@ Cody. Yup. In MMT the excess capital is supposed to be taxed back, but they’re too afraid to execute it. Now they’ve poorly executed traditional and experimental economics.

Two words to five words because you can’t objectively read something without it triggering emotions?

I believe since they’re quoting JPM institutional research, this is for people looking to understand bond sensitivity. We don’t need snowflake math in finance, we need the fewest words possible to prevent an error or misread.

You can believe it goes up a million percent. There’s going to be 10% less money for them to buy it with though, LOL. Good luck finding 20% more money .

They’ll likely just introduce policy that permits private equity to buy and hold residential property which will back stop the market. Look down south to see what’s happening with BlackRock buying up real estate like crazy. Also, not sure if ya’ll remember there was a media drip in the globe and mail months ago regarding how some developer wanted to buy up 1 billion worth of houses in the GTA? That wasn’t by accident. It was likely to gauge public opinion which did not go well. I’m sure that once the sky starts falling the reaction will change very quickly to positive once private equity steps in to save the market from imploding. Lol

This is what kills me, the BoC has fully embraced the reality that deficits do not matter and the federal debt can also be financed, great! However they have now reached the tricky part of MMT where they are supposed to react to inflation by increasing taxes and raising interest rates. Theoretically there is no issue in disregarding debt/deficits but in doing so you are required to respond when inflation surges, which there is no political will to do. Have your cake and eat it too, is the Canadian political system ethos. And this is not a Liberal, Conservative, NDP bash at all, when the majority of your citizens (60%) and most influential citizens (wealthy) are on board with ever increasing asset prices politicians will respond to incentives – as anyone does.

When you embrace the reality that federal deficits are irrelevant you also have to embrace the fact that monetary policy is not the sole answer to economic ills. Raising interest rates will discourage excess borrowing in the private sector but the economy has misallocated capital to such an extent that additional fiscal policies are needed to help correct this. Capping the primary residence capital gains tax at $500,000, implementing a federal property tax – offset by an income tax reduction, banning all short term rentals, etc. Do something other than build 74 townhomes in Waterloo for the love of God.

The country is in need desperate need of leadership and someone who can look beyond the 2-4 year election cycle. My hopes are not high and I am trying my damndest to get out of this country before it is too late.

Of course they can. The BoC can print as many CAD as they want. They just can’t print foreign currency. So the question becomes how much debit does Canada have denominated in anything not CAD.