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Food, gas drive inflation rate to 3.5%

HEATHER SCOFFIELD

Globe and Mail Update

Latest comment posted at 7:53 AM EST 23/09/08

Annual pace of price increases highest in more than five years ...Read the full article

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  1. F/A josquin from Canada writes:
    Welcome to the world of the north american republican/conservative.

    Moralistic, greedy retrogrades. Everytime we vote them in, they make a greedy mess, and we vote them out in disgust. We then spend a decade cleaning up.

    We are so stupid.
  2. vic w from Canada writes: But that's ok because George Bush, John McCain, and Stephen Harper all say that the 'fundimentals of the economy are strong' right? Right?!.... Oh and... they also want you to know that they can't control their oil buddies either.
  3. Zack Fair from Canada writes: So since the core inflation remains under 2%, this would mean a no move from the BoC? Given the current economy, I'm sure they would think thrice before raising interest rates unless inflation gets out of control. So where is the delicate balance. I'm trying to oversimplify maybe with economics 101, but maybe someone that follows this more closely could explain what a 1,7% core inflation really means. Thanks.
  4. Eric B from Ottawa, Canada writes: Inflation is just another hidden tax -- government debt shrinks in proportion to past value and citizen's annual income (and assets) also shrinks to 'pay for it'. Good job of Harpernomics...
  5. forty sum from Canada writes: Harper has undone in 3 years what has taken Chretien 12 years to fix from the Mulroney years, if Harper gets in the little guys are again going to pay for the conservatives mess they have got us into.

    Dump Harper
  6. Tax me! I'm Canadian. I'll roll over! from Canada writes: :
    F/A josquin from Canada writes:
    Welcome to the world of the north american republican/conservative.

    Moralistic, greedy retrogrades. Everytime we vote them in, they make a greedy mess, and we vote them out in disgust. We then spend a decade cleaning up.

    We are so stupid.

    ---

    Good point.

    Einstein once said, 'The definition of insanity is to do the same thing over and over again expecting different results.'

    Why vote?

    Voting is pointless. All we get to do is to decide what shade of lipstick gets to be put on the pig, but the pig still is a pig.

    If you really think about what democracy is, it is nothing more than political 'might makes right'. It is about 51% of the people who decide what policies are forced on 49%. Democracy is actually the anti-thesis of individual liberties and freedom. Democracy assumes that the majority 'knows what is right and truth'. Anyone believe that? Do you think that voters who go to the polls have any inkling of what is really going on the world, read, assumes the media informs them, and casts their ballots with the conviction they know what is best for others?

    We frequently hear the media/government cartel lament about 'low turnout in the polls'. They tout 'voter apathy' as the reason. They would never say, 'People think voting is pointless!'

    What if on our ballots, we had the choice of 'None of the above!'. Don't confuse this with spoiling your ballot. This is explicitly saying, 'All the candidates suck!'. I wonder if this option became available, would their be a surge in voter turnout to select that choice? I.e. a 90% turnout where 70% of people chose 'None of the above'? We'll never know. Democracy is a ruse. The State will never allow us serfs to vote against the State. There is no left/right paradigm in a feudal system. Just top and bottom. Where do you sit?
  7. Tax me! I'm Canadian. I'll roll over! from Canada writes: :
    I read a declaration the other day, and I would like to see if posters find it resonating with them:

    - I wish no power over you.
    - I wish that you have no power over me.
    - Where I have power over you, I shall seek to renounce it.
    - Where you have power over me, I shall pray that you renounce it, and so long as it be extant, I shall condemn it.
    - Where there are those who would try to give me power over you, I shall denounce them and condemn them.
    - Where there are those who would try to give you power over me, I shall laugh at them and condemn them.
    - Where you would use force to sustain any putative power relationship over me, I shall condemn you and resist you, and call to my brethren in our struggle against you.
    - Where a tyrant, a majority, a plurality, or a minority presume to grant you power over me, or over anyone else, I shall condemn it, resist it, renounce it and denounce it.
    - Where there are those who are subjugated beneath the boot heel of power, by 'democratic' means or otherwise, I shall support their resistance, their condemnation, their denunciation and their renunciation.
    - I shall make no compromise with evil.

    Thoughts?
  8. David M from St. John's, Canada writes: Bring it on...........let's put up the price of gas and oil until we send the global economy into an unrecoverable nose dive........and let the big boys burn their money to keep warm cause that's all it will be good for..........
  9. Zack Fair from Canada writes: Eric, I believe I have briefly read something about Ron Paul saying exactly that, that inflation was a hidden tax (interesting concept). I can see the reasoning behind this out of the outcome of inflation and also because the government has somewhat of an influence on the rate, but it is largely market driven.

    The way I see it, Banks cut interest rates over the last year to stimulate a stagnating economy. The flip side is increased inflation, so this is not surprising. My question is: 1.7% core inflation amidst the currrent economic turmoil, is it bad or under control?
  10. Tax me! I'm Canadian. I'll roll over! from Canada writes: :
    Keep your eyes on the ball. Don't let this thread spiral downward into the cesspool of partisan politics and policies. It doesn't matter. All political parties seek to expand the power, reach and influence of the State and usurp your individual liberties and freedoms.

