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We're Being Lied to About Interest Rates
How High Will Interest Rates Go in Canada? To answer this question, we can ignore what Tiff Macklem said yesterday. He said, "Rates might be able to stay here at 4.25%".
Why do we ignore him? Here's what Tiff said to us during covid:
"Interest rates are going to be very low for a long time. We recognize that Canadian businesses are facing unusual uncertainty. So we are clear about the future paths for interest rates. If you have a mortgage or are a business, you can be confident that interest rates will be low for a long time."
Tiff says whatever The Bank of Canada tells him to say to influence the public's opinion on the market. Knowing this, let's look at the data and make conclusions ourselves.
Firstly, the last time we had inflation like this was in the 70s/80s. To solve the inflation from that crisis, we raised interest rates to over 10% for over ten years. And for Covid, the Bank of Canada printed more money than in that crisis. This means inflation and stagflation should be worse than in the 80s. With that logic, we expect to hit 10% interest rates and, at the very least, climb higher than where we are now.
Do they print more dollars again to prevent this? No, that would only delay this from happening until they stopped printing and then it would be even worse.
With the data in front of us on the internet, they still go on TV and lie to us.
You can see the data for yourself here; they archived data earlier than 2010 on the official Bank of Canada website. I wonder why!
The Bank of Canada is losing money for the first time. They are not transparent with us. Please look at the data tables and make predictions from historical data; we can't trust what they tell us on TV.