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| So it took our highly qualified managers of our central bank which serves the people approximately 14 years to figure this out? When do us citizens get to start firing these clowns. Being a democratic society we should most definitely have a say in the most important entity serving the citizens.
Apparently the BoC just figured out that people who piled on massive debt since 2008 because of cheap interest are now going to have to start paying it back at a higher cost. But the good news it won't impact the economy apparently, even though cheap debt will no longer be cheap, the BoC believes everyone will keep borrowing at the same and greater levels to keep expanding personal debt to drive consumption. Because consumption drives demand so naturally if cheap debt drove excessive consumption for 14 years then more debt will be needed to drive more consumption. Otherwise people in debt start paying back debt and that earned wealth flows to the bank and not into the economy.
Looking forward to the next highly educated statement from the BoC saying that they may see a transitory slow down in the economy as they identify less debt is being taken on than the past 10 years. And that reduction in debt expansion may even shock the BoC when less dollars are thrown at housing. | |
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Canadian interest hits trigger rates
