With the series of posts on central banks and the interest rates, I may sound like a maniac. That's partly true as this is the first time in my life where I took financial decisions independently. Other users may have faced similar situations in the past. I never had to.

All other economic turmoil, even that of 2008, did not impact me much as I was not leveraged at all. it is not easy to remain sane when your financial decisions are based on certain assumptions and they change overnight.

I cannot be bickering but I cannot help either. @leofinance is the place where I can write whatever I want without any repercussions :)

Let's go back to 2020 when the Bank of Canada was dealing with the pandemic. The government distributed billions and billions of dollars of fund to incentivize individuals to support during the pandemic distress. The dollar airdrop did not create enough scrutiny around the distribution which dilutes the already full money pool that has nowhere to go. People were not spending money in 2020 coz there was nowhere to go and nothing was open and not because they did not have money.

Central bankers did not time their decision well and spent more money than required. Look at what Macklem had to say a year ago.

> **Interest rates will stay low as Canada faces 'long climb' out of COVID-19 hole, central bank says- July 2020**

>**If you've got a mortgage or if you're considering making a major purchase, or you're a business and you're considering making an investment, you can be confident rates will be low for a long time, Macklem said at a 2020 news conference while announcing rates would remain unchanged at 0.25 percent**


![image.png](https://images.hive.blog/DQmT6f6DmtddTHwFLA8xXWdrvbzfeGkLpwZpHqDZ4XGEDzB/image.png)

This quote is from two years ago in July 2020. The BoC did not know what was happening back then as they were focused in printing money to help people purchase when there was nothing to buy and nowhere to go.

Fast forward to 2022 December and the same BoC is saying that 


![image.png](https://images.hive.blog/DQmb97tA8MWKpJ2khYGvfcxLYTtREDcmTc9RAVKEdkujGu4/image.png)

The BoC flipped from their position two years ago and increased the rate from 0.75 to 4.25 in a year. This show how foggy the vision and modeling forecast is that our leading economists are basing their decisions on.
I am pretty convinced that the Bankers do not know much than what we do. They are also speculating their positions and using tools available in their economic oracle hoping things work out for the better. That means, the decision that they are making right now is as vague and ill-informed as it can be. Let's wait for another six months to figure out what the BoC is doing right now is right or wrong. Until then, let's wait and speculate.

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