This is exactly what the CPC Leader has been saying. Will the establishment press and Trudeau government apologize for claiming he was ‘undermining’ the Bank of Canada now that he’s been proven correct?
For quite some time, CPC Leader Pierre Poilievre has been criticizing the Bank of Canada for enabling the massive overspending of the Trudeau government.
As Poilievre explains it, the Bank of Canada printed too much money, and the government of Canada spent too much money. Since there wasn’t a concomitant increase in the supply of goods, inflation ran rampant.
Poilievre also repeatedly pointed out that the head of the Bank of Canada – Tiff Macklem – was repeatedly wrong about inflation.
Macklem and the BoC said deflation was the real threat, then said inflation would be minimal, then said it would be ‘transitory,’ and only after wasting far too much time did they finally wake up to the seriousness of the situation.
Since most of us would be removed from our jobs if we failed repeatedly, Poilievre said the head of the Bank of Canada should be no different.
In response, the Liberal government and the establishment media slammed Poilievre, claiming he was “undermining confidence in Canadian institutions.”
But now, Poilievre has been decisively vindicated, as even Bank of Canada officials are admitting that fiscal and monetary stimulus went too far, and led to higher inflation:
“Bank of Canada deputy governor Paul Beaudry said in hindsight, governments and central banks should have withdrawn stimulus measures earlier as economies recovered from the COVID-19 pandemic, which likely would have kept a lid on inflation.
In a speech at the University of Waterloo on Tuesday, Beaudry said a faster global withdrawal of fiscal and monetary stimulus during the recovery from the pandemic would have likely resulted in lower inflation.”
““Bottlenecks occurred in these sectors because of demand surges driven by a combination of stimulus policies, shutdowns and re-opening, as well as by consumers shifting away from services.”
The deputy governor said the stimulus delivered simultaneously by countries through government support programs and lower interest rates had spillover effects globally and contributed to supply chain bottlenecks.
“It’s likely a somewhat faster global (stimulus) withdrawal process could have made all countries better off,” he said.”
Beaudry added that stimulus programs helped the economy bounce back, and few dispute that the initial emergency stimulus was necessary, especially since the government had basically ordered companies to shut down.
The problem in Canada has been that the BoC and Liberal government just kept on printing money and spending money, even as lockdowns were lifted.
So, with even the Bank of Canada admitting that they made a serious mistake, and admitting that the federal government went too far in terms of spending, Pierre Poilievre has even more credibility when it comes to fiscal and monetary policy.
Canadians have a choice between a Prime Minister who bragged that he “doesn’t think about monetary policy,” and Pierre Poilievre – who was right where the Bank of Canada was wrong.
Photo – YouTube