The Canadian central bank lost $522 million in Q3 of this year.
For the first time in history, the Bank of Canada lost money.
It’s a stunning ‘achievement,’ given the fact that the Bank of Canada can literally create money out of thin air.
Yet, a massive increase in ‘money printing,’ combined with rapidly rising interest rates, has led the BoC to lose $522 million in the third quarter of 2022:
An unproductive economy
The BoC’s unprecedented loss is a symptom of a broader problem with our economy.
Despite a massive amount of money creation and high levels of government spending, Canada’s economy remains in a weak state.
Per-capita GDP growth is lagging, and inflation is making life more and more expensive.
Any ‘growth’ is largely illusory, as it is based on rapid population growth through immigration, government spending, and higher and higher levels of borrowing, rather than actual productivity increases.
This is an unsustainable situation, yet the Liberal-NDP Pact continue to double-down and triple-down on the high tax, high spending, anti-investment policies that have brought Canada to this point.
And as long as the Bank of Canada continues to be led by people who got everything wrong over and over again, there’s no reason to expect there will some sort of epiphany or return to responsible policy.
Spencer Fernando
Photo – YouTube
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