RE:RE:RE:RE:RE:RE:RE:RE:It's different this timeTorontojay wrote: Good point regarding the impact carbon tax has on food inflation.
A while back I decided to Google what the impact carbon taxes had on inflation. I wasn't surprised to read that according to several sources, carbon taxes had just a 0.1% impact on inflation. I was not surprised because I knew this was an outright lie and typical propaganda mainstream media gibberish. You don't have to be an economist to figure this one out. Go to your local farm and ask them directly what kind of impact it has had on their costs of production. Everybody likes to pass the buck to the next guy. This means your supermarket is also passing the buck to the end consumer.
Canada should simply drop the carbon tax and inflation will start to ease. The next thing that needs to happen is either home prices need to come down or mortgage interest costs need to come down. It's a game of cat and mouse. What's going to crack first, the housing market or the BoC policy rate? People forget that in the past the Fed pivot occurs after the recession has already started and not the other way around. It's not as simple to say that interest rates will fall and the economy and housing market will just bounce right back up.
Interest rates do matter.
liberal plan was to flood canada with low skill immigrants to reduce wages.
It backfired because they didn't take into account of creating housing shortage, choking healthcare, and other public services. Housing isn't a federal matter trudough said but poll is sliding for the liberal. Politicians gonna do what politicians need to do regarding sliding poll support.
2024 is election year in the US. Politicians gonna do what politicians gonna do regarding attracting vote. We might see some easing on interest rate temporaily. Biden basically ran out of ammunition to bring oil price down. SPR is down to 48% of peak inventory
Weekly U.S. Ending Stocks of Crude Oil in SPR (Thousand Barrels) (eia.gov) Iran and Venezuela sanctiion eased or lifted. WTI is still 85+, touching 90 currently. OPEC has the upper hand here going forward. Maybe interest rate pause or cut, and more SPR releases are only tool the fed has left. Maybe going to war could be the big hammer on inflation.
just my thought