I will never sugarcoat our challenges<\/a>.\u201d\u00a0<\/p>\nThen it was back to his\u00a0favourite\u00a0theme that our\u00a0trading relationship with the U.S. is broken and our ties with it are now a weakness rather than a strength.\u00a0<\/p>\n
He reiterated his \u201cCanada Strong\u201d response based on new trade deals with other countries, bolstering Canada\u2019s military and targeting economic relief for Canadians in tough economic times.\u00a0<\/p>\n
Misleadingly, Carney claimed credit for developing the policy of \u201cforward\u00a0guidance\u201d\u00a0 \u2014\u00a0the title of his video \u2014 when he was Bank of Canada governor during the 2008 global\u00a0financial crisis.\u00a0<\/p>\n
He said it was \u201cdesigned to assure people that however difficult the situation seemed on any given day, that we were acting, and importantly that we would continue to act, with overwhelming force against our problems until they were solved.\u201d\u00a0<\/p>\n
In reality, the\u00a0principles of forward guidance have been around since the 1950s, whereby central banks publicly predict future monetary policy, with the goal of guiding interest rate expectations, influencing borrowing decisions and preventing surprises in the market.\u00a0<\/p>\n
It\u00a0doesn\u2019t\u00a0always work.\u00a0<\/p>\n
For example, when current Bank of Canada Governor Tiff Macklem advised Canadians in July 2020 \u2014 well after the start of the pandemic \u2014 that:\u00a0<\/p>\n
\u201cIf you\u2019ve got a mortgage of if you\u2019re considering making a major purchase, or you\u2019re a business and you\u2019re considering making an investment, you can be confident rates will be low for a long time.\u201d\u00a0<\/p>\n
Interest rates\u00a0subsequently\u00a0skyrocketed, leaving many Canadians on the hook for mortgages they couldn\u2019t\u00a0afford and business loans they\u00a0couldn\u2019t\u00a0repay when they came due for renewal.\u00a0<\/p>\n
Tellingly, Carney made no mention of how negotiations on the Canada-U.S.-Mexico Agreement (CUSMA) on trade are going, up for review July 1 \u2014 the deal he told Canadians he was best equipped to negotiate during last year\u2019s election. Bad sign.<\/p>\n","protected":false},"excerpt":{"rendered":"Prime Minister Mark Carney\u2019s 10-minute \u201cForward Guidance\u201d YouTube video on Sunday was\u00a0 a \u201cDavos 2.0\u201d version of the…\n","protected":false},"author":2,"featured_media":12324,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[6776,17,817,125,111,3203,595,6703],"class_list":["post-12323","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-blair-gable","tag-canada","tag-canadians","tag-house-of-commons","tag-mark-carney","tag-parliament-hill","tag-world-economic-forum","tag-youtube-video"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/12323","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/comments?post=12323"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/12323\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media\/12324"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media?parent=12323"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/categories?post=12323"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/tags?post=12323"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}