Bank of Canada may revert to printing money

[Francis2004]

Was this not proven to be a disaster in the past ?

Let's hope the MAY BE turns into a NOT REQUIRED..

OTTAWA -- With economic recovery still looking shaky, the next move by the Bank of Canada may be to just start printing money.

The price can be high. Devaluation of the loonie and run-away inflation down the road.

But with economies running on empty, central bankers are inclined to focus more on solving the mess at hand than theoretical messes of the future.

CIBC chief economist Avery Shenfeld says printing money is becoming a key tool used by central bankers to try and keep the recession from turning into a lasting depression.

Avery and other economists don't expect Bank of Canada governor Mark Carney to go nearly as far as his counterparts in the United States and Britain, who have pumped trillions of dollars into the market, unless conditions seriously deteriorate.

But they note, with the prospects of a quick recovery receding and the bank's trendsetting interest rate near zero, Carney may have to resort to unusual measures to spark borrowing and boost the economy.

CTV.ca | Bank of Canada may revert to printing money

 

[Machjo]

I would agree with printing money only as a counter-deflationary measure and only after lowering the Bank of Canada interest rate to 0%.

In other words, though I'm not against it, it really ought to be a last resort to fighting deflation.

 

[Machjo]

Another point. if we print just enough money to counter deflation, and that with a 0% Bank of Canada rate, then fighting inflation later wont' be so hard (increase taxes or reduce spenidng, or both). And worse case scenario, increase interest rates to counter the inflation when it comes. If printing is donse conservatively enough, it's not too bad.

 

[Just the Facts]

Nobody uses money anymore. They need to print debit cards.

 

[Francis2004]

Another point. if we print just enough money to counter deflation, and that with a 0% Bank of Canada rate, then fighting inflation later wont' be so hard (increase taxes or reduce spenidng, or both). And worse case scenario, increase interest rates to counter the inflation when it comes. If printing is donse conservatively enough, it's not too bad.

We need no extra money in the system and no deflation. We need action with the funds already in the system to move the economy.. More money will only go to waste and create more economic problems in the long run.. If time marches on and it really gets bad it can be reviewed but at this time it should not even be discussed as now people will sit and wait for this to happen.. Stupid Stupid Stupid..

 

[Francis2004]

Nobody uses money anymore. They need to print debit cards.

At the rate our Government is going it's not debit but rather credit cards it will be making..

 

[VanIsle]

Nobody uses money anymore. They need to print debit cards.

Since the banks will not disclose the amount of interest they earn on credit cards, I guess the better thing might be kind of a 50 - 50 thing. Half debit and half credit cards. Spenders and pretend spenders. Interest rates are way too high on credit cards and the best way for anyone to get into major trouble financially speaking. Banks will continue to earn loads providing people pay just the monthly payment on their credit cards and continue to go no where with the balance. They'll owe forever and the banks have unlimited income. Minus the ones that they have to write off.

 

[Machjo]

Considering that we have 1.43 percent inflation over the last year, plus an interest rate of above 0% still, there's no reason to start printing yet.

 

[Stretch]

what banks do is illegal. They lend you money that doesnt exist and charge you interest on it, so why would printing money be any different.

 

[Zzarchov]

what banks do is illegal. They lend you money that doesnt exist and charge you interest on it, so why would printing money be any different.

Its not illegal, perhaps you mean immoral? Thats a personal subjective statement so to each their own.

But if you don't like it, don't take part in it.