    I read a quote many years ago, attributed to the US Banker's Magazine, written in 1924:

    'Capital must protect itself in every possible way, both by combination and legislation. Debts must be collected, mortgages foreclosed as rapidly as possible. When through the process of law the common people lose their homes, they will become more docile and more easily governed through the strong arm of government applied by a central power of wealth under leading financiers. These truths are well known among our principal men who are now engaged in forming an imperialism to govern the world. By dividing the voter through the political party system we can get them to expend their energies in fighting for questions of no importance. It is thus by discreet action we can secure for ourselves that which has been so well planned and so successfully accomplished.'
  11. Olivia Brownbeck from Canada writes: This is why I can't support the Liberal carbon tax. There is its impact on inflation which is already rising as well as the impact of raising costs on those with fixed incomes. Even if the carbon tax is revenue neutral and rebates are issued to try and 'offset' the additional costs on the basics, that rebate will go out yearly or at best quarterly BUT the hit to the consumer will be daily. When you are living paycheque to pay cheque you can't afford to wait until the end of the year. People on fixed incomes will have to make choices between food and gas or gas and electric. It is obvious to anyone who has lived on a very tight budget.

    Layton has been laying out policy to help consumers. He has talked about how he will put teeth into the system and regulations that oversee gas prices to ensure that Big Oil can't gouge the average Canadian. He has talked about his plans, when Prime Minister, to stop banks and credit card companies from gouging Canadians with their ridiculous ATM and credit card fees. He has taking on the cell phone companies over their text message grab.

    I know that I can count on Jack to look out for my interests.
  12. F/A josquin from Canada writes:
    now west virginina, who writes ' blaming Harper as being personally responsible for the increase of the inflation rate due to high gas prices.'

    Where, exactly, did I do that? in fact, I put the blame on greed, and it's representatives on our continent, if I recall.

    Let's see------ who did I blame,------ oh yeah, GREEDY RETROGRADE REPUBLICAN/CONSERVATIVES -----in general.
  13. Tax me! I'm Canadian. I'll roll over! from Canada writes: :
    Zack Fair from Canada writes: Eric, I believe I have briefly read something about Ron Paul saying exactly that, that inflation was a hidden tax (interesting concept). I can see the reasoning behind this out of the outcome of inflation and also because the government has somewhat of an influence on the rate, but it is largely market driven.

    ----

    Zack, Ron Paul indeed said that. Interestingly enough, during a meeting between the Fed and Congress, Paul was berating - as other Congressmen are just simply ignorant - Bernanke about monetary policy.

    He managed to get Bernanke to acknowledge that, indeed, inflation is a tax. Have a look:

    http://www.youtube.com/watch?v=D4yBrxmEOkY

    Bernanke also stated that the Federal Reserve CAUSED the Great Depression.
  14. John the Baptist from Canada writes:

    The one thing even Dion has to admit is that the Green Shift will be inflationary. Look what it has done to inflation in Europe. Remember the 20% interest the NEP caused? The NEP was small compared to the Green Shift.

    This news couldn't come at a worse time for Dions campaign.

    Subsidy = inflation
  15. West Virginian Albino Mexican from Canada writes: F/A josquin from Canada writes:
    now west virginina, who writes ' blaming Harper as being personally responsible for the increase of the inflation rate due to high gas prices.'

    Where, exactly, did I do that? in fact, I put the blame on greed, and it's representatives on our continent, if I recall.

    Let's see------ who did I blame,------ oh yeah, GREEDY RETROGRADE REPUBLICAN/CONSERVATIVES -----in general.

    ================================================

    Apologies to you for blaming Harper personally - no apologies whatsoever for blaming the Repubs/Cons.

    Gas prices would be high if the Libs were in office- they will still be high if they are in office after October 15.
  16. John Doe from Frankfurt, Germany writes: Blame our society and standard or living too. Many companies in Europe have reduced their oil consumption over the last ten years in spite of the fact their populations are growing. Oil was cheap, fast and easy so we based our society on a car for every person, SUVs as the norm and huge wasteful suburban houses.

    Where is the push to alternative energies?
    California has a law that in order to sell cars there in the future you MUST has a zero emission option. Where is Canada's equivalent?
    Where are the incentives for the average consumer to change their consumption?
    Sweden has legislation to be oil-less by 2020. What are Canada's plans?
  17. Tax me! I'm Canadian. I'll roll over! from Canada writes: :
    Olivia Brownbeck from Canada writes:

    Layton has been laying out policy to help consumers. He has talked about how he will put teeth into the system and regulations that oversee gas prices to ensure that Big Oil can't gouge the average Canadian. He has talked about his plans, when Prime Minister, to stop banks and credit card companies from gouging Canadians with their ridiculous ATM and credit card fees. He has taking on the cell phone companies over their text message grab.

    I know that I can count on Jack to look out for my interests.

    ----

    Will Jack provide us with a sound monetary system that is not backed by debt and whose purchasing power is not stolen from us via inflation - a tax that benefits those who issue our money - namely the Government/Banking Cartel? Does Jack know about it? Does Jack understand it?

    Will Jack put an end to our privatized money supply, where 95% of it is manufactured by the private banks and issued to us at interest? Does Jack know about it? Does Jack understand it?

    Politicians bicker about policy A being better than policy B, but all politicians rest on the same premise:

    'They have the right to steal from you.'

    There is no 'change' through the voting process. All people get to do is decide who gets to redistribute the loot to who and what policies/boondoggles-of-the-day pandering, enabled by the State stealing the fruits of our labour through extortion we euphemistically call 'taxes', backed by the threat of violence against you and your families. Inflation is the secret tax - not one in ten thousand Canadians understand - that siphons your the value of that arbitary unit of purchasing power (the 'dollar') without physically removing it from your wallet, or purse, or your hard-earned savings and transfers it to the Government/Banking cartel.
  18. True North from Canada writes: Harper promised Canadians that there is nothing to worry about, that the worst has already happened to our economy.
  19. John the Baptist from Canada writes:
    John Doe from Frankfurt.

