Bank of Canada increases interest rates to make the rich even richer

By André Faust (July 12, 2018)

Today in a press release the Bank of Canada has announced that it Is increasing lending rates to 1.5% to the retail banks. (“Bank of Canada raises overnight rate target to 1 ½ percent”, 2018). So what does that mean for the average Joe/Jane on the streets, well it means that if you are taking out a loan or credit today your interest payment will increase by 1.5 % and if you add it to compound interest then that number becomes significant.

Before going on, let’s turn the pages back and look at the role of the Bank of Canada before I get into today’s announcement.

Let’s go back to 1938 to the year 1974, Canada was borrowing from itself at interest-free loans, which allowed Canada to be very prosperous. So as a result of these loans Canada developed quite substantially, with the money created being used to build highways such as the McDonald-Cartier freeway, public transportation systems, subway lines, airports, the St. Lawrence Seaway, funding the universal healthcare system, and the Canadian Pension Plan and so on.

In 1973 Trudeau’s government decided to stop borrowing from the Bank of Canada at interest-free to the retail commercial banks who charge interests. Here is where it gets crazy because of it the Bank of Canada who sets the interest rates. How rational is that?

After Canada started to borrow from the commercial banks is when we see Canada’s debt load increase to where it is at today.
Obviously, Trudeau did not follow the wisdom of Mackenzie King himself who had once said,
“ Once a nation parts with the control of its currency and credit, it matters not who makes the nation’s laws. Usury, once in control, will wreck any nation. Until the control of the issue of currency and credit is restored to government and recognized as its most sacred responsibility, all talk of sovereignty of parliament and of democracy is idle and futile.

So here we are at today’s announcement, basically, the Bank of Canada said it would increase the interest by 1.5 % which means that the Federal, Provincial and municipal government will now even pay more interest on interest. For Canadians especially those seniors on Fixed income and if their mortgage is up for renewal there is a likely hood that they will not be able to pay the new rates, and lose their home to the banks.

Both Trudeau and Gallant inject a considerable amount of money into the economy which did stimulate economic growth people had more money so they were spending more.

This interests increase is going to remove money and buying power from the people which we should see all of the efforts to strengthen our economy go down the toilet bowl. It is expecting that the bank of Canada will have another rate increase in September.

The only winners in this are the banks. Let follow Mackenzie king approaches to economics where the country, the provinces and the manipulates don’t pay interests on interest but pay the Bank of Canada like the old day’s interest-free.



References

Bank of Canada raises overnight rate target to 1 ½ per cent. (2018). Retrieved from https://www.bankofcanada.ca/2018/07/fad-press-release-2018-07-11/

Household debt-to-income ratio edges lower: Canadians now owe $1.70 for every $1 earned. (2018). Retrieved from https://business.financialpost.com/news/economy/statistics-canada-reports-household-debt-to-income-ratio-edges-lower

Prudent Press | The History of the Bank of Canada. (2018). Retrieved from http://prudentpress.com/finance/history-bank-of-canada/

Remember when: What have we learned from the 1980s and that 21% interest rate?. (2018). Retrieved from https://www.theglobeandmail.com/real-estate/the-market/remember-when-what-have-we-learned-from-80s-interest-rates/article24398735/

Trade tensions the ‘biggest issue’ on the horizon as Bank of Canada hikes interest rate | CBC News. (2018). Retrieved from https://www.cbc.ca/news/business/bank-of-canada-rate-decision-1.4742063

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Québéc Premier Philippe Couillard Pissed off at Crane Operators strike

Québéc Strike Crane Operators
Québéc Strike Crane Operators

By André Faust (June 20, 2018)

Québéc Premier Philippe Couillard Pissed off at Crane Operators strike and says they will be consequences if the crane workers maintain their strike, The reason for the strike is that Couillard is proposing changes to the training requirements to obtain a crane operators certificate without a vocational operators certificate.

The union who is representing the crane operators says that this new program is less thorough then the vocational training the consequence of this new program has the potential to increase workplace accidents.

There is another reality as well, is that removing vocational training will allow more people to work in that industry making it more competitive, which ultimately will mean a decrease in pay. If you can create a surplus of workers for any industry wages always drop.

Quebec’s construction commission is arguing that the strike is illegal because it violates the worker’s collective agreement.

In my opinion that doesn’t make sense to include in a collective agreement to allow for the flooding of the of the job market if the end result is going to mean a decrease in wages.

This is another example where the state, in this case, the province supports the profiteers to get work done cheaper thereby increasing their profits.

As of Monday, June 18 the Construction cranes are at a standstill on the construction site of the new Champlain bridge in Montreal and it is estimated that over 2,000 operators walked off the job on Monday. The sacrifices that these workers do today will benefit the workers of tomorrow.

Canadian Federal Politicians Arrested at Anti-pipeline Protest in Burnaby B.C.

By André Faust

What is all the huff about? The Canada east pipeline project at least for the time being. That has caused a problem for Alberta, because at the moment for all practical reasons Alberta is landlocked to get its bitumen out to the European Market.

While the Canada East pipeline project was a lost, the focus is on Kinder Morgan’s Trans Mountain Expansion Project, which when completed would allow bitumen to reach the European Markets.

In anticipation of protests against the Trans Mountain Expansion Project, Kinder Morgan has successfully attained an injunction to prevent protestors to protest with a certain distance of its gates and operation. Alberta in a Trumpian style has threatened BC that if they also prevent the pipeline from crossing their border, Alberta will place trade sanctions against British Columbia (BC). That’s real Canadian like eh! Province pitted against province.

On Friday, March 23, 2018, Green Party Leader Elizabeth May and NDP MP Kennedy Stewart along with a hundred others arrested and placed into custody for breaching a court-imposed protest-free zone.

At this time it is not known if at this time if the charges of civil contempt have been withdrawn against May and Stewart.


 

Climate Change Fact or Myth With Andre Faust

Over the course of the last 5 years, December, January and February have rather kind compared to 15 years ago. What we are currently seeing is erratic changes, one day above freezing in a matter of hours freezing, and it seems to be oscillating back an forth. Next year will tell a story, This year followed closely the same pattern of Snow, rain, freezing sequence. As of today probability of a spring flood of the Saint John River is highly unlikely.