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When Justin Trudeau handpicked Tiff Macklem as the new Governor of the Bank of Canada, he knew that Tiff would be the best friend real estate speculators ever had and the worst enemy to middle class Canadians struggling to afford a home of their own. https://ca.reuters.com/article/businessNews/idCAKCN24H2Z5 /2
What Justin, @Bill_Morneau & Tiff all know is that housing is a cornerstone of the Canadian economy & therefore encouraging speculators to inflate house prices and getting families to take on more debt in the form of mortgage debt is their top priority /3
When asked why he was encouraging Canadians to take on even more debt when Canada already has the highest household debt levels in the world. Tiff cited jobs but failed to mention job losses are concentrated with low wage earners who don't have mortgages
Tiff Macklem's and Justin Trudeau's call for Canadians to take on more mortgage debt may cause a short term frenzy of inflation in Canada's largest and hottest housing markets but it will leave millions of Canadians behind and millions more with crippling debt levels /4
When Macklem's predecessor retired at the beginning of June, Stephen Poloz and Senior Deputy Governor Carolyn Wilkins painted an optimistic picture of an almost V shaped recovery /5
Macklem on the other hand has painted a very dark and negative outlook to justify his telling Canadians to go out and borrow because interest rates will stay low for a very long time (watch the full 12 minute interview ) /6
and now you know why Justin Trudeau passed over Bank of Canada Senior Deputy Governor Carolyn Wilkins in favor of Macklem who is a life long academic and central banker.
oh, and some folks call Canada a banana republic (for very good reason) https://twitter.com/inklessPW/status/1283934408165253121
and if blowing Canada's real estate markets into the largest bubble since 1989 Japan is not enough https://www.forbes.com/sites/johnfvail/2017/05/12/what-was-japans-bubble-like-in-1989/#4413e674f70e
The Bank of Canada Governor, Tiff Macklem even used Japan as an example to follow in his discussion of additional tools including Yield Curve Control. Yeah, he actually used Japan as an example. #YCC
but even worse than that, he admitted that they actually don't have a clue and are flying blind "there's a lot we don't know" but we do know interest rates will be low for a very long time
like most politicians and members of the intelligentsia, it's obvious that Canada's Central Bank Governor hasn't had to buy a house in Toronto, Montreal or Vancouver or done his own grocery shopping (Macklem clearly has no contingency for inflation, it's not even on his radar)
To better understand what Macklem is doing, here's a quick read just published by Rabobank's Michael Every https://research.rabobank.com/markets/en/aboutus/teamfmr/michael-every.html
"isn’t it easier to pretend our economic system works and just blow an endless stream of asset bubbles" https://www.docdroid.net/uhEUtyF/global-daily-by-michael-every-17-july-2020-rabobank-pdf
"isn’t it easier to pretend our economic system works and just blow an endless stream of asset bubbles" https://www.docdroid.net/uhEUtyF/global-daily-by-michael-every-17-july-2020-rabobank-pdf
