Former Bank of Canada governor slams Poilievre's assertion central bank is 'financially illiterate'
Former Bank of Canada governor David Dodge is strongly disputing Conservative Party MP and leadership candidate Pierre Poilievre’s claim the central bank is “financially illiterate.”
In an interview on CTV’s Question Period airing Sunday, Dodge, who was governor from 2001 to 2008, called the assertion “bull****."
“I’m very insulted by that…They understand what's going on,” he said, adding that the Bank of Canada’s navigation of the last two years has effectively kept Canada out of a “real depression” coming out of the pandemic.
Poilievre’s criticism of Canada’s central bank is a key pillar of his leadership campaign. He’s questioned its independence, has vowed to have it audited, and will bar it from using its own digital currency.
On April 22, he that the “Bank of Canada says #Bitcoin-ers lack financial literacy. This from the same people who promised we’d have “deflation” right before inflation hit a 30 year high. It is our central bank that is financially illiterate. Restore sound money.”
That comment came after the release of a Bank of Canada report noting that there’s been a slight demographic shift in Bitcoin owners in terms of gender, age and income level from 2018 to 2020 compared to 2017.
“However, Bitcoin ownership remained concentrated among young, educated men with high household income and low financial literacy,” .
It goes on to say that at the same time, “Canadians who are financially literate are more likely to be aware of bitcoin [than the average Canadian] but less likely to own it.”
On another Poilievre stance -- that cryptocurrency allows people to “opt out” of inflation -- Dodge said “he has no idea what he’s talking about.”
“He’s just wrong because the issue of rising prices…that you have to cope with out of your income is fundamentally at the moment a structural one,” he said. “We have limitations on supply, in part because of a war, in part because of COVID, in part because of ongoing features of the economy – we’re all getting older – the labour force is not growing as fast.”
But Poilievre has said he isn’t trying to win over the opinions of past or current central bankers in his pledge to help every day Canadians suffering from the high costs of living.
"If you think I'm going to be silent about that to protect the ego of bankers and politicians, then you're in for a surprise," Poilievre told reporters on a campaign stop in Ottawa on April 28.
The Bank of Canada has been under fire as inflation continues to reach new heights. It currently sits at 6.7 per cent, far above the central bank’s two per cent target.
In a before the Women in Capital Markets this week, senior deputy governor Carolyn Rogers acknowledged Canadians’ uncertainty with the current economic climate.
“We are acutely aware that, with some of the extraordinary actions we have taken during the pandemic and with inflation well above our target, some people are questioning that trust,” she said.
“Tough questions, added scrutiny and informed debate are entirely appropriate in the current environment. We welcome them as an opportunity to engage with Canadians about what we do, how we do it and how we can improve.”
Dodge said the danger of losing public trust is “always there” and as such communication from the top is “very, very important in that regard.”
“But they have to be nervous. As does the ordinary citizen, has to be nervous about a future we do not know. We do not know how the geopolitical situation in the world is going to play out. We do not know how the pandemic situation is going to play out,” he said.
IN DEPTH
Jagmeet Singh pulls NDP out of deal with Trudeau Liberals, takes aim at Poilievre Conservatives
NDP Leader Jagmeet Singh has pulled his party out of the supply-and-confidence agreement that had been helping keep Prime Minister Justin Trudeau's minority Liberals in power.
'Not the result we wanted': Trudeau responds after surprise Conservative byelection win in Liberal stronghold
Conservative candidate Don Stewart winning the closely-watched Toronto-St. Paul's federal byelection, and delivering a stunning upset to Justin Trudeau's candidate Leslie Church in the long-time Liberal riding, has sent political shockwaves through both parties.
'We will go with the majority': Liberals slammed by opposition over proposal to delay next election
The federal Liberal government learned Friday it might have to retreat on a proposal within its electoral reform legislation to delay the next vote by one week, after all opposition parties came out to say they can't support it.
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
Canada will cut its permanent immigration levels by at least 20 per cent
Canada will lower the number of permanent immigrants it allows into the country by at least 20 per cent from its previous target of 500,000, ۴ý confirmed Wednesday.
The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.
A memorial is growing outside a Walmart in Halifax after a 19-year-old employee was found dead inside an oven in the store Saturday night.
Trudeau says Liberals 'strong and united' despite caucus dissent
Prime Minister Justin Trudeau says the Liberal party is 'strong and united,' despite efforts from within his caucus to oust him as leader.
'Canadians can breathe a sigh of relief': Bank of Canada governor on interest rate cut
The Bank of Canada made a sizable cut to its key lending rate Wednesday from 4.25 per cent to 3.75 per cent as the global economy continues to expand. The half percentage point cut is the fourth rate cut in a row by the central bank as inflation dropped from 2.7 per cent in June to 1.6 per cent in September.
A search has started at Prairie Green Landfill for the remains of two victims of a serial killer.
He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.
Canada's discount airline is suspending operations to and from Saskatoon.
A new report suggests that Canadians' exposure to a radioactive gas is increasing, putting millions of people at a higher risk of developing lung cancer.
Local Spotlight
He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.
A meteor lit up our region's sky last night – with a large fireball shooting across the horizon over Lake Erie at around 7:00 p.m.
Residents of Ottawa's Rideauview neighbourhood say an aggressive wild turkey has become a problem.
A man who lost his life while trying to rescue people from floodwaters, and a 13-year-old boy who saved his family from a dog attack, are among the Nova Scotians who received a medal for bravery Tuesday.
A newly minted Winnipegger is hoping a world record attempt will help bring awareness for the need for more pump track facilities in the city.
A Springfield, Ont. man is being hailed a 'hero' after running into his burning home to save his two infant children.
Hortense Anglin was the oldest graduate to make her way across the platform at York University's Fall Convocation ceremony this week. At the age of 87, she graduated with an Honours degree in Religious Studies.
Looking for a scare with good intentions this Halloween season? The ghosts and ghouls of Eganville, Ont. invite families to tour the Haunted Walk at Lekbor Manor.
The image of a sleepy Saskatchewan small town with 'not a lot going on' is a well-known anecdote. However, one Saskatchewan company is hoping to change that – and allow communities both on and off the beaten path to share their stories and advertise what they have to offer.