[...]Bank of Canada Cuts Interest Rates! January 2009! | Richard Silver’s Downtown Toronto Blog[...]…

Bank of Canada Cuts Interest Rates! January 2009! | Richard Silver’s Downtown Toronto Blog…

The real secret is to directly help the middle classes to reduce their debt and increase their net worth. In turn this will stimulate consumption and new business formation and lead us out of this economic chaos.

RRSP’s are accumulated for retirement needs, but in this crises, they should be transferreable tax-free into reducing mortgage principal amounts.

I have recommended about ten other programmes to bail out the middle classes. But those with actual political and financial power are insisting that the money flows through their sticky fingers first.

Unfortunately, this budget was almost exclusively created by the civil services bureaucrats and it is extremely self-serving and actually produces zero economic stimulus on the demand side.

The supply side includes the financial sector, governments and mega-businesses who created this chaos. They can swallow up billions but not produce a penny of real new economic growth. In fact, I wouldn’t be surprised if the banks are poised to bankrupt thousands of businesses and homeowners as soon as they know that the government will cover their losses. Thus, the budget bails out the supply side, whilst hurting or doing nothing for the demand side, (middle class families and consumers).

On the demand side, everyone gets to pay $112.50 less tax and those earning $75k will only pay $198.87 less in 2009. The media spin covers up what an absolute sham is being foisted on middle class Canadians. $300 less taxes to the average family is pathetic!

By the way, who do you think will be told to pay the $100 billion deficit in three years?

“Bob the Beaver”