Canadian Governments Subsidizing Financial Institutions Is Leading To an Unsustainable Trade Deficit – April 27, 2021,

There are two things happening in China that the world is ignoring, the first is the population of China is aging and the second problem is the Chinese population is declining(in China). What does this have to do with Canada and the Western World? It means some time in the very near future we’re going to have to take our trade deficits more seriously.

We’re in the fiat money era and this era has brought untold, UNEARNED richness to the Western world which for the most part hasn’t had to manufacture most of what it consumes, compounding the problem is the new focus on climate change, which if implemented in the tax and regulatory environment which exists now, equates to the Western World having absolutely no chance of maintaining its current standard of living.

The respectability of our current fiat monetary system is hiding all the truths of the Canadian economy, which in a commodity-based money world would equate to austerity measures currently unimaginable to Canadian residents. The modern welfare state in Canada is for the most part geared towards financing our financial sector, our central bank keeps interest rates artificially low which makes the value of our assets APPEAR to be worth more in fiat dollars.

The rise of Bitcoin and other cryptocurrencies has shined a light on how worthless fiat currencies are. Even if you’d like to make the argument that the Bitcoin price is manipulated, the only reason Bitcoins price can be manipulated is because the value of fiat dollars is falling so rapidly, that people are literally seeing massive gains by simply hoarding Bitcoins. People are even borrowing money to buy bitcoins and using their gains to pay off their fiat-derived loans.

Bitcoins I like to remind people are NOTHING physical, they’re purely digital as are most of the Canadian dollars in circulation. But the problem in all of this craziness comes with the balance of trade, which governments can’t hide. Sure the government of Canada can manipulate the data, but physical stuff is physical stuff and when it becomes apparent that your entire economy is reliant on another country to merely sustain itself, this is a clear sign of economic decline.

In Canada, one of the main reasons Subsidizing innovation isn’t working is because of the regulatory environment which includes the artificially high cost of living which stems from Canada’s central bank keeping interest rates artificially low.

I also like to write about the Canada Mortgage and Housing Corporation (CMHC) which has created an atmosphere in which it’s more sensible to build a residential condo than it would be to create a building for industrial or other commercial purposes.

This entire economy in Canada is getting so stupid that I’m hearing from Canadians who are saying that buying bitcoin makes more financial sense than buying property. Again I remind the reader that Bitcoin is purely digital and it’s grid reliant, but who could argue with the aforementioned conclusion?

This entire financial boom is derived from the Canadian Welfare State which is focused on Subsidizing Financial Institutions. A lot of the world’s greatest innovations were created in a basement, well guess what? Having a house with a basement is becoming increasingly rare because the average house price in Canada is not only inflated but now being used mostly as an investment vehicle.

This malinvestment by the Canadian government equates to a lot of economic morons being rewarded and feeling very smart, the problem with this in the long term is that when there’s a correction, most of these people will not only be underwater financially but they’ll also more than likely fall into depression. Because that will be new to them, possibly entire generations will grow up only knowing the boom times.

Nobody should be surprised that the world is not only becoming more Leftist but also more ‘snowflake’. Because the trade deficits don’t seem to matter anymore, people genuinely believe that via the government we’ve finally found economic heaven on earth, in which deficits don’t matter and someone else will be more than willing to do all the heavy lifting for us, while we send them worthless fiat money.

How or when does this stop you ask? Historically usually a war breaks out, because the indebted countries, inevitably becoming more aggressive with the countries who have a surplus and by surplus, I’m not talking about fiat money, I’m talking about the country with the advantage of trade.

The country that can manufacture in the most efficient way wins, it’s really that simple. In that manner, Canada is indeed playing with fire as it will be very challenging in this regulatory environment for us to innovate our way to prosperity! Adding to this impending disaster is our new immigration policies along with our even larger welfare state which is assisting our newly arrived immigrants to take more out of Canada than they’re contributing!

Richard C. Owens: Subsidizing innovation doesn’t work | financialpost.com

Interesting times ahead!