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Bank of Canada Raises Rate
May 12, 2022
11:18 pm
RetirEd
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Why do people keep calling Pierre Polievre "Poliver?" Even during the televised debates? Is that some sort of in-joke insult? I can only think of the Game of Thrones books...
RetirEd

May 13, 2022
12:17 am
cgouimet
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RetirEd said
Why do people keep calling Pierre Polievre "Poliver?" Even during the televised debates? Is that some sort of in-joke insult? I can only think of the Game of Thrones books...
RetirEd  

Many don't take the time to to know how to properly pronounce surnames or place names. Respect, ignorance, who knows ...

And for some reason many francophones do the same thing when they speak in English. For example Québec Premier Legault will say "Kébec" when speaking in French and immeditely follow that with "Qweeebec" when speaking in English.

As a francophone, it drives me nuts.

CGO
May 13, 2022
4:34 am
canadian.100
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RetirEd said
Why do people keep calling Pierre Polievre "Poliver?" Even during the televised debates? Is that some sort of in-joke insult? I can only think of the Game of Thrones books...
RetirEd  

His name is spelled Poilievre not Polievre.
I also noticed that Dr. Lewis called him Mr. Poliver in the debates.

May 13, 2022
4:49 am
dougjp
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canadian.100 said

His name is spelled Poilievre not Polievre.
I also noticed that Dr. Lewis called him Mr. Poliver in the debates.  

Nothing surprising about it. English (only) speaking people have difficulties pronouncing any name with a bunch of vowels sprinkled together.

Why is 'abbreviation' such a long word?

May 13, 2022
5:45 am
cgouimet
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dougjp said

Nothing surprising about it. English (only) speaking people have difficulties pronouncing any name with a bunch of vowels sprinkled together.  

None of my anglophone friends and business colleagues in Canada, USA and UK ever had trouble with that once they listened to the correct pronunciations ...

CGO
May 13, 2022
8:44 am
AllanB
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It's been widely reported in the past central banks may not be necessary. I'm for abolishing this institution like the senate if they are not independent. We shouldn't have to pay billions to maintain them if that's the case. Nobody expected them to jack up rates to 10% this past year when markets were hot, demand rising supply tight. It was a no-brainer to raise rates at least a quarter point in one two or three settings. Not even a quarter? That makes it obvious to me they are not independent. The governor should have done it or forced the PMs hand. Give me a break if our economy is so weak that a quarter point hike could ruin it we have bigger problems. I'm not buyin' the wall street realtor bluff. Enough is enough these guys are interfering way too much imo.

May 14, 2022
4:53 am
RetirEd
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First, my apologies for getting Poilievre's spelling wrong. But "Polliver" is not a pronunciation error!

Then:

Poilievre's recent performances make it pretty clear that he understands nothing (or at least a lot less than my humble self) about cryptocurrency or the Bank of Canada. He's just farming anger for political ammunition.

I've still not really sorted out (as a mathematician) why higher interest rates don't drive inflation up, not down. My most likely suspect is that it's a lot harder for employees to force incomes up than for vendors to increase prices. The worker shortage and COVID-19 benefits gave consumers a boost that inflation is "trying to take back." (Not that inflation has any more intentionality than evolution)

I am still very suspicious of the effects of widespread consumer credit on our economy. So much of our output is being sucked up in debt servicing, savings are rare (well, not among us here) and goods become junk needlessly. (Just look at the sudden recognition that used cars are precious today!)

RetirEd
(An Anglophone from Quebec)

May 14, 2022
6:11 am
Bill
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Worker scarcity means employees, not employers, now and for the foreseeable future hold the power (e.g. companies are having to rescind back-to-the-office directives as many employees are simply refusing), thus their wage demands will have to be met, thus no option but for prices (inflation) to soar in response.

May 14, 2022
12:45 pm
HermanH
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That worker scarcity/power imbalance is likely temporary. One astute HISA forumite noted that workers realized that they can do their jobs remotely. Once employers realize the same, they will see that they can hire remote workers on the other side of the world even more cheaply.

May 14, 2022
1:33 pm
Bill
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Maybe, in certain fields of work, and AI is increasingly replacing workers too. But lots of employee shortages already now are in the jobs that can't be done remotely and those still are in the majority, from what I've read. It's another reason immigration is being ramped up too, there aren't projected to be enough working bodies here.

