Inflation is one of the most undemocratic forms of taxation in the world. The central bank creates new dollars right out of thin air, buying financial assets, largely government bonds, and financing massive deficits in order to keep prices going up.
00:00:00.000let me just explain the inflation tax real quick because um this is really one of the worst forms
00:00:05.120of taxation um it's it's a fundamentally undemocratic form of taxation and make no
00:00:10.080mistake about it it is a form of taxation and that's when the central bank creates new dollars
00:00:16.080right out of thin air uh buying financial assets largely government bonds i you know financing
00:00:21.840massive deficits in ottawa okay and the the key problem this is where inflation really stems
00:00:27.680Because throughout the economy, you can get some prices going up, but if you're not creating new
00:00:32.420dollars, then other prices would go down, right? If there's only so many dollars in the economy,
00:00:37.140one price goes up, another price goes down. Now, what creates this general increase in inflation
00:00:43.420year after year after year is the money printer, okay? The fact that through the central bank,
00:00:49.560the government can essentially create a new dollar out of thin air with a click of a keypad.
00:00:53.920So through the central bank, and we saw this big time during the pandemic, where the Bank of Canada printed up more than $300 billion out of thin air, is that you create the perfect storm of inflation, which is too many dollars chasing too few goods.
00:01:09.320And oh, by the way, Canadians never voted on that.