By Henry McRandall
As he hinted last week, the Bank of Canada’s disastrous governor, Stephen Poloz, today increased the key interest rate BY HALF – from 0.50% to 0.75% – in a cynical move that serves no other purpose than to redistribute even more income from rank-and-file front-line workers who create ALL WEALTH to the parasitical and predatory Ownership Class that has already stolen so much from ordinary Canadians.
And if Liberal Prime Minister Justin Trudeau is at all sincere in his progressive rhetoric, he would immediately fire Poloz and/or begin the process of abolishing the central bank and returning control of interest rates and the money supply to the elected representatives of the people.
But that is not likely to happen because Justin Trudeau, just like Stephen Poloz, is both a part of and a representative not of ordinary Canadians but of the psychopathic Top1% whose unrestrained and unethical corporate-capitalist excesses are now close to plunging the nation into a very severe recession.
If questioned about this unjustifiable increase in interest rates and the devastating effect it could have on so many hard-working families, Trudeau will no doubt flash his “charismatic” smile – OR SMIRK – and begin spewing a torrent of pretty words about his government’s alleged commitment to the interests of ordinary Canadians.
But Trudeau’s “leftish” rhetoric is nothing but a hypocritical smokescreen intended to conceal his government’s true but covert intention to benefit the Ownership Class even more – and entirely at the expense of those ordinary Canadians for whom he so routinely sheds crocodile tears.
Trudeau will try claiming that the Canadian masses have now fully recovered from the horrid worldwide recession caused almost a decade ago by the gangster banksters and that higher interest rates are necessary to prevent the economy from “overheating” and sparking a dangerous increase in inflation.
But this lame defense of such a hypocritical move by the Bank of Canada will be nothing more and nothing less than a litany of lies aimed at camouflaging Canada’s real and worsening economic woes.
Let’s contrast some of the fairytales being marketed by the Trudeau government, the corporate mainstream media and even the publicly-owned CBC and Radio-Canada with the actual reality by using the system’s own “facts” and “figures” against it and ponder the known and likely real effects of this sleazy move by Stephen Poloz and the Bank of Canada:
First of all, the undeniable result of this unjustifiable hike in interest rates is that the average working-class or middle-class Canadian family – the Other99% – will have to shell out an extra $342 this year just in interest payments on their already-existing mortgage and consumer debtloads. And for the so-called Ownership Class – the Top1% – or the “rentiers” – (which the Cambridge English Dictionary defines “persons whose money comes from investments and who therefore do not have to work”) – it will mean an additional unearned windfall, increasing the average income of the already-pampered families in the Top1% by an average of $34,000 a year – a windfall that will actually be taxed at a much lower rate than is paid by people whose income comes from actually working and contributing to the national economy. Through this morally bankrupt increase in the key interest rate, the Bank of Canada is effectively STEALING almost $350 from every poor, working-class and middle-class Canadian family – the Other99% – so that it can CORRUPTLY LAVISH an average – and a grossly under-taxed average – windfall of almost $35,000 on every family in the Top1% or so-called Ownership Class
Poloz and the Bank of Canada falsely and fraudelently assert that this increase in interest rates is “necessary” to prevent a possible increase in inflation at some undetermined future time. A highly speculative assumption, to be sure, and one that is certainly not supported by any credible evidence whatsoever. For example, Poloz and senior BoC deputy governor Carolyn Wilkins attempted at their news conference this morning to cite last month’s drop in unemployment as one economic factor justifying the interest-rate increase. But it is almost certain that when Statistics Canada – or any other entity – finally gets around to analyzing the alleged job-creation totals, it will find that a very large portion of last month’s new hires were for student summer jobs largely financed not by the actual private-sector employers but by federal & provincial government student job creation programs. When the summer ends and those students go back to school, all those “newly-created jobs” will also end. It’s just smoke-and-mirrors.
An Ipsos survey published in May, 2017, found that more than half of all Canadians are just $200 away from insolvency at the end of each month and that one in ten Canadians have less than $100 left at the end of each month. Hardly the kind of findings that would suggest Canadians are swimming in disposable income; and far more of a revelation that Canadians are close to drowning under existing mortgage and consumer debt. In fact, also according to Ipsos, 31% of Canadians don’t have a high enough after-tax income to fully cover their basic living expenses.
According to Equifax credit reporting agency, consumer debt in Canada rose six percent over the course of the past year to a record $1.718 TRILLION and a record 167.3% of adjusted household disposable income – a level many mainstream economists are already decrying as “uncharted territory.”
Over the course of the past year, average adjusted household disposable income grew by 1.1% while average household credit market debt grew by 1.2%, a clear indication that this paltry increase in average household disposable income is not even high enough for ordinary Canadians to even maintain their current standard of living – yet alone improve it – without having to borrow money.
A major change has occurred in recent decades that skews the historic boom-and-bust pattern of the so-called “free market” business cycle. Prior to 1975 and the diabolical adoption of neoliberal/neoconservative economic policy across North America and western Europe, a recession was typically followed by a recovery that was long enough and strong enough for the middle class and the working class to largely recover from the unfortunate effects of the most recent economic downturn. But that is no long the case. While the Ownership Class has done marvellously well since plunging almost the entire world into a steep downward spiral about a decade ago, for the Other99% there has been almost no recovery whatsoever. And that, increasingly, has been the pattern since the global masses were first pissed on by the satanic public policy scam of the past three and a half decades – trickle-down economics, Reaganomics, Thatchernomics, Mulroneynomics, supply-side economics or whatever deceptive name the puppet political prostitutes of the Top1% and the presstitutes of their mainstream media choose to apply to the most massive embezzlement – and there have many massive embezzlements over the course of 500 years of corporate capitalism – ever perpetrated upon the masses.
Between 1947 and 1975, annual Canadian unemployment rates almost NEVER exceeded six percent and, as recently as 1962, averaged only 2.3%. But since 1976, Canada’s average annual unemployment rate has ALMOST NEVER been anywhere near as low as six percent. The recessions have continued coming and it has always been the working class, and most recently also the middle class, who have borne the brunt of Ownership Class greed and ineptitude. The big difference, however, is that the recessions now have become so frequent, so lengthy and so deep and the so-called economic upturns so slow and so weak that the masses no longer have any time to recover before they’re clobbered yet again.
Stephen Poloz, Carolyn Wilkins and the other governors of the Bank of Canada are either too stupid and/or too corrupt to recognize this tragic reality and to pursue the dual mandate of Canada’s central bank – to maintain a healthy and viable balance between inflation and unemployment – and to pursue that mandate with integrity and diligence. The current crop of BoC governors have clearly abandoned their legislated mandate and are now controlling the country’s interest rates and money supply in a manner that serves exclusively the vested interests of the Top1% at a very high and harsh cost to all other Canadians.
It’s time to fire this entire crew of gangster central banksters, abolish the Bank of Canada and transfer full control of the country’s interest rates and money supply to the people Canadian voters elect to manage the economy and who can ultimately be held accountable for their corruption, their incompetence and their malfeasance.
(You can also follow Henry McRandall on Twitter – @HenryMcRandall1 )