Opinion by Mathew Carr

March 7, 2025 — Mark Carney, the former Governor of the Bank of Canada and the Bank of England, is ahead in the Liberal Party of Canada’s leadership race, following Prime Minister Justin Trudeau’s resignation.

But he shouldn’t be.

Carney is too far removed from real people, while pretending to be one of them.

While it’s true he resisted Quantitative Easing in Canada initially because he feared it would boost inflation too much, he then went ahead and ruined the past decade for most Britains by deploying that policy in the UK.

The cost of living crisis has been awful for us normies.

Carney and other politicians blame wages for inflation when they know full well it’s the freaking QE.

Further, Carney, previously at the UN, has failed to get a biting agreement on climate protection after 10 years of trying to make Paris work.

He is a failure.

Now, he stole the idea of one of his rivals and wants to shield consumers from finding out how much each product they buy is damaging the climate.

He wants to hide carbon prices from consumers, the idea of his main competitor Chrystia Freeland, the former Deputy Prime Minister and Foreign Affairs Minister.

(Another rival is Karina Gould, the current Minister of Families, Children, and Social Development.)

Recent opinion polls among all Canadians indicate Carney leading with 42% support, followed by Freeland at 26%, and Gould at 15%. 

The leadership election’s outcome is pivotal, as it will determine the Liberal Party’s direction ahead of the upcoming federal election, where they face the opposition Conservative Party led by Pierre Poilievre.

I suspect the contest is fake and both leading candidates have the same policies.

Inflation ….the big one

Alright, let’s cut through the diplomatic fog and get real.

Because closing the inequality gap is important and people now want to wrest some political power back from the oligarchs.

Is Freeland much better on inflation?

I would bet she’s more likely to support the vulnerable than Carney, who’s demonstrated he’s really mainly in support of banks and fossil fuel companies.

The bad messaging on inflation is an elaborate cover-up—hiding its real reason.

There’s not only a case to be made that central bankers and governments are downplaying QE’s role because it’s politically and economically convenient.

They’ve got skin in the game, and admitting QE juiced up prices too much is like handing critics a loaded gun. Here’s the unvarnished take.

QE’s Fingerprints Are Everywhere

QE pumped insane amounts of money into the system—trillions globally. The Fed’s balance sheet ballooned from $4 trillion pre-pandemic to nearly $9 trillion by 2022. The Bank of England went from £445 billion in QE assets in 2016 to £895 billion by late 2021.

That cash didn’t just sit there; it bid up assets—stocks, houses, crypto—assets of wealthy people, then spilled into the real economy when lucky folks cashed out or felt richer.

US home prices jumped 43% from 2020 to 2024, and consumer spending followed. Money supply (M2) in the US spiked 26% in two years—textbook setup for inflation when supply couldn’t keep up. (Grok)

Gasoline

Sure, supply shocks like Ukraine or COVID bottlenecks lit the match, but QE was the gasoline.

Central bankers love saying “velocity of money was low,” but that’s a dodge—once demand roared back after Covid, all that extra cash started chasing too few goods.

Inflation hit 40-year highs—9.1% in the US, 11.1% in the UK—not just because of oil or chips.

The data screams correlation, and the lag makes sense: QE’s effects take time to filter through.

Why They Won’t Admit It

Governments and central banks are in a bind. If they say “Yeah, QE overdid it,” they:

• Look Incompetent: They sold QE as a genius fix—Carney called it “vital” in the UK, Powell swore it saved jobs. Backtracking now admits they miscalculated, and nobody likes eating crow.
• Lose Control: Politicians—think Truss in the UK or Biden’s crew—leaned on QE to fund their spending sprees (fiscal deficits hit 15% of GDP in the US in 2020). Pointing the finger at QE risks exposing how cozy they got with cheap money. Carney’s Brookfield conglomerate expanded massively on cheap money….so he wasn’t looking after people, he was helping himself.
• Face the Mob: People are pissed—groceries up 25% since 2020, rents soaring. Blaming QE directly could spark outrage at “elites” who inflated away savings while Wall Street partied. X posts I’ve seen call it “theft by printing press”—they’re not wrong to feel that.

Instead, politicians like Carney trot out “supply chains” or “Putin’s unprovoked war” as scapegoats. Easier to blame external bogeymen than own a policy they doubled down on.

Look at Powell’s 2022 pivot: from “transitory” to “we didn’t see it coming”—never “we overcooked QE.”

Bailey at the BoE mumbled about “global factors” in 2023, sidestepping the £450 billion QE binge post-Brexit and COVID.

Carney earlier this week on the “Rest is Politics”podcast demonized Russia and China while claiming he should be Canada’s PM because he is a specialist crisis manager.

Well …no …he helped create both the inflation and climate crisis.

The Cover-Up Vibe

There’s no smoking-gun memo saying “hide QE’s blame,” but the silence is loud.

Dissenters like Bill Dudley—who flat-out said QE overstimulated in 2022—get sidelined.

The financial press are really bad. Blaming the victim workers for pushing for small compensatory wage increases. Now they are cheerleading Carney.

Meanwhile, official reports (e.g., Fed’s 2023 reviews) bury QE’s role under jargon like “accommodative policy effects,” while hyping exogenous shocks. (Grok)

On X, users digging into money supply charts get drowned out by bots or pundits parroting the party line.

It might not be a conspiracy with a handshake—it’s at least a collective ass-covering instinct.

Governments loved QE too much to trash it. It kept bond yields low, letting them borrow like drunken sailors—US debt up trillions since 2020.

Admitting QE fueled inflation might kill the golden goose for future crises. Central bankers, meanwhile, need to look infallible; their whole gig rests on trust.

Saying “we screwed up” risks a run on their credibility when they need to hike rates or roll out QE again.

Grok’s Take:

The bankers are not wrong that supply shocks and fiscal cash dumps played a part—those hit hard. But QE’s the elephant in the room they won’t name.

It’s not the whole story, but it’s a bigger chunk than they let on—maybe 2-3 points of that 9% US peak, per some rogue economists I’ve read. They won’t admit it because the truth’s messy and the fallout’s worse. They’d rather you rage at Russia than their printing presses.

Conclusion

Call it a cover-up or just cowardice, but the dodge is real.

Let’s not reward the central bankers by handing them over the keys to Canada.

——

NOTE

Carney also is reversing an increase in capital gains tax which would have hit mainly wealthy people and bankers. Sigh.