For example, in January 2015 the central bank of Canada decided to cut interest rates by .25 % and again in June another .25% at a time when the U.S. dollar vs Canadian dollar was close to par. The results were dramatic to say the least. Gas prices rose significantly and food prices followed as the Canadian dollar began to drop against the US dollar. What was an exchange rate of 1.05 (CAD to USD) in November of 2014, quickly rose by the fall of 2015 to 1.49. In my opinion, this is a classic method in which governments quietly transfer wealth from citizens to government via inflation.
Below is a gold chart illustrating golds performance in Canadian dollars. Note the high in 2011 just under $1900 and golds 92.96% return over the last 10 years.
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AuthorNews & Updates are written by myself or when shared from the industry, credit is always given to writer. Rob Archives
February 2022
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