Will banks kill cannabis to save themselves? (2023 Cannabis Recession) – Cannabis | weed | marijuana

Will banks kill the cannabis industry to save themselves? Is This Another Sign of the Cannabis Recession in 2023?

Virtually no country is immune to the impact of the US Federal Reserve. The US Federal Reserve secretly bailed out Canadian banks during the 2008/09 recession.

As such, it would be unwise to think that the Fed’s actions have no meaning or consequences for Canada’s economy, including the cannabis industry.

In short, central banks could crush cannabis (and other private sector jobs) to save governments and save themselves.

Banks are killing cannabis to save themselves

The destroyed $3 trillion is not enough

At some point the money printing had to be stopped. During the Corona period, the “Money Printer Go Brrr” meme became popular. So far, only academics and Ron Paul fans have spoken about central bank policy.

But printing money affects us all – our fundamental freedoms. One side of every transaction is money. And it has been nationalized by the state and decoupled from consumer demand.

The result? The rich get richer while the poor get poorer. This is the core problem behind the cannabis recession.

But for whatever reason, blaming the Fed invokes a “conspiracy theory.” But it’s trendy and mainstream to vaguely argue about how “we” need to tax “the rich” or “make them pay their fair share” (as if none of that has happened yet).

The fact is, an increase in the money supply has led to inflation. No “corporate greed”.

Fortunately, the Fed stopped printing money in 2022. Even she is aware that inflation is not the way to get out of a crisis. It is not money itself that people need, but purchasing power.

If current trends continue, the Fed will have wiped out $3 trillion by the end of the year. The idea is to bring about a “soft landing” for the economy.

In reality, the banks will kill cannabis and the private sector to save themselves and the government.

How not to fix an economy

Biden shakes hands with people he got out of prison on marijuana charges

Controlling inflation can be painful, but reducing the money supply and aggregate demand (the sum of all goods and services produced) is easy.

The Fed sticks to the first principle. Government deficit spending, however, remains untouched. And that comes at the expense of the cannabis industry and other private actors.

Consider this: the government refuses to stop issuing money, while the Fed stops printing money and starts raising interest rates.

Typically, a state budget (actually every household) would reduce its spending when interest rates rise. But in the US, Joe Biden is speculating to use the 14th amendment to raise the debt ceiling.

In Canada, we have a finance minister who has no financial training and an acting teacher, the prime minister, who thinks you boost the economy by running up credit card debt.

(And Canadians need to listen; Canadian credit card debt is at its highest on record. Over a third of Canadians said they couldn’t cover an unexpected $500 expense.)

Basically, you can’t fix an economy by hiring the same people who broke it to fix it. The only “solutions” we see from Washington or Ottawa tend to be the same: more government spending, bureaucracy, and higher taxes.

How Banks Are Destroying Cannabis To Save Themselves And Save The Government

This is how banks kill cannabis to save themselves and save the government.

As interest rates rise, financing debt becomes more expensive. Suppose governments don’t cut spending or raise taxes. In this case, the remaining credit is suppressed.

Instead of loans going to cannabis companies or other private sector players, wasteful bureaucratic hands will get their hands on them first.

The crowding-out effect that puts government labor ahead of the private sector spells economic disaster. Only someone with a complete lack of economics knowledge sees private sector benefits in “public sector” spending.

The reality is that rising interest rates and increased government spending will crowd out private investment and drive down real wages.

It’s like the economy is a cruise ship. The ship may be stranded at sea with no means of communication. The amount of groceries on board is limited. Everyone assumes that the guests, especially pregnant women and children, are served first.

No, the crew gets first place. And if nothing is left for the guests, then so be it. Although in this example, in the magical fairyland of government deliberations, the crew that eats up all the food somehow produces more food.

Governments are parasites of productive economies. One could argue that it’s a good parasite. Like maggots. Maggots can clean wounds and prevent infection by eating dead tissue and leaving healthy tissue untouched.

Maggots, leeches, and guinea worms are parasites that have been used medicinally throughout history. Of course, in modern medicine we have better ways of cleaning wounds than maggots.

Likewise, we have better ways of preventing and resolving conflicts, establishing the rule of law, and regulating an economy than through the parasitic state.

Cannabis recession 2023 inevitable

Banks will abolish cannabis and other private sector goods and services to save themselves and save the government. It’s already happening.

There are central banks everywhere that support the banking sector. They routinely ignore signals from the real economy.

A true “soft landing” would mean governments cutting budgets as well as households. If you lose your job, don’t go out and “stimulate” your household finances by using the credit card.

Many economists harbor “physics envy”. They are calculating with numbers and appear to be doing something “scientific”. But their mathematical models of the economy neither describe nor predict the market economy.

None of these economists saw the 2008 crisis coming. They didn’t even count on the collapse of the Soviet Union.

But they are confident their debunked methodology will work this time.

It won’t. Economics is not an esoteric discipline confined to a small group of academics. It is the logic of human action.

The money supply collapses and credit dries up. The path back to prosperity is through investing in private sector jobs, such as in the cannabis industry.

Instead, the US and Canada are pursuing policies of levying higher taxes on families and businesses while continuing to crowd out private investment with record deficit spending.

So in 2023 we will see a cannabis recession.

Fighting inflation without cutting government spending is like trying to get high by smoking CBD strains.