Opinion
PM Trudeau’s “Monetary Policy” gaffe could cost the Liberals the election. But will it?
Back in 1993 things were not going well for Canada’s Progressive Conservative Government. Brian Mulroney’s government had served 2 mandates and Canadians were clearly ready to move on. The Conservatives decided Kim Campbell would be the best leader to bring a renewed excitement to their reelection hopes. Campbell was a fresh face and that was important to the party which was losing support quickly. She was also from Vancouver, which was a nice change for the party normally represented by leaders from Ontario or Quebec. Even more importantly, when she won the leadership she would become the first female leader of a country in North America. As Canadians would discover just a few months later though, no one cared about any of that. That campaign did not go well. The Conservatives not only lost. They were decimated right out of official party standing. The governing party won just 2 seats in the entire nation (Jean Charest in Quebec, and Elsie Wayne in New Brunswick). Kim Campbell did not even win her own seat. Henceforth the Reform Party represented the Conservative voice for the next two elections.
For one reason or another, Canadians simply did not connect with Kim Campbell. One of the biggest gaffes of that election campaign came when a reporter pressed Campbell for details on an issue and she replied “The election is not a time to discuss serious issues.” That was the wrong answer. Despite what she may have truly meant, all Canadians heard was “I don’t need to explain anything to you.”. That was exactly the wrong thing to say at the worst possible time.
Why bring this up now, 28 years later? Well Prime Minister Justin Trudeau has made his first major gaffe of this election campaign. And for those who care about monetary policy (which should be everyone who pays taxes and works or has savings, etc) it’s very likely as stunning a statement as Kim Campbell made three decades ago.
First some background. In 2021, Canadians find themselves in an astounding situation. When the covid pandemic hit last year governments all over the world shut down their economies for weeks, and then months. Government stimulus was the order of the day and Canada’s was among the most generous in the world. People were paid to stay at home. Businesses were paid to continue to provide jobs to people working from home. Landlords were paid to keep tenants afloat. All in all, government money is being spent at unprecedented rates.
To pay for all this the Trudeau government attempted to pass a bill through Parliament which would allow it to raise taxes at will without a budget and without even coming back to ask Parliament to present a plan or ask for approval. That didn’t go over so well. But instead of turning back the taps, or introducing a budget with higher taxes the government worked out a plan with the Bank of Canada. How this works basically is that every month the Bank of Canada prints out a few billion dollars, and the government uses that to pay for all the stimulus they want. Over the first year of covid that totalled about 350 Billion dollars!
The Bank of Canada has left the core function expressed in its mandate in order to print all this extra money. Despite it’s best efforts to decouple inflation from the printing of extra money, it’s not working. Canada’s inflation rate has been blowing through the target of 2% month after month after month.
This is the the mandate as expressed by the Bank of Canada itself on its website.
The Bank of Canada is the nation’s central bank. Its mandate, as defined in the Bank of Canada Act, is “to promote the economic and financial welfare of Canada.” The Bank’s vision is to be a leading central bank—dynamic, engaged and trusted—committed to a better Canada.
The Bank has four core functions:
- Monetary policy: The Bank’s monetary policy framework aims to keep inflation low, stable and predictable.
- Financial system: The Bank promotes safe, sound and efficient financial systems within Canada and internationally.
- Currency: The Bank designs, issues and distributes Canada’s bank notes.
- Funds management: The Bank acts as fiscal agent for the Government of Canada, managing its public debt programs and foreign exchange reserves.
The Bank of Canada’s mandate is expiring at the end of this year and the new mandate could change. Some are saying the Bank should continue to print money at an unprecedented rate and Canadians will learn to live with high inflation. Considering this drives up the cost of everything from our homes and vehicles, to the food we eat there could hardly be a more important issue. That’s why PM Trudeau’s response to this question in Vancouver this week is so stunning. When asked if he would consider a higher tolerance for inflation going forward here’s what he said.
Reporter Question about the renewal of the Bank of Canada mandate due at the end of 2021:
-Do you have thoughts about that mandate? Would you consider a slightly higher tolerance for inflation?
Prime Minister Justin Trudeau: “When I think about the biggest, most important economic policy this government, if re-elected, would move forward, you’ll forgive me if I don’t think about monetary policy.”
Of course this spurred an immediate reaction from the opposition Conservatives. That oppostion is perhaps best summed up in this address from Pierre Poilievre.
The question is, will Canadians punish Prime Minister Trudeau for either lacking basic economic knowledge, or not caring about it? Kim Campbell failed to win her own seat, but she did not seem to connect well with Canadians at all even before that election campaign. Justin Trudeau has so far been immune to gaffes. Even though he’s had more than 5 years in government, millions of Canadians stand by him loyally. Will this time be any different?
Business
CIA Offers To Payout Entire Agency: REPORT
From the Daily Caller News Foundation
By Hailey Gomez
The Central Intelligence Agency (CIA) reportedly offered payouts to its entire workforce Tuesday, according to The Wall Street Journal.
The CIA has apparently become the first intelligence agency to offer its employees a way out, as they were reportedly offered a bid to quit their jobs in exchange for roughly eight months of pay and benefits, the outlet reported. Trump administration officials told the outlet that the move is a signal to help those who oppose President Donald Trump’s agenda find other work.
In addition to the offer, the WSJ reported that an aide to CIA Director John Ratcliffe said the agency is freezing its hiring for job seekers with conditional offers, with some expected to be rescinded if the agents don’t have the background necessary for the agency’s new direction.
