The Bank of Canada on April 21 reduced its benchmark lending rate to 0.25 per cent, essentially giving away money to the largest banks in Canada.
Not only is the government a "backstop" for the banks, but they are also engaged in a plan to buy toxic assets. These moves will undoubtedly increase the money supply and push inflation higher.
The central bank tried to hide this with a forecast for inflation at a mere 2 per cent by 2011.
If anyone truly believes that inflation is only moving at 2% in Canada.... you need your head examined.
The government calculates inflation WITHOUT including food and energy costs.. WHAT??? those are the MOST IMPORTANT figures when calculating inflation.
That is like counting the cars in a parking lot, but excluding ford and Chrysler. This exclusion is so sever it renders the data meaningless.
read about the legalized theft here: