CdnFox Posted July 12, 2023 Report Posted July 12, 2023 https://globalnews.ca/news/9827110/bank-of-canada-interest-rate-july-2023/ The Bank of Canada has raised its benchmark interest rate by another 25 basis points, bringing it to levels not seen since 2001 amid fears the decline in inflation “could stall.” Economists say the latest move is a warning to Canadians not to expect rate cuts anytime soon, and that future rate hikes are not off the table. The problem is the feds are pumping money into the economy in large amounts, and that has the exact opposite effect as raising interest rates. It's like someone pumping water INTO the boat as fast as someone pumps it out. THe question is - will this be the last hike? A lot of people are starting to hurt and housing is getting further and further away from folks. Quote
August1991 Posted July 13, 2023 Report Posted July 13, 2023 The Bank is trying to land a helicopter on a building in high winds. So far, I would say that it's doing well. Quote
August1991 Posted July 13, 2023 Report Posted July 13, 2023 I suspect too that the Fed is putting pressure. Quote
Aristides Posted July 13, 2023 Report Posted July 13, 2023 Not just housing, a lot of small businesses had to borrow heavily to survive covid. Quote
eyeball Posted July 13, 2023 Report Posted July 13, 2023 I think the Bank is overlooking the weight of environmental issues, especially those stemming from climate change, that are impacting food production and the effect that has on inflation. I wonder how appropriate it is to blame and punish consumer demand for that given how many people have been demanding action for so long now. Quote A government without public oversight is like a nuclear plant without lead shielding.
Michael Hardner Posted July 13, 2023 Report Posted July 13, 2023 6 hours ago, RedDog said: Is “modern” society imploding? That started in the 1960s with the unwinding of the rational society and the rebirth of the tribal. Two parties weren't enough to fit the large number of American tribes so the hippies grew up and voted for Reagan and so did the union men. What is happening now is the dawn of a new attempt at de-tribalization. How that fight unfolds will decide how we're organized for a long time. Quote Click to learn why Climate Change is caused by HUMANS Michael Hardner
Moonbox Posted July 13, 2023 Report Posted July 13, 2023 10 hours ago, eyeball said: I think the Bank is overlooking the weight of environmental issues, especially those stemming from climate change, that are impacting food production and the effect that has on inflation. You keep saying that, but the BoC has few to no policy levers to affect environmental issues and they’re not part of its mandate. The best they can do is offer is long term economic guidance or warnings, which they have been doing. Quote "A man is no more entitled to an opinion for which he cannot account than he does for a pint of beer for which he cannot pay" - Anonymous
eyeball Posted July 13, 2023 Report Posted July 13, 2023 2 hours ago, Moonbox said: You keep saying that, but the BoC has few to no policy levers to affect environmental issues I keep saying it because the environment still exists outside the bank's universe which means they're flying blind. Quote A government without public oversight is like a nuclear plant without lead shielding.
Moonbox Posted July 13, 2023 Report Posted July 13, 2023 50 minutes ago, eyeball said: I keep saying it because the environment still exists outside the bank's universe which means they're flying blind. You can repeat it as much as you want, but it's like screaming at the sky when the BoC doesn't have the policy tools or mandate to do much of anything about it. ?♂️ Quote "A man is no more entitled to an opinion for which he cannot account than he does for a pint of beer for which he cannot pay" - Anonymous
eyeball Posted July 13, 2023 Report Posted July 13, 2023 (edited) I wonder what the policy will look like when a mandate becomes unavoidable? Careful what we ask for? lol! Edited July 13, 2023 by eyeball Quote A government without public oversight is like a nuclear plant without lead shielding.
Moonbox Posted July 13, 2023 Report Posted July 13, 2023 It will never be a BoC mandate, for the same reason the Education Ministry isn't mandated with protecting Canada from domestic terrorism. That doesn't mean that terrorism isn't a threat to be dealt with, but beyond talking about it in class, elementary school teachers don't have any control over it, do they? Quote "A man is no more entitled to an opinion for which he cannot account than he does for a pint of beer for which he cannot pay" - Anonymous
eyeball Posted July 13, 2023 Report Posted July 13, 2023 (edited) I guess it'll never be a mandate so long as the economy is isolated from the environment. I'm assuming economist's still use the term externality to describe it when or if the environment is ever mentioned. For all I know they're sent for psychiatric counselling if they ever bring it up. Ignorance is bliss? Edited July 13, 2023 by eyeball Quote A government without public oversight is like a nuclear plant without lead shielding.
Moonbox Posted July 13, 2023 Report Posted July 13, 2023 23 minutes ago, eyeball said: I guess it'll never be a mandate so long as the economy is isolated from the environment. It'll never be a mandate so long as raising or lowering interest rates and the like don't magically make cars cleaner, or people to not overfish etc. ? 23 minutes ago, eyeball said: I'm assuming economist's still use the term externality to describe it when or if the environment is ever mentioned. For all I know they're sent for psychiatric counselling if they ever bring it up. They do bring it up. Do a quick Google search on Tiff Macklem's background, and what he has to say about climate change. I'll wait. 23 minutes ago, eyeball said: Ignorance is bliss? You tell me. In your case, on this topic, you seem to be choosing ignorance when it comes to the BoC. Quote "A man is no more entitled to an opinion for which he cannot account than he does for a pint of beer for which he cannot pay" - Anonymous
CdnFox Posted July 13, 2023 Author Report Posted July 13, 2023 18 hours ago, Aristides said: Not just housing, a lot of small businesses had to borrow heavily to survive covid. You're not wrong - but also small business has to borrow just to do business. Contractors buy their goods on credit and pay that back after their job gets paid for. They can ask for SOME up front but not all of it by any means, and this bites into their profits as well. this not only drives prices up again for consumers, it really makes it hard for smaller businesses without established lines of credit to get by. Quote
eyeball Posted July 13, 2023 Report Posted July 13, 2023 (edited) 6 hours ago, Moonbox said: They do bring it up. Finally... Bank of Canada releases first report about climate risks to its mandate and operation https://www.bankofcanada.ca/2023/04/first-report-climate-risks-mandate-operations/ Oh well better late than never I suppose! Edited July 14, 2023 by eyeball Quote A government without public oversight is like a nuclear plant without lead shielding.
August1991 Posted July 15, 2023 Report Posted July 15, 2023 On 7/13/2023 at 5:52 PM, eyeball said: Finally... Bank of Canada releases first report about climate risks to its mandate and operation .... Climate? No. Our bank was under tremendous pressure from the Fed. My thought? We have our own currency for a reason. ==== I reckon that that this Biden Administration plays tough, like Putin. Quote
eyeball Posted July 15, 2023 Report Posted July 15, 2023 2 hours ago, August1991 said: Climate? No. Our bank was under tremendous pressure from the Fed. My thought? We have our own currency for a reason. ==== I reckon that that this Biden Administration plays tough, like Putin. Tiff, is that you? Quote A government without public oversight is like a nuclear plant without lead shielding.
August1991 Posted July 15, 2023 Report Posted July 15, 2023 (edited) 40 minutes ago, eyeball said: Tiff, is that you? In 1970, Trudeau Snr let the Cdn dollar float. Imagine the pressure Pierre was under then. ===== This White House plays different. Edited July 15, 2023 by August1991 Quote
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.