TURMEL: Bank of Canada Big Lie says more interest rate hikes
From: John Turmel (bc726_at_FreeNet.Carleton.CA)
Date: 11/01/04
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Date: 1 Nov 2004 23:26:34 GMT
JCT: Shades of the early 1980s when interest rates reached
22% at the Bank of Canada and 40% out in the streets. No
thanks to Pierre Trudeau who raised the ceiling on interest
rates from 6% to 60%. Thats why they got to 22% under
Pierre. That's why he was kicked out. That's where he
failed.
The reason I'm publishing this is that I'm used to hearing
the Big Lie of Economics that interest rates fight inflation
one, two, three, maybe even four times in an article, but
this number is unheard of.
Remember that Turmel's Miracle Equation J = I/P+I says that
inflation J equals Interest over Debt (Principal+Interest).
If Interest = 0, Inflation must be 0. Inflation is not an
indirect function of the interest rate, it is a direct
function. Interest does not fight inflation, it causes it.
If Interest = 0, Inflation must be 0.
So every time they say that the medicine for inflation is
interest rates, they are repeating the Big Lie.
Hypnotically, methodically, enchantingly, chantingly, never-
endingly, repeated. So now let's count how many times the
mantra that interest fights inflation is repeated here.
Bank of Canada predicts more rate hikes
Canadian Press / Calgary
by James Stevenson
Canada's central bank plans to continue raising interest
rates despite an unexpected drop in the inflation rate last
month, Bank of Canada governor David Dodge said Monday.
(1) Means: "It's surprising to do raise interest which
fights inflation when inflation is going down.
Dodge said the pace of rate increases will depend on the
speed of economic growth in the United States, China and
India, as well as on domestic factors.
(2) Means: Economic growth is measured in money and
increased speed of economic growth means increased money
which means Shift A inflation which means that the interest
rate increases will depend on needing to fight inflation.
"Looking forward, we will need to continue to reduce
monetary stimulus to avoid a build-up of inflationary
pressures and to contribute to sustainable growth," Dodge
said in a speech to the annual meeting of the Canadian
Chamber of Commerce in Calgary.
(3) To avoid inflation pressure, we need to reduce monetary
stimulus and you reduce monetary stimulus by raising the
interest rates and deterring the monetary stimulus.
"However, the pace of our actions will depend on our
continuing assessment of the evolving prospects for
pressures on capacity and inflation.
(4) Means: The pace of our actions on interest rates will
depend on inflation.
Last Friday, Statistics Canada reported a surprisingly low
reading on price increases, showing an annual rate of
inflation receding to a mere 1.9 percent in August. The
slowing in the inflation rate last month - from 2.3% in July
- surprised financial markets and raised suggestions that
the Bank of Canada might slow down or even call off its
expected tightening of monetary policy.
(5) Means: It won't raise interest rates to fight inflation
because inflation went down.
Excluding volatile food and energy items, last month's core
rate of inflation - the price statistic most closely watched
by the central bank - fell last month to 1.5%, well below
the two percent favoured by the Bank of Canada. Still, Dodge
said risks of inflation "were probably exactly the same" as
before the lower-than-expected numbers came out. "We get
measures by the month - they are estimates - and those
estimates bounce around," Dodge said following his speech.
"Where we are at the moment is very, very close to where we
expected to be when we put out our July report."
The bank raised short-term interest rates by a quarter of a
point on Sep 8, citing rising core inflation,
(6) Means: They raised interest rates citing rising
inflation.
and hinted that it would continue to raise rates at its
next two opportunities - Oct 19 and Dec 7 - to keep a lid
on price pressures.
(7) Means: raising rates keeps a lid on price pressures.
JCT: (raising banking costs?)
In the United States, the Federal Reserve Board is widely
expected to boost its short-term interest rates by a quarter
point on Tuesday, making it the third such rise this year.
Although inflation isn't currently threatening the economy,
(8) Means: Third interest rate rise to fight inflation that
isn't currently threatening.
the U.S. central bank wants to make sure it doesn't become a
problem, explaining why the Fed is expected to increase the
federal funds rate to 1.75% from 1.5%.
(9) Means: stop inflation from becoming a problem by
increasing interest rates.
JCT: Nine times, the presumption or the overly stated
premise is that inflation shift A is fought by raising
interest rates. Everyone reading this has to be inculcated
with that presumption, conditioned by that Big Lie.
Still, having the Big Lie of Economics repeated nine times
in one article has to be a record.
http://www.cyberclass.net/turmel/biglie.htm
-- Abolitionist Slave Leader John C."The Banking Systems Engineer" Turmel for UNILETS interest-free time-based currency in U.N. resolution C6 to Governments in the http://www.un.org/millennium/declaration.htm http://www.cyberclass.net/turmel 519-753-0645 USENET: can.politics
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