Recession leading to Depression

[Babba_not_Gump]

Blinded? No.
Maybe go back and read EVERY word I put in my quote. There is one very important word, only four/4 letters.
All but a person blinded by their loyalty to Trudeau would see that word.

I read it and stand by my post. He's made some massive mistakes for sure... but he's not even partially to blame for the inflation we're seeing.

Our government, and governments around the world, spent the way they did during the pandemic to avoid an even more devastating outcome. The spending wasn't perfect but it was more necessary to act quickly rather than perfectly. In hindsight it's easy to criticize and nitpick over every new program and dollar spent, but they didn't have the luxury of time to get it 100% right.

To be clear, I don't want Trudeau to win the next election even though I think he's done a pretty great job as PM overall. I want a Conservative government... I just hope Poilievre matures into the leader we need. I don't like his current style of politics and I'm not sold on him yet.

he's not even partially to blame for the inflation we're seeing.
Really? Not even partially to blame?

Canada's debt in 2020 was $721 BILLION.
Canada's debt in 2021 was $1048 BILLION.

Okay, you and the other Liberal minions keep believing that.

[Jonrox]

he's not even partially to blame for the inflation we're seeing.
Really? Not even partially to blame?

Canada's debt in 2020 was $721 BILLION.
Canada's debt in 2021 was $1048 BILLION.

Okay, you and the other Liberal minions keep believing that.

And what happened during that time period? Was there maybe a major worldwide event that had the potential to decimate every economy in the world?

You guys act like it was a just normal year, unlike any other.

And keep ignoring the fact that I keep saying I want to see a Conservative government (under the right conditions) win the next election while you're at it.

[DataCruncher]

Every country that over printed there currency to prop up there economy during covid shutdown is now experiencing inflation, hmm... go figure.

I've often wondered, if they can print currency out of thin air,
then,
why are we paying taxes?

Rumpelstiltskin?

[Nedroj]

And what happened during that time period? Was there maybe a major worldwide event that had the potential to decimate every economy in the world?

You guys act like it was a just normal year, unlike any other.

And keep ignoring the fact that I keep saying I want to see a Conservative government (under the right conditions) win the next election while you're at it.

I think he was trying to point out that 327 Billion was added to the national debt in a single year because of the liberal's careless spending. I mean their plan from the start was to quickly get the CERB cheques out and worry about figuring out who does and who doesn't qualify later. And now they realize that it's going to cost more to recover those funds than what its worth.

I understand there was a global pandemic and now a global recession but that doesn't mean Canada doesnt have the potential to weather this recession just as well as it did with the last one in 2010. That recession took almost 3 years to really affect Canada compared to the USA and we got out of it just fine pretty quickly. Unlike the Recession in the 1980s which some people are saying will be similar to the coming.


For example, Canada could reduce inflation, provide new funds and increase or stabilize our GDP by:

Encourage and Approve building pipelines/terminal facilities so we can increase our LNG/Oil exports to Europe.
Pause Environmental Initiatives like the Carbon Tax Decreasing the cost of Gas/Diesel would directly decrease the cost of almost everything.

Canada could also help make a normal life a little more attainable by:

Ban all future sales of residential homes to everyone that isn't a Canadian Citizen or permanent resident.
Charge 50% property Tax on current foreign-owned residential homes, in the hopes they will sell rather than pay.

[Mazdatruck]

And what happened during that time period? Was there maybe a major worldwide event that had the potential to decimate every economy in the world?

CMHC said housing was going to drop -18% in 2020. Federal Government came in, printed 25% more dollars and told the banks to lend money to anyone with a pulse. Created a massive bubble on a bubble.

That's also called a bailout - Canadian real estate was bailed out.

That bailout wasn't free. Inflation was a right-wing talking point and MMT was the way of the future until food prices jumped +30% in a year and was all up in Canadians monthly bills.

Now we're on the opposite end of the stick.

Does anyone think prices are going to drop more than -18%?

The Government had a choice. Take the pain or pop a bunch of pain killers and pretend everything is ok.

Now our leg is broken and it's going to take years to heal.

"We had no choice in 2020 it was a emergency" - Wrong. Plenty of choices. Now consequences.

[Nedroj]

You guys act like it was a just normal year, unlike any other.

To some, well, to over 50% of us, it was a normal year more or less.

During the Pandemic my company was able to keep a steady profit even with all the challenges and supply issues.
I've received multiple really good raises over the last 2 years and with the pandemic sending everyone to work from home, the company has cut expenses by 75% just by getting rid of all the empty office space.

Other than not going out to restaurants or the occasional evening at the theater, my family wasn't really affected by COVD.

[Patron]

And what happened during that time period? Was there maybe a major worldwide event that had the potential to decimate every economy in the world?

You guys act like it was a just normal year, unlike any other.

