Tag Archives: canadian monetary policy

Canadian Election: What did Stephen Harper Know About Interest Rate Cuts?

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In the CBC interview with Peter Mansbridge on Tuesday night, Stephen Harper disclosed that the Bank of Canada would be taking action with interest rates as part of an effort to help with the international economic situation.

This announcement is unprecedented.  My question:  should it be considered illegal and a breach of trust?

Why the question?  It’s of the utmost importance that at least two critical components related to the Canadian banking system are preserved in order to ensure the integrity of our financial system:

  1. Actions to be taken by the Bank of Canada are taken independently of government involvement or knowledge;
  2. If it happens that any officials become aware of such actions, they do not disclose them to the public, especially those who could profit from such actions.

It’s the second item that we should all be concerned about.  By disclosing that the Bank of Canada would take action, which it did yesterday by dropping the prime half by 50 basis points, approximately 10 hours after Stephen Harper’s statement, international traders would have been able to profit from this comment, whereas the Canadian public would not have the resources to do so.

This breach of confidentiality seems to be unprecedented and I believe a full investigation should be issued against Stephen Harper by the RCMP.  This is not something to be taken lightly because as Canadians suffer from tighter mortgage rates (which are unjustified), job losses (because of Conservative neglect) and other financial dire straits (starting with changes to income trust regulations), friends of Stephen Harper are profiting from shifts in global interest rates.

What do you think?

Michael Moore: The Rich Are Staging A Coup Right Now

Full story here .

Michael Moore has pretty much nailed the reasons why we have to stop spending taxpayer money on financial bailouts:

Falling for whom? NOTHING in this "bailout" package will lower the price of the gas you have to put in your car to get to work. NOTHING in this bill will protect you from losing your home. NOTHING in this bill will give you health insurance.

In fact, he points out that most of the core issue of mortgage defaults is related to people who can’t pay their medical bills.

Aaaah!!  It all makes so much more sense now.  No wonder we haven’t experienced this problem yet in Canada.  We don’t have outrageous medical bills in Canada because we have a public health care system.  We aren’t getting fleeced by privately-run institutions that won’t accept us if we don’t have a credit card.

Thank you Michael.  Things make a little more sense now.  Really.

As you can see, this spells out why the components of the financial crisis pose a critical election issue for Canadians (or at least they should be) for the following reasons:

  1. Our public-run health care system is keeping our economy stable.  Privatizing it (like the Cons would do if they got a majority, based on Tony "Dr. Death" Clement’s experience at the provincial level).
  2. Canadian banks don’t have to worry about toxic debt waste on their books because Canadians aren’t being forced to default on their loans.
  3. Canadian taxpayers should NOT be funding any bailouts from federal bank reserves because it’s not our problem.  Paying MBAs on Wall Street to wreak havoc on the largest economy in the world is not my idea of sound monetary policy.
  4. If you’re going to spend OUR money, spend it on national day care and peace-keeping missions.

I could go on, but you get the idea.