While Terence Corcoran is on the money as usual with his latest op-ed, he omits to mention that the Liberals have been aided in their spending spree by an opposition party that has been largely complicit. If O’Toole can jump on the climate change bandwagon as easily as he did, what’s to prevent him from embracing an idea like MMT that seems to be gaining converts?
MMT has not been formally identified as official policy in Ottawa, either by the government or the Bank of Canada — even though Australian economist Bill Mitchell — said to have coined the MMT name — has described Canada as a potential “MMT poster-child.” There can be no doubt, however, that MMT is an influence inside central banking and government finance circles.
A new report from the C.D. Howe Institute, however, warns that the inflation risk riding behind the massive fiscal expansion will not be so easily tamed.
I have to differ with Corcoran on the latter point: rising consumer prices will be the least of anyone’s worries as the drive for MMT gathers momentum. An exponentially rising debt burden distorts capital markets so badly that the funds needed to replace worn out plant and equipment simply become unavailable, having been hoovered up by net worth taxes, high speed rail networks and artists’ communes. There’s no profit in raising prices on goods that you’ve been denied the means to produce in the first place.
MMT is just a misnomer invented by big government types to disguise massive overspending enabled by printing money. Might as well call it Unicorn Farts Monetary Policy.
It’s designed to combine monetary and fiscal policy to produce inflation that hurts everyone except government.
IOW, what you said.
Canadians knew prior to the 2015 election that the snowboard instructor was unfamiliar with how money truly worked.
They voted him in twice.
O’Toole may be a yutz but he is in good company.
The Fake Con Harper sat on 4.1T in total public debt and did nothing as well. He was a tinkerer. A useless twit who everyone trots out as a great conservative. When was the last time Canada had a Conservative PM. Surely not JG Diefenbaker he gave us socialized medicine, surely not Mulroney he gave us more debt and the GST up the ass. When was the last time. Chretien and Martin stole 54B from UI and sold off all of Canada’s Gold Reserves. Baby Doc Trudeau added 2T to the 4.1T debt Harper left, most of which he inherited, but still he added his own BILLIONS and he was PM with a huge majority and did nothing. Name a true Conservative PM. The Canadian Taxpayer is carrying more debt than half of the EU with 14M taxpayers 18M if you count the 4M who work for government. https://torontosun.com/2014/04/11/all-levels-of-canadian-government-debt-total-41-trillion
Watcher, one thing that people fail to understand is that government employees do not really pay taxes. When all your revenue comes from taxes paid by others you do not pay taxes.
Our Canadian government will not go for this as all the effort so far is to knock off the Seniors.
That goes against this policy.
Besides the government workers are already covered by the current laws, restrictions and policies.
No net gain but to spend more by borrowing through the Bank of Canada and collect more taxes.
You have no rights whatsoever but what our governments pretend to give you.
I am behooved by the number of people that are well enough qualified that they should know that undeterred wasteful spending and money printing by the government will have consequences , yet see no problem. When I ask “then why pay taxes ? just print more money” they are dumfounded.
In my short life time we have watched Zimbabwe, Venezuela and South Africa all follow this Magical thinking.
Mexico turned back from the brink in the 1980s.
We will need a new unit of exchange,for trade will go on,except the most corrupt will be cut out of such trading because they cannot be trusted.
Government has proven this time after time,debasing trust and our agreed upon units of exchange.
Survival will demand the shrinkage of the parasitic overload.
As we who produce can no longer carry that load.
It is insupportable and we reap negative rewards for even attempting to do so.
State finances are no different than a domestic budget,those who claim otherwise are thieves and fools.
Magical Money Theory has been ongoing since the 40s, just no one has noticed, until they really started the debt financing under Trudeau the First, and once Trudeau the lesser took over, then it got even worse….
Everyone gets everything they want for FREE!! Yeayyyy !!
BTW … just to let you know … I won’t be working. All of YOU young punks who wanted all this FREE SHIT … YOU work to provide what I want. No, sorry son, you will NOT be “doing your art”. Nobody wants that … still. You will be doing the same slop work for the equivalent of FAR LESS than the “minimum wage”. So get your ass in gear, and get me my shit. The “government” will pay for it … right? You’ll get your approved (worthless) government wage. Oh! You’ll get your loaf of bread and cooking oil for the week … but I’ll get mine without working for it. Now hurry up! Build me a new BarcaLounger! Get your ass in gear … peasant punk!
Ha! You thought your life would be “different” … and “easier” once you got your FREE SHIT? Damn, son! You’re really Stupid. Maybe you can blame your UNIONISTA public school teacher for failing to teach you about REAL History … for all the good THAT will do you in the labor camp.
had a young fool say “democratic socialism”, they must teach that BULLSHIT in school now days!
First, there is nothing new in the motivations of politicians or in their mega-spending objectives. Across Canada and the United States, the items on the spending agenda — child care, home care, equality, climate, “infrastructure,” pharmacare — have been rattling around the activist community and the left for decades
Nope. equity
White people don’t get shit from FREEland’s budget … it’s only “equitable” that way. To offset all that “white privilege”. The white folks get to pay for it. They OWE “equity” to the tanner people of the planet.
“Equality” … Pffft … that’s so 1964
Bunch of bullshit from bastard-fuckers who will never feel the negative effects and never pay the price for their madness.
Think Chrythia and Juthtin, Butts and Telford will suffer hardship from their insanity? Nope. They get the perks.
Beautiful!
Since we can magically create money now in unlimited amounts what is the justification for taxes?
Will there be any obligations that go along with the ‘tons of free shit from the government’?
Will they occasionally require you to do something for the government in exchange for your food?
And since money is unlimited now, are they going to cheap out and only give us a couple of hundred grand a year, or more?
Well apparently they have done something because as these charts show, something is Terminally Broken In The Financial System.
https://www.zerohedge.com/markets/stunning-divergence-latest-bank-data-reveals-something-terminally-broken-financial-system
Sorry, but lack of supply does drive prices up, at least as far as people are able to pay.
The international trade being what it is, some vehicle types are seeing considerable delays in supply. Customers are concluding that waiting 9 months for the new model is not worth it, so they are hitting the second-hand market hard….. and the effect flows on.
20 and 30yo Toyota’s are bringing double the money that they were worth a couple of years ago. That is due to trade delays. Imagine what will happen to shorter-life goods when they become harder to find. We’ve seen in before.
Get ready for the collapse of Canada. Inspite of MMT the Piper will be paid somehow.
https://www.kitco.com/news/2021-04-16/Diversification-is-key-as-world-faces-currency-debasement-threat-Ray-Dalio.html
Remember when the Socreds were called Nazis for daring suggest the people should control the money supply and not the banks that bankrolled the Liberal Party?
I sometimes think I’m the only one.
Socreds, now there is something to be avoided like the dreaded covid.
MMT= Magic Money Tree. That’s literally where Zoolander & Co think it comes from.