When Capital Investment policy is dictated by the banks and not the private sector business, then policies such as our own Bank of Canada’s low interest rates on money actually reverses the intention of a Free Market.
Is Canada on the path of a massive financial failure such as is occurring in Europe and the U.S. at this very moment?………….
Sunday, September 8th, 2013 by Caleb McMillan
I don’t understand Stephen Poloz’s appointment as the successor to Mark Carney. Nor do I understand why Mark Carney was so popular to begin with. Are artificially low interest rates policies supposed to help Canadians? Before he took off for England, Mark Carney sat down for an interview with the CBC. When asked about this absurd low interest policy, Carney responded that the goal is to get people investing into more volatile investments where there’s a higher return. I guess the idea is that the central bank can create bigger returns on riskier investments and this creates genuine wealth. I call it absurd because this policy targets middle-class Canadians that wish to save and invest their money responsibly, conservatively and constructively. The Bank of Canada – under both Carney and Poloz – are, in effect, trying to centrally plan economic growth. This didn’t work for Russia and it’s not going to work for Canada.