Inflation spikes two months after Liberals declared victory - Rise in inflation hits the essentials of food, shelter and gas

[CdnFox]

 

https://canoe.com/opinion/columnists/inflation-up-43-two-months-after-liberals-declared-victory/wcm/f80d1152-b878-406c-8444-49dbd655b4d4

It doesn’t look like the Trudeau government’s plan to fight inflation is working after all.

Highlights:

Basically, all the essential elements of the Canadian lifestyle are costing more.

On Tuesday morning, StatsCan’s latest release of the Consumer Price Index showed inflation was 43% higher than when Freeland had declared victory. [in july]

“Trudeau’s deficits and taxes push inflation up again — now to 4%,” Conservative Leader Pierre Poilievre said in response to the new numbers. “Axe the tax. End money printing. Balance the budget to bring down inflation & interest rates.”

Add to that the increase in gas prices happening now and it’s looking more likely that the Bank of Canada will hike interest rates again, something Bank Governor Tiff Macklem hinted at two weeks ago.

In June 2022, a report from Scotiabank called on the Trudeau government to control the growth in government spending so that the Bank of Canada didn’t have to raise interest rates so high to control inflation. At the same time, the central bank warned that using just interest rates to control inflation could see families paying between $600 and $1,000 more per month in mortgage payments in a few years. Trudeau and Freeland ignored those warnings, increased spending and left it up to the Bank of Canada alone to try to manage inflation.

 

Here's the scotiabank report:

https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.inflation-reports.inflation-management--june-19--2022.html

 

[CdnFox]

That scotia bank report is brutal -  it basically says if trudeau reined in gov't spending even a few percent there would either be no inflation issue or no interest rate hikes.

The current interest rate/inflation rate is MOSTLY a direct result of trudeau's policies. 

And every time a gov't gives "relief money" - they're making inflation worse. Putting unearned dollars into the marketplace is a primary cause of inflation.

Add the unnecessary taxes that do nothing and you've got a recipe for high interest/inflation.

This is going to be a DISASTER. 

The Gov't is stomping hard on the gas while the Bank is stomping hard on the breaks and the average canadian is going to choke on the smoke show.

[QuebecOverCanada]

The issue with the way the State runs things is that they decided, without planning a little bit, to have 1 million more people a year in Canada with little to no additional infrastructure.

Now we have to accelerate State spending on Immigration, we can't cut the number of public employees because there is too much demand that is artificially created.

The Liberals didn't increase immigration for no reason; many in the GTA and big cities vote Liberals as they see the value of their properties skyrocket because of said increase in demand through immigration. It is simple, the Liberals bet on the middle class-wealthy people in rich urban neighborhoods to win, as those who live there control many corporations, the media and many ways to shadow-finance political campaigns.

The issue is that it will bite these landlords/homeowners in the ass so hard. Taxes will increase, GDP per capita is stagnating and even going down and the quality of services offered by the State goes drastically down.

If you're not a homeowner/landlord, you're a loser in today's canadian economy, except if you were able to get a huge raise the past few years or have your own little business.

Edited September 19 by QuebecOverCanada

[CdnFox]

1 hour ago, QuebecOverCanada said:

The issue with the way the State runs things is that they decided, without planning a little bit, to have 1 million more people a year in Canada with little to no additional infrastructure.

Now we have to accelerate State spending on Immigration, we can't cut the number of public employees because there is too much demand that is artificially created.

The Liberals didn't increase immigration for no reason; many in the GTA and big cities vote Liberals as they see the value of their properties skyrocket because of said increase in demand through immigration. It is simple, the Liberals bet on the middle class-wealthy people in rich urban neighborhoods to win, as those who live there control many corporations, the media and many ways to shadow-finance political campaigns.

The issue is that it will bite these landlords/homeowners in the ass so hard. Taxes will increase, GDP per capita is stagnating and even going down and the quality of services offered by the State goes drastically down.

If you're not a homeowner/landlord, you're a loser in today's canadian economy, except if you were able to get a huge raise the past few years or have your own little business.

I'm thinking trudeau thought he could somehow hold it all together long enough to get to the next election and then make a bunch of claims about how he'll fix it.

But - he's making those claims now and the actions he's taking will have no effect, and things will get worse.

to even begin to make a dint hes' got to substantially cut back on immigration and temp students (like - in the neighborhood of a 30-50 percent reduction from current)  AND hes' got to cut total gov't spending by about 3.5 percent - and instead he's increasing it.

But reducing immigration and cutting spending is like giving superman a kryptonite smoothie - he's not going to be able to stomach it.