This article originally appeared in the Financial Post. Below is an excerpt from the article.
By Jack Mintz, March 16, 2023
We all know the old expression, “waiting for the other shoe to drop.” Well, the shoes are now dropping following governments’ excessive deficit spending during the pandemic.
The first shoe was runaway inflation, which by June of last year had reached 9.1 per cent in the U.S., 8.6 per cent in Euroland and 8.1 per cent in Canada. To get it back down to two per cent, central banks have been hiking interest rates. On Tuesday we learned that U.S. inflation is still six per cent year-over-year, so the Federal Reserve has a way to go yet. Six per cent was down, which is good, but February’s inflation (seasonally adjusted) was 0.4 per cent, slightly above the average of the previous six months. Not good news for Main Street…