    The reason Europeans own fewer cars and homes than North Americans is that they can't afford them. Taking away Canadians' income won't fly here.
  20. A reader from Canada writes: GIC's pay less than the inflation rate, yet the interest is fully taxed. Why save? Why be responsible? All political parties appear to be attacking those that are responsible and hard working and focusing their attention on providing more governmental monies on those who have made no effort in contributing to the well being of Canada.
  21. N J from Canada writes: The inflation is direct results of legal robbery being committed by Canadian Wholesalers and retailers on country wide scale. The Canadian dollar has appreciated 50% against US Dollar. That means goods should cost 33% less to import. However, the wholesalers and retailers are keeping that 33% of TRILLIONS of dollars, lining their own pockets. While common Canadians are struggling with high gas prices. They should thrown in jail for that.
  22. Steve Just Steve from Canada writes: @Tax me! I'm Canadian. I'll roll over! from Canada

    It's like standing in a burning house yelling 'FIRE! FIRE!' but the people are eating dinner so they ignore you.

    The best (worst) kind of slaves are one who think they are free.

    You'll be ignored and ridiculed as a 'tin-foil hatter' but don't stop. Keep repeating the message and maybe someday people will wake up before it's too late.

    NO NEW WORLD ORDER !!!!!!!!
  23. Mike Glatt from Canada writes: To a reader from Canada, the new Tax Free Savings Acct to be launched in Jan 09 will solve the tax problem for you.
    Let's hope we start becoming more of a nation of savers/investors rather than borrowing to the hilt.
  24. G Chan from Canada writes: >>>

    People on fixed income like retirees better mobilize to turf out Mr. Harper and his rednecks. Mobilize like they did in 1986 when seniors coalesced in support of an irate senior who embarassed then PM Mulroney, and seniors forced him to concede Universal Social Programs were 'Sacred Trusts', showcasing his own mother as he delivered that message.
    Mobilization for 'SacredTrust' and prevent erosion due to inflation

    Hands greased by $$OIL$$ destroyed the 'AmericanDream' and it will destroy ours unless the grease is scrubbed with CarbonTax. Extreme right wing ideology which Harper wants to impose on Canada with a majority mandate simply will not work and will destroy.

    Do not be fooled by blue woolen sweater. It is an attempt to pull wool over our eyes like GW Bush in flight suit with helmet in hand on deck aboard USS Lincoln declaring 'MissionAccomplished' May 1, 2003.
    They were masters of deception, embedded reporters, misinformation, disinformation greased by $$OIL$$ as are Mr. Harper and his rednecks.
    That Mr Harper hide his political family in his closet is manifestation of his embarassment in the shallowness of his political family. He simply does not have the crew to run our country during difficult time.

    <<<
  25. Arn N from Ktichener, Canada writes: Tax me! I'm Canadian. I'll roll over! from Canada - you raise interesting points about democracy, even if I don't agree with them. Yes democracy is mob rule, and yes democracy may not be perfect but it is far superior to alternative systems of government.

    Oligarchies and autocracies have proven over and over again that they don't work......or at least they don't work as well as democracies. 51% rule is better than 1% rule which is better than 1 person ruling alone.

    Political parties in a democracy have no choice but to bend to the will of the people, even if some of those people are not the most informed as you mention in your 7:44am post.

    I'll take that over the alternative any day of the week!
  26. c rob from Halifax, Canada writes: Yup no need to worry folks. Well, disposeable incomes have not increased and wages haven't increased on pace with inflation. So we have less to spend in the end because we are spending more for the essentials. It's not like many Canadians are planning that month long trip. It's more like average Canadians are banking for the winter when they know it will be extremely tough. Forgive me if a reduction in a CONSUMPTION tax like the GST doesn't make me feel all warm and toasty. I would prefer a break on my income tax instead. That way, I can choose what to do with my money, like bank it for my heating, gas, and food bills.
  27. Steve Just Steve from Canada writes: Arn N from Ktichener, Canada writes: Tax me! I'm Canadian. I'll roll over! from Canada - you raise interesting points about democracy, even if I don't agree with them. Yes democracy is mob rule, and yes democracy may not be perfect but it is far superior to alternative systems of government. Oligarchies and autocracies have proven over and over again that they don't work......or at least they don't work as well as democracies. 51% rule is better than 1% rule which is better than 1 person ruling alone. Political parties in a democracy have no choice but to bend to the will of the people, even if some of those people are not the most informed as you mention in your 7:44am post. I'll take that over the alternative any day of the week! >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>. Sounds good. Trouble is that when the bankers and multinationals own all the ponies in the race, it doesn't matter who wins. The democracy you speak of is an illusion. What do Stephane Dion, Stephen Harper, Paul Martin, Bob Rae and Ralph Klein all have in common? They've all been involved with the bildergerg group.......of whom Paul Desmarais Jr. is a member. Democracy in action, eh?
  28. Steve Just Steve from Canada writes: Liberals are OK ............. If you cook em long enough from Canada writes:

    Tax me! I'm Canadian. I'll roll over! - you represent the lowest form of life.

    Those who complain but let others decide their fate. You are a terminal victim. You need to learn that you are 100% responsible for everything that you let happen to you.

    I disagree with the lefties, but at least they stand for something. You stand for nothing.

    >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>..

    And thus the battle was joined.....................
  29. The Economist With Different Ideas from Canada writes: We are still in a period of Stagflation. The inflation numbers are still the effect of the previous higher fuel prices passing through. Oil will drop further as we get further into the fall so technically we should see the inflationary effects moderate. A slight BoC rate decrease will stimulate what is needed. Government/corporate investment into infrastructure and capital investment in plant and technology encouraged by lower interest rates will increase productivity and create jobs.
    If the government wants to help, don't increase social benefits, invest in infrastructure improvements. Create jobs rather than providing financial support to those hard working people who want to work but are caught at home looking for work. Infrastructure improvements help everyone and builds a solid foundation for our children to build on.
    As noted by a posted above, GIC rates make holding them virtually useless. You pay tax on the little interest you are earning. Go out and buy that new car taking advantage of the 5 year zero percent financing deal offered by the dealer and use your GIC to pay the monthly installments.
  30. sam slick from Canada writes: Harper seems to forget that in the last election the people of Canada wanted a minority gov't being dysfunctional and all. People, I think, in general do not trust government at all. Remember, Harper, Dion, Layton!!

