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INTEREST RATE SHOCK

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Interest Rate Shock

Open Letter to The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance

January 4, 2021

FOR IMMEDIATE RELEASE

Red Deer – Mountain View, AB

The economic collapse as a result of COVID-19 lockdown measures has pushed the real interest rate to record lows. This rate however, is very misleading given our current economic environment.

  1. Baby boomers are retiring and are reducing the pool of available investable funds.
  2. Reduced number of people in the workforce will result in higher wage demands.
  3. Inevitable higher taxes required to repay significant debt brought on by lockdowns.
  4. High likelihood of reduced outsourcing in order to protect domestic supply chains.
  5. An economic plan that focuses on “green” incentives and destroys Canada’s oil and gas industry.
  6. Inflated housing prices across Canada despite a poor economic outlook.
  7. High consumer debt levels pre-COVID-19.
  8. Long running Bank of Canada policy which encourages consumption over investment.

Your government has indicated that it is considering adding an additional $100 billion in stimulus spending once the “virus is under control”. As the Canadian economy is already flooded with record government spending, the potential for inflation is very real.

Considering the above, the return of high interest rates, as seen in the 1980’s, is entirely possible. While we may not see record high mortgage rates of 21.46% as posted in August 1981, even small increases in rates could result in significant interest rate shock for many Canadians.

Increases in inflation and interest rates would impact low-income families most adversely. Most notably, these individuals may struggle to pay for food, shelter and healthcare, all of which are basic necessities.

COVID-19 has already resulted in the biggest transfer of wealth in human history. I am strongly urging you to end the pursuit of a “green economy” and commit to a drastic reduction in red tape to allow the private sector to begin generating wealth, something the government is only able to redistribute.

Sincerely,

Jared Pilon

Candidate for Red Deer – Mountain View, AB

[email protected]

https://www.jaredpilon.com/

I have recently made the decision to seek nomination as a candidate in the federal electoral district of Red Deer - Mountain View. As a Chartered Professional Accountant (CPA), I directly see the negative impacts of government policy on business owners and most notably, their families. This has never been more evident than in 2020. Through a common sense focus and a passion for bringing people together on common ground, I will work to help bring prosperity to the riding of Red Deer – Mountain View and Canada. I am hoping to be able to share my election campaign with your viewers/readers. Feel free to touch base with me at the email listed below or at jaredpilon.com. Thanks.

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NEWT GINGRICH: Europe’s Elites Were Finally Told To Take A Look In The Mirror

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From the Daily Caller News Foundation

By Newt Gingrich

In an amazing show of courage, Vice President J.D. Vance offered an intervention for some of our European allies.

That is the best way to think of the two historic speeches he made in France and Germany last week.

In Paris, Vice President Vance pledged the United States would do whatever it takes to lead the world in the development of Artificial Intelligence. He went on to assert that Europe’s automatic response to regulate technological change rather than adapt to it was doomed to fail.

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Vance warned the Europeans that the Trump administration would retaliate to protect American high-tech companies from being fined and regulated by the European community.

Then, Vance went to the Munich Security Conference. It is the annual meeting of European leaders concerned about defense and threats to peace. The Vice President shocked the Europeans by launching a frontal assault on the decay of their political system.

As Vance put it:

“But while the Trump administration is very concerned with European security and believes that we can come to a reasonable settlement between Russia and Ukraine, and we also believe that it’s important in the coming years for Europe to step up in a big way to provide for its own defense, the threat that I worry the most about vis-à-vis Europe is not Russia, it’s not China, it’s not any other external actor.  And what I worry about is the threat from within, the retreat of Europe from some of its most fundamental values — values shared with the United States of America.”

He then went through a litany of specific complaints about the behavior of different European countries. They ranged from failing to control immigration, suppressing free speech, and Brussels seeking to control and define futures of independent countries such as Hungary and Romania.

The leading French newspaper, Le Monde (their equivalent of the New York Times) asserted that the American Vice President was declaring “ideological war on Europe.”

Le Monde was right. The European elites have been decaying for at least two generations. They hide behind their privileged status and take ideological positions that feel good but are destructive. Europe’s failures are devastating for most everyday Europeans.

I have personal knowledge about this. I have a Ph.D. in Modern European History – and I have lived in France, Germany, Belgium and Italy. As a young Army dependent, we were living in France when the French Army came back from Algeria, killed the French Fourth Republic and brought back General Charles de Gaulle to establish the Fifth Republic.

It is now the longest serving non-royal government in French history.

The European elites value each other’s opinions more than they value serving the people of Europe. The European elites live in a fantasy world of green policies that destroy industries and jobs, welfare policies which destroy the work ethic, and immigration policies which undermine the popular culture. They simply hope for a peaceful world without a strong military.

Meanwhile, state enforced speech codes protect Islamic extremists at the expense of local citizens.

The result has been a steady decline of European culture, economic development, and defensive capacity.

The Afghan Islamist who wounded more than two dozen people and killed a mother and her two-year-old daughter with a car two days before the supposed security conference signals the willful avoidance of reality at the heart of the elite European worldview.

To be clear, I admire European civilization. I believe America is far stronger and safer if Europe is healthy and capable of growing and defending itself.

I hope vice president Vance’s intervention at least starts European elites thinking about what must be done to revive their continent.

For more commentary from Newt Gingrich, visit Gingrich360.com. Also subscribe to the Newt’s World podcast.

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