No matter how hard you shake or sift it, you know what you will have, and it isn’t Gold (unless your cat swallowed your Gold Ring or a Krugerrand).
I read that on Postsecret this week and thought it would be a fantastic title. I believe that is an excellent commentary on building up Debt for a better lifestyle, and speaking of interest rates:
Bank of Canada Rates Stay the Same in October 2012
Yes the Bank of Canada decided loose money in Canada is still a really good thing, so they continue on with their existing over night rate of 1.0%, for now. There really wasn’t a big reason to raise rates, since inflation looks under control, however, debt loads are not dropping much either, so there may be a pre-emptive strike by the Central Bank coming in the near future, if you are to believe some of their rhetoric lately.
Core inflation has been lower than expected in recent months, reflecting somewhat softer prices across a wide range of goods and services. Core inflation is expected to increase gradually over coming quarters, reaching 2 per cent by the middle of 2013 as the economy gradually absorbs the current small degree of slack, the growth of labour compensation remains moderate and inflation expectations stay well-anchored. Total CPI inflation has fallen noticeably below the 2 per cent target, as expected, and is projected to return to target by the end of 2013, somewhat later than previously anticipated.
Lower than expected? Given the rest of the world’s economies are in the crapper, where would the inflation be coming from? If anything Canada could have a Deflationary period if the strength of the Canadian dollar is finally reflected in consumer goods (why is the Retail Price of all things still more expensive in Canada?).
As a parting threat the Bank of Canada did say:
Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. Over time, some modest withdrawal of monetary policy stimulus will likely be required, consistent with achieving the 2 per cent inflation target. The timing and degree of any such withdrawal will be weighed carefully against global and domestic developments, including the evolution of imbalances in the household sector.
So be warned, scary monetary policies may be coming soon! The Zombie Bank Rate Apocalypse might be around the corner! Think of the children!!!