IT could just be my age, but sometimes I have to wonder why it seems that the older I get, somethings make less sense. Take for example, the morning stock market reports on the TV news. First, we should cheer when the stock market price of oil and gas rises. In a normal situation, we should be happy as a rise in prices usually means more employment in the energy sector and spin-off economic activity. In the last 2 years, all this has meant is that the ‘energy’ companies are taking a bigger bite out of what little money we have- with no economic benefit to society in general. Sure, we can blame our government(s), but ultimately, it is the big fish in the boardrooms and the investment sector that are reaping the rewards.
WHAT triggered this particular writing is news of pending interest rate hikes by The Bank of Canada. This is justified by the high rate of debt carried by individual Canadians. The other ‘reasons’ are: increased economic activity and potential inflation. Uh huh. For some reason, I cannot follow their logic. Let’s see: interest rates rise and the rate for borrowing money increases. So it costs you more to borrow money which means you either have to find a way to come up with more money- or you have to take away money from some thing else, like food, clothing, or shelter. Makes complete sense.
THE little known fact is that the Bank of Canada is an arm of the government, supposedly with the responsibility of restricting the supply of currency (money) to regulate the economy, as well as provide funds for the government i.e. printing more money. So, in essence, by raising the lending rates, the Bank of Canada is Taxing money out of our pockets. The irony is that the BANKS themselves happily post billion dollar profits every year and don’t seem to feel the pinch themselves.
THERE is a whole lot more I could say on this subject, but I have to head out the door to make some more money. Just remember, the elections are getting closer- about only a year or so away at this writing. NOW is the time we need to remind our governments that their days are numbered. BUY AND FLY a Canadian Rebel Flag to show them “You aren’t buying what they are selling.”