Bank Of Canada Governor Offers GRIM Economic Forecast
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Summary
Today, the Governor of the Bank of Canada admitted on live television that Mark Carney is destroying Canada s economy, and it's about to get a lot worse. The only solution? Mark Carney should be removed from office.
Transcript
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Oh my, Mark Carney is having a really rough week and it's about to get a lot worse.
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Today the Governor of the Bank of Canada admitted on live television that Mark Carney is destroying
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Canada's economy and it's about to get a lot worse. The only solution? To immediately remove
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Carney from office. Let's take a look at that. Thank you Paul and good morning everyone. I'm
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very pleased to be here with the Senior Deputy Governor to discuss our monetary policy decision
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and our outlook for the Canadian economy. Today the bank lowered the policy interest rate a further
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25 basis points bringing it to two and a quarter percent. This was our second straight cut and
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reflects ongoing weakness in the economy and contained inflationary pressures. Today we also
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published our outlook for the Canadian economy. Putting those two things together we have four
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main messages. First, U.S. tariffs and trade uncertainty have weakened the Canadian economy.
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We expect very modest growth through the rest of the year with some pickup in 2026. Did you hear
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that? Tiff Macklem of the Bank of Canada basically admitted that Carney's inability to get a good deal
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with Donald Trump is hurting the Canadian economy. Second, while this weakness is restraining price
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increases, the trade conflict is also adding costs for many businesses, putting upward pressure on
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inflation. We expect these opposing forces to roughly offset, keeping inflation close to the two percent
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target. And third, to support the economy through this period of adjustment, we have lowered our policy
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rate by 50 basis points over the last two meetings and by 100 basis points since the start of the year.
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Finally, the weakness we're seeing in the Canadian economy is more than a cyclical downturn. It's also a
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structural adjustment. The U.S. trade conflict has diminished Canada's economic prospects.
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The structural damage caused by tariffs is reducing the productive capacity of the economy
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and it's adding costs. This limits the ability of monetary policy to boost demand while maintaining
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low inflation. So let me translate that for you. Our economy is in rough shape and it's all Carney's
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fault. Put it this way, who promised to get a deal with Donald Trump? Mark Carney. Likewise,
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who failed to get a deal with Donald Trump? Also, Mark Carney. Now, of course, conservatives knew that
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Mark Carney was a clown and incompetent all along. The question is, will the liberals take notice?
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Will they finally learn that they made a mistake? Now, before we go any further, I noticed I'm being
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censored on YouTube. If you see this video, give it a quick like, make sure you're still subscribed,
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and let me know if you saw this part in the comment section. Thanks. All right, let's watch Tiff
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Macklem give us more bad news about Canada's economy. For the first time since January and the start of
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the trade conflict, the bank is publishing a baseline outlook for economic growth and inflation rather
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than alternative scenarios. It's now been more than six months since we have been living with U.S.
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tariffs. And while U.S. trade policy remains unpredictable, its impacts are becoming clearer.
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So let me expand on what we're seeing in the economy and how that played into our deliberations.
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While the global economy has been resilient to the rise in U.S. tariffs and increased uncertainty,
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the impacts are becoming more evident. Trade relationships are being reconfigured,
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and uncertainty is dampening investment in many countries. In Canada, the impacts of U.S.
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trade policy are already clearly evident. GDP contracted 1.6% in the second quarter as tariffs
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and uncertainty reduced exports and business investment. U.S. trade actions are having severe
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effects on targeted sectors, including autos, steel, aluminum, and lumber. At the same time,
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household spending was resilient in the second quarter with strong consumer spending and a pickup
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in residential investment. The labor market is soft. Employment gains in September followed two months
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of sizable losses. Job losses have been concentrated in trade-sensitive sectors, and hiring has been weak
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across the economy. The unemployment rate remained at 7.1% in September, and wage growth has slowed.
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In the second half of this year, GDP growth is expected to resume but remain weak, averaging only
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three-quarters of a percent. It should then pick up on a quarterly basis in 2026 as exports and
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investment recover to average about one and a half percent in 2027. This implies excess supply is only taken
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up gradually. Even as growth recovers, the entire path for GDP growth is lower than before the shift
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in U.S. trade policy. By the end of 2026, the level of GDP is about one and a half percent lower than
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forecast in January. About half this downward revision reflects lost capacity as a result of the trade
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disruption. The other half is due to weaker demand. CPI inflation was 2.4% in September, slightly higher
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than the bank had anticipated. The bank's preferred measures of core inflation have been sticky, around
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3%, but upward momentum has dissipated. Looking at a broader range of indicators, underlying inflation
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looks to be around 2.5%. The bank expects inflation and pressures to ease in the months ahead,
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and CPI to remain near 2% over the projection horizon. If the economy evolves roughly in line with the
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outlook in this monetary policy report, Governing Council sees the current policy rate at about the
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right level to keep inflation close to 2% while helping the economy adjust through this period of
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structural change. We will be assessing incoming data carefully relative to the bank's outlook. U.S. trade
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policy remains unpredictable, as events over the weekend reminded us. There continues to be
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considerable uncertainty, both about U.S. tariffs and their impacts. The range of possible outcomes is
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wider than usual. We need to be humble about our forecasts. If the outlook changes, we are prepared
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to respond. All right, let me give another quick translation. Unless we get another prime minister
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that is capable of actually getting a deal with Donald Trump, our economy is going to continue to go down
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the drain. That's what he's saying. Now, I don't know about you, but the more I listen to this guy speak,
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the angrier I am at Kearney for letting this happen. And I'll have more to say later in the video.
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Canadian businesses and households are feeling the consequences of increased U.S. protectionism.
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It is difficult, and the ongoing uncertainty is making it more difficult. For many months,
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we've been stressing that monetary policy cannot undo the damage caused by tariffs. Increased trade
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friction with the United States means our economy will work less efficiently with higher costs and
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less income. Monetary policy can help the economy adjust as long as inflation is well controlled,
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but it cannot restore the economy to its pre-tariff path. Above all, the Bank of Canada is focused on
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ensuring Canadians continue to have confidence in price stability through this period of global upheaval.
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And with that, the senior deputy governor and I would be very pleased to take your questions.
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Every time Macklem says Trump, he should actually just say Kearney because Kearney is the one
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responsible for this whole mess. Now, of course, he won't be honest and say it directly. I'll do it
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for him. Now, my analysis is that what the governor of the Bank of Canada is really trying to say
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is that we need a new prime minister that's actually capable of getting a good deal with Donald Trump.
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Of course, he won't say that either, so I'll do that for him. I sincerely hope there's at least
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some liberals watching this video. And I hope these liberals take note and they think about
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what they did and they realize the mistake they made voting for Mark Carney. They wanted the guy
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that wasn't like Donald Trump. They thought Paulieff was too much like Trump. Instead,
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they got the guy that pissed Donald Trump off and made the economy worse for everyone. Good job,
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liberals. However, there might be a new election pretty soon and it's not too late to go back on it
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and make things right. Now, like I said in another video, Canadians could be going back to the polls
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by the end of the year. That means there's a good chance we could have a Paulieff government
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by Christmas time. And if you haven't seen my video on the matter, I highly recommend checking
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it out after this one. Like I've said a hundred times, I think there's still a great chance that
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Paulieff is going to get into office really soon. As soon as he does, he's going to go down south,
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make a great deal with Donald Trump, and then our economy can get back on track.
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Have a bit of patience, have a bit of faith, we'll get what we want,
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and we're going to win big. Talk to you soon, Patriots.