Former Bank of Canada governor slams Poilievre's assertion central bank is 'financially illiterate'

  1. Right? Did Mick Foley toss a folding chair to them in the RING? Slam is the worst headline word of all time.

  2. Really? They didn't raise rates when things were hot, they didn't do much then things were cool, they didn't do anything when it was red hot. Didn't adjust with little stimulus, didn't adjust with lots. All they did was explain the nothing they did.

  3. Hanlons razor is the lie the rich tell the poor to not face any uprisings. Its the same red herring "solution" as karma.

  4. One thing I find interesting in the comments is that people defending those running the BOC seem to think these are experts the way one might be an expert scientist dealing with some elementary school level fundamental truth. If only they knew how much economists disagree with each other, they might realize they are more like weathermen than masters of their craft.

  5. Head economist of ATB put it this way: "Economists don't make projections because they know what is going to happen. They make projections because someone asked them to"

  6. PP isn’t putting pressures on the bank. He is using criticism of the bank as part of his platform.

  7. The disagreement is only in the theoretical departments, there is far less in econometrics ( some people dislike causal inference ). And no don't worry there is a ton of disagreement in pure physics as well, not everything is maths.

  8. My default assumption is that people at the highest levels of government are likely highly intelligent and highly competent.

  9. As the saying goes the intelligence of a committee is equal to the intelligence of its dumbest member, divided by the square root of the number of members.

  10. They don’t care about you very much. They are okay with you suffering so that others can be safer. They weigh the risks and decide what they choose is worth it. If you are collateral damage they think, “You should make more money, then.” Which is exactly what Pierre and his followers say to people poorer than they are.

  11. The assumption should be when a currency is not backed by a hard asset it follows through the same cycle literally every other currency has followed before dying out. It always stems from debasing your hard asset more and more to a point where hypernflation sets in an destroys it’s value. Banks aren’t your friend nor will they ever be there to help you out unless it benefits them

  12. Please do not put these people on high pedestals. They are actually very stupid then they present themselves

  13. If only the Governor came to this sub! Then he can tell his friends at the BoC how to do things. Only here do we have the brightest economic minds in the country

  14. PP is just a political hack but the BoC did choose not to implement economic policy that has a history of controlling inflation while downplaying the warnings by a lot of economists and universities and well respected private institutions whose best interests are to keep the economy hot. Seems like his own ego got the better of him and people whose egos rule them shouldn't be in charge of such vital institutions.

  15. He says that Pollivieres statements are bullshit. That he doesn't understand economics. But not one of the explanations he provided are economic (aside from briefly mentioning the extraordinary spending in the last 2 years). He then proceeds to blame Putin and other geopolitical factors. Essentially anything outside of his control.

  16. Really depends on what "bad results" mean. Nobody knew how COVID would affect the economy and we did see a clear split between investors.

  17. The amount of people that don't understand basic economics is astonishing. Yes BoC caused inflation and put the entire housing industry in a bubble. They've essentially set up Canada as a sub prime country. If interest rates go up by 1% most mortgage payments increase by 10% so gl. Only person who solved a similar problem was Margaret Thatcher.

  18. I'll go with whoever has correctly assessed the situation. I'm not saying Pierre is right about everything but he said printing money will cause inflation, the bank of Canada didn't, he was right and they are not. I don't care who has the idea, ideas are right or wrong on their own merit.

  19. This sub complains about inflation, and then when people criticize the BoC utilizing quantative easing - which causes inflation - they criticize the critics for not being economic experts even though they have a better grasp at what's causing Canadians hardship compared to a wealthy elitist that's not personally impacted by inflation? Ok then lmao! Keep up with the expert fallacy, it has served us well.

  20. People would rather throw out every moral they've ever espoused than to agree with someone who identifies on the right. The modern left politicians have really done a number on them.

  21. Pearl clutching redditors defending the institution that caused house prices to double in a few years because they dislike Pierre.

  22. Apart from what Poilievre is saying the problem lies with the BOC (+ other central banks) lack of accountability, its about time they are called out.

  23. It isn't though. What they're doing is trying to create distrust in institutions to tear apart the social fabric, because division and anger gets them elected, and because if they can create enough hype, their digital assets will blow up, they can cash-out (to actual money), and screw everyone else.

  24. What makes you think the central bank isn’t transparent? They are extremely transparent. If central banks were not transparent then monetary policy would not work.

  25. Slam this and slam that everyone’s fucking slam, slam, slammed. Is this journalism or the fucking WWF? Can we not use some better words?

  26. then don’t cause 7% inflation and miscall inflation every quarter. the proof is in the pudding. whatever happened to acknowledging when you goof?

