Pierre Poilievre’s recent outing against the Bank of Canada (BC) has earned him some harsh criticism. Yet, no offense to his critics, Poilievre seems to be the only one who understands how the economy works and, above all, the only one who has the courage to speak the truth when it comes to inflation.
Last year, the BC said inflation was temporary, hovering around 3% in the summer of 2021 before falling back to 2% towards the end of the year. Poilievre was then the only sensible voice to rise in Parliament to challenge the actions of the BC and to alert Canadians to the impoverishment that awaited them. Today, inflation shatters a 31-year-old record!
brainless
Poilievre doubts the independence of the BC and calls for the dismissal of its governor. He is absolutely right!
The BC buys government debt. She calls it “quantitative easing”. When Trudeau spent like a madman, she simply provided him with the necessary cash. It therefore made a massive injection of money into the economy. At times, it was buying more than 5 billion bonds a week!
However, inflation is not inevitable. It results directly from this type of policy. Any macroeconomics textbook demonstrates this.
If the BC knows that, then Poilièvre is right. It lacks independence, because it blindly finances Trudeau’s reckless spending, even if it means sacrificing the purchasing power of Canadians.
If the BC doesn’t know, Poilievre is still right. Like any CEO who failed in his mission, the governor deserves to be fired because he failed miserably to “keep inflation low, stable and predictable”.
Honorable
Poilievre was wrong about cryptocurrencies…like many specialists!
When it comes to inflation, however, he remains the best-informed and most honest of politicians. He is undoubtedly the deputy who most deserves the adjective “honourable” in his title!
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