    You are politician in the '_____' sense.
  31. Tom Paine from Cape Verde writes: Tax me! I'm Canadian. I'll roll over! from Canada writes: :
    I read a declaration the other day, and I would like to see if posters find it resonating with them:

    - I wish no power over you....

    Thoughts?

    --------------------------------------------------------------------

    I love it!
  32. Marc S from Canada writes: According to Harper and his Charlie McCarthy (Flaherty) all that is bad is already behind us !! Now all of us can go and sleep easy ! lol
    It is no wonder that the election was called in such haste, Harper knew this was coming down soon. I do hope Canadians pay attention and turf these inept cronies out of office !
  33. Mickey Hickey from Toronto, Canada writes: Reduce GST by 2/7 to stimulate consumption and the result is higher inflation. Why was our graduate of the Calgary School of Economics blind to reality, was it willful blindness or does ideology cloud the mind to reality. Deplete the public purse so as to stimulate current consumption, you can see the results in the leader and his front bench, a finer bunch of overfed boys would be hard to find. Going into a recession after depleting the public purse with a lower tax platform is lunacy. The time for less gov't is not now, Regan is dead, Thatcher is barely hanging on, Bush is on his way out. Lets make it a clean sweep of the neocons, Harper next.
  34. Tom Paine from Cape Verde writes: Tax me! I'm Canadian. I'll roll over! from Canada writes: :
    Zack, Ron Paul indeed said that. ... He managed to get Bernanke to acknowledge that, indeed, inflation is a tax. Have a look:

    http://www.youtube.com/watch?v=D4yBrxmEOkY

    -------------------------------------------

    Actually, in a Reserve/fiat money system, the money itself is a tax, since the Reserve issues it for free but charges interest on it (even to the government). Inflation then is not just a tax, it's an breach of contract.

    The problem is that a Reserve/fiat money system is premised on an absurd fiction -- that central planning is any more practical for the monetary system than it is for the fiscal system.

    We need cooperatively regulated free market currencies.

  35. suss man from Canada writes:

    THANKS HARPER
  36. S M from Canada writes: I've seen a lot of foolish statements here but this one is priceless...

    'N J from Canada writes: The inflation is direct results of legal robbery being committed by Canadian Wholesalers and retailers on country wide scale. The Canadian dollar has appreciated 50% against US Dollar. That means goods should cost 33% less to import. However, the wholesalers and retailers are keeping that 33% of TRILLIONS of dollars, lining their own pockets. While common Canadians are struggling with high gas prices. They should thrown in jail for that. '

    Yes NJ you're right. The only two currencies in the world are USD and CAD. Those nasty importers are buying every product and input from the USA and selling them to us at rip-off prices. SERIOUSLY?!?!?!!?

    Every other currency in the world has risen against the USD as well. If the CAD dollar doesn't rise as fast or faster than other currencies (EURO, YEN, for example since you've forgotten they exist), then things will still cost Canadian cosumers more!

    Remedial Econ 100 is the course number to pick to learn this.
  37. Tom Paine from Cape Verde writes: Meanwhile, on the topic of the article, I'm not sure it's totally wise to look at an aggregate measure like CPI and get all worked up about it changing when you already know its due to special conditions affecting a single component.

    Sure, Harper's neo-con policies will be destructive of our economy in both the short and especially the long run, but I don't think we can use an energy-driven spike in CPI as the proof of that.
  38. Tom Paine from Cape Verde writes: John the Baptist from Canada writes:
    .... Remember the 20% interest the NEP caused?

    ---------------------------------------

    No.

    In fact, that's a ridiculous assertion.
  39. Tax me! I'm Canadian. I'll roll over! from Canada writes: :
    Arn N from Ktichener, Canada writes: democracy may not be perfect but it is far superior to alternative systems of government.

    Arn, please define 'superior'.

    Oligarchies and autocracies have proven over and over again that they don't work, or at least they don't work as well as democracies. 51% rule is better than 1% rule which is better than 1 person ruling alone.

    I could easily argue what we have is a functioning oligarchy. There is no real difference between political parties. The so-called 'debates' on the issues of the day are limited to a very small spectrum of allowable arguments, propped up by media manufacturing mass consent.

    What does that mean 51% of the rule of people is better than one alone? Your argument suggests choosing the evils of lessors, or the lessor of evils. If 51% of the people vote that it is OK to steal from each other, does that make it right? 70%? 100%? All theft is MORALLY wrong! If you and I can agree that stealing from each other is wrong, why do we delegate that 'non-right' to a third party (the State) to steal from us?

    Political parties in a democracy have no choice but to bend to the will of the people

    Politicians don't bend to the will of the people. TRUE free markets bend to the will of individuals. They certainly don't bend to mine i.e. stop stealing from me to send another one of my countrymen half way across the world with a gun in his hand to murder people.

    In 1982, Reagan's Secretary of State Alexander Haig made a telling statement. Hundreds of thousands of people had marched in New York City, protesting the administration's Latin American foreign policies. When asked what he thought about the huge protest, Haig stated:

    'Let them protest all they want, as long as they pay their taxes.'
  40. Jake The Snake from Canada writes: Well, in the short term, I hope everybody filled their tanks today! $16 increase in a barrel of crude yesterday, hold on to your hats.
  41. Tom Araxias from Chatham, Canada writes: S M from Canada writes: I've seen a lot of foolish statements here but this one is priceless...

