Canada’s NEW Loonie Assassin - Bullion Bulls Canada

There is a heinous mythology that has circulated throughout the Western world for (now) over a generation. It is cloaked in the guise of “economic wisdom”, by the Corporate media and the charlatan economists. This mythology preaches the absurd nonsense that the path to a strong economy is via a weak currency, i.e. through sabotaging one’s own currency.

This economic heresy has reached such epidemic proportions that it has culminated in the utter insanity of “competitive devaluation” : governments collectively making it their official, public policy to race to see who can drive the value of their currency to zero the fastest.

Before reviewing (and explaining) this insanity further; an injection of facts and reality is necessary. A generation (or so) ago, back when the U.S. economy really was strong, and really was the “growth engine” of the world; how did the U.S. achieve such global, economic dominance? Was it via deliberately having a weak currency?

No; it was by deliberately doing the opposite of that. The “strong dollar” was the official and perennial policy of the U.S. government. When the United States had the world’s strongest economy, it also had the world’s strongest currency. Even after the U.S. dollar had begun its own collapse; the U.S. government still paid lip-service to a commitment to a “strong dollar”.

In the real world; strong economies always have strong currencies, weak economies have weak currencies. What is the strongest currency in the world today? Not the U.S. dollar, but the Swiss franc. It’s so strong that there was recently an international effort to manipulate its exchange rate lower, in order not to embarrass the ultra-corrupt governments throughout the rest of the West – by exposing how the rest of these Western currencies had been rendered near-worthless .

Switzerland has the world’s strongest currency; Switzerland has the West’s strongest economy, and highest standard of living. Strong economies have strong currencies; weak economies have weak currencies. Western currencies have never been weaker; Western economies have never been weaker . The mythology is exposed.

Who is acknowledged as the undisputed King of Currency Assassination? Former Bank of Canada Governor (and Loonie Assassin ), Mark Carney. The record of this former(?) Goldman Sachs stooge speaks for itself.

When Canada’s economy-killer, Stephen Harper, appointed Mark Carney as Governor of the Bank of Canada in February 2008; Canada’s currency was in the midst of an unprecedented upward trajectory versus the U.S. dollar. This was the result of Canada’s previous, Liberal government having transformed Canada’s economy into the strongest economy in the Western world.

After decades of greater and greater weakness versus the USD; the Canadian dollar bottomed at an all-time low of 61.98 cents versus the U.S. dollar in 2002. Then Canada’s Liberal government engineered a remarkable turnaround in the value of the CAD, as a reflection of their fiscal achievement.

They had transformed the “record deficits” (and gigantic debt) they had inherited from the last Conservative government (of Brian Mulroney), and turned that into a series of budget surpluses, an unparalleled economic reversal in modern history. Canada’s economy was universally recognized as the strongest in the Western world. The value of the Canadian dollar soared by nearly 50%, up above 90 cents versus the USD.

This massive, upward momentum soon took the dollar above parity, for the first time in over thirty years, with the Canadian dollar ultimately hitting an all-time high of $1.10 versus the USD in November of 2007. Then Mark Carney was hired. In less than 18 months; Carney took the West’s (then) strongest currency from its all-time high, and sent it into a 30% nose-dive.

Only the world’s foremost currency-assassin could take the strong currency of a strong economy, and engineer a 30% drop in its value. The Loonie plunged to a low of 76 cents versus the dollar. Then immediately after savagely back-stabbing the Canadian dollar; Carney made an “unprecedented” announcement, meaning an act of monetary insanity/recklessness unequaled by any other central bank currency-assassin – in an era of “competitive devaluation”.

Carney promised to “freeze” Canada’s benchmark interest rate, which was already at a (near) all-time low, for a period of 18 months. To understand this recklessness and insanity requires a brief explanation. How do central bankers “defend” a currency, in the rare instances where these currency-assassins are not trying to destroy them? They do so by raising interest rates.

Thus when Carney “promised” not to raise Canadian interest rates, no matter what, what he was really saying was, “No matter what happens, or what anyone does; I will do nothing to defend the Canadian dollar.” It was a statement of economic treason, since the duty of all central banks is to (supposedly) preserve and protect the value of that nation’s currency.

It was an invitation to the world’s currency traders that it was “open season” on the Loonie. Of course with Carney having already precipitated an unprecedented collapse in the value of the CAD, the goal of his economic treason was not to further sabotage the Loonie’s value. Rather, it was an attempt to hold it down against the ( now worthless ) USD.

However, as even the world’s foremost currency-assassin quickly discovered; manipulation is a tool much more suited to moving prices wherever the Criminal desires than it is at keeping them there. With there still being some underlying strength in Canada’s economy; the stubborn Loonie clawed its way back upward (in spite of Carney’s treason), and by April 2010 it had once again hit parity versus the U.S. dollar.

But by 2010; the economic destruction wrought upon Canada by Stephen Harper had finally taken hold. By then; Harper had transformed a string of ten, consecutive budget surpluses back to another (Conservative) “record deficit”. With Canada’s economy going from perennial surpluses back to record deficits; it was then child’s play for the Loonie Assassin to swat the CAD back lower.

The Canadian dollar began to once again relentlessly sag versus the U.S. dollar, but Mark Carney was now bored. He had already shown he could destroy the currency of a strong economy, even with the value of that currency at an all-time high. He could gain no further “feather in his cap” by continuing to bash the currency of a now-weak economy.

Carney wanted a “new challenge”, so he had his (real) Master, the One Bank , arrange to have him appointed as the head of the Bank of England. And what has he done, since getting there? You guessed it, something “unprecedented” in the (long) history of the Bank of England. He has promised to freeze the UK’s already insanely-low interest rate . The world’s foremost monetary hit-man strikes again!

Meanwhile, Stephen Harper needed a new Loonie Assassin. Enter Stephen Poloz. Poloz had been a long-time foot soldier of the Bank of Canada, before leaving for proverbial “greener pastures”. After close scrutiny; Harper decided that Poloz was the right person to continue Mark Carney’s legacy of currency destruction and economic treason.

Poloz hasn’t let Harper down. With the Loonie already wallowing below the 83-cent level versus the U.S. dollar at the beginning of this year; Poloz “shocked markets” by cutting Canada’s already insanely-low benchmark interest rate, down below 1%. The reckless move caused an immediate 1 ½ half cent drop in the value of the Loonie.

Today, the Canadian dollar once again is trading below the 80-cent level versus the U.S. dollar, back down at 78 cents. Poloz is now threatening to exceed the maximum destruction to the Loonie produced by the monetary savagery of Mark Carney, although admittedly with an economy that has now been crippled by nearly a decade of Stephen Harper’s relentless mismanagement .

All that is left to be explained to readers is “why.” Why destroy our currency, and all of the other currencies of the Western world? Why turn strong economies into weak (and now bankrupt ) economies?

To answer that question requires first doing something which is never, ever done by the Corporate media (for obvious reasons): explaining the consequences of “competitive devaluation” (i.e. currency assassination). When a currency falls in value, it naturally means that prices rise (since that paper is now worth less). Thus causing currencies to – deliberately – fall in value is the same thing as deliberately creating inflation.

When Mark Carney savaged the Canadian dollar, causing it to plummet by 30% in value; that meant Canadians having to pay 30% more for everything: 30% more for our grocery bills, 30% more for fuel, 30% more for our homes, etc. But destroying a currency can be defined in a different manner. It’s also a stealth means for our (corrupt) governments to steal our paycheques .

Each cent that our currency falls in value reflects an identical drop in the real value of our paycheque. When the Liberal government (and former Bank of Canada Governor, David Dodge) produced a 50% rise in the value of the Canadian dollar; that was effectively a “50% raise” not only for all of Canada’s workers, but also all pensioners, and other people on so-called “fixed incomes” – and a 50% rise in the real value of our savings.

When Mark Carney (and now Stephen Poloz) caused the Loonie to drop by 30% in value; it was no different than stealing 30% of every paycheque, 30% of every pension, and 30% of our (paper) savings. Leaving only one, final question.

As all these corrupt governments perpetrate “competitive devaluation” against their own people: deliberately destroying our currencies, deliberately destroying our economies, and deliberately plundering our wealth; who are the beneficiaries ? Answer: the West’s Big Banks.

As they recklessly conjure their (electronic) funny-money, by the countless $trillions , year after year – and put it in their own vaults; there is no such thing as a “free lunch”. Someone has to lose, and that “someone” is everyone else in the world, except the bankers.

Through the “magic” of the inflation manufactured by Mark Carney and Stephen Poloz (and Stephen Harper) – the inflation that these liars pretend does not exist – all the wealth we have (had) ends up in the vaults of the Big Banks. It’s not the “Crime of the Century”; it’s the Crime of the Millennium.