So the Bank of Canada cut interest rates again and dropped hints that more are on the way? So much for “normalizing” rates. But when your monetary system consists of an irredeemable fiat currency in which debt grows exponentially both by design and by intention, the only way to avoid widespread default and banking system collapse is by continually cutting interest rates. We’re on our way back to zero.
David Rosenberg, founder and president of Rosenberg Research & Associates Inc., said the central bank is behind on rate cuts and has a long way to go to bring balance back to the economy.
“The Bank of Canada is hardly done. This is the early stage of what will prove to be more than just a partial unwind of the most severe tightening cycle since the John Crow era of the late 1980s,” he said in a note to clients. “When you model out where the overnight rate should be in such a period of economic slack, it should be closer to two per cent than 4.5 per cent.”
Interest rates of zero rob those who try to do the responsible thing and save for the future. It’s another form of indirect taxation.
Canada is an amateur country with low IQ leftist adults.
That’s it.
Fortunately, we have vaccines that now take care of that!
Eventually….
Fools and their money are soon parted.
In Canada it’s so easy even Liberals can do it.
But as easy as it sadly is to fool people into ignoring reality, consequences not so much.
Which do you think will come first in the Next Great Liberal Confiscation……Home Equity Tax or 100 year mortgages assumable by children?
Dumb Canadians = Fascist Liberals = Communist Canada.
100%!
The Post National State doesn’t want responsible adults, it wants submission.
“When you model out where the overnight rate should be in such a period of economic slack, it should be closer to two per cent than 4.5 per cent.”
And when you model out where the sea-level will be ….
I was going to say ” just another idiot”, but the problem is, like turdo and his ministers, this guy is in a position where his idiotic opinions have consequences.
If the Bank of Canada drops their pants, then the Bank of America will drop their shorts.
These moves are an attempt to appear “responsible” and “responsive”, and are nothing but an attempt by a jaded and corrupt Liberal/NDP coalition to buy votes before the next election and cover their wholly owned irresponsible borrowing and spending. They are bastards with fine linens that think no one is as smart as they are.
I think we should change our country’s name to Northern Zimbabwe.
Venezuela Norte
Bananada – fits better in the anthem.
Back in the eighties, I recall serious articles about the risk Argentinazation of Canada by Trudeau the elder. Turning a prosperous country into an economic cripple. Trudeau the Lesser is succeeding in his father’s dream
TURDeau senior is was calculated deliberate.
TURDeau jr just the end result of 9 years of bumbling.
How do they successfully lower interest rates when they keep stoking the fires of inflation? Having the Bank of Canada out of touch with the markets might not be productive. King Canute is not only trying to command the temperature, he is trying to command interest rates irrespective of markets.
liberalism consists of plentiful ‘edicts from on high’
Aggressive cutting will get Justin re-elected. Are you will to pay to get rid of him?
Raise the rates, make people lose their homes at remortgaging time. Lower the rates, increase the demand for homes and make the prices go higher,
Raise the rates, keep folk’s money in Canadian banks. Lower the rates, and the money goes where the returns are better.
The rates have been too low for too long, so now they start jacking around, raising rates to try to fix the inflation caused by reckless borrowing and spending and printing, and that causes other forms of grief. So they lower the rates to try to appease the suffering borrowers, and inflation takes off again. They are in a major mess of their own making, but don’t expect the average Canadian voter to recognize that. They would rather believe the NDP line of the capitalists taking advantage of us.
“We borrowed money so you wouldn’t have to.” The speechwriter who came up with that one is either extremely stupid or extremely malicious.
It’s not just interest rates heading back to zero. It’s also the misleading inflation numbers they use to justify lowering rates. It’s not worth saving the money you have and the money you earn in the future is losing its value. This is how they intend to keep the Ponzi scheme going. They are deflating future financial obligations (pensions, quality of health care and education etc.) by reducing the value of the dollar and most don’t realize it. They feel it but can’t quite put the puzzle pieces together.
All fiat currencies eventually reach their intrinsic value of zero. With debt servicing costs squeezing out vote buying schemes, it is politically untenable to allow interest rates to return to market levels. The BoC will prop up the regime as it is committed to “manage the inflation” to rob savers, investors, consumers and debt holders by accelerating the loonie’s achievement of its ultimate intrinsic value. This problem is not unique to Canada. The US is actually in a worse situation when it comes to debt and populist/progressive political consensus to let it grow unchecked.
They are both bad, but Canada is worse when provincial debt is added. Most states have no debt. Not that they are well run, just that many are not allowed by law.
“The BoC will prop up the regime as it is committed to “manage the inflation” to rob savers, investors, consumers and debt holders ….”
Here, let me finish that sentence for you:
… and every one of Canada’s chartered banks and trust companies will jump in to lend a hand – as so recently demonstrated during the Freedom Convoy by their eager willingness to turn in their customers.
I was paying 75 cents per Us dollar last week when i was there. It is 72 cents now using the same exchange tool i used before.This may be in the normal range of fluctuation though.Def. made Canada a lot more affordable to visit.
As one whose first mortgage was at 9.5%, I have some trouble with people concerned about rates half that. Mind, that was a half century ago when we bought our first home and a modest legacy provided the down payment. While in second (and current home), our mortgage rate rose to 16% but – thanks to our mortgage being with a credit union – we had been able to pay extra every month and so were able to weather that storm.
That being said, I do have sympathy with those who took advice from our eminent Finance Minister who stated that – with rates low – now was the time to borrow to the max. Unfortunately, it seems she and her advisors were not wise enough to lock in their loans at the low rates, and we’ll all feel the consequences. So, particularly, will those whose mortgages are up for renewal and who listened to her “borrow to the max” mantra without thinking about the future.