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“Director Ratcliffe is moving swiftly to ensure the CIA workforce is responsive to the Administration’s national security priorities. These moves are part of a holistic strategy to infuse the Agency with renewed energy, provide opportunities for rising leaders to emerge, and better position the CIA to deliver on its mission,” a CIA spokesperson told the Daily Caller News Foundation.
Ratcliffe was confirmed as the CIA’s new leader on Jan. 23, after the Senate approved him in a 74-25 vote. In his opening remarks during his confirmation process, Ratcliffe said he would adhere to the CIA’s core mission and focus on threats from the Chinese Communist Party.
“We will collect intelligence — especially human intelligence — in every corner of the globe, no matter how dark or difficult,” Ratcliffe said in his testimony. “We will produce insightful, objective, all-source analysis, never allowing political or personal biases to cloud our judgement or infect our products. We will conduct covert action at the direction of the president, going places no one else can go and doing things no one else can do.”
The move from the CIA comes a week after the U.S. Office of Personnel Management released an email on Jan. 28, showing that millions of federal employees were offered deferred compensation through Sept. 30, provided they submit their resignation notices by Feb. 6.
“If you choose to remain in your current position, we thank you for your renewed focus on serving the American people to the best of your abilities and look forward to working together as part of an improved federal workforce,” the email said. “At this time, we cannot give you full assurance regarding the certainty of your position or agency but should your position be eliminated you will be treated with dignity and will be afforded the protections in place for such positions.”
Daily Caller
‘Extraordinary’: El Salvador Agrees To Take In Any Gangbangers, Convicted Criminals Deported Out Of US
Salvadoran President Nayib Bukele and then-U.S. President Donald Trump, Sept. 25, 2019.
From the Daily Caller News Foundation
By Jason Hopkins
El Salvador President Nayib Bukele has agreed to imprison convicted criminals from any country that have been ordered deported out of the United States.
The extraordinary offer was made after Secretary of State Marco Rubio visited Bukele in San Salvador, the country’s capital city, to discuss a range of bilateral issues. The Central American leader not only agreed to take back his own country’s deportees, but also offered his “mega-prison” to house MS-13 members, Venezuelan Tren de Aragua gangbangers and any other criminal from around the world — including U.S. citizens.
The offer could prove crucial for the Trump White House as it moves forward with its detention and deportation operation after the unprecedented border crisis that was sparked during the previous administration. The 8.5 million border encounters that occurred at the U.S.-Mexico border during President Joe Biden’s era resulted in an unprecedented growth of the country’s illegal migrant population.
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“We have offered the United States of America the opportunity to outsource part of its prison system,” Bukele posted on social media Monday night. “We are willing to take in only convicted criminals (including convicted U.S. citizens) into our mega-prison (CECOT) in exchange for a fee.”
“The fee would be relatively low for the U.S. but significant for us, making our entire prison system sustainable,” he continued.
The State Department confirmed the offer in a statement, adding that the “extraordinary gesture” has never been extended before by any other country.
“President Bukele agreed to take back all Salvadoran MS-13 gang members who are in the United States unlawfully,” said State Department spokesperson Tammy Bruce. “He also promised to accept and incarcerate violent illegal immigrants, including members of the Venezuelan Tren de Aragua gang, but also criminal illegal migrants from any country.”
The agreement follows an announcement in January by President Donald Trump that he would be utilizing a section of Guantanamo Bay to detain “the worst criminal illegal aliens.” The president said he would be sending up to 30,000 migrants with deportation orders to the Cuba-based naval base.
Previous administrations have utilized Guantanamo Bay for migrant detention in the past. The Clinton administration processed thousands of Haitians and housed Cuban asylum seekers at the naval base during the 1990s, and the Obama administration considered similar measures after the 2010 Haiti earthquake and the Biden administration also mulled the idea.
El Salvador, where the international crime syndicate MS-13 has a major presence, has long been plagued with violent crime. However, Bukele has made incredible strides in reducing his country’s crime rate since assuming office in 2019 through a no-nonsense policy of mass incarceration.
The Central American leader oversaw a 70% reduction of the country’s murder rate in 2023. When asked by the Daily Caller News Foundation in February 2024 how the U.S. could reduce crime rates in major cities, Bukele simply said “incarcerate the criminals.”
Sending deportees to El Salvador and Guantanamo Bay potentially solves two major hurdles for the Trump administration’s immigration enforcement agenda: recalcitrant countries that refuse to accept their deported citizens back and limited Immigration and Customs Enforcement (ICE) detention space. Racking up available bed space by the thousands can prevent ICE detention centers from being forced to release illegal migrants back into the community due to overcrowding.
Trump successfully coerced the Colombian president into taking back his county’s deportees after threatening him with stiff tariffs, and the Venezuelan government has also recently agreed to begin accepting their repatriated citizens.
Several high-profile criminal migrants were detained and released at the border before going on to commit heinous crimes in the U.S., such as Laken Riley’s killer Jose Ibarra and 12-year-old Jocelyn Nungaray’s alleged killers. More detention space can potentially help federal immigration authorities avoid releasing illegal migrants from custody.
Bukele “has agreed to the most unprecedented, extraordinary, extraordinary migratory agreement anywhere in the world,” Rubio said to the media after meeting with him at his lakeside country house outside San Salvador.
The historic offer from El Salvador immediately followed Rubio’s trip to Panama, in which he successfully prevented the key Central American country from renewing an infrastructure agreement with China, reducing the communist country’s influence in the region.
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