Company listed as $1.2 million subcontractor for ArriveCan denies working on app

The head of a Canadian tech firm has expressed confusion after finding the federal government listed his company as having been paid $1.2 million contract to work on the ArriveCan app.

Craig McLellan, the CEO of ThinkOn Inc, said his company was never tapped for work on the controversial app and never received any of the said money, according to the Globe and Mail.

According to McLellan his company doesn’t even work in the field of QR verification.

“We’re not even remotely in that space,” explained McLellan. “I really can’t imagine how we could have been attributed to it.”

Another company, Ernst & Young, was also erroneously added to the list of contractors.

“EY was not involved with the ArriveCan app,” said EY spokesperson Victoria McQueen.

Recent figures show that what began as an $80,000 application to develop, quickly ballooned to a bill of over $54 million for taxpayers.

https://tnc.news/2022/10/21/company-arrivecan/

Tech firm listed as having received ArriveCan contract never worked on the app, CEO says

https://www.theglobeandmail.com/poli...ract-says-his/

What else is Trudeau and his band of Incompetents hiding... this time...?

Nog

Things are tough out there and a lot of people are struggling. I expect it will be worse yet. Groceries are through the roof!
There is still the long standing problem of people living outside of their means. Spending way more than their standard of living should be. Many do not accept this . Credit card, banks love RENTING people money.
The dayzzzzz of cash would help a lot of folks!
Hope it gets better soon.

Inflation is caused by what has been said before, they have created to much money that is chasing too few goods.

Higher rates are a result of pulling all that excess money supply out of the system. Open market operations by the Central Banks by either selling bonds (reducing the money supply causing rates to increase) or buying bonds (increasing the money supply causing rates to decrease) are what changes the level of interest rates we see on the short end.

Their whole goal is to make things worse. They can either hammer employment hard and fast, or slow and drag out elevated unemployment for a longer period of time to get the same effect of lowering inflation. All this debt is a big fly in the works though. We are going to see some type of financial/currency crisis pop up. Thats my take on what has to happen. It sucks but a country run by clowns always seems to result in a gong show.

What did we expect?
 

What’s that saying? “ Inviting the Jester (or Juster) into the palace doesn’t make him a prince; it just turns the palace into a circus” Nuff said.

When I hear people in the inflation discussion say “what caused this inflation?”. When I hear them state, “it’s ok, we are better off than other countries”. When I hear “it’s an global issue”.

I know we are in trouble.

Solid read on it as always. Inflation is a tax we can't afford to pay. Lots of us knew full well the pandemic response was way too big. Global events hurt less if the fiscal exposure lasts as long as the event itself. Where it gets bad is the response is bigger than the event.

Poilievre "Winter Is Coming":

https://www.youtube.com/watch?v=unHA5WLkHLQ

No government is going to stop inflation only pretend. The Globalist money changers run things not your elected politicians. The worlds debt is past the point of no return, the only way to get ahead of it is to inflate it away. It’s the plan all along. The new benchmark will be 4-6% inflation from the traditional 2%.
No point saving. The Fed Reserve will raise Interest rates at all cost to protect the dollar and the worlds reserve currency. You will still get less than 1% on your savings in the bank though. We need to tell the moneymasters we’re not paying you back it was created from nothing to begin with.

Diane Francis: Canada is a lightweight nation

It’s clear internationally that Canada suffers from a leadership vacuum and isolationism. Canada simply doesn’t pull its weight.

The war in Ukraine highlights the fact that Canada has become a lightweight nation due to a government run by a woke coalition that doesn’t understand economic development, how to protect domestic industries, or the importance of tending and fostering geopolitical alliances. Canadians live in a great, big, rich country that is run by very small-minded, isolated people.

https://financialpost.com/diane-fran...tweight-nation

You forgot an effective military for when the talk ends. We may regret that in the near future.

Grizz

She touches directly on that in the article...

Really interesting article.

It's almost to the point that Trudeau and his associates could be legitimately charged with treason.

Some good reader comments after Dianne's article. Shows there are some Canadians that are awake and not woke.

What else is Trudeau and his band of Incompetents hiding... this time...?

I’ve been wondering who actually got the cash. Most likely a Trudeau supporter

If I have no cash in my pocket, hunting and fishing stops. Have no desire to get caught in a debt or credit card trap.

Bank of Canada hikes interest rate again, predicts potential recession in 2023

https://www.ctvnews.ca/business/bank...2023-1.6125290

The next one might be 75bp hike by the end of the year …

That is smart.