REPORT: Trudeau spending, not Bank of Canada interest rate policies, deemed largely responsible for soaring inflation during pandemic

[CdnFox]

New report says Ottawa to blame for higher consumer prices after spending splurge

"Injecting that much “nominal wealth” into an economy while unemployment has been relatively low led to an inflation burst and permanently higher prices.
“Whether this wealth takes the form of new money or new debt is largely irrelevant,” the report says."

 

You guys remember that argument I had with @Moonbox  Where he insisted that inflation had absolutely nothing to do with government spending and I kept pointing out that it did and that if the government didn't spend so much inflation would be down?

Yeah.  turns out i was right again.  LOL

 

Now that would be water under the bridge normally, but the problem is guess who is spending even more than Trudeau did right now? And the banks are warning about inflationary pressure on items like food and rent and so on and so forth. Slamming the brakes on immigration for a short. Of time helps ease that pressure very briefly but not for long.

Carney says he's going to make cuts, but we will see about that and until then we are looking at a deficit of 100 billion dollars or so this year, and that all winds up being fairly inflationary