I agree with your sentiments, Norm. Does this instigaste the question as to whether the BoC is focusing less on the data and more on optics to tell a "story" in building credibility, which arguably may have eroded over the past few months?
The question in my mind now becomes whether central bankers' actions HAVE contributed to (present tense) recession, rather than if they could (future tense). That's assuming the definition of recession hasn't or won't be modified again.
There was a report by National Bank stating this to be the case:
“ Thanks to its QE program, the bank will own around 40% of outstanding federal bonds by the end of 2020 and could be closer to 50% at this time next year.”
It’s purported that the BoC will own about half of the Canadian sovereign bond market by the end of next year. Perhaps they’re aiming to adjust this by reducing its buying spree, however, it remains to be seen whether economic recovery indeed happens by 2022 as is being protected!
Agreed, Norm. Banking hasn’t evolved much, if at all, since its inception in ancient times. Instead of Temples, there are branches to store coins (or cash today) to ensure payment of loans. Digitizing currency will certainly stir things up, perhaps even lead to the complete collapse of traditional banking as we know it.
Indeed Norm. The permanent loss from whatever shape (or letter) this recovery ends up being will certainly be felt for years. The market is usually slow to catch up.
Salient piece, Norm. Significantly reduced productivity will certainly further suppress the turnover of money for a while. Signs of such had already been evident prior to Covid-19, as you outlined.
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As The Canadian Inflation Rate Starts To Decline, Will The Bank Of Canada Pause?
I agree with your sentiments, Norm. Does this instigaste the question as to whether the BoC is focusing less on the data and more on optics to tell a "story" in building credibility, which arguably may have eroded over the past few months?
Central Banks Dig In Their Heels As Recessionary Forces Build
The question in my mind now becomes whether central bankers' actions HAVE contributed to (present tense) recession, rather than if they could (future tense). That's assuming the definition of recession hasn't or won't be modified again.
Canada Shifts Its Strategy To Finance COVID-Induced Deficits
Couldn't agree more with you and Wolf. Maintaining perspective and filtering priorities is paramount.
The Bank Of Canada Reorients Its Balance Sheet Towards Long-Term Bonds
Typo: protected = projected
The Bank Of Canada Reorients Its Balance Sheet Towards Long-Term Bonds
There was a report by National Bank stating this to be the case:
“ Thanks to its QE program, the bank will own around 40% of outstanding federal bonds by the end of 2020 and could be closer to 50% at this time next year.”
Link: www.advisor.ca/.../bank-of-canada-is-overdoing-it-on-qe-report-says/
The Bank Of Canada Reorients Its Balance Sheet Towards Long-Term Bonds
It’s purported that the BoC will own about half of the Canadian sovereign bond market by the end of next year. Perhaps they’re aiming to adjust this by reducing its buying spree, however, it remains to be seen whether economic recovery indeed happens by 2022 as is being protected!
It Is An Open Secret That Central Banks Are Moving Towards Digital Currencies
Agreed, Norm. Banking hasn’t evolved much, if at all, since its inception in ancient times. Instead of Temples, there are branches to store coins (or cash today) to ensure payment of loans. Digitizing currency will certainly stir things up, perhaps even lead to the complete collapse of traditional banking as we know it.
COVID-19 Impact On The Canadian Labor Market
Indeed Norm. The permanent loss from whatever shape (or letter) this recovery ends up being will certainly be felt for years. The market is usually slow to catch up.
COVID-19 Impact On The Canadian Labor Market
Your balanced view of unemployment is contrasted by the unbalanced behaviour of markets.
Where Has All This Printed Money Gone To?
Salient piece, Norm. Significantly reduced productivity will certainly further suppress the turnover of money for a while. Signs of such had already been evident prior to Covid-19, as you outlined.