Canadian Money Forum banner
61 - 72 of 72 Posts

·
Registered
Joined
·
6,613 Posts
The Fed can't raise interest rates high enough to battle inflation caused by supply/demand metrics due to the pandemic collapsing supply chains, because it would cause an uncontrollable severe recession.

The Fed can't very well sit on their hands and do nothing while inflation runs rampant.

They are left with raising the interest rates a little and hoping that has a desired effect. They are basically "hoping for the best".

There isn't a shortage of baby formula in the US because of money printing or an excess number of new mothers needing formula.

Prepare for high inflation until the supply chains get untangled. Hopefully it won't be a long wait.
This is what I've been saying for a long time. It's why I de-risked in Sept last year. I thought China would be the catalyst before Russia but the underlying issues were there

The Fed has been painting themselves into a corner since the 2008 crisis and failed to correct course in 2018. There were already massive repo market issues in late 2019 before Covid which gave them an excuse to bring back massive QE before mainstream caught on

It's not in the mainstream media yet but healthcare and other critical supplies I won't mention are being impacted by Chinese supply now. We need to manufacture critical supplies ourselves. Time to turn those GM factories into critical supply chains while we have war refugees coming in willing to work.

Living high on Chinese slave labour while printing magic fiat money to pay public bills and ignorantly destroying the planet like boomers is unsustainable
 

·
Registered
Joined
·
4,640 Posts
This is what I've been saying for a long time. It's why I de-risked in Sept last year. I thought China would be the catalyst before Russia but the underlying issues were there

The Fed has been painting themselves into a corner since the 2008 crisis and failed to correct course in 2018. There were already massive repo market issues in late 2019 before Covid which gave them an excuse to bring back massive QE before mainstream caught on

It's not in the mainstream media yet but healthcare and other critical supplies I won't mention are being impacted by Chinese supply now. We need to manufacture critical supplies ourselves. Time to turn those GM factories into critical supply chains while we have war refugees coming in willing to work.

Living high on Chinese slave labour while printing magic fiat money to pay public bills and ignorantly destroying the planet like boomers is unsustainable
It's sustainable until people start valuing the Yuan over the Dollar.

Who knows how long it will take until people want more ¥ than $, but it's likely coming at some point in the future.

What never ceases to amaze me is how much printing has happened and how strong the dollar stays. The US can print infinitely because people still want to hold USD. If that sentiment ever changes, the western world is fcked.

But I still think China is too unstable and to commie/dictatorship for that to happen yet.
 

·
Registered
Joined
·
18,557 Posts
Discussion Starter · #63 ·
The US money supply is going back down. There will always be expansion of the money supply as the population increases.

If central banks hadn't "printed money", we would be in a severe global recession or worse already.

It isn't an optimal solution to a threat to the economy, but doing nothing wasn't a viable option.......at least according to most economists I have read.

 

·
Registered
Joined
·
10,652 Posts
The US money supply is going back down. There will always be expansion of the money supply as the population increases.

If central banks hadn't "printed money", we would be in a severe global recession or worse already.

It isn't an optimal solution to a threat to the economy, but doing nothing wasn't a viable option.......at least according to most economists I have read.

If central banks hadn't printed money, we wouldn't have the massive asset inflation that's causing economic distortions, and we wouldn't be in as much of a mess.

We're in for a BIG adjustment, and it's going to impact a lot of people before we undo all the damage.
 

·
Registered
Joined
·
18,557 Posts
Discussion Starter · #66 · (Edited)
If that is true and consumers were flush with stimulus cash......why did "non mortgage" consumer debt rise so quickly ?

Why do so few people have difficulty paying their monthly bills, have such low retirement savings in TFSAs, and can't scrape up $200 in cash ?

Where did all the "printed money" go ? The money supply rose during the pandemic but is falling back towards pre-pandemic levels.

All the "printed money" did was "partially" replace lost wages due to layoffs and shutdowns, help small businesses survive, and buy vaccines and test kits.

Conservative chatter is betrayed by the facts. Why is it only the Conservatives running around saying the sky is falling ?

Liberal, NDP, Bloc, and Green leaders aren't.
 

·
Registered
Joined
·
10,652 Posts
If that is true and consumers were flush with stimulus cash......why did "non mortgage" consumer debt rise so quickly ?

Why do so few people have difficulty paying their monthly bills, have such low retirement savings in TFSAs, and can't scrape up $200 in cash ?

Where did all the "printed money" go ? The money supply rose during the pandemic but is falling back towards pre-pandemic levels.

All the "printed money" did was "partially" replace lost wages due to layoffs and shutdowns, help small businesses survive, and buy vaccines and test kits.

Conservative chatter is betrayed by the facts.
I don't know about your claims, but as to where the printed money went, THEY SPENT IT.
it went to bid up the prices of the available goods, causing inflation, making things more expensive.

No the printed money didn't buy vaccines and test kits, that was less than $5B.
 

·
Registered
Joined
·
933 Posts
I don't know about your claims, but as to where the printed money went, THEY SPENT IT.
it went to bid up the prices of the available goods, causing inflation, making things more expensive.

No the printed money didn't buy vaccines and test kits, that was less than $5B.
And clearly it inflated the stock market into a bubble level not to mention the meme stocks and crypto currencies.With the close down n the printing press and tightening we are seeing a reversion. If Trudeau wants to carry 50 billion deficits it will be financed by the market and not the BOC .This means the government debt will have to sell at the current real level of interest rates. May-be 3 or 4 % not the .025 he was getting away with. Who knows by next spring that could be 4 or 5% . Its much of the wild pandemic helicopter money was funded by short term rates it will have to be rolled over at these current rates. We will paying a lot more interest as a portion of the government budget. In some respects PP is on point with his criticism of the BOC.
 

·
Registered
Joined
·
6,613 Posts
In some respects PP is on point with his criticism of the BOC.
Yes

Liberal, NDP, Bloc, and Green leaders aren't.
sags printing money is genius for the government in so many ways

It's only a problem in the long term. There is no reason for any of those leaders to criticize it because they need to promise candy and handouts to voters. PP won't get elected using reason and logic unfortunately

Most politicians and boomers have very short term outlook
 

·
Registered
Joined
·
18,557 Posts
Discussion Starter · #70 ·
Debt to gdp is declining.

The deficit is declining.

Extra revenues are applied to the debt.

Debt was restructured long term at low rates.

Servicing debt costs are lower.

The economy is expanding.

There is full employment.

These are verifiable facts.

PP is talking economic bafflegab.
 

·
Registered
Joined
·
18,557 Posts
Discussion Starter · #72 · (Edited)
You would find it boring and lacking the sophistication of the magic internet crypto world, with all those important sounding made up words and all.

You know.....words like mimblewimble, sharding, segregated witness etc.

"Hey buddy, I am a little short until payday. Could you loan me a little mimblewimble to buy lunch" ?
 
61 - 72 of 72 Posts
Top