Will the New Canadian Economy Revolve Around Our Resources Serving the Chinese Consumer? – October 11, 2018,
How people are educated is of vital importance, the culture of a people is of the utmost importance. Even the Chinese Communist Party knows not to mess with the people of China’s fiat money. There has been testing done in China where the assumption was that some Chinese banks ran out of money, a panic occurred and once the bank run started the powers that be in China made sure that the Chinese people’s money was available for withdrawal at the bank.
For people that don’t understand the economic IQ of the Chinese people, let me break it down for you in a simple to understand terms. The Chinese are at the top of the list in the globe for saving money, In China, most of the cars purchased are purchased in Cash, the Chinese people are not big on consumer loans, the vast majority of Chinese people who take out loans are business people. In October 2018, what Trump is trying to do is make sure that America will have the ability to compete with China in the future.
When Donald Trump cut regulations and lowered taxes for Americans, China did the exact same thing, they even cut corporate taxes to zero, as many people know China has free market zones in certain sections in China, these are often the areas where international companies set up their businesses in China, the Chinese people have throughout history been industrious. The concept of money printing came from China, the Chinese are also very flexible about how they handle a market crash. In China having skills to compete in the free market is much more valuable than the money itself, meaning that you can’t buy out China easily, you’ll negotiate with them from an economic point of view to get your point across.
The Chinese as communistic as you may think they are, understand the a value of property, property rights and what an try asset is. In Canada, a vast majority of our citizens have been indoctrinated by socialist, without understanding the free market. The Chinese are more of a facist people than they are communist or socialist, this ofcourse has been a slow moving turn to facsim for China but if you pay close attention you’ll see the Chinese correlation to Hitler’s Germany. Knowing what I’ve explained about the Chinese you’d have to know that their communist government is patient, they’re not going to reveal themselves as fascists just yet, it will be a graudual thing until emnough countries in the world are reliant on the Chinese to sustain their economies.
A lot of countries are in debt to China, which is why China is growing its military, eventually, those debts will ballon and China will own the wealth of many nations. Obviously, when civil unrest happens in these countries China will have to show it’s military might to retain the assets they’ve taken from nations who can’t afford to pay them back. Now, why Canadians should be concerned is because Trudeau’s Liberals along with the Bank Of Canada Governor Stephen Poloz have put the Canadian dollar in a bad situation.
The Canadian economy has 2 choices right now, the first choice to let the steam out by raising interest rates and getting all of these speculators out of the Canadian financial and housing markets or 2 continue playing the keynesian consumer spending economic game until the Canadian consumer taps out and the Canadian economy comes to a grinding halt. The grinding halt scenario is what Argentina is going through right now. When interest rates are too low and regulations are too high and there’s quite frankly too much socialism in an economy eventually investors realise that this country will never be able to pay its bills, then these investors will start charging more to lend Canadians money.
Once the realization comes that Canadians can’t borrow more money because they don’t qualify, the Canadian dollar decline begins, once the decine in the Canadian dollar happens, the Bank of Canada is forced into a postion to raise interest rates, now here’s what a lot of Canadians don’t understand about inflation. If your country manufactures things, inflation can be controlled, however, if your country is reliant on imports to sustain itself then your country is in trouble.
Why I broiugh up Justin Trudeau is that Justin Trudeau has been growing the public sector, proteting Canadian industries as well as giving out a lot of government contracts to private entities. Trudeau’s deficit spending came at the wrong time, people forget that Goverment shrinkage under Stephen Harpers as Prime Minister didn’t happen. All Steephen Harper did was use resources better than did Paul Martin’s Liberal government. I’ve said this many times that the Conservative party of Canada does a great job conserving Liberal policies. So eventually Canadians said to themselves why should we accept fake Liberals when I can get the real thing.
Thus Canadians hired Justin Trudeau and well, Justin Trudeau’s policies are not aligned with the Canadian economy. Now, when I’ve heard Jean Chretian and Paul Martin speak they seem to be rather distant for the Canadian economy, I could imagine that after leaving politics some politicians don’t want to think about it as much, but Trudeau’s cabinet is hell bent on socialising Canada even more and what they’re not realising is that soon China won’t need us for anything except our natural resources. In many respects, Canada can’t even compete with China and this is true regardless if Chinese wages match that of Canada.
A service sector economy only works if taxes are extremely low and entitlements for the population are minimal. Canada has a bloated government and mounting entitlements. Government jobs pay above market wages, a lot of Canadian provinces have created a minimum wage which is a nother job killing formula and this on going debate about universal basic income, there are a lot of socialised schemes in Canada that if not destroyed will make the Canadian economy useless to China. If Canada becomes a sell our resources or nothing economy we’ll be put in a very bad position especially as the world get’s better at extracting and creating energy.
Already I’m reading articles about China purchasing Canadian oil, primarily because it’s cheaper. One of the reasons why the Canadian loonie isn’t allowed to rise is because if it does, because of our already high cost of living all our resources will be in less demand, because it will cost more. Now, there’s a simple solution to this problem that American’s figure out years ago which is use your resources for other purposes. But you see, Canadaians have been taught that capitalism is bad, so most people in Alberta are hapy taking the Oil out of the ground and selling it to the highest bidder.
Thus, the Canadian economy is losing steem, in any barter transaction there aren’t winners and losers there are trade offs. The trade off for a lower Canadian loonie is that our economy now reviolves around it. In order to intice the Chinese to buy our resources, we’re going to have to keep a lower loonie. This doesn’t sound like a big deal, but it really is, it means that The BoC and the Goverments of Canada will have to continuosly manipulate the Canadian economy to serve the economic needs of other nations. I wrote extensively about the Canadian dollar reaching parity with the United States and how Stephen Poloz lowered interest rates because apparently, Alberta was hurting economically. Well, it’s been 4 years with unnecessartily low interest rates and Alberta’s economy is still hurting.
China Swoops in on Canada Oil That’s $50 Cheaper Than U.S. Crude
This is globalism, Canada has turned it’s back on itself and embraced Globalism. I’ve been saying for month’s now I have no idea why the Canadian dollar is so high. Any person with common sense can look at the future projections for the Canadian loonie and see that it will decline massively if changes aren’t made to this economy soon. Canada is dissolving economically, we’re becoming a 1 trick pony, the truth is when Oil rises, the Canadian dollar rises, when it falls, the loonie falls, but the Canadian dollar being a petro-dollar should scare Canadians. 100 Canadian dollars will buy you around $280 Saudi Riyal as of October 2018. $100 Canadian dollars will buy you 4800 Venezuelan Bolívar, $100 will get you 27800 Nigerian Naira.
Saudi Arabia is extremely reliant on foreignn labor to extract their oil, Venezuela is a socialist service sector hell hole which is extremely reliant on imports to keep their economy afloat and Nigerian is a protectionist nation that’s known to confiscate proprty that government deems as valuable. Canada has a little bitof all the nations mentioned here and us losing our manufacturing base and replacing it with public service sector jobs is no laughing matter. The coming collapse in Canada is getting closer, I advise Canadians to do their best to be prepared.
Inteesting times ahead.