The bank of canada website http://bankofcanada.ca offers a number of insights into the machinations of the greatest minds in canada’s political/financial hierarchy.
The articles are not too in depth, and so the logic is mostly understandable for the peon class. I guess they kind of like putting the milk down on the floor where the kiddies are at. One thing that immediately struck me was the parallel that exists between the canadian response to current “challenges” and the federal reserve response our southern neighbors are implementing.
It doesn’t take a rocket surgery to see that there is some concern about keeping credit flowing to various fairly mundane sectors of the economy such as mortgage finance and public services. The chosen solution to banks recoiling from issuing credit to people, businesses and the homeless is for the bank of canada to buy up all kinds of questionable debt and by so doing, hopefully induce the banks through means of this comfort, to continue lending to the Canadian public during a time where we are royally and truly.. challenged by authoritarian lockdowns, restrictions and business vaporizations and obliterations of various kinds. Comforting to know that the same ones causing our many difficulties have also got our backs, is it not?
I mean would you go moose hunting with a central banker? “You sit right here beside this tree in the middle of nowhere and wait for that huge black thing with the horns and don’t worry; if anything goes wrong i’ll be right here behind you… buddy…”
But it would seem to me that they really are pushing on a rope here and if you know a little bit about ropes they work a lot better in a pulling situation because that way they stay straight instead of looping this way and that uselessly.
Focusing on money instead of production is a well travelled road to ruin, both for individuals and for nations. Money is simply the means of transaction and not valuable at all by itself. For proof of this, imagine if your grandaddy had left a suitcase full of 1 dollar bills under the doghouse over the last 50 years. What good would it be to you now that the bank of canada is removing it’s status as legal tender as of January 1st? When he hid it, he could have bought something useful with it, perhaps a car, but all this time it has been effectively useless because it lay there unused all those years and massive money printing by the banks in the meantime destroyed whatever value might have remained. This happens because it is scarcity that makes a thing more valuable, not abundance… duh.
But all that aside, filling the country with money whilst destroying the production of the “needed goods and services” you hope people will buy with oceans of new money is, to put it respectfully as possible is akin to pushing on a rope or shooting pool with a wet noodle or putting the cart behind the homeless person, you might say…