House Prices In Canada Are Now Under The Control Of Global Forces

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Um yea, so thanks for stating the obvious, I’ve been saying this for years now, since Stephen Harper days. Actually then finance minister Jim Flaherty wa basically warning Canadians about this also. It’s common sense, but I guess it’s not a thing until the IMF says so. Sure, why not. Canada has reached the point of no return, Canada doesn’t even have the mechanisms at it’s disposal that America has. Canada took the novel approach to finances and backed itself into a deflation or hyperinflation scenario. Personally I think one of the worst long term investments is the Canadian dollar, right now, personally I don’t even know why the Canadian dollar is as high as it is now. I think Canada is blessed with the notion of our economic history, our ability to manipulate our way through economic disasters.

But see these times are a bit different, Polo did what unfortunately a lot of Conservatives wanted him to do, which was keep rates low, SAVE ALBERTAN OIL jobs, help grow the financial sector in Canada, so more companies will have access to capital, great idea Conservatives! The problem is Canadians aren’t as entrepreneurial as Americans are. Especially at the voting booth Canadians tend to vote for socialism, the mere thought of adding a private sector alternative to Universal Health Care scares the crap out of Canadians, so if you lower interest rates what the h*ll did you think would happen? Do you think Canadians would start a new company? or use the lower interest rates to get into consumer debt? If you guessed Canadians would ‘invest’ in consumer debt! You’d be right!

I’ve said this before the genius of Stephen Harper was doing basically nothing! Stephen Harper made changes slowly and because he made changes slowly and had a history of wanting Canada to join America in the Iraq war, he really wasn’t that much of a Conservative. He was more of a… wait for it… Progressive Conservative meaning the Liberals will create the disasters and we the Progressive Conservatives will simply manage it better. In America there are 3 dominant parties, The Democrats, The Liberals and 3rd the Libertarians. In Canada our options are 1.) Liberals(left leaning), 2.) Progressive Conservatives (center, right, left) 3.) The NDP(Socialist left) 4.) The green Party (left leaning) do you see a pattern here? A left leaning populace is a populace that is used to entitlements, and unaware for the most part of what liberty and freedom is.

This type of population would more than likely choose a job or welfare over starting a business, this type of population would also be in favour of increasing taxes and regulations on businesses over starting their own business. This type of population would more than likely choose government security over freedom. I say this because if you’re a Conservative, your job is explain your point of view, will you lose a lot of elections? of course you will, but as Liberal policies fail over and over again, your message will start to resonate with voters, voters start to listen. Ron Paul for many years was considered a Quack, however his message was consistent enough that now people all over the world have come to the realization that TAX IS THEFT, a bigger government is not always a good thing, government leaders like anyone else is corruptible.

That’s how this stuff works and well the fact that the IMF is just now realising that the housing market, which is propped up by the derivatives market is under the control of Global Forces when independents have been saying this for years, shows you the incompetence of these global oligarchs. Again Canada I can’t stress this enough, if the Canadian housing market even becomes stagnant for an extended period of time it will Collapse!

The reason the housing market in Canada will collapse is because if the financial markets are spooked in anyway, shape or form consumer options for credit will disappear overnight! Companies will no longer be willing to lend money and will instead be in the collecting business, companies will take their loses and exit the market, they may sell accounts to entities who may or may not raise interest rates are their new customers, however the option to give out more money in lines of credit or equity loans, those options will disappear and consumers will be faced with the very real notion of having to work to pay for all their debts. Cutting back!

What keeps most people who spend more money than they make up at night is the concept that one day in the future they’ll be able to sell their house for a profit or get a larger unsecured loan to pay off their current debts, what happens when that option disappears? What happens when the dream of selling your house for more than you paid for it disappears?

Well history shows that people will walk away, people in unsecured debts will declare bankruptcy. What this type of behavior does is it raises interest rates independent of what the Bank of Canada does and only an authoritative hyperinflationary government policy can change this. So again I say to my fellow Canadians the mortgage market in Canada can not be stagnant for an extended period of time otherwise it will collapse!!