1/4 Central banks have been printing too much money for decades. They created the 1990s dotcom bubble and 2000s real estate bubble. Today we have massive debts, the Everything Bubble, plus rising consumer price inflation. Anyone who understands economics saw this coming.
2/4 So Trudeau is right when he says inflation is a global phenomenon. But he and @bankofcanada apparatchiks made things much worse for Canada with the unnecessary spending and monetization of the gigantic deficits of the past two years. The remedy will be harder to swallow.
3/4 Central banks says they will fight inflation. But they are the ones that created it! And they are in a bind. If they reduce the money supply and raise interest rates, the debt burden will become unbearable and all the bubbles will burst.
4/4 There is no easy way to get out of this situation. We must cut back government spending and stop the monetization of deficits. Free the private sector to create wealth. Abandon unsustainable stimulus policies. And return to sound money.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
