If Canada abandons supply management, the U.S. and Canada sign trade deal, interest rates could rise – August 29, 2018
When you read Canadian news outlets, it’s pretty easy to see how and why leftist propaganda spreads so quickly, so much so that the average Canadian is unable to get the full story. There are quite a few biased, corporatist articles online today August 29, 2018, that are basically trying to get Canadians behind supply management. These articles often ignore the obvious and propagate the emotional aspects of the argument. This is why I’ve been saying for quite some time now that in my estimation the Canadian economy is probably going to have to crash before real change comes.
This article written by on Global News is basically an article based on assuring that Canadian dairy Farmers will never have to compete. You can click the link below to watch the video and read the article for yourself
What’s not being explained in this article has nothing to do with a tariff-free dairy industry, it has to do with what type of tariffs are being implemented by Canada. Supply management coordinates production and demand while controlling imports as a means of setting stable prices for both farmers and consumers, what this means is that U.S farmers trying to sell in Canada are controlled by Canada’s dairy cartel which by the way Canadian consumers pay for. You can read more about Supply-side management by clicking the link below.
Now what’s interesting between in all of this is what would happen if Canada dropped supply management, what might end up happening is an unintended economic stimulus as the free market would factor in this deal as a good deal for Canadian consumers. A lot of Canadians are ignorant of how much more money we spend because of all this protectionism. I’ve been saying this from when Stephen Harper was in power Canada should honestly be the richest nation on the planet by a landslide.
It’s the protectionism holding us back, the framework is in place for an economic boom in Canada, but Stephen Polo as an example has been artificially lowering interest rates to protect debtors, if Canadians remember the main reason Polo kept interest rates low revolved around Alberta. If Canadians remember, the Canadian dollar was really high and there were requests from the real estate market and some manufacturers in Canada to lower the Canadian loonie.
There are manufacturers in Canada whose customers are in the U.S that are in Canada primarily to take advantage of the lower Loonie. These companies, as well as the real estate and lending markets, also wanted Canada to keep interest rates down so they could get as many Canadians in debt as possible and thus Canada experienced another real estate boom. If Canadians remember Toronto was actually second to the party. Vancouver was the first city to have record real estate prices, Toronto’s real estate boom happened primarily because of Poloz lowering interest rates unnecessarily.
Well, this has led to the Canadian banking system being completely out of whack, which is why there’s an inevitable collapse coming because what a lot of people haven’t noticed is that a lot of Schedule 1 Canadian banks have actually limited to their exposure to the Canadian real estate market. However the schedule 2 and 3 banks in Canada you know the banks that will most likely call in their debts or exit the real estate market, well they’re holding a large chunk of the mortgages, namely the mortgages that are owned by real estate flippers and investors.
I’ve been saying it for years and a lot of people do not understand this. When the financial markets get spooked what happens is the lenders that were in abundance start to dry up, they start to exit, they close their doors, they stop giving out loans, they start raising their interest rates, the start consolidating and what that does is it makes homes that used to sell for a million on sale for $500,000 because there’s a smaller pool of lenders that will even be willing to take on that mortgage.
Once it hit’s the public that there won’t be any equity in their homes for about 10 – 15 years that’s when depression starts to hit because remember a house depreciates with or without usage. A house an apartment building requires maintenance and because most real estate investors used their equity to fix their homes, once that equity is no longer there guess what these investors will eventually be in a rush to do? Sell! If you look at an example Airbnb, the model most people use is rent it out a few days a month because their mortgage payments aren’t that high and if they rent it like a hotel they can cover those mortgage payments and strata fees.
Well in a rising interest rate environment all of these schemes start to dissolve as the future for funding becomes more and more uncertain. This is where higher interest rates will lead in Canada and our economy is quite frankly not ready for it. Because in a heavily regulated real estate market the worst thing that could happen is for prices to suddenly drop and interest rates suddenly rise, because what you have to understand about regulations is that meeting the standards or the qualifications are already high, so if prices drop the standards to get into the market will still be high, which leads to stagnation.
Furthermore similar to Supply Management those people with the real estate are going to be reluctant to sell and will be asking the government to bail them out or protect them somehow. This is why you’ll often read about me ranting about over regulations. Minimum wage regulations prevent certain jobs from even existing in Canada, Regulations in housing are preventing in-demand housing from being built, once the government steps in it’s hard to know what the market wants and this is what’s going to prove to be extremely damaging to the Candian economy once all of this starts to unravel.
I still believe Donald Trump will trigger the next major economic collapse and I think this time Canada will be included, and the reason we’ll be included this time is primarily that of Stephen Poloz. I’ve been saying it for years, there was no reason for Poloz to lower interest rates when he did. I want to point out too that this happened under Stephen Harper and not Trudeau and the reason I think it was allowed to happen was Harper was trying to avoid excessive deficit spending and cheap money enabled Harper to do this, unfortunately for Harper, Trudeau’s Liberals saw cheap money as a means to deficit spend and he ran on it and his supporters loved it. Now, here we are in the most disastrous Canadian economy in history and we have the most inept economically illiterate cabinet I think in Canadian history. Even worse than Brian Mulroney’s cabinet.
I anticipated President Donald Trump becoming president of the United States, he’s the first President in U.S history to have been in the Private sector for more than 60 years of his life. Don’t forget that Trumps Dad was also in real estate so he has a lot of experience with business and negotiating, plus he’s been dealing with Leftists his entire life so he knows how to trigger the emotions in them. Oddly enough Canada hires a social justice Prime minister, who’s basically a puppet because if a Canadian prime minister’s weakest political strength is the economy which even the experts will agree is where Trudeau is weakest.
What Trudeau will have to rely on is dumb luck, and don’t ever get it twisted, dumb luck can get you places, Trudeau’s arrogance towards economic issues up to now haven’t been disastrous? right? well at least in his mind, so wouldn’t it only be right for Prime minister Trudeau to continue to push social justice economics until he’s proven otherwise? I read a lot about people saying Trudeau’s days in office are numbered? Well, we’ll see about that sometimes cosmic justice has a way of dealing with economic issues that many of us don’t see coming.
If you could see things the way I see it you’d understand why I’m saying it’s better the Canadian economy crashes now rather than later. Because if the Canadian economy crashes say 10 years from now, the assumption will be that, we did everything right and we should continue on this path to debt slavery and bigger government, which is why Argentina continously has problems in their financial sector.
It usually takes a Hugo Chávez or a Vladimir Putin to arrive before people realize how destructive socialism is. Most conservatives remember Pierre Trudeau, who was proof that a dictatorship is possible in Canada. Justin Trudeau has praised China, I advise Canadians to think about shrinking this government because if we don’t our standard of living might change.
Interesting times ahead.