    Oh, really???? Where did you take that Remedial Econ 101 course? I have news for you. The majority of export/import contracts are written in US dollars.

    The fundamental reasons why inflation is up were not addressed by the previous poster but if you don't think Canadians are being exposed to price gauging, you have your head in the sand.
  42. West Virginian Albino Mexican from Canada writes: suss man from Canada writes:

    THANKS HARPER

    ================================================

    Uh yeah.

    Inflation driven by high gas prices.

    In my area gas peaked at 1.44/litre after Ike. Apparently to many who posted here at the time this was Harper's fault.

    Yet, after Hurricane Katrina, gas prices in my area spiked to 1.75/litre. If somehow this is the sitting PM's fault, who was in power then?
  43. Tom Paine from Cape Verde writes: The Economist With Different Ideas from Canada writes: ... If the government wants to help, don't increase social benefits, invest in infrastructure improvements.

    ---------------------------------------------------

    Agree!

    The bad name government spending has gotten really comes from it being poorly done rather than it being a bad idea (the views of committed Austrian and Friedman acolytes notwithstanding).

    ROI is ROI no matter who spends the money.
  44. Tax me! I'm Canadian. I'll roll over! from Canada writes: :
    Steve Just Steve from Canada writes: Liberals are OK ............. If you cook em long enough from Canada writes:

    Tax me! I'm Canadian. I'll roll over! - you represent the lowest form of life.

    Those who complain but let others decide their fate. You are a terminal victim. You need to learn that you are 100% responsible for everything that you let happen to you.

    I disagree with the lefties, but at least they stand for something. You stand for nothing.

    >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>..

    And thus the battle was joined.....................

    ---

    Nah, Steve, there is no battle to be joined. Somehow that poster felt that I threatened something they hold dear or is heavily emotionally or politically invested in where he/she feels that I need to subjugate myself to whatever it is that he/she 'stands for' that they want to enforce on me and my family. However, that troll response is not something I can respond to as it stated nothing.

    For example, this statement:

    'I disagree with the lefties, but at least they stand for something. You stand for nothing.'

    What are the positions the 'lefties' stand for? If the lefties stood for pre-emptive aggresive invasions to non-threating countries, he would say, 'at least they stand for something'?

    I stand for nothing? I thought it is quite clear what I stood for in my previous posts.

    It makes me 'the lowest form of life' to stand for liberty?

    Fail.
  45. PANIC! At The Ice Floe from Canada writes: Sounds like the perfect time to introduce a new grand tax scheme!
  46. Philip McRae from Vancouver, Canada writes: Vote The Dion. He has a gazillion dollar plan to out spend all parties combined. Inflation. ha. You liberals ain't seen nothing yet until The Dion kicks into high gear. 3.5% inflation that is fixed to a investment surge in energy over the last year is nothing to get hysterical about. As long as no major Canadian Banking/Investment interest are involved in the American housing loans/personal debt free for all, Canada will come out ahead and in good fiscal shape thanks to this government. The rest of the world has it much harder than we do.
  47. Vote for your NDP MP on October 14,2008 federal election from Canada writes: The free market is badly flawed. I thought when the economy is slowing or doing badly that prices will come down since less economic activity means that unemployment goes up, wages/salaries are down thereby people not spending as much which decreases demand and therefore prices. Now we're hearing that inflation is up too which should be down which is consistent with economic fundamentals. This is why we need a price ceiling on the biggest culprits such as gas and food.

    Wake up Canadians, the elite and wealthy and trying to grab as much as they can before they start seeing their wealth decline at the expense of the working class.
  48. Tax me! I'm Canadian. I'll roll over! from Canada writes: :
    Tom Paine from Cape Verde writes:

    Actually, in a Reserve/fiat money system, the money itself is a tax, since the Reserve issues it for free but charges interest on it (even to the government). Inflation then is not just a tax, it's an breach of contract.

    The problem is that a Reserve/fiat money system is premised on an absurd fiction -- that central planning is any more practical for the monetary system than it is for the fiscal system.

    We need cooperatively regulated free market currencies.

    ----

    Tom, what we need is a form of currency that cannot be manufactured and/or manipulated by government or the banking cartel.

    Regulating free market currencies implies that there a central power dictating the purchasing power of what I carry around in my wallet. If they can figure out a way of siphoning the money that represents the fruits of my labour back to them, they will.

    Central banks broke the accountability of government to the people. No longer restrained in spending to what they took in taxation, they could now run deficits to finance whatever it is they wished. Raising taxes to pay for the debacles of the day would likely meet with us serfs getting uppity and revolting.

    Imagine what the level of support would be from the people if the State said to us, 'We have to raise your taxes in order to pay for the wars in Iraq, Afghanistan, maybe Iran if we feel like it. In addition, we need to expand government here to help protect you against terrorist acts like 9/11, even though we had that information prior to that particular event and failed to act on it.'

    I'll post the characteristics that make good money next...
  49. c rob from Canada writes: Worker/employer
    Serf/Lord
    And the difference is?
  50. Tax me! I'm Canadian. I'll roll over! from Canada writes: :
    Vote for your NDP MP on October 14,2008 federal election from Canada writes: The free market is badly flawed.

    ----

    Vote, please don't confuse what we have today with a true free market. If you dig deep enough, you will find that the State is behind most of the distortions and suffering in the markets today precisely because of to much regulation:

    What would the free market look like be like if the State stopped shielding the individuals that make bad decisions within a Corporation via limited liability laws? You and I are held accountable for our actions, but these psychopaths can get away with it due to a legal system that cannot seize their assets and restore equity to their victims.