And keep ignoring the fact that I keep saying I want to see a Conservative government (under the right conditions) win the next election while you're at it.

I think he was trying to point out that 327 Billion was added to the national debt in a single year because of the liberal's careless spending. I mean their plan from the start was to quickly get the CERB cheques out and worry about figuring out who does and who doesn't qualify later. And now they realize that it's going to cost more to recover those funds than what its worth.

I understand there was a global pandemic and now a global recession but that doesn't mean Canada doesnt have the potential to weather this recession just as well as it did with the last one in 2010. That recession took almost 3 years to really affect Canada compared to the USA and we got out of it just fine pretty quickly. Unlike the Recession in the 1980s which some people are saying will be similar to the coming.


For example, Canada could reduce inflation, provide new funds and increase or stabilize our GDP by:

Encourage and Approve building pipelines/terminal facilities so we can increase our LNG/Oil exports to Europe.
Pause Environmental Initiatives like the Carbon Tax Decreasing the cost of Gas/Diesel would directly decrease the cost of almost everything.

Canada could also help make a normal life a little more attainable by:

Ban all future sales of residential homes to everyone that isn't a Canadian Citizen or permanent resident.
Charge 50% property Tax on current foreign-owned residential homes, in the hopes they will sell rather than pay.

[d0nb]

Heard this morning our Dear Second in Command, Freeland, hissing that Canadians better buckle up and hunker down as what’s coming next isn’t pretty.

The free-wheeling spending like there’s no tomorrow Nib govt has finally yelped ‘uncle’ as she promises that even the federal govt will now have to carefully watch their spending habits! Wow, even Michael Jordan couldn’t spin a 180 so fast.You know it’s really bad when Nibs voluntarily offer to rein in spending

Snip

Speaking at an auto industry conference in Windsor, Ont., Freeland said she would be honest with Canadians about the roadblocks that lie ahead and the threat of higher unemployment and mortgage rates — developments that could hurt many households.

"Our economy will slow. There will be people whose mortgage rates will rise. Businesses will no longer be booming. Our unemployment rate will no longer be at its record low. That's going to be the case in Canada. That will be the case in the U.S. and that will be the case in economies big and small around the world," Freeland said.



With inflation so sticky, economists are expecting more rate hikes to reduce demand and cool the economy. That could prompt a recession sometime in 2023.

While inflation has slowed somewhat in recent months as energy prices have stabilized, Freeland said the government will not be able to help everyone ride the inflationary wave.

Snip

Government estimates say this bill will give eligible people without children an extra $234 this year, while couples with two children will receive an extra $467 to offset rising costs.

Another bill before the House of Commons, C-31, would provide rent relief and send cheques to parents to cover the cost of their children's dental coverage.

Freeland said social programs like employment insurance (EI) will be available to help people who lose their jobs in the coming economic disruption.


Snip


Critics, including Conservative Leader Pierre Poilievre, maintain it wasn't just pandemic-related supply chain disruptions or a war that caused inflation to spike here at home — that eye-popping government spending in response to the pandemic is also to blame.

During question period in the House of Commons on Wednesday, Poilievre said the federal Liberal government's "half-trillion dollar inflationary deficits" over the past two fiscal years are responsible for the higher costs.

Pointing to the planned low-income supports, Poilievre said the prime minister has done "nothing for the vast majority of struggling families."

"Even the small minority who do [receive the supports] will find it gobbled up by increased inflation," he said, citing a recent RBC Royal Bank report that found the average family will lose $3,000 in purchasing power this year as a result of higher prices and interest rates.

He called on the government to scrap planned hikes to the federal carbon levy — something Poilievre has called a "triple, triple, triple tax" that will drive food prices higher because it will impose added costs on all parts of the economy…

There is a link to our swivel serpent’s speech today (if you can bear her salivating snorts] within this article

https://www.cbc.ca/news/politics/freela ... -1.6621800

So, at long last, Freeland might be right about something, under the leadership of politicians like the execrable Joe B. and Justin T., things are likely to get worse, perhaps much worse. Their belief that crippling traditional energy sources is a prerequisite for a “transition” to a brighter future powered by pixie dust and sunny ways is not only shockingly naive, it has destabilized the global economy.

The underlying cause of our economic ills is obvious – rising energy costs. Unlike the last bout of ‘stagflation,’ that followed the price shock of OPEC’s oil embargo, the damage this time is self-inflicted as governments encourage the replacement of affordable fossil fuels with not ready for prime time ‘green’ alternatives. Now, not even lower oil prices will spare households in Europe from the punishing cost of the electricity generated – intermittently – by wind and solar.

Paradoxically, a Democrat political strategist was responsible for originating “It’s the economy, stupid.” In upcoming elections, candidates must be made to understand – it’s the attacks on affordable energy, stupid.

[d0nb]

Hmm, no sign of Justin's warriors giving the thumbs up to this recession? After all, he has to take credit for some of it.

