Joe Biden wants us all to believe that millions of people can flood into America without any negative consequences for the ordinary citizen. He also wants us to believe that inflation is ‘under control’.
At first, the left tried to gaslight into believing inflation was somehow Trump’s fault. Then, they tried to sell us on ‘Putin’s Price Hikes’. (Price hikes that mysteriously predated Putin’s invasion.)
He is trying to tell us that inflation is coming down and things are becoming more affordable again… despite harsh reality we can all see staring us right in the face.
Unfortunately for him, The Bank of Canada — Team Trudeau’s answer to the Fed — had a presser last week that showed the absolute lie at the heart of Biden’s domestic policy.
If you want unfettered illegal immigration it will come at a price.
We’re quite familiar with the costs of transportation, feeding, housing, and caring for all of the illegal immigrants landing in big cities like New York. But it’s easy enough to overlook the unseen costs.
The Bank of Canada just shone a bright light on one of those unseen costs. If Canada is paying a price for their immigration, how much more will America be paying one for the obscene numbers flooding in every day?
Here’s a lengthy quote from an official Bank of Canada announcement, key points have been highlighted:
What does this all mean for inflation? The economic slowdown has helped reduce price pressures across a broad range of goods and services. This, combined with lower gasoline prices, contributed to a decline in total inflation to 3.1% in October. While food price inflation is still too high, it has come down. And inflation in the prices of services excluding shelter has eased from earlier this year. We are also seeing price declines in durable goods like appliances and furniture, which are particularly sensitive to higher interest rates. However, shelter price inflation has picked up. I will come back to this later.
Now, let’s consider immigration and its effects on the Canadian economy.
Canada has had the fastest growing population in the G7 every year since 2016. I probably don’t need to tell you that newcomers are driving most of this population growth.
Immigration is not a new story in Canada, but it has changed in recent years. In fact, Bank staff have just published a paper on these changes and their economic impacts.2
What more immigration means for inflation
Now let’s turn to how the arrival of newcomers affects inflation. As I just explained, higher immigration has improved Canada’s supply of workers, and that will greatly strengthen our economic prospects over the long run. But we are living in the present. And when newcomers first move to Canada, there is an initial burst of demand for goods and services as they set up home, which can put pressure on inflation.
No vacancy: Housing under pressure
When a country’s population is growing quickly, the supply of housing also needs to increase to avoid a worsening in affordability.
Then, when newcomer arrivals picked up sharply in early 2022, that steady decline in the vacancy rate became a cliff. Canada’s vacancy rate has now reached a historical low (Chart 5).
Canada’s low vacancy rate shows how imperative the need is to address these challenges. The recent focus by all levels of government to increase housing construction is a welcome development.
The housing imbalance also has serious consequences for shelter price inflation, which accounts for about 25% of the CPI basket. Shelter price inflation rose to 6.1% in October and contributed 1.8 percentage points to that month’s total inflation reading of 3.1%.
If we look more closely at the data, we see rent inflation accelerated to 8.2% in October, a 40-year high, up from 7.3% in September and 4.7% a year ago. At the same time, components tied to housing prices have declined but not as much as we had expected given higher mortgage rates and slowing economic activity.
Most newcomers rent when they first arrive in Canada, which pushes up demand for rental housing and can lead to short-term pressure on rent inflation.
If Joe Biden is now bringing in something like 5000 illegals every single day, what do you suppose that will do to the supply of available housing? What will that do for college-age kids trying to lay hold of the American dream, including a home to call their own?
He wants us to believe that unlimited immigration is awesome and has no negative effects.
Joe Biden already owns a couple of houses. This price jump won’t hurt him any.
The rest of America is another story.
Psalms of War: Prayers That Literally Kick Ass is a collection, from the book of Psalms, regarding how David rolled in prayer. I bet you haven’t heard these read, prayed, or sung in church against our formidable enemies — and therein lies the Church’s problem. We’re not using the spiritual weapons God gave us to waylay the powers of darkness. It might be time to dust them off and offer ‘em up if you’re truly concerned about the state of Christ’s Church and of our nation.
Also included in this book, Psalms of War, are reproductions of the author’s original art from his Biblical Badass Series of oil paintings.
This is a great gift for the prayer warriors. Real. Raw. Relevant.