A central bank losing money? Maybe that’s what happens when you combine Covid lockdowns and green energy mandates with years of zero percent interest rates. It’s all part and parcel of the death throes of a fiat currency.
The Bank of Canada deployed QE for the first time during the COVID crisis, flooding the financial system with the equivalent of hundreds of billions of dollars to help keep downward pressure on interest rates and to increase the capacity of banks to lend money.
An unintended consequence of that policy is that for the first time in its 87-year history, the Bank of Canada is on track to lose money for an extended period, as interest expenses on deposits climb in tandem with the benchmark interest rate, which Macklem has raised by three percentage points since March….
And all the left was horrified when Poilievre said he would fire Macklem. It does not take a genius to understand that if you print billions with no substance to back it, you devalue the currency.
How can any central bank lose money?
Or has the organized crime syndicate masquerading as the government re-written BoC rules to wring some graft out of it?
The central bank does NOT lose ANY money, the money in your savings, in your wallet and your retirement pension loses money and buys much less. Have you not noticed?
The turdeau government has effectively stolen 20% of YOUR money. And nobody seems to care!
John Crow, cleanup on Wellington St.
So more hidden taxation, that adds a tiny little bit to the government’s account, which the Trudeau will spend on useless things
Ruin the dollar and people will flock to digital currency.
Western Central Banks are NOT independent. There is a school of thought that supports a lack of Central Bank independence, in the interests of more effectively advancing a government agenda. That could (in theory) still work, but you end up with a very different economic framework than we used to have in The West. You are basically now the USSR circa 1982 in the West. I give the US 7 more years, and it goes the way of the old Soviet Union.
But the East and West have basically traded places. The Communists fled East Europe and set up shop in the West, to begin their long march through Western institutions. The Central Banks were the last to fall.
Proof governments screw up everything. Even drugs and banking become money losers in their hands!
Perhaps freezing bank accounts of peaceful Canadian citizens are at play?
Blaming Covid and meddling political Central Banking is an ongoing platform of those that blame everyone but themselves…..
How about capital flight of persons who earn and save and are law abiding… threatened with well-earned mistrust of a government and a banking system demonstrating their will to support said government.
Play stupid games… get stupid prizes…