2022 inflation tax officially set again to only 2%

[ajl]

After a blast of hyper inflation in 21 next years inflation tax is set back to 2%. If they are serious then you would expect interest rates to rise. Back in 1980 they did see inflation as a serious problem and you know what happened next. How high would rates rise to get inflation back down to only 2% this time. Likely only 1 -2%. Last years hyper inflation really messed with marketing as that is the major reason commodities set all time highs. It is also the major reason why fertilizer price have risen. Fundamentally canola would have risen to 15 or so had it not been for hyper inflation. Will be interesting to see if they actually do something about inflation this time. Central bank real purpose for existence is to get inflation as high as they can without seriously destabilizing the economy in order to promote the interests of government. Not the BS reasons given in the financial press.

[jazz]

Control inflation with lockdowns, restrictions, social credit score, CBDC and UBI.

Great reset.

[TOM4CWB]

After a blast of hyper inflation in 21 next years inflation tax is set back to 2%. If they are serious then you would expect interest rates to rise. Back in 1980 they did see inflation as a serious problem and you know what happened next. How high would rates rise to get inflation back down to only 2% this time. Likely only 1 -2%. Last years hyper inflation really messed with marketing as that is the major reason commodities set all time highs. It is also the major reason why fertilizer price have risen. Fundamentally canola would have risen to 15 or so had it not been for hyper inflation. Will be interesting to see if they actually do something about inflation this time. Central bank real purpose for existence is to get inflation as high as they can without seriously destabilizing the economy in order to promote the interests of government. Not the BS reasons given in the financial press.

BOC has had the 2% inflation rate target for many years... had... like the US Fed said they would allow 'transitory' inflation to go higher... now last week following the Fed, the BOC said they were taking off this 'transitory' 2% definition... which means less QE and more restrictive junk bond buy back credit being injected into the monetary reserve.

Don't really expect more than 'lip service' to be paid to these 'nebulous' central bank reserve adjustments... as China further monetary policy destabilizes RE Real Estate defaults.... A tangled web to say the least... transparency is a smoke screen...'RE; "A house of cards"... interwoven confusion...

Cheers

[Oliver88]

Control inflation with lockdowns, restrictions, social credit score, CBDC and UBI.

Great reset.

I doubt most millennials could handle a 2% interest rate increase.

[Old Cowzilla]

Lot's of folks melting plastic these days at 2% per month.

[ajl]

The fork in the road right now is this: either allow interest rates to rise now or lose the currency and end up as a cold venezuela. The fact that the target is set at 2% and not 5% means that somebody in government is aware of this reality. This was the part that many missed back in '79. They made the right choice then and allowed rates to rise in order to preserve the dollar. The powers that be did not care of course if the Clark government of the day survived so they went all in on the necessary rate increases. Today we have the globalist stooges in power, so now the game is much trickier. A 2% increase right now would flat line what is left of the canuckistanian economy so yes it will be enough to arrest inflation. Upside is that it would get the price of fertilizer under control.

[shtferbrains]

Last week in the house of commons our finace minister/ news reporter confidently defended deficit financing as the way to improve our economy.
If they continue to print money at never before seen rates to inject into the economy to pay for programs that have no trailing economic impact can we expect anything other than reduced buying power for our dollars?

This is a history lesson.

I just think Argentina.

[TOM4CWB]

I doubt most millennials could handle a 2% interest rate increase.

The 'Pandemic' has caused ALL most everything to be:

Allmost;

'TO BIG TO FAIL'.

Without a shot... China won control of the "new world order"... they [China] are now practically exempt from anything that annoys/frustrates their stated 'national best interests'... Peril to all who squander 'Good Will' "Resistance is Futile". Putin is also a master rebuilder... The [USSR]Russian China alliance "expedient".

Cheers

[bucket]

So after the fertilizer price increases , they will only rise 2 % off the highs or 2% off the realistic price of 600 per tonne for urea that it was at last June.

Setting inflation controls after the price increases isn't going to help????? Is it??

[TOM4CWB]

So after the fertilizer price increases , they will only rise 2 % off the highs or 2% off the realistic price of 600 per tonne for urea that it was at last June.

Setting inflation controls after the price increases isn't going to help????? Is it??

You didn't get the memo?

Everything before 'now' is 'transitory' and included in the 2% rate.

BTW... transitory is always 'transitory'... as in QE... adjustments as "ARE" 'required' RE: "Fluid Monetary Policy" is standard operational procedure.

[ajl]

Another thing about hyper inflation is that it is a giant pay cut to those silly enough to keep working through it. It is amusing to read about the so called shortage of workers these days. If inflation is 20% and your wage does not change, you just got a big pay cut. Given that labor is so much cheaper than a year ago, it is little wonder that there is a shortage of labor. Duh. Employers have counted on this scam to manage their labor costs for years already. This is also one of the reasons help wanted ads get ignored. We offer a competitive salary. Competitive with whom? Employment ads should always contain a compensation figure or at least a range.