    What would the free market look like if regulatory bodies would stop serving as a revolving door between the State and the industry regulated? Regulators are plucked from the industry, write up a bunch of corrupt rules (loopholes) that benefit the industry, make it harder for competition, and these folks go back into the industry, rewarded by the industry for doing a good (corrupt) job.

    What would the free market look like if the State was to repeal legal tender laws and we could return to sound money, not this paper nothingness that only has value as the State demands it in the form of taxes and will use violence against those who try to evade using it?

    My point is, if you take the time to unlearn what you have been unwittingly duped into believing is true, you will find the vast majority of the distortions or violations in equity and trust has been DIRECTLY caused or is sanctioned by the State.

    It is a hell of an unlearning process.
  51. Kevin None-of-your-beeswax from Canada writes: I thought the Conservatives said that the Liberals would be the root of inflation.

    WAKE UP CANADA! THE CONSERVATIVES AREN'T GOING TO STOP LYING TO US!

    FOR THE LOVE OF CANADA'S FUTURE, DON'T LET THE CONSERVATIVES SELL AWAY ALL OUR RESSOURCES AND OUR FUTURE!
  52. Comments closed, censored, deleted or made to disappear from Mini Bushland, Canada writes: Nothing to do with the 'new' government in place, of course.... --- 'If only we can get re-elected, 'just in time'...!Those m...ns won't even know what hit them.'
  53. Tax me! I'm Canadian. I'll roll over! from Canada writes: Money has to meet the following characteristics:

    - Scarce. You can't just pick it up anywhere. This is why salt eventually collapsed as money.
    - Portable. It's small enough to transport on your person. Barrels of oil suck that way.
    - Durable - Drop it in the ocean, it will still be there in 100 years. It won't rust or rot. This is why fish or bails of hay suck as money.
    - Fungible - one unit of equal weight and purity has exactly the same purchasing power as another identical piece. Diamonds suck as money.
    - Divisible - Two units of half an ounce buys the same as 1 ounce.
    - Verifiable - Can't counterfeit it and can be validated at the point of sale.
    - No private interest or government force can print it out of thin air or monopolize its issuance. If Gold and Silver evolve as money, chosen by the market, then ANY company can mint coins. Why do we need the State to produce it. Fraudulent mints would be caught monkeying with alloys to 'water down' the weight and purity.

    In a true free market, what would banking look like? On one end of the spectrum we might have a bank that practices 100% reserves and you pay a storage fee to them for safeguarding your money in the value. On the other end of the spectrum, you might have banks that operate with some degree of fractional reserve banking, but you are paid by the bank to deposit your money there, WITH THE FULL KNOWLEDGE OF RISK YOU TAKE ON, provided to you by a NEW industry that might spring up offering reputable analysis on the banks financial statements.

    I don't have all the answers. We have never been allowed to find out what a true free market would look like as tyrants usurped our rights...and we to willingly let them go, mostly as a result of Statist brainwashing.
  54. Silver Standard (Used to be gold) from Canada writes: This is FIAT money folks, FUUUUUUNNNYYY MONEY! IN ACTION!

    Again this is another idiotic article dumping garbage about 'core Inflation', why do we even bother with it because its meaningless.

    '''Lower prices for cars and women's clothing helped offset the rises in food and energy, Statscan said.'''

    What a stupid thing to say, Stats Can is worthless and low balling the figures as usual. Its as if everyone who is struggling out there are buying houses...like it really MATTERS what a stupid house costs!!! Quick rule of thumb would be to take whatever bad news they have and multiply it by 3 and you will get closer to what reality is.
  55. tom g from upper ottawa valley, Canada writes: Inflation: Too much money in too few hands, too much capital in too few organizations. There is insufficient competition to discipline markets, and market are driven by speculation. Free markets never have a change, they don't exist. Price spikes become a way of life. Currency becomes toxic. Everybody invests, nobody works. We have a wonderful standard of living and satisfying life styles. We're nothing but branded consumers of what ever packaging we can get--including our politics.

    Governments and profit oriented corporations seem one and the same. Business oriented governments reject governments intervention (because it interferes with the markets) when conditions benefit business and bailout business when free unregulated business practices produce the inevitable economic crashes. We're told that governments have to support business so we'll have jobs, but we can't expect much or the capital owners will desert the country, and there are also a never ending source of things to fear. We consume our branded protecting leaders like breakfast flakes. Don't know: Does yours go good with milk?

    Balls, we can do better then this. If we can't we don't deserve to think of ourselves as a people, and perhaps we aren't.
  56. david sandford from Canada writes: keep consuming them fossil fuels everyone, it''ll be too late to convert to alternative fuels when the price of bread reaches 10 dollars a loaf, reducing the GST a few more points will mean diddly squat when you can't afford to feed your family, let alone yourself.
  57. Norm Albert from Canada writes: A month ago Harper was bragging inflation was at 2% and taking full credit. Our economy is strong!
    Across the bd rate of 3.5% doesn't represent the impact on everyone equally. The basic cost of putting a roof over your head, food in your belly and transportation to and from work are far more troubling.
    Of course now the government has no control over inflation.
    Oil up $16. in one day may signal to some that continued reliance on a single fuel source maybe counter productive to controlling energy cost. Harper is last in line to want to change that. ABC.
    Tax me has the correct analysis of the problem, but what of a solution? Can we effect it retroactive to yesterday.
    I am impressed by May's solution.
  58. ME V from Frankford, ON, Canada writes: Is it true that Canadians are indeed stupid?
    They most frequently state who they are not.....rather than who they are.

    Consider how Canada is identified:
    'Mini-Bushland', 'American-style', 'Reganomics'
    Which is more popular...American Idol? or Canadian Idol?
    Where do our interests go?

    Yes, permit Canadians to be interdependent thinkers, meanwhile permitting Canadians to seriously reflect on the heart of matters.

