Central Banks are”fighting yesterday’s War” Rosenberg

[TOM4CWB]

Doesn’t this just give you a warm fuzzy feeling…








Cheers

[AlbertaFarmer5]

And it is even worse than that. The market has tanked commodities on the premise that recession is imminent, thanks in no small part to higher interest rates. But the fundamentals that made commodities and supply chains in short supply to start with have not gone away, if anything, they have gotten worse. Now, a combination of higher financing costs, and lower commodity prices provide even less incentive to produce those commodities or supply chain products, making the problem even worse going forward. Under investment in oil and gas( include coal as well) in recent years specifically is the root of most of the current issues, and these policies only excaberates that problem.

You can't fix supply driven inflation with interest rates rises. We briefly had demand driven inflation as lockdowns from Covid were ending, that was when interest rates rises could have helped, but weren't used.

[hedgehog]

This guy is spot on
Interest rate hikes will not increase production of commodities

[Sodbuster]

Maybe not all inflation but should cool down the housing market and land prices in the short term.

[sumdumguy]

These interest rate hikes are gonna scare the bejeebers outta these yung whipper snappers. Not so easy when you can’t get free money. The savers and seniors have been footing the bill for these borrow to the maxers.

[jazz]

Europe is already at the price controls and rationing stage.

The secret to fighting inflation is lowering taxes and every country has been raising them including the carbon tax.

At 5-6% fed fund rate, the entire western world is insolvent

[biglentil]

These interest rate hikes are gonna scare the bejeebers outta these yung whipper snappers. Not so easy when you can’t get free money. The savers and seniors have been footing the bill for these borrow to the maxers.

Don't worry Trudeau has a plan for the savers as well. It won't be just the debtors on the hook but savers as well.
Remember when Trudeau passed this bill in 2016. Its all going according to plan, soon savers will have to do their part "for the common good".

[ajl]

It is much more important to have a currency that is worth something rather than negative interest rates and a useless worthless currency if your economy is to function. Deflation is good.

[AlbertaFarmer5]

What an inefficent way to manipulate an economy. Interest rates, and "money printing" of all descriptions which equally affect every industry, every consumer, every level of government, every saver, every home buyer, every entrepreneur and every investor. And how often do all of these parties have anything in common? So, the need to cool the housing market results in strangling the business owner, and starving the investors. But if they lower rates to encourage actual sound investment in productive assets, the cheap and easy money spills over into every other unproductive asset class, and we end up with housing bubbles, and NFT's and Crypto currencys and baseball cards/tulips etc. As well as governemnts spending way beyond their means.

It would be as if the only tool a farmer has is a concoction of every broadlead and grassy weed herbicide, insecticide, fungicide all mixed up into one, and the only way to apply it is to do the entire farm, or not at all. The only choice is how much to apply, and when or if. So if there is too many thistles in one crop, you have to apply this to every crop at the same time. Sounds really ridiculous doesn't it?

Why not use targetted taxes to direct investment where it would be the most productive? Housing bubble forming, increase the GST on house purchases. etc.

[TOM4CWB]

What an inefficent way to manipulate an economy. Interest rates, and "money printing" of all descriptions which equally affect every industry, every consumer, every level of government, every saver, every home buyer, every entrepreneur and every investor. And how often do all of these parties have anything in common? So, the need to cool the housing market results in strangling the business owner, and starving the investors. But if they lower rates to encourage actual sound investment in productive assets, the cheap and easy money spills over into every other unproductive asset class, and we end up with housing bubbles, and NFT's and Crypto currencys and baseball cards/tulips etc. As well as governemnts spending way beyond their means.

It would be as if the only tool a farmer has is a concoction of every broadlead and grassy weed herbicide, insecticide, fungicide all mixed up into one, and the only way to apply it is to do the entire farm, or not at all. The only choice is how much to apply, and when or if. So if there is too many thistles in one crop, you have to apply this to every crop at the same time. Sounds really ridiculous doesn't it?

Why not use targetted taxes to direct investment where it would be the most productive? Housing bubble forming, increase the GST on house purchases. etc.

Interesting that 86.7% of new full time employment since the pandemic… has been created by the CDN Federal Government, deficit spending…

And we wonder why we have inflation???

Astounding.

We wonder why we have inflation??!!!






Now to counter this massive spending of borrowed money… hiring 20,000 new CRA people … how can this possibly be rational economics???

This can’t end well…

Cheers