So inflation Canada for January is down to 2.9%Down from 3.4% in December. Looking beneath the surface its not all as rosy as it seems. Typically, consumer spending recedes in the month of January. With much consumer spending attributed to credit card usage and with debt spending now attributed to the lions share of quarterly GDP, a recession could be materializing.
When you consider monetary expansion (printing money) and credit spending as the primary source of inflation, then the January drop in inflation is largely attributable to the drop in consumer spending and credit card usage.Savings figures releases show that savings are at all time lows so whats being saved is what's left on credit nearing the maxed out point for food and neccesities. Its not that spending is down due to a savings mindset among consumers.
Its a worse economy picture than the vibrant one government propagandists keep handing us and want us to blindly believe.
Nonetheless, a lower inflation stat purposely manipulated or not is a green light for government spending in Canada and the US. A green light Canada welcomes to keep in step with the vastly greater problems facing the US calling for what will be a renewed QE. A renewed QE when the spending ramps up with nothing to stop it followed by an eventual tsunami of inflation. Nothing has changed on that front. Nothing! Golds time is coming after the lag. The time it takes for inflation to work through and into the system.
Do not be fooled or swayed by this minor inflation blip on the screen.