    Let us do what is right with what is right.

    A reformation awaits us.

    By the way, The Globe seems to go the CBC direction...'Cry Baby Cry'.
  59. Ed Long from Canada writes: F/A Josquin starts things off with 'We are so stupid.'

    And a totally unrelated anti-american partisan rant.

    You fly overseas, I hope.

    Tell us about inflationary pressures in the UK, EU, Asia due to the trickle down effect of fuel costs.

    Tell us about the various surcharges on the aircraft you fly.

    Did you look at the falling real estate situation in the EU and UK.

    No .... just went to your hotel and wondered how to spend your per diem?

    Global inflation, falling real estate values, high energy ..... it is not just American or partisan.

    Make sure you vote for that carbon tax .... it will really help.

    And as for the comment 'We are so stupid.'

    Don't look for partners when making a confession.
  60. Andy Bourque from Toronto, Canada writes: Mr. Carney has just announced a further $4 bilion TODAY. Where does the Bank of Canada get this authority??????

    Want $5 gas?

    Call your MP.
  61. Scenic Sask! from Canada writes: For those of you who love to blame inflation on our government, it looks like we are on track with other countries.

    Europe:
    http://www.just4business.eu/2008/03/inflation-rate-in-eurozone-at-33/

    (Note, the figures for Europe are only up to last February so do not include the huge fuel price increase. Fuel increase directly affects food prices, you can not charge 75 cents/lb for apples one year and maintain that price when it costs twice as much to haul them to the store from the orchard. So now apples are $1.28/lb

    Just a hint at what will happen if we are unwise enough to add to inflation by imposing a carbon tax.
  62. Ed Long from Canada writes: We have a whole generation that was not in adulthood in 1973.

    Go to Wiky, pump in 1973 OPEC Oil Crisis, and read about the trickle down effects of high oil.

    And make sure you vote for that carbon tax, it really helps.
  63. garlick toast from Canada writes: The choice for those with savings is either to watch them dwindle via inflation or invest in the stock market and get a professional hosing from a gang who are law-suit proof and treat their clients the way a beef farmer treats his herd.
  64. ralph sutton from Canada writes: This is news!? Du ! Where the heck have you been , on the moon?
  65. F/A josquin from Canada writes:
    Check out the conservative candidate in Burnaby BC, It was just revealed he has been reprimanded 3 times by the real estate board, for bad business practices.

    3 times !! he has to take the test again if he wants to sell. Guess he needed a new job, hence the conservative candidacy. He can keep cheating us there.

    hypocrites, and we are so stupid to believe them
  66. R E from Canada writes: Tax me! I'm Canadian. I'll roll over! from Canada writes: : I read a declaration the other day... Yes, yes, it's the anarchist declaration that you always post. Very clever. However...though you picked on the wrong person (Steve just repeated someone else's post), I'd love an answer to your question, 'What are the positions the 'lefties' stand for?' People seem to have this obsession with Left vs Right....as though it actually has relevance. I understand that some people need a simplified version of the world, and Left vs Right helps them wade through complex issues. But do they really believe that 'Lefties' (or 'Righties'?) all have the same thoughts on all issues? Isn't it possible that one believes in both lower taxation and pro-choice simultaneously? Why do people feel the need to associate with one party over the other and, come hell or high water, they would never consider voting for the 'other' party regardless of the issues? Its always Left vs Right Conservative vs Liberal With us or against us. And we let these people vote. Kind of tells you how much the political system is worth.
  67. Tax me! I'm Canadian. I'll roll over! from Canada writes: :
    tom g from upper ottawa valley, Canada writes: Inflation: Too much money in too few hands, too much capital in too few organizations. There is insufficient competition to discipline markets, and market are driven by speculation. Free markets never have a change, they don't exist. Price spikes become a way of life. Currency becomes toxic. Everybody invests, nobody works. We have a wonderful standard of living and satisfying life styles. We're nothing but branded consumers of what ever packaging we can get--including our politics.

    Governments and profit oriented corporations seem one and the same. Business oriented governments reject governments intervention (because it interferes with the markets) when conditions benefit business and bailout business when free unregulated business practices produce the inevitable economic crashes. We're told that governments have to support business so we'll have jobs, but we can't expect much or the capital owners will desert the country, and there are also a never ending source of things to fear. We consume our branded protecting leaders like breakfast flakes. Don't know: Does yours go good with milk?

    Balls, we can do better then this. If we can't we don't deserve to think of ourselves as a people, and perhaps we aren't.

    ---

    Excellent post, Tom!

    We can do better than this, if we have the balls to do it. I posted about this before to some that are familiar with my past posts. It is a campaign of education.

    Google 'Agorism'.
  68. Stockpiling ammo and food from Canada writes:
    Tax Me ,greetings, well said as always.
    until people can pull their head out of this false left right paradigm
    that is designed to keep the sheeple busy bickering, and keep the real
    criminals (Banksters) out of site, the vail will stay on.

