Inflation. Stagflation. Reduction. Multiple interest rate hikes. Housing crisis. Exploding prices in the rental and real estate markets. We’re not done picking up the broken pots on the dark side of the pandemic.
Along with this fatal epidemic, it seems to those who are appalled by greed, that the loss of our social landmarks is a signal to take advantage of it as soon as possible to increase their own profits.
Even for essentials like food and decent housing, costs have risen and are still rising with infamy. Don’t throw away anymore. Stuffing turkey yard, so we, is full.
But be careful. This “we” is generic. Needless to say, he cannot understand the minority who are already well off and continue their glamorous lifestyles.
For the majority, in this very bad joke, how many Canadians and Quebecers were stuck in the first place with ridiculously low interest rates before the pandemic? The illusion of “low cost” loans.
The result stood. Such low rates have increased the indebtedness of many households and single individuals. Property prices have also increased accordingly.
With the rates on the floor and the popular variable rate we swear will be more beneficial forever, why not buy a house because they are expensive, well beyond your true means? Oops.
Not an exact science…
However, as economists and bankers tell us, unemployment is low. Families who missed out on rest during the pandemic saved more. A seductive but misleading refrain.
In short, when an economist or banker tells you that his profession is not an “exact science”, please believe him. However, we do know that the perfect storm is brewing. In the midst of a pandemic that has already taken hold, denial is attractive.
Then there was a big lightning in the sky. Eighteen months ago, the Bank of Canada, seeing inflation picking up pace, raised its key rate. The first increase of a long list, this week, brings us to 5%.
Since then, the collateral damage of this laboratory economy – Welcome to Capitalism 101 – has been felt by many people. To varying degrees, of course.
This does not prevent economists and bankers from discussing it in complete detachment. They don’t care what is happening. No one saw the banker ring the doorbell of the food bank.
The storm hit hard
From the true middle class, to workers and freelancers on limited incomes, to the elderly on welfare – yes, they still exist – or without pension funds, this perfect storm is taking a hit.
It also hits 40% of Quebec renters of all ages, including 65% in Montreal. This affects single mothers and people living alone.
This frenzy of inflation takes its toll on mental and physical health. A successive rise in interest rates increases debt. The famous “It’ll be alright”, where did he go to hide?
The bottom line, it seems, is closing the wealth gap between Quebec and Ontario. In the current storm, many Quebecers will be able to narrow the wealth gap they had before the pandemic.
Meanwhile, the sorcerer’s apprentices are making bonds. At the top, they cheat the economy and in doing so our lives. Not an “exact science,” they say. A very low estimate.
You can report it on the food bank line or at the office of a licensed bankruptcy trustee.