Bank of Canada takes to Twitter to set record straight on 'printing money' claim

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The_Foxer

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TLDR - "Well... TECHNICALLY it wasn't actually CASH.. so.."

This kind of weasel language is why nobody trusts them. Sure - they didn't ACTUALLY 'print' cash. But as they admit, they "bought" bonds from the banks. And the money for that came from "settelment balances" and "reserves", which isn't the same as 'cash' - but really it kind of is.

At the end of the day, no matter how you want to spin it the bank pumped tonnes of 'new' money into the economy and the hands of the gov't. Hundreds of billions as it turns out. So - whether you call it 'printing money' or 'quantitative easing", its the same effect - money the gov't doesn't have and that nobody earned gets flooded into the economy and it ALWAYS drives up inflation. If you do it a LITTLE, then the effect on inflation is pretty minimal. If you do it a LOT - as the bank did during the pandemic - then inflation goes nanners.

It's like clinton saying he didn't have 'sexual relations' because technically a blowjob isn't sex. Yeahh... buddy......
 
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Tecumsehsbones

Tecumsehsbones

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I don't know about Canada, but all the U.S. currency and coin in the world is about 12% of GDP.

The vast majority of "money" exists only as entries in a ledger or code on a computer.

I imagine it's not much different up yonder.

Central banks and governments, as well as commercial banks, "print money" all the time. If they make a loan for, say, $250,000, they put that on their books as an "asset." So their total "wealth" is $250,000 more than it was five minutes ago, despite the fact they won't get that money for years (if ever).
 
Tecumsehsbones

Tecumsehsbones

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The_Foxer said:
Pretty much the same. As to this, it's just 'quantitative easing' again.
Click to expand...
Obviously, money has always been a mere symbol, and moreso since we went off the gold standard, but now it's not related to anything.

I recommend a new "dollar sign" for the U.S. and Canada, to represent the new reality. . .

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