OPEC is back in Control of Petrodollars: Canada’s Petrodollar expected to lose value in the Foreign Exchange Markets if OPEC floods market with Oil, Canada’s increased reliance on Imports – October 7, 2021

The nation of Canada is in one of the worst economic positions in the DEVELOPED world, if not the worst. It certainly doesn’t feel like it if you live in Canada as the welfare spending hasn’t dried up, but the numbers show a grim picture for Canada’s future. The real problem for Canada is the size of the public sector which is actually even larger than is being reported, as Crown Corporations are often not included in the public sector numbers when they should be.

Crown corporations whether Federal or Provincial I consider as price control mechanisms because it’s impossible for any private sector entity to compete with a crown corporation in Canada. The founder of Petro-Canada as an example was the Government of Canada, it had to be sold off because Canada was broke, I suspect Canada is heading down the same road today, there has been a lot of mal-investment from the Government of Canada during the pandemic and it’s my belief that once private sector entities are formed to rediscover prices the cost of living is going to rise much higher than PRIVATE SECTOR wages are rising.

Now, some will think this is an easy fix, raise the minimum wage and everything will be fine, but as I like to point out PRIVATE SECTOR wages have been stagnant because the technology is DEFLATIONARY, in this era an APPRECIATING currency backed by Gold would have been perfect because as wages remained stagnant the purchasing power of Canadians would have risen and the interest on their savings would have gone up also.

But instead, Canada has taken the opposite approach, as modern technology deflated prices, the growth of the Canadian government accelerated and Government employees don’t work for free and it’s also hard to fire government employees, furthermore, government workers are NOT paid based on performance, they’re paid based on government mandates, so even if a government workforce or government politician is causing harm to the Canadian economy, instead of being fired or replaced they way they’d be in the private sector, they might get rewarded with a promotion.

This is all well and good for the government during the good times, but during the bad times, ruling by decree because far more complicated. Fiat money, after all, is worthless, it’s given value by the people who put confidence in it, and this confidence is derived from the belief that politicians which include central bankers know what they’re doing.

There are still many believers who imagine that because certain nations are DEVELOPED nations that in the modern era their economies can’t fail, I disagree, I like to point out that the private sector workforce is the most important workforce to any developed nation and the smaller that workforce gets, the more likely inflation will take off and despite what anyone thinks, FIAT PRICE INFLATION is economic DEFLATION.

Argentina at one point was one of the most developed nations on earth, it’s still one of the most developed nations in South America, but it suffers from hyper-inflation problems because Austerity measures are almost considered an act of treason in Argentina. There always comes a time when a nation is forced to shrink government, this happened in Ancient Greece, Ancient Rome, it’s an inevitability that governments must shrink, because when governments intrude on your liberties and freedoms they’re also intruding on the economy.

Nobody, no job creator, no employee, no employer like to have Big Brother, The Nanny State, Big government, The monarchy, the Religious Conservatives breathing down their necks, scrutinizing everything they do while at the same time raising taxes on them. Even when you read stories about slavery or Serfdom when people feel oppressed they become increasingly unproductive and resentful, now of course when politicians make decrees, they imagine that what they’re doing is for the greater good of society, but actual humans have to do their dirty work and there comes a time when humans get tired of doing the “masters” dirty work.

I personally think the rise of Bitcoin is a sign that our financial system is on the brink of collapse because most of the money being used to buy Bitcoin are speculators who are BORROWING fiat money to purchase it because they imagine they can pay back the money they borrowed with the price appreciation of Bitcoin.

Where did this idea to flip bitcoin come from? Property flippers, real estate in most nations has been on a tear and as those of us who own homes know owning a house is a MONEY PIT, the only reason real estate is no longer considered a money pit is because the price of real estate keeps rising which allows owners of this asset to keep borrowing money.

Central bankers leaving interest rates at zero while governments spend like crazy and central banks buy up the debt is a recipe for economic disaster. The Bank of Canada has been very supportive of the current Prime Minister who many of us believe has lent money to a lot of people and business entities that will not be able to pay back what was loaned to them.

Because OPEC is back in charge of the Oil markets, they yield a lot more power over the Canadian petrodollar, so if the Canadian dollar starts to sell off because OPEC wants to flood the markets with oil, the Canadian dollar could drop like a stone, which would make the price for imports a lot more expensive, a shrinking private sector in Canada equates to Canadians being more reliant on imports and when you’re reliant on imports and the imports are usually priced in U.S dollars, Canada could be headed for some challenging times.

Canadian dollar upside seen shrinking if global economic recovery slows: Reuters poll | reuters.com

Interesting times ahead