Inflation boom causing banks to consider raising interest rates

[taxslave]

If that's your sense of achievement, then you've really missed the ball on worthwhile contribution.

And that shows in the quality of your posts.

THat is what it is all about. Except for the retiring early part. Way to boring for ambitious people, works well for government employees because they don't really notice the difference.

 

[captain morgan]

Nope.

Dumb question.

That sucks.

Good for you.

Interesting.

A no rebuttal on the opinions related to the OP.

I suppose that is all that's left when a tangible argument doesn't exist

THat is what it is all about. Except for the retiring early part. Way to boring for ambitious people, works well for government employees because they don't really notice the difference.

I guess that achieving personal goals and accomplishments don't count for some people.

 

[mentalfloss]

Capn Goal post shifter is lecturing me on not answering a question.

That's rich.

 

[taxslave]

Interesting.

A no rebuttal on the opinions related to the OP.

I suppose that is all that's left when a tangible argument doesn't exist



I guess that achieving personal goals and accomplishments don't count for some people.

Some people's goals probably are a couch in their parents basement forever and mom to wash their clothes.

 

[captain morgan]

Some people's goals probably are a couch in their parents basement forever and mom to wash their clothes.

These folks have no idea on planning for retiring from the rat race, in fact, won't be able to financially.... Hopefully they are not naive enough to thing that OAS and/or CPP will provide for them in later years.

 

[petros]

What rich is you eating my food cooked with my energy while playing on your gadget with my copper, gold,silver zinc....etc.

Ahhhh achievements! Pat pat pat.

 

[mentalfloss]

What rich is you eating my food cooked with my energy while playing on your gadget with my copper, gold,silver zinc....etc.

Ahhhh achievements! Pat pat pat.

Mental Health Services - Health - Saskatchewan

 

[petros]

Cool another source of income that got the Mrs and I where we are. Did you know climate change is a taboo topic in the bin?

 

[darkbeaver]

I think using the tax system to control money supply is probably the best solution there is. Raising interest rates in of itself is inflationary. After all, inflation is simply getting less with the same buck, if your mortgage rate went up because you were lucky enough to have to renew right after the "inflation controlling" hike, cost of owning the same home just went up. Interest rate hikes feed inflation, which in turn could lead to further increases.

The other part of this, with the taxes going up to slow things down, you can pay down some of the debt, which reduces the debt costs, allowing the government to do the same for less tax requirement. And if it reduced spending, which should happen in a heated economy (less social/corporate assistance), then the impact would be greater.

But if they must stick to the old doctrine, then how about the bank of Canada opening branches all across the land, and let them be the creators of money in this country, not the private banks. Then the billions in interest charges would go to the Bank of Canada, who in turn at the end of its fiscal year, passes its profits on to the Canadian Government. Just imagine if the Band of Canada lent the Govt of Canada funds, the Bank of Canada would have earned over 28 billion last year alone. And yeah, I know, OMGoodness, that's not possible. Why not, the charter banks lend money they don't have. They create it. They don't even have to hold any real money in reserve any more (GOC eliminated that need in 2006). But don't take my word on this, look it up, BofC explains the whole ponzi scheme on its site.

But back to this notion of using tax instead of interest rates to control the economy. Imagine, if you were a business, and were going to make an investment, you would have a good idea what the interest rate would be over a long period of time. Also, to get foreign investment, the country would be forced to manage its affairs better, making the country a country of choice for foreign investment; higher interest rates only garner temporary investment which shifts to the next country offering a better rate. Keeping the dollar volatile.

One thing is for sure, interest rate manipulation is not the answer, it is flawed, just ask the US who only this year ended quantitative easing (printing money to increase supply) because interest rate manipulation did not increase money supply. Whether anyone supports the tax system as a control point or not, the present system is ineffective, and too imprecise.

And finally, why, if we want to take money out of the economy, should the banks get it, why not the government?

You know as well as I do, any politician who pushes this has an accident. The centrals own us.

 

[mentalfloss]

OECD forecasts Bank of Canada will raise key interest rate in May 2015 | CTV News

 

[petros]

Aren't you glad the dollar was deliberately tanked to benefit ON making everyone pay? The poor are taking the biggest hit.

WTG!

 

[captain morgan]

Aren't you glad the dollar was deliberately tanked to benefit ON making everyone pay? The poor are taking the biggest hit.

WTG!

Get your cash together and ready for round 2 of the foreclosure game.

 

[petros]

Get your cash together and ready for round 2 of the foreclosure game.

The ONreal estate bubble is going to pop. Then what?

 

[captain morgan]

The ONreal estate bubble is going to pop. Then what?

Well, the green revolution will come to a screeching halt there.

 

[darkbeaver]

We will fight inflation with deflation?

 

[captain morgan]

Controlled inflation is not a bad thing

 

[petros]

Well, the green revolution will come to a screeching halt there.

I guess $83B from oil sands won't be enough?

 

[darkbeaver]

Controlled inflation is not a bad thing

Neither is controlled deflation. It's the economic "controlers", that have hitherto been unseen and unsuccessful thus far what has got us to the present dismal outlook. Where are the controls, why aren't they working, or are they working to a purpose undeclared.

And here I thought the free market was self regulating.

 

[captain morgan]

Neither is controlled deflation. It's the economic "controlers", that have hitherto been unseen and unsuccessful thus far what has got us to the present dismal outlook. Where are the controls, why aren't they working, or are they working to a purpose undeclared.

And here I thought the free market was self regulating.

Free market is self adjusting.

PS - Inflation/deflation is a measure over a defined area (generally regional/national). As long as there is any transactional relationships across these regions/nations, there is essentially no opportunity to control (absolutely) inflation/deflation

 

[taxslave]

Neither is controlled deflation. It's the economic "controlers", that have hitherto been unseen and unsuccessful thus far what has got us to the present dismal outlook. Where are the controls, why aren't they working, or are they working to a purpose undeclared.

And here I thought the free market was self regulating.

We don't have a true free market. Various governments are always meddling in the economy picking winners and losers. This goes right down to the municipal level.