May 14, 2022
2:45 pm
savemoresaveoften
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White collar employee shortage will be solved by getting more done by each ‘remaining’ employee. The employee that still has a job will get paid more, the lesser guy who demand same pay but not able to deliver will be out the door. The lesser guy will have to settle for less at the end. The situation will sort itself out, may take a while.
As for blue collar, there is a real floor the min number of workers required I imagine.

May 14, 2022
5:20 pm
mechone
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RetirEd said
First, my apologies for getting Poilievre's spelling wrong. But "Polliver" is not a pronunciation error!

Then:

Poilievre's recent performances make it pretty clear that he understands nothing (or at least a lot less than my humble self) about cryptocurrency or the Bank of Canada. He's just farming anger for political ammunition.

I've still not really sorted out (as a mathematician) why higher interest rates don't drive inflation up, not down. My most likely suspect is that it's a lot harder for employees to force incomes up than for vendors to increase prices. The worker shortage and COVID-19 benefits gave consumers a boost that inflation is "trying to take back." (Not that inflation has any more intentionality than evolution)

I am still very suspicious of the effects of widespread consumer credit on our economy. So much of our output is being sucked up in debt servicing, savings are rare (well, not among us here) and goods become junk needlessly. (Just look at the sudden recognition that used cars are precious today!)

RetirEd
(An Anglophone from Quebec)  

Simple money has been too cheap for too long.
The higher cost of money reduces your purchasing power — what you can afford to buy — and the BOC is effectively making you buy less. Supply and Demand is driving inflation

May 14, 2022
7:48 pm
BlueSky
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AllanB said
It was a no-brainer to raise rates at least a quarter point in one two or three settings. Not even a quarter? That makes it obvious to me they are not independent.

It is a known fact that Chrystia Freeland gave the Governor of BoC its mandate when she took office following the last federal elections.

May 14, 2022
8:06 pm
AllanB
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Can someone explain QE tapering rolloff how does it work they print money to buy bonds to increase liquidity then sell those bonds back into secondary to tighten or do they just make it disappear adding to permanent increase in money supply? BoC balance sheet if they reduce where do the bonds go

May 15, 2022
12:57 am
Norman1
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Bank of Canada can sell the bonds to fill some of the normal demand for government bonds from investors, like pension funds and ETF's.

The bank has been reinvesting the money returning as some of the bonds have been maturing. Bank can stop rolling over matured bonds.

The printed money for QE eventually comes back to the Bank of Canada along with interest.

May 18, 2022
7:50 am
cgouimet
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With April 2022 Inflation @ 6.8%/Yr, a BoC increase of 0.5% on Jun 1 almost guaranteed now ...

CGO
May 18, 2022
10:55 am
Dean
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.
. . . and more increase are sure to come, after that

    Dean

sf-cool " Live Long And Prosper " sf-cool

May 18, 2022
11:50 am
lifeonanisland
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Dean said
.
. . . and more increase are sure to come, after that

    Dean

  

Agreed, Dean. Which raises the most important question: how long to juggle and wait? This is my dilemma. Higher rates coming. But seems likely that recession will result. Will BoC and US Fed stick with the program and rip the bandage right off? Or will they panic 9 months from now, and start easing rates again? Looking for a crystal ball on ebay right now...

May 18, 2022
12:18 pm
Dean
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lifeonanisland said

Agreed, Dean. Which raises the most important question: how long to juggle and wait? This is my dilemma. Higher rates coming. But seems likely that recession will result. Will BoC and US Fed stick with the program and rip the bandage right off? Or will they panic 9 months from now, and start easing rates again? Looking for a crystal ball on ebay right now...  

Whatever happens, we'll know things have peaked when the BoC & the Feds stop raising their rates. It's anyone's guess, when that'll happen.

Good Luck with that Crystal Ball. sf-wink

    Dean

sf-cool " Live Long And Prosper " sf-cool

May 18, 2022
1:13 pm
AdrenalineTrade
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Gas is hitting 232.5 per litre here on Vancouver Island. It is getting insane, very quickly. The BOC has no choice but to continue to aggressively hike. If they start cutting rates into this inflationary climate, they will destroy the currency.

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