  27. because for many redditors conservatives bad and always will be. even if it means agreeing with someone equally bad to "own" them

  28. It's fun to tongue in cheek that line but it gets horribly misconstrued. It was meant to communicate that should supply chains come back online that inflation would not continue to escalate and should trend back downward in lieu of policy decisions re: bond repurchasing, QE, etc..

  29. That was said during a time when many thought vaccines would return the world to relative normalcy. Inflation at the time was thought (rightfully) to be due to supply issues and a very large change in demand for tangible goods (away from services). This was worldwide and very much applicable to Canada. Canadians had saved historical amounts of money and were spending on tangible goods and housing (new houses and renovations). You couldn’t take your $15K trip south in the winter and you weren’t dropping $200 on Friday at the trendy restaurant.

  30. Yes, they made a wrong prediction, but how does that suddenly erase all their credibility? The world economy underwent several economic crisis, several still ongoing like the chip and energy shortage, driven by factors outside of the domain of economics. The Russian invasion of Ukraine knocked the second largest exporter of oil out of the market, the strengthening of lockdowns in China is choking our supply of consumer goods and disrupted the ports responsible for the majority of the international chip market, how are these things something they could have or should have predicted?

  31. There's this really weird defense of the BoC here. As if you think you're smart for agreeing with a technocrat.

  32. 100% people have such a short memory and will do/say anything against other parties for raising issues even if it’s incorrect

  33. Its a bunch of boot licking liberals who think that you can only have an opinion on something if youre have degrees. People are threatened by PP and i guess the should be.

  34. Questing the BoC make sense. Siding with a career politician on financial issues, who has demonstrated a significant absence of economic knowledge, against the BoC doesn't make sense.

  35. Nobody mentioned that Dodge's quotes in the article indicate that he is literally unaware of the arguments for Bitcoin as a deflationary asset, which was at the core of the original whitepaper announcing the project and has been at the heart of discussions of it ever since. I'm not saying the case is right or wrong, just that Dodge clearly isn't even slightly versed in the matter he is commenting on. Reminds me of my grandpa in 1991 railing against rap music. Compare eg to Gensler at SEC who is at least knowledgeable about the subject. Truly hilarious and sad, although I doubt many on here will get the joke.

  36. BOC legit wait too long to raise interest rates. In my view that’s an object fact and they can’t make up for lost times they fucked that up and it shows incompetence.

  37. Houses have been unaffordable for decades. Yes it got worse during covid, like literally everything else.

  38. "Dodge said the danger of losing public trust is “always there” and as such communication from the top is “very, very important in that regard.”

  39. The amount of gaslighting coming from the neo-liberal crowd as of late is astounding. You have people in this thread arguing that it's important that the public is lied to. They have become the burning house "This is fine" meme.

  40. Pretty sure this entire thread is being heavily astroturfed. “Politicians can never question central bankers because they don’t themselves have degrees in economics”. A. that’s not how democracy works - every technocrat should be subject to scrutiny, and B. That appeal to authority sure went well in 2008 /s.

  41. Gen XYZ have their incomes slashed to the bone, prices for real estate goes sky high. BOC does one token rate increase in the span of 5 years. It does nothing to stop inflation and is out of ideas.

  42. I mean the banks public communication in inflation directly impacts inflation. If you go around telling people “inflation is ridiculously bad” then suddenly people believe that and will devalue the currency because..the bank said to. The opposite is true so no matter the situation the bank will ALWAYS downplay inflation for the food of everybody

  43. The explanation that they are motivated by "financial illiteracy" is silly. Like they just don't understand finance and PP with his BA in politics does. It's populism that treats me like a moron who'll believe anything if I'm mad enough.

  44. Lol at people trying to save Polievre. Admit he was wrong about something and move on. We'll be better off.

  45. I’m fairly confident Poilievre’s base is going to simultaneously complain about inflation AND higher interest rates.

  46. Well they aren't doing a fucking good job considering our economy is somehow doing worse than the USA's which is doing abysmally.

  47. Anyone else hate articles with 'slam' in the title? Kills credibility IMO, looks like sloppy clickbait journalism.

  48. Central banks aren’t truly independent from politics. On paper they are, but reality differs. I mean, the chair role is appointed by a politician ..

  49. We need to stop borrowing from private banks, and go back to borrowing from the Bank of Canada. By doing this the interest payments remain with the Canadian public. This is an extremely important and poorly understood topic.

  50. If Poilievre believes what he is saying about the Bank of Canada, monetary policy, inflation, and crypto-currency, it is he who is 'financially illiterate.' If doesn't believe what he's saying, he's a liar. I suspect the latter.