    But I think the vail is begining to show some cracks.
  69. J Kay from Canada writes: Tax Me:

    I wish to have power over you
    I wish you to have no power over me
    I will have power over you
    Now shine my shoes! ;)
  70. Matthew Baldwin from Canada writes: It's amazing how the Conservatives are responsible for the Hurricanes which forced the closure of U.S. Gulf Coast Refineries, which in turn caused the spike in gasoline prices.....Seriously, you Left Wingers need to put down the partisan sniping and actually educate yourselves. You don't even need to take a class. There a ton of good economic blogs out there: The Big Picture, Calculated Risk, Mish's Global Economic Trend Analysis, Naked Capitalism, etc. .....because at present with such dumb statements, your words instead strengthening your position instead only proves to discredit yourselves.
  71. Tax me! I'm Canadian. I'll roll over! from Canada writes: :
    R E from Canada writes: Tax me! I'm Canadian. I'll roll over! from Canada writes: : I read a declaration the other day... Yes, yes, it's the anarchist declaration that you always post. Very clever. However...though you picked on the wrong person (Steve just repeated someone else's post), I'd love an answer to your question, 'What are the positions the 'lefties' stand for?' People seem to have this obsession with Left vs Right....as though it actually has relevance. I understand that some people need a simplified version of the world, and Left vs Right helps them wade through complex issues. But do they really believe that 'Lefties' (or 'Righties'?) all have the same thoughts on all issues? Isn't it possible that one believes in both lower taxation and pro-choice simultaneously? Why do people feel the need to associate with one party over the other and, come hell or high water, they would never consider voting for the 'other' party regardless of the issues? Its always Left vs Right Conservative vs Liberal With us or against us. And we let these people vote. Kind of tells you how much the political system is worth.

    ---

    Hi RE, not sure I follow what you are asking. As for the declaration, I have only posted it twice - I was riveted when I read it. Ideologically, I can find no fault with it.
  72. J Kay from Canada writes: Ed Long: It's quite a bit more complicated than that. You also need to read up on the monetary theory practised by the bank of Canada and the Fed at the time to understand how high inflation and interest rates occurred like they did. It wasn't entirely the oil shock itself, though this was the match, but the BOC and FED were fueling the fire
  73. Wayne Walker from Canada writes: Glancing through these blogs, it is easy to dismiss the rantings of many but it is amazing that anyone could get worked up over a 1.7% core inflation rate. Even the 3.5% headline rate which includes the gas price spike is not that scary if it grinds down along with the price of oil. There are a couple of comments which are just wrong however. Blaming the NEP for 20% interest rates is one of them. That interest rate spike was Paul Volcker's way of driving home the point that inflationary expectations were dangerous and it worked. The NEP was a pretty small part of inflation cost push in Canada and had nothing to do with inflation anywhere else in the world ......

    The other incorrect information is from C Rob who says that disposable income and wages have not kept up. In fact average wages have been increasing at a rate greater than 3.5%.

    By the way, if the inflation rate declines does anyone think josquin will thank the neo cons for good management?
  74. Jesse Winger from Calgary SW, Canada writes: Since Harper is in the back pocket of Big Oil, don't expect any help from him on high gasoline prices.

    That's what you get for supporting the Alberta Separatist.
  75. Tax me! I'm Canadian. I'll roll over! from Canada writes: :
    You are not allowed to escape the 'red market' - i.e. the taxation/inflation system we are all enslaved to. We are forced to invest to stay ahead of the inflation tax, exposing the fruits of our labours to the risks of a corrupt market and the perils of a debt-backed fiat money system, all enforced by the State.

    Agorism is the setting up of a counter-economy using sound money to settle trades with each other off the books. It is NOT the same as a black market.

    All you need is 4-5 TRUSTWORTHY trading partners to begin locally and pen and paper to keep records. You don't need software to address to optimize an inefficiency.

    You can start working part time in this system. Find people who produce things (even a simple local mom and pop shop) who are willing to accept sound money.

    Offer your services in return for sound money.

    If you work 20% of your time in the agorist economy, that is 20% of your income earned without having to report it to the State for taxation, confiscation, or regulation. You won't have your purchasing power stolen via inflation!

    You still need to work in the red market to earn Bank of Canada points (a.k.a dollars) in order to purchase the things you can't get from your Agorist network and pay taxes to the State.

    If you keep your network decentralized, it makes it more difficult for the State to break it. People who operate within the network would not likely 'rat it out' as it represents TREMENDOUS value to them. You would be amazed to learn how many people solve their differences in a reasonable manner as they take FULL RESPONSIBILITY for their actions.

    Would their be problems? To be sure, their are unsavoury characters everywhere, but none so unsavoury as the State.
  76. R A from Canada writes: Cmon people, anybody with their head on straight would know this is Harper's fault.

    Now, if we could just all tax the rich and give to the poor the world would be perfect...until, of course, there are no more rich and then we will need to go to plan B (Dion & Jack hasnt worked out those details yet).
  77. Guy Olivier from Columbus, Ohio, United States writes: 'David M from St. John's, Canada writes: Bring it on...........let's put up the price of gas and oil until we send the global economy into an unrecoverable nose dive........and let the big boys burn their money to keep warm cause that's all it will be good for.......... '
    --------------------------------------
    Good point but if the fat cat big boys are burning money to keep warm, what will we in the middle class be burning?
  78. J Birch from Hamilton, Canada writes:

    And Tubby sings: don' wooory, be haaapy

    As he psses away the Federal Fiscal Cushion inherited from the Liberals and plunges us in to deficits again with the rise in inflation and higher debt service costs.

    *We really can't afford Harper

    .
  79. Kim Morton from Canada writes: Until we have a government that represents consumers , aka taxpayers we will continue to be ripped off at the pumps. Ask your perspective MP if they suport gas price controls. If not , they do not represent the interests of Canadians.
  80. O Perdana from Canada writes: Inflation is running at 13.2% based on Bank of Canada Weekly Financial Statistics report dated Sept.19, 2008.
    Here is the link : http://www.bankofcanada.ca/en/wfsgen.html

    In the US, inflation (M3 plus credit) is about 10%. The US government debt limit will have increased by 15.3% ($1.5 trillion) alone since September 2007; this includes the proposed $700 Billion bail-out plan.

    Global liquidity is running at an annual pace of about 25%.

    People, do your own due diligence.

    Carpe diem
  81. John the Baptist from Canada writes:

    Liberal economists have always denied that the NEP had anything to do with the astronomical interest rates we saw in the mid eighties.

    The NEP sub