ENB Pub Note: This is huge. We will also cover this on the Energy Realities Podcast on Monday morning live on Stu’s X, or David Blackmon’s LinkedIn. Tammy Nemeth and Irina Slav will also provide their insights on this topic. I recommend following all of their Substacks.
Ladies and gentlemen, let’s get something straight: The Bank of Canada just made a desperate move to keep the illusion of stability alive in a country that is already spiraling into economic disaster.
Tiff Macklem, the so-called head of our central bank, just announced the sixth consecutive rate cut, slashing the overnight rate to 3%. On the surface, that might sound like good news for some. Cheaper mortgages, maybe a little relief on your debt. But let’s be real—this isn’t economic strength. This is a blinking red warning light that our economy is in free fall.
And here’s what they’re not telling you: The Bank of Canada isn’t just cutting rates. They’re restarting asset purchases in March—which, in plain English, means they’re turning the money printers back on. This is what central banks do when they’re out of real solutions. When they can’t grow the economy naturally, they inflate their way out of the problem. The same reckless policy that triggered the inflation crisis in 2021 is coming back, and they’re hoping you’re too distracted to notice.
So why are they doing this? Because Canada’s economy is collapsing.
The Real Reason Behind the Rate Cut: An Economy in Crisis
Let’s talk about what Macklem actually admitted during this press conference:
1. The Labour Market is Falling Apart
For years, we were told that mass immigration was necessary to keep the economy running. The claim was simple: “Canada has a labor shortage, and we need millions of new workers to fill the gaps.”
Well, guess what? Unemployment is now at 6.7% and rising.
- That means millions of Canadians are jobless while the government continues to flood the labor market with new arrivals.
- Job creation hasn’t kept up with the growing workforce for more than a year. That means more people are looking for work than actually finding it.
- Wage growth is stagnant. Even if you have a job, inflation has wiped out any real increase in income.
So, What Happened to the “Labor Shortage”?
It was a lie.
The real reason behind mass immigration wasn’t to fill labor shortages—it was to inflate GDP numbers, suppress wages, and benefit big business.
- The government wanted cheap labor for corporations that didn’t want to pay fair wages to Canadians.
- They artificially pumped up GDP by bringing in millions of people without ensuring there were enough jobs for them.
- Now, even as record numbers of people enter the country, unemployment is rising.
Mass immigration didn’t “fix” the labor market—it broke it.
2. The Housing Market is Being Artificially Inflated (Again)
- Macklem openly admitted that lower borrowing costs are driving up the housing market again.
- That means home prices will keep rising, making it even harder for first-time buyers to enter the market.
- Who benefits from this? Big banks, real estate speculators, and the Liberal government, which desperately needs economic activity to mask its failures.
3. The Trudeau Government’s Immigration Cuts Will Slow GDP Growth
- The Bank of Canada is now forecasting lower economic growth because of reduced immigration targets.
- Think about that for a second: The only reason GDP was even projected to grow before was because Trudeau was flooding the country with immigrants, many of whom ended up in shelters or living in tents.
- Now that they’re cutting back, the entire growth projection has been revised downward—which tells you just how weak Canada’s real economy is.
The Elephant in the Room: The Coming Trade War with the United States
Now, here’s where things get really ugly. The biggest risk to Canada right now isn’t even internal—it’s the United States.
Macklem just admitted outright that the biggest threat to our economy is Trump’s looming tariffs. If Donald Trump follows through on his promise to impose 25% tariffs on Canadian exports, it will wreck this economy overnight.
And let’s be clear—this is a direct result of Trudeau’s weak leadership on trade.
What happens if these tariffs go into effect?
- The Canadian dollar collapses even further. It’s already hovering around 69 cents to the U.S. dollar, a clear sign that global markets have lost confidence in Canada.
- Exports get hammered. When Trump slaps tariffs on Canadian goods, our products become too expensive to compete in the U.S. market. That means factories will close, thousands of jobs will be lost, and economic growth will grind to a halt.
- Inflation skyrockets. Macklem admitted that a weaker dollar means higher prices on everything we import, including food and machinery. Get ready for your grocery bill to skyrocket—again.
What’s the Bank of Canada’s plan for this? They don’t have one. Macklem said so himself.
“We don’t know what new tariffs will be imposed, when, or how long they will last.”
Translation: They are flying blind.
And worse, Macklem even admitted that monetary policy CAN’T fix this problem. He’s literally saying, “We’re out of ammo.” The only tool they have is interest rates, and even those won’t help if we’re hit with a full-scale trade war.
So What Happens Next?
Here’s the real truth they won’t tell you:
- The Bank of Canada is now out of real options. They’ve already slashed rates from 5% to 3%, and they’re hinting at more cuts. That means inflation is coming back.
- We are heading straight for a debt crisis. With interest rates falling, people are going to borrow more, spend more, and drive the country further into debt.
- If Trump imposes tariffs, we will see mass layoffs, collapsing business investment, and food price inflation that makes 2022 look mild.
- Canada is completely unprepared. Trudeau’s government has spent the last decade hollowing out our economy, sending manufacturing jobs overseas, and failing to secure real trade deals.
Final Verdict: Canada is on the Edge of a Cliff
This isn’t speculation. This isn’t fear-mongering. This is reality.
Tiff Macklem just told us, in the politest way possible, that we are about to get hit by an economic train—and there is no plan to stop it.
- If you have savings, protect them. The dollar is collapsing.
- If you think prices are high now, buckle up. Inflation is coming back.
- If you have a job in manufacturing, be worried. Trade war means layoffs.
Meanwhile, Justin Trudeau, Marc Carney and Chrystia Freeland will pretend this isn’t happening while they continue their woke spending spree on climate scams, foreign aid, and government bloat.
And let’s not forget: Trump warned us.
He said he was going to prioritize American jobs. He said he was going to play hardball with Canada. And Trudeau ignored him.
Now, Canada is completely vulnerable, and the people who will suffer aren’t the bureaucrats in Ottawa—it’s you.
This is what happens when you let incompetent leaders run the country.
This is what happens when you destroy your energy sector, inflate your housing market, and rely on immigration to fake economic growth.
And now, the Bank of Canada is panicking, printing money, and hoping you don’t notice.
Guess what? We notice.
Source: The Opposition News Network Substack