Blaming PM Trudeau for what is a worldwide problem... some of you sure seem to think he has a lot more power than he actually does. You guys have such a narrow view of things... you're blinded by your hated of him.

Poor Mark Carney, blinded by his irrational hatred of Dear Leader.

The former Bank of Canada governor, now a Liberal fundraiser, said the rising cost of living is “principally a domestic story.”

https://www.westernstandard.news/news/i ... 6c307.html

It’s a duplicity fire sale. The Liberals – not to be confused with actual liberals – are now trying to cover all the bases so that they can claim to have seen it coming, whatever ‘it’ turns out to be.

[hobbyguy]

Quite an interesting post ekir! I think this one line is particularly insightful... I don't think most folks understand that the catalyst to the inflation we're seeing was the tremendous increase in how much "stuff" people were buying during the pandemic. This insatiable demand for goods is what stressed worldwide supply chains to the point of breaking.

Most people have misplaced the blame for inflation on governments and their spending through the pandemic, but collectively we're the ones responsible for our increased demand for "stuff" which crippled supply chains and led to the issues we're now seeing.

As someone involved in these supply chains, we started to see the cracks in the dam developing about 2 years ago and there was nothing anyone could have done to stop it. This crazy level of demand coupled with severe lockdowns in China threw supply chains and manufacturing into disarray, then the flooding started. Most folks don't understand how complicated supply chains are, how quickly things can snowball, and how long it takes to get them back on track.

We're starting to see logistics infrastructure get back on track and it's no coincidence that inflation is now starting to ease up slightly. It won't change overnight, but things are moving in the right direction again.

Yes, we do blame JTs overspending for the mess we are now in. Over the last couple of years one in every five dollars has been “printed” without anything to back it up. With all that excess cash sloshing around in the economy, it’s no surprise that peeps locked down during Kovid spent it as fast as they got it. Our purchasing power is much less now as we are presently spending devalued money. There was little thought given to the distribution of funds to those who didn’t need it, but it was a typical vote purchasing mechanism.

Today, economists, fund managers, the CBC and even Freeland are saying things are going to get ugly, very ugly. How you can say that things are going in the right direction is questionable.

Constant denial of the CPC having messed up a budget regime that was 1. funding all necessary programs 2. running budget surpluses 3. paying down the national debt. That's what the CPC clown car inherited, and they totally fluffed it up, creating a structural revenue deficit.

The current Liberal government is in fact spending at precisely the same level as the Chretien/Martin governments based on a %GDP (that accounts for inflation, population growth etc.). Yes, the Trudeau Liberals have not successfully fixed the structural revenue deficit that the CPC clown car created, but they have made some progress, and while doing so have actually reduced the "tax wedge" of ordinary folks.

And as far as the current PPCPC goes, they have vehemently opposed the international effort that Trudeau and the Liberals participate in to stop the "race to the bottom" in corporate taxes, and to force corporations to pay taxes within the jurisdictions where the profits are earned. The PPCPC is also fighting any all efforts to reclassify the tech giants and force the likes of Zuckerberg to pay taxes as any Canadian small business does.

So the "spending" argument is just partisan nonsense. The problem is corporations getting a free ride thanks to measures the Harper CPC clown car brought in, some of which can not be changed, like the disastrous Canada-China FIPA that locks into kowtowing to the Chinese Communist Party until 2045.

When you think about the current economic situation, consider this: corporate profits in Canada have increased by 1/2 a Trillion $ since 2019. It is runaway corporate greed and profiteering that is the base problem. https://tradingeconomics.com/canada/corporate-profits

[rustled]

Yes, we do blame JTs overspending for the mess we are now in. Over the last couple of years one in every five dollars has been “printed” without anything to back it up. With all that excess cash sloshing around in the economy, it’s no surprise that peeps locked down during Kovid spent it as fast as they got it. Our purchasing power is much less now as we are presently spending devalued money. There was little thought given to the distribution of funds to those who didn’t need it, but it was a typical vote purchasing mechanism.

Today, economists, fund managers, the CBC and even Freeland are saying things are going to get ugly, very ugly. How you can say that things are going in the right direction is questionable.

Constant denial of the CPC having messed up a budget regime that was 1. funding all necessary programs 2. running budget surpluses 3. paying down the national debt. That's what the CPC clown car inherited, and they totally fluffed it up, creating a structural revenue deficit.

Just makes me chuckle ;) - the refusal to take responsibility for what has happened since 2015, when the current government had the opportunity to do a better job of fiscal management than their predecessors and - apparently - made the intentional choice NOT to, instead pouring fuel on the already runaway greenflation bonfire and kneecapping our natural resource sectors.

[Catsumi]

It’s the same old “aw shucks, we had nothing to do with it. The CPC forced us to spend like drunk sailors”.

No one buys it.