Burning of money

SPECIAL REPORT: Free Money is Coming!

CRS Reports

“These measures, delivered as part of the Government of Canada’s COVID-19 Economic Response Plan, will provide up to $27 billion in direct support to Canadian workers and businesses.”[1]


The report will outline some of the important free money government assistant measures available to Canadians. $27 billion might not seem like a lot compared to America’s recently announced a $2 Trillion fiscal free money stimulus plan. Still, when the government offers you money, the people have no choice but to take it.

See a summary of the plan below and you can click on the link to the announcement here:

Economic Response Plan 
Cost and Implementation
Measure 2020-2021 Cost/Impact Implementation
Emergency Care Benefit Up to $10 billion Early April
* requires Royal Assent
Emergency Support Benefit Up to $5 billion Early April
* requires Royal Assent
GST Credit $5.5 billion By Early May
* requires Royal Assent
Enhanced Canada Child Benefit $1.9 billion May
* requires Royal Assent
Temporary Business Wage Subsidy $3.8 billion Immediately
Supporting legislation to follow
Canada Student Loan Payments $190 million Early April
* requires Royal Assent
Support for Indigenous Communities $305 million April
* requires Royal Assent
Support for people experiencing homelessness (through Reaching Home) $157.5 million April
* requires Royal Assent
Support for women’s shelters and sexual assault centres including on reserve $50 million April
* requires Royal Assent
Lower Registered Retirement Income Fund Minimum Withdrawal Amounts $495 million Immediately
Supporting legislation to follow
Total $27.4 billion  

 

NOTE: This article is for discussion purposes and does not offer a summary of all benefits available, please go on the website and read eligibility requirements for yourself. There will surely be other programs available that you will be eligible for so please research.

1) Temporary Income Support for Workers and Parents – You may be able to get up to $900 bi-weekly for 15 weeks if you get COVID-19 or if you must leave work to care for children affected by school or daycare closures.

2) Income Support for Individuals Who Need It Most – Is this racist or basic class warfare? Who decides who needs income support more than another and what is the criteria? This is UBI to American’s, but in Canada it’s called a Goods and Service Tax Credit (GSTC) that is given to those in a low-income bracket. Per press release:

The average boost to income for those benefiting from this measure will be close to $400 for single individuals and close to $600 for couples. This measure will inject $5.5 billion into the economy.

There is also an additional $300 you will receive per each child, which is expected to inject an additional $2 billion into the economy.

3) Flexibility for Taxpayers – The tax filing deadline for individuals other than trust moves from April 30th to June 30th but you are encouraged to file early in order to prevent a delay in your government benefits.

4) Role of Financial Institutions – You may be eligible to get up to 6-months of mortgage payment deferral and other credit relief from your bank. This I encourage because the money you defer can be used to speculate in the stock market or crypto currency.

5) Support for Business – There were no significant details noted but it appears that more assistance will be provided shortly.

There are two other programs under the “Individuals who need it most” category I’d like to share:

    • Providing $305 million for a new distinctions-based Indigenous Community Support Fund to address immediate needs in First Nations, Inuit, and Métis Nation communities.

I am uncertain as to how this money is to be distributed, allocated and whether or not it requires accountability. But my question is: How was it determined to give $305 million and why not $610 million? Wouldn’t that help out the First Nation, Inuit, and Métis Nation communities twice as much?

    • Placing a six-month interest-free moratorium on the repayment of Canada Student Loans for all individuals currently in the process of repaying these loans.

My question: Why doesn’t the government just forgive all student loans, after all “we owe it to ourselves?”

Still, how many Nobel Prize winners or mainstream economists are speaking out against all of this inflation (i.e. increase in the supply of money and credit)? How many statements, letters, articles or petitions have been made in an attempt to stop this?

This is not good for various reasons. One of which can be seen in the Bloomberg chart below, noting that 5% of Canada’s workforce is now jobless:

1 million unemployed Canadian chart

Billions of dollars will be given to millions of people who are not working. If the ramifications are still unclear, allow me to articulate it another way: The government is going to create billions of dollars and give it to people who are not producing any goods or services. During their unemployment, recipients of this money will be unable to create anything (goods or services) valued by society. They are only “consumers” and not “producers.”

The result of this economic plan is never fully discussed. We know they are getting money to buy “stuff,” but the question is never asked: “who will make the stuff that these people buy?”

This new money will go to buy stocks, precious metals, crypto currency, guns, ammunition, food and medical equipment. But if 5% of the workforce is suddenly unemployed, and most likely millions more to follow, who will make precious metals, guns, ammunition, food and medical equipment? In the case of assets such as stocks and cryptocurrency, it will only push prices higher. This is inflationism and it has neve worked; even worse, Austrian economists have been fighting against this for over a century to no avail.

I’ve noted on my 2nd YouTube video:

Mainstream economics is either universal and can be applied everywhere to all countries and people, or what we call ‘mainstream economics’ is entirely fake.

If inflationism works, then why don’t world governments, like Greece, Zimbabwe, Argentina, Venezuela and Canada simply continue to create money out of thin air and allow people to speculate on assets or buy goods and services that they need.  Without hesitation every world government and their central bank increases the money supply in hopes that somehow, something will happen to make people’s lives better. When the reality is that it makes life progressively worse. The problem is that mainstream economics is socialism; the bigger problem is that most people seem to love socialism.

Across the globe central bankers continue to laugh at society. We live in and put up with their inflationism due to our failure to understand economics. Most people are too preoccupied with superficial issues such as hating other races, the opposite sex, or religious differences, or simply they are stuck at home watching Netflix, “talking politics,” and living life paycheck to paycheck to realize how critical the situation really is. Few of us understand economics and those who do are in no position to do anything about it.

I saved the surprise for last so you can see how effective socialisms really is. Remember, under socialism, the ruling party is able to allocate money however it sees fit. Keep in mind the initial $27 billion of “fiscal firepower”[2] that is to be given to citizens may seem like a lot of money. However, this pales in comparison to the $500 billion that is to be created by the Bank of Canada and distributed through other government agencies to give to banks, major corporations, and the wealthiest members of society.

See below for the bottom section of the initial chart posted above. This is how the other side gets bailed out:

That’s $500 billion immediately, no royal assent is required.

Other supports    
Credit and liquidity support through financial Crown corporations, Bank of Canada, OSFI, CMHC and commercial lenders (e.g., Domestic Stability Buffer, Insured Mortgage Purchase Program, Banker’s Acceptance Purchase Facility) In the range of $500 billion Immediately

This is socialism; very few people seem to have a problem with it.


EC

[1] https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html#Support_for_Canadians

[2] https://torontosun.com/opinion/columnists/goldstein-trudeaus-fiscal-firepower-against-covid-19-limited

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