The BoC and The CMHC won’t allow the housing market to crash, Canadians should prepare for inevitable Inflation and devaluation of their domestic purchasing power – August 10, 2020,

If there’s a modern monetary theory at the very least it will have to reward the industrious people of society. I can’t imagine that a modern monetary theory in this #LateStageSocialism era would reward savers. The main reason why I believe the world is no longer on a Gold Standard is because of savers.

Savers demand their government be responsible otherwise savers will continue to save for a rainy day, this fiat-central bank monetary system that we all ENJOY today revolves around fiat currency which we label/brand as ‘money’ being elastic, expanding and contracting to meet the needs of the market.

Unfortunately, government money eventually because a weapon for the government, Ron Paul often talks about the Federal Reserve weaponizing the dollar and he’s right, well in Canada we have the same problem, but our economy is built differently.

In Canada, we’ve made a trade-off, I’d argue that we’ve exchanged our industriousness for a service sector economy. Mortgages, housing, commercial leases, commercial buildings according to the market do nothing but depreciate in value. Now, because we have a protected housing mortgage propped up by the Canada Mortgage and Housing Corporation (CMHC) and the Bank of Canada (BoC) that portion of the Canadian market and everything it touches is affected.

So, because of artificially high mortgage rates, a lot of commercial properties in Canada want to be bought out by Condo developers, so these commercial properties often charge above-market prices for commercial leases, this is only one of the reason why a lot of Canadian business are not only in debt but also need help from the Federal government.

As a lot of money flows into Canada’s housing market, a lot of this money is in actuality burned or removed from being productive in the Canadian economy. This actually has a deflationary effect on the Canadian economy as more money is dumped into it.

The government and central bank response to deflation are obvious print more money, but you see this is where the cash flow problem begins for the Canadian economy. Because the money being printed isn’t being used productively by the private sector, and ultimately what this does is it shrinks tax collection by the government because you have to remember that real estate INVESTING revolves around NOT PAYING or deferring TAXES!

From real estate to businesses, signs the pandemic is boosting wealth concentration: Don Pittis | CBC

When you buy an asset, especially an asset like a house, you’re in fact no longer in a cash position, you’re in an asset position. If I buy a Playstation 4 the government can’t keep charging taxes on Playstation 4 every year unless I attempt to flip my Playstation 4 and buy another one.

So because a lot of small and medium-sized businesses in Canada who provide the revenue governments need aren’t coming back, while the housing market is inflating, this is a clear sign that Canadians will lose their DOMESTIC purchasing power.

Now, I don’t know what will happen in the forex markets, meaning that as a Canadian your money might buy you more things OUTSIDE of Canada, but domestically, the way I see it, the Canadian economy is screwed. I’ve always been a huge believer in having a strong currency because of times like these.

The United States has U.S dollar infrastructure all over the world, most countries around the world know how to check if U.S dollars are fraudulent, this is something I wish Canadians considered prior to diving into socialism.

I personally believe Canada has entered a period of Late Stage Socialism, socialism is expensive but it gets even more expensive in it’s later stages. I think Donald Trump will win the 2020 election, but God help Canada if he doesn’t because Democrats are slow to react to everything economic.

The first thing is if Joe Biden wins, the stock market will crash, secondly, Joe Biden most likely will consult with labour unions prior to negotiating with Canada, Biden needs those blue states to remain blue and because Joe Biden is preferred by Progressives and Socialists in Canada, if Joe Biden does damage to the Canadian economy, that will be all on Trudeau or whomever else is Prime Minister at the time.

I see Canada being forced into an austerity position, but it’s not a guarantee that we’ll react appropriately when it’s clear that we can’t even SERVICE our debts without printing money. I’d also like to point out as it relates to the housing market that Hong Kong has been annexed by China, I’m certain a lot of that Hong Kong money is finding it’s way into the Canadian housing market.

inflated housing is bad for business, it’s also bad for government and tax collection!

Posthaste: As Canada’s labour market rebound slows down some workers might never return to their old jobs | financialpost.com

Interesting times ahead