  51. Who should we believe? A guy with a university degree and PhD in economics or someone with a Bachelor of Arts degree in international relations?

  52. Logical fallacy - you critique both of them equally. Lots of people have been right about things without having laurels to support their credibility.

  53. Well knowledge or expertise doesn’t matter anymore, partisanship does. I mean one side literally pushes anti-intellectualism.

  54. I don't think you understand how integrated trade works and input costs to companies. BOC can't control inflation. It can try to reduce money flow, borrowing, QE, but it can't control inflation. When the entire world keeps everything closed due to a pandemic and prints money then all that extra cash in the world deflates the value everywhere. So the input costs to all integrated products goes up. That's almost everything these days. There no policy that can change that.

  55. Are you suggesting that maintaining close to an average rate of 2% over the last 30 years is in any way a failure?

  56. Well, the BoC does what's good for the rich and wealthy in the country, that's for damn sure, and certainly not the working and middle class.

  57. The Bank of Canada acted based on the available information. It's easy to criticize, but hard to make these decisions -- and arguably hard to know what the road not taken looks like.

  58. Leaving PP aside, would you agree that what BoC and Fed govt did, caused massive inflation of prices, ballooning of asset prices, increasing the inequality in this country?

  59. It’s worth noting that the Bank of Canada appears to make its own assertions about the demographics of people who own crypto.

  60. Continues complaining about everyone else well offering no detailed solution of his own, definitely the right leader to represent the cpc.

  61. That is not leading to inflation, it rescued and maintained millions of employees and small businesses. The same individuals who are now going to pull us through the inflation. Canada's economy is stronger for the financial aid, not the other way around. Shortages and profit taking are leading to inflation.

  62. So we should not have a thriving economy so as to control inflation as you would prefer a crash and economic devastation from the pandemic as an indicator of fiscal discipline.

  63. CERB was 100% the right thing to do at the time, the alternative was people going bankrupt and losing everything due to a completely unforeseen major world event. I'd absolutely support doing it again given the choice.

  64. The alternative was that the economy crashes because nearly the entire minimum wage sector dies overnight, hundreds of thousands lose their homes or starve, or worse.

  65. I wouldnt say financially illiterate, but they did project inflation to lower when they approved excessive funding over the past two years. They were wrong, and regular Canadians will pay the price for it.

  66. Yes, Skippy with his vast experience outside of being a political attack dog has determined .................. oh, wait, he has none. Zero, zilch, nada.

  67. People beefing the BoC are the dummies that over extended themselves. Blaming BoC for something the entire world is having issues with is very funny to me.

  68. Every single country in the world is going through the exact same financial problems right now. It's hilarious when politicians act like it's unique to our gov't. It's just political rancor nothing more.

  69. Oh man, if only this governor is in charge then all the money printing wouldn't be hiking up the prices all across the board. Inflation would be truly transitory.

  70. Poilievre’s assertion is based on a common narrative that you’ll hear from people new to bitcoin or bitcoin maximalists, the idea that a currency should have little to no inflation.

  71. Bottom feeder newboi crypto ape suggests that the same banking system with extra steps and fewer protections is the cheat code for defeating inflation ........ Begs the question , how pervasive is populist brain rot in Canada? Guess we will find out , amirite?

  72. Poilievre's mind is so flat. He knows the BoC was going to take shit no matter what. Do nothing and watch our economy get decimated or keep the economy going when millions lost their job, but that comes with inflation.

  73. People (including Poilievre) act like inflation is entirely the BoC's if the US hasn't also had the highest inflation rate in 40 though there aren't global factors that are affecting all economies.

  74. Why is the BoC governor involving themselves in political discourse? They are supposed to be independent, yes including keeping your mouth shut when you are being criticized. Appointed justices don't comment on political commentary on themselves for this reason... To reinforce impartiality.

  75. This is what fascist do, provide simple answers to complex problems. Read the road to serfdom. Polievre is playing that game. The people may believe if inflation does not abate or we get stagflation

  76. Damn I’m sorry conservative bros but I doubt people are gonna vote for the guy hocking Bitcoin and shit like that, most of your base is old and has no idea about it. Plus it’s not a real answer to anything.

  77. This is right out of Trumps playbook. Forestry management can't manage forests properly - but I can with rakes! Generals cant run the military properly - but I can so much better than them! Meteorologist are so stupid I can replace them with a sharpie! Bankers cant run the central bank properly - but I can. Only me! Only US! WE are the smart ones and we're being attacked by the elites!

  78. Only conservative and their voter base are smart. That’s why they reduce money from all social programs and make their rich friends richer.

  79. This imbecile "starting" to sound like the Orange Agent down south... He knows everything better... What an imbecile!

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