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Email this1:26 pm
February 27, 2018
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Norman1, 4 out of every 3 economists thought the BOC would increase their rate by a quarter point, on the 26th. This so called basket that they are using... is not the same basket that i use. I use the blue one.
Inflation is something real that i experience everyday. No rubber necked pencil pusher can tell me it's a figment of my imagination. Well, i guess they can, i just won't listen to them.
2:02 pm
September 11, 2013
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Kidd, I think the B of C has to be distinguished from the politicians. And re the latter, it's even worse than you say as the person you refer to has proudly stated he pays no heed to the numbers, he cares about families.
I have noticed that people are much more apt to notice price increases than decreases, i.e. not many comments on here about decrease in price of gas back when it was 75 cents/litre.
2:17 pm
February 27, 2018
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Bill, my opinions are always FREE. Take that to the bank.
The BOC and the Feds are joined at the hip. Chrystia Freeland gave the BOC "her" mandate about 2 months ago. Link below
Our leader took his mandate home for the weekend. Now he's in isolation.
https://www.cbc.ca/news/politics/trudeau-isolation-covid-1.6329476
3:46 pm
October 27, 2013
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Money printing will always be an issue as long as Liberal governments in particular run deficits. The question is how much of it can be absorbed within a depreciating loonie, and measured as % of GDP and how much needs to be throttled back.
I am more inclined to agree with Norman1's assessment on CPI as y'all well know from months of prior posts, and been criticized for that position. It is just no one knows where in that grey band around 3% that it will fall and when.
8:45 pm
April 6, 2013
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Kidd said
Norman1, 4 out of every 3 economists thought the BOC would increase their rate by a quarter point, on the 26th. This so called basket that they are using... is not the same basket that i use. I use the blue one.Inflation is something real that i experience everyday. No rubber necked pencil pusher can tell me it's a figment of my imagination. …
To those who have been around a while, it is only mildly surprising when four out of three economists are wrong. 
Remember that former CIBC economist some years ago who was spouting nonsense about peak oil production?
Oil prices were going to soar. The resulting rise in transportation costs would stop manufacturing globalization dead. Manufacturing would return from offshore to onshore!
Looking at a recent box of face masks, I see that it was made in China. Google search didn't find a country, province, or state onshore in North America named China.
Bank of Canada monetary policy can't keep price inflation under control on everything. So, Bank of Canada doesn't try.
Instead, the bank tries to keep, under control, inflation in the price of the Consumer Price Index basket of goods and services that approximates what mythical, typical Canadian consumers spend on.
If that CPI basket were 50/50 food and cannabis, with food up 12% and cannabis down 8%, then the inflation would be +2% and on Bank of Canada's 2% target. It would unfortunate for those who don't spend on cannabis and see +12% inflation of their personal basket of goods and services. That will need to be dealt with by something other than central bank monetary policy.
9:04 am
November 8, 2021
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Kidd said
Loonie, you must love it when the Canadian government makes the claim... we'll balance the budget in 10 years. There are so many variables to that promise, it's not worth saying.
Yeah, the only way Liberals know how to do this stuff is Paul Martin's famous saying "Come hell or high water"...
11:04 am
March 30, 2017
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Norman1 said
Kidd said
Norman1, 4 out of every 3 economists thought the BOC would increase their rate by a quarter point, on the 26th. This so called basket that they are using... is not the same basket that i use. I use the blue one.Inflation is something real that i experience everyday. No rubber necked pencil pusher can tell me it's a figment of my imagination. …
To those who have been around a while, it is only mildly surprising when four out of three economists are wrong.
Oil prices were going to soar. The resulting rise in transportation costs would stop manufacturing globalization dead. Manufacturing would return from offshore to onshore!
Looking at a recent box of face masks, I see that it was made in China. Google search didn't find a country, province, or state onshore in North America named China.
Bank of Canada monetary policy can't keep price inflation under control on everything. So, Bank of Canada doesn't try.
Instead, the bank tries to keep, under control, inflation in the price of the Consumer Price Index basket of goods and services that approximates what mythical, typical Canadian consumers spend on.
If that CPI basket were 50/50 food and cannabis, with food up 12% and cannabis down 8%, then the inflation would be +2% and on Bank of Canada's 2% target. It would unfortunate for those who don't spend on cannabis and see +12% inflation of their personal basket of goods and services. That will need to be dealt with by something other than central bank monetary policy.
The mythical Canadian consumer is the major flaw in the CPI usage as a real inflation yardstick. But then no better alternatives that are truly superior.
