The Bank of Canada claims it didn't print cash to finance Justin Trudeau’s deficits.
Fact Check: The Bank’s statement is full of baloney. Here's why... 1/5
Fact Check: The Bank’s statement is full of baloney. Here's why... 1/5
As Trudeau started issuing bonds to pay for his deficits, the Bank of Canada started buying those bonds. Hundreds of billions worth. 2/5
They absolutely increased the money supply to do so. All forms of money increased – like bank deposits and settlement accounts (and yes, even cash). The supply of money increased as the amount of government bonds the Bank holds increased. 3/5
Summary: Trudeau issued bonds to pay for his deficits. The Bank of Canada created new money out of thin air to buy hundreds of billions worth of those bonds. That new money, including the new cash they printed, is now in our economy driving up prices. 4/5
The Bank is being dishonest with words. If the Bank of Canada is worried about their credibility, they should be more open and honest with Canadians. 5/5
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