What if cannabis was $1-a-gram? And we’re talking premium quad.
Many will blame the “greed” of growers or dispensaries for higher prices. But don’t they have bills to pay? A substantial risk involved warrants a “prohibition premium.”
A free and fair market brings cheaper, plentiful, quality cannabis.
But so long as we have a central bank, we don’t have free markets. And the central bank meddles in the economy. So severe are their interventions, what real market prices are there left?
What does Canada’s central bank, the Bank of Canada, think it’s doing? They keep “inflation low, stable, and predictable.”
Implying inflation naturally occurs. Regardless of whether you’re adding to the money supply.But this phenomenon isn’t intrinsic to market forces.
It is a result of the mixed-market economy. There is no “third” system beyond capitalism or socialism.
Supply and demand determine cannabis goods and services.Higher potency levels reflect consumer values. As do other various characteristics. The federal government seeks to undermine this.
Likewise with the Bank of Canada and the nation’s currency. Supply and demand determine the value of money. Interest rates reflect the true level of scarcity over time. The Bank’s “open market operations” seek to undermine this.
Money, like cannabis, is a commodity. Prices for goods and services are the exchange ratios between the money and the good/service in question.
When the quantity of cannabis increases, its price falls.
If you are at a cannabis farmers market haggling with a seller over the price of edibles, and then another seller enters with a fresh box of edibles, your bargaining power has increased. The larger the output, the lower the price will be.
Free people live with free and fair markets. The Government of Canada dismisses these concerns for its definition of “public health and safety.”
A plan to stop monopolistic cartels by exercising their monopoly.
Like with money and the banks, telecommunications, oil, maple syrup, uranium, you name it, there is no free market.
Canada is cartel country.
Let’s go back to the Bank of Canada, our nation’s central bank, for a moment.“Open market operations,” are when they buy Canadian bonds from the Big Five Banks. The Bank of Canada then credits the Big Five Banks accounts with money.
Now, where did the central bank get its money? Backed by gold?Nope, we don’t have any.
Backed by cannabis? Like hash-coins?Definitely not.
Crypto-currencies? Not yet. And possibly never.
Does the Bank of Canada get debited? After all, the Big Five Banks are getting credited.Sadly no, that would imply honest accounting on the part of the banks and the government.
The Bank of Canada simply adds numbers to the balance sheet of whatever bank it is crediting. This is how they control interest rates. Manipulation that ends up using long-term resources for short-term gains.
Like, I don’t know, building endless condos no one can afford when we should be building new “green” infrastructure to ensure our survival beyond this century.
Other things being equal, when you increase the money supply, its price in terms of other goods will fall. So when the price of money falls, the prices for goods and services increase. In other words, money loses its purchasing power.
Money is worth less than it was before.
That’s why cannabis is $10-a-gram and not $1-a-gram. That’s why people want higher wages. That’s why things in the economy are getting more expensive.
It’s not the “greed” of growers or capitalists in general, but the corrupt nature of fractional reserve banking, central banking, and irresponsible governments.