Monetary policy will combat inflation, both directly or indirectly. Obv 25bps clips every 2 months is just for show. You can’t put down an elephant with a .22 pistol firing one round every 5 secs when it’s 10m away and charging at u
While one can not control the supply side like parts shortage, a determined central bank can bazooka the demand with a massive hike bomb. Consumer buying behavior WILL respond. Whether CB wants to be drastic is a different discussion.
7:48 pm
March 15, 2020
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IMHO, the Bank of Canada is just playing a game of poker with United States' Fed.
They have announced long before (Sept-Oct 2021?) about a rate hike expected in Feb 2022...And nothing actually happened. They are obviously in bed with the real estate speculators :ahem: "investors".
What a bunch of pussies! Typically canadian (with lower-case "c").
12:27 am
February 27, 2018
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smihaila said
IMHO, the Bank of Canada is just playing a game of poker with United States' Fed.They have announced long before (Sept-Oct 2021?) about a rate hike expected in Feb 2022...And nothing actually happened. They are obviously in bed with the real estate speculators :ahem: "investors".
The bank of canada worries about the value of the canadian currency. If canada raised its rate, and the Americans didn't. Our dollar would go up in value vs the American dollar, which would hurt our trade. Our goods would cost more to import.
If canada and the states move in unison, our currency should remain at around 80 cents, trade would remain stable.
8:24 am
October 27, 2013
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I agree. Our productivity is so low relative to the US in particular that we really cannot afford the loonie to creep above 80 cents for very long. At one time, 82 cents was considered equivalent purchasing power equitable but that has been slipping slowly over time.
The Big Mac index which I recall The Economist updated about a month or so ago seemed to reflect about 80 cents. Like it or not, our fortunes are tied closer to the US Fed than we would like to admit.
8:36 am
September 11, 2013
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I wouldn't be surprised to see the dollar drop vs USA, internationally Canada's not looking too good right now.
But there's good news, i.e. the border blockades have probably been the nail in the coffin for Biden to ever reconsider his move to terminate the Canadian auto industry so that's good news for those hoping for lower housing prices in Ontario. Not sure what impact that would have on HISA & GIC rates - ?
9:42 am
October 21, 2013
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I wonder if the clamp down on inflow of crypto will help Cdn dollar.
I see crypto as a threat to Cdn dollar longer term, and to other sovereign currencies as it is favoured by an element that might grow..
11:37 am
April 6, 2013
Online
Cryptocurrencies are not a threat to the Canadian Dollar.
A bitcoin, for example, has to be sold to a willing buyer for dollars to spend. Very few stores accept bitcoin directly. With bitcoin in particular, it can take 10 minutes to 20 minutes for the transfer of ownership to be recorded in the blockchain. Few stores will tolerate that kind of payment delay at the checkout.
It's similar with my bank shares. I cannot pay taxes or buy groceries with bank shares.
12:29 pm
October 21, 2013
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I understand that this is the way it is today
However, things are changing and are going to change further.
1:23 pm
February 27, 2018
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Our boy Elon Musk said at one point in time, you'd be able to buy a Tesla using bitcoin.
I'm not sure if the tax departments have figured out how to trace and track Cryptocurrencies for income tax purposes.
The shady side of this money. This form of currency was designed to keep transactions hidden/secret from big brother's prying eyes.
The dark web has more intellect behind it, than any government or police department could ever possibly hope to understand. Transactions on the dark web would be done using Cryptocurrencies.
https://www.cnbc.com/2018/09/06/beyond-the-valley-understanding-the-mysteries-of-the-dark-web.html
1:41 pm
November 8, 2018
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Kidd said
[Bitcoin] ... This form of currency was designed to keep transactions hidden/secret from big brother's prying eyes.The dark web has more intellect behind it, than any government or police department could ever possibly hope to understand.
This is what bitcoin advocates want you to believe.
Meanwhile, Feds arrest a New York couple and seize $3.6 billion in stolen cryptocurrency.
1:56 pm
January 13, 2022
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Crypto is a serious threat to all governments. Not only that, it's now no better than a Ponzi scheme.
2:26 pm
April 6, 2013
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Kidd said
…
I'm not sure if the tax departments have figured out how to trace and track Cryptocurrencies for income tax purposes.The shady side of this money. This form of currency was designed to keep transactions hidden/secret from big brother's prying eyes.
…
The blockchain is actually public and not secret. All the bitcoin addresses, balances, and transfers between them are public. What is not public is the link between a bitcoin address and the owner.
It is easy to discover if the owner son is a seller. Just buy something from the person. The seller needs to provide the address to send the bitcoins to. Complete the sale. You now have the seller's bitcoin address and the seller has yours, the source of the bitcoins.
With the bitcoin address, one can pull up all the transactions involving that address!
Please write your comments in the forum.