Bank of Canada Governor (and former Goldman Sachs Stooge) Mark Carney was doing more shilling for the U.S. today.

Without even the tiniest shred of evidence to support its opinion, the BoC proclaimed that "dminished risk" in Europe and "growing confidence" in the U.S. would cause the global economy to surge.



Greece just defaulted on its debts. Spain is about to default on its debts. And after more than TWO full years of this debt-crisis there is ZERO indication that the situation is even CONTAINED let alone risk actually "diminishing".

There there is "U.S. confidence".

Since we always have to listen to the gold-bashers drone on and on about how "you can't eat gold", this seems like a good time to note that "you can't eat CONFIDENCE" either.



ALL recent indicators from the U.S. economy have been MUCH WEAKER than forecast - while confidence is a LAGGING INDICATOR. In other words, FIRST something good happens and THEN confidence increases.

With ALL aspects of the U.S. economy simultaneously weakening (rapidly), even a shill like Carney KNOWS that the "confidence" (i.e. gullibility) of Americans is just about to PLUMMET when they start to DIGEST all the recent bad news.

In short, as is done in the U.S., we see Canadian propagandists simply "making stuff up"...



P.S. Carney had a chance to PROVE he wasn't deliberately lying. The Bank of Canada just made its interest rate decision. IF Carney actually BELIEVED his own bullshit then he WOULD HAVE INCREASED INTEREST RATES. A 1% interest rate (under any circumstances) is extremely low - and directly responsible for the BUBBLES in real estate markets all across Canada. Meanwhile this SAME hypocrite has been criticizing the over-spending of Canadians.

How do you get Canadians to SAVE? By raising interest rates - so they actually get PAID something on their savings.

Thus IF he saw a "strengthening" global economy then Mark Carney HAD TO immediately raise interest rates. Since he did NOT do that yesterday then EVERY word he uttered was an intentional lie (as opposed to the usual 90% bullshit content of their communications).


"Bank of Canada Projects Firmer Growth on Easing Global Strains"

www.bloomberg.com/news/2012-04-18/bank-o...-global-strains.html

The Bank of Canada said that economic growth will be stronger this year than it earlier forecast, as diminished risks from Europe and the U.S. boost consumer and business confidence.

“Global uncertainty will have less of a dampening effect on the spending of Canadian households and businesses in coming quarters,” the Ottawa-based central bank said in its Monetary Policy Report. Governor Mark Carney holds a press conference at 11:15 a.m.

The bank kept his benchmark lending rate at 1 percent for a 13th meeting yesterday while saying that a policy-rate increase “may become appropriate” as the economy recovers. The shift in language triggered bets of a rise later this year.

The bank raised its growth forecast for this year to 2.4 percent from 2 percent. It lifted its outlook for the contribution from business investment to 0.9 percentage point from 0.6 point in its last report in January, and raised the consumption projection to 1.3 points from 1.1 points.

“Some modest withdrawal of the present considerable monetary policy stimulus may become appropriate,” the bank said in its report today. It repeated phrase from the January Report that its forecast assumes “a gradual reduction in monetary stimulus” over the next two years.

Improving domestic and global demand also means trade will play a greater role in Canada’s economy this year, the bank said. Exports will add 1.7 percentage points to output growth, up from a prior 1.1 percent outlook, while imports will subtract 1.5 points, greater than January’s 0.8 point forecast.
Global Expansion

The global economic expansion will be 3.2 percent this year instead of 2.9 percent, the central bank said. The U.S. economy, which buys three-quarters of Canada’s exports, will expand by 2.3 percent this year, up from an earlier reading of 2 percent. Europe’s economy will contract 0.6 percent this year, the bank projected, smaller than an earlier prediction of 1 percent.

“The external headwinds facing Canada have abated somewhat,” the report said. The U.S. is benefiting from employment and stock-market gains that are building confidence, while European policy makers have taken steps to manage the risks from the sovereign- and banking-debt crisis.

“While the European Central Bank’s expanded liquidity operations have not by themselves directly improved the underlying health of bank balance sheets, they have created space for the restructuring of these balance sheets to proceed at an orderly pace,” the report said.
IMF Forecast

The International Monetary Fund raised its global growth forecast for the first time in more than a year yesterday, with the U.S. leading the improved outlook. The world economy will expand 3.5 percent this year, compared with a January projection of 3.3 percent, the IMF said.

Canada’s economy will grow at a 2.5 percent annualized pace this quarter, up from a January estimate of 1.8 percent, the Bank of Canada said today. Inflation will average 2 percent this quarter, up from a prior figure of 1.5 percent, it said.

Inflation, which was 2.6 percent in February, has exceeded the bank’s 2 percent goal for 15 straight months, in part because of higher oil. Crude oil prices have increased by 18 percent over the last six months through yesterday, based on New York Mercantile Exchange contracts.

Canada’s status as an oil exporter isn’t translating into net economic benefits, the central bank said. That’s because the rise in the benchmark West Texas Intermediate price paid to exporters has lagged the standard Brent import price. Most of Canada’s oil is produced in western Canada and exported, while factories in eastern Canada consume imported oil.

“If sustained, these oil price developments could dampen the improvement in economic momentum,” the central bank said.
Job Growth

Reports this month have shown 82,300 new jobs were created and an annualized pace of housing starts of 215,600 units in March, both the fastest since 2008.

The bank said Canada’s economy was operating about half a percentage point below its full capacity in the first quarter. The January report said the gap was about 0.75 percent in the fourth quarter.

The bank also said its forecast assumes the Canadian dollar will trade for 101 U.S. cents through 2014 versus a January figure of 98 U.S. cents through 2013.