in the three months ended Sept. 30, 2021, the first time the institution has been in the red since it was created almost 90 years ago.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300A welcome email is on its way.
Macklem flooded financial markets with money during the COVID recession, determined to fend off the effects of the pandemic as quickly as possible. Specifically, he purchased government bonds from private lenders by crediting their accounts at the central bank. Many other central banks did the same, putting downward pressure on interest rates by increasing the demand for bonds.
Initially, the central bank made money, but when interest rates spiked amid surging inflation, the accounting math changed. Now, the Bank of Canada is facing a couple of years of losses on those deposits it created for the financial institutions from which it purchased the bonds. The Bank of Canada insisted the situation was nothing to worry about. There is no danger of the central bank going bankrupt and any number of private companies remain going concerns by offsetting current losses against future profits.
However, the Bank of Canada wasn’t given the ability to retain earnings by the politicians who created it. The central bank must send its profits to the federal treasury. Typically, that’s about $1 billion per year, and the transfer surged to about $2 billion during the early phase of QE. But there is no provision in its enabling legislation for managing losses.Article content
I BET IT IS A NEW TAX
every single one of them a LOSER
Mary00163864 Aww yes, taking any advice from a non business trained person with no accounting knowledge is the way to go for sure. What could go wrong 🤦♀️🤡 she needs to go along with Truedope and the rest of the liberal gang. TrudeauMustGoNow FreelandMustGo
Those losses are someone's gains. Doesn't that cause increase money supply.
What‘s this going to cost me
yep she's going to tax the people lol
Are she and her boss quitting?
Freeland is a huge part of the problem so anything she does will make things much much worse 😡
They are the cause ffs
Let me guess. By spending more money and injecting more money into an inflated economy. Great.
I cannot believe Freeland and Co are so incompetent. I am almost sure they were not concerned about BOC’s losses a little while back. Am I wrong? So now what? Increase spending to help BOC? The spending got BOC into trouble in the first place.
But of course she does...and we'll all pay for it.
a FIAT currency banks - that makes the money up from nothing... wow hire a journalist
The taxpayer is paying the bank for Trudeau's ' making' money? The banks made billions in the pass? Has Trudeau surpassed the banks 'savings'. I guess I've oversimplified or I'm just a fringed Canadian who's to low to understand his ( the supreme leader) brilliance 🌞🌟🙄
Criminals that extorted the Canadian people to get into debt and pulled the rug. Economics 101. Print $$$ leads to inflation and everyone knows it.
Maybe invest that 2 million $ u took for nothing
You're not supposed to editorialize every headline guys.
Hint: it's taxes. Lower taxes. JC. Enjoy your higher taxes!
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