Canadians did not use record low interest rates as an opportunity to pay down debt – October 26, 2018,
One of the reasons I’m really excited about Maxime Bernier People’s party is that in the 1990’s prior to the merger there was the Reform Party and the Conservative party, back in the 1990’s a lot of right-wing minded people believed that this Reform Party was splitting the vote which in turn allowed the Liberals to win a majority. Now, what I’ve often argued is that it was because of the Reform Party and the Conservative Party why Canada was actually able to get financially responsible Liberal Party.
As lending gets tighter, Canadians face threat of credit card trap: Don Pittis
Jean Chrétien’s Liberals were probably the most financially responsible Liberals in Canadian history, they opened up our markets and in many was were responsible for Canada being able to take advantage of the United States on trade. Now the tradeoff of Jean Chrétien’s Liberal policies is that Canada eventually turned into a corporatist nation and well… they along with Stephen Harper created a nation where a lot of Canadians don’t understand why small and medium-sized businesses are even necessary.
To understand how corporatism occurred in Canada is to understand, is to understand the merger of The Reform Party and the Conservative Party. When this merger happened Canada stopped creating writers like Don Pettis. Don Pettis writes for the CBC, but if you read his writings you’ll notice something that you don’t find at CBC which is the writer giving you two sides of the story. In life, it’s important to understand that there are only trade-offs. There aren’t winners and losers, only trade-offs. In a world where there are trade-offs, theft isn’t necessarily wrong.
If the government takes money from citizens in the form of taxes and redistributes that money to people or entities the government deems more worthy and citizens do nothing to stop the government from doing this, yes, this is morally wrong but it’s still a trade-off. Because in most instances the citizens are allowing the government to redistribute their income for a sense of security. To understand this is to understand why if there are two dominant Left-wing Parties, the Liberals and the NDP there should be two dominant Right Wing Parties, the Conservatives and the People’s Party.
Why this is extremely important is because if Canada is going to have a State Run media organization like the CBC it’s only natural that a vast majority of their writers are going to side with extreme Leftist dogma. Why wouldn’t they when their assumption based on poll numbers is that most Canadians are Leftists? So what ends up happening in time as CBC hires new staff is that you get more Lefties joining and contributing who in a few years might get managerial or supervisory positions, who of course will misinterpreting any right-wing economic viewpoint as either racist or extremist.
To me, it’s still hilarious that The Rebel Media is considered extremely right-wing wherein a just world they’d be rather moderate if anything a bit too moderate for me. Although The Rebel Media has given Maxime Bernier a platform they’re very much leaning more towards the Conservatives which is fine. But the idea that they’re extreme right is comical, now at the CBC Don Pittis is probably their best contributor, his articles illicit a response that makes the reader think as opposed to simply react. Don Pettis doesn’t formulate his arguments like most CBC writers do in the form of a propaganda piece, used to push forth a narrative that typically sides with the Leftist.
I’ve said it many times before, there are a lot of Leftists in Canada, which is fine they’re allowed to exist they have a right to exist, my problem is that they don’t debate. Leftists don’t even debate in their writings if you notice, Leftists are usually the people who don’t want people commenting on their articles or their Youtube videos. Left-leaning people love the idea of controlling what people say and how they say it. Leftists are actually responsible for the Populous movement sweeping the entire planet because they’re trying to take people’s freedoms away.
now many of you have seen what’s happened to Alex Jones on social media, now I’ll be the first to say that I don’t agree with too much of what Alex Jones says, but I do believe he has the right to say it. Allow humans to outgrow things, humans should be allowed to think and formulate opinions for themselves, and now more than ever with the internet we have a chance to bring real love and compassion to our world. There are a lot of compassionate million and billionaires who are being incentivized to hide under a rock.
Canadians no-longer being able to qualify for Credit
What Don Pettis points out in his piece is something I’ve been writing about for years, which is people’s inability to qualify for credit. This is a very serious issue that I don’t think Canadians can no longer comprehend. Americans have already gone through this when dring their economic crisis in 2007-2008, in Canada, we haven’t experienced that yet.
A contraction in the credit supply is a very serious thing, it means you no longer qualify for credit or certain types of subprime lenders not existing anymore. Or subprime lenders raising their barrier to entry, or home equity loans disappearing or auto-loans disappearing, lines of credit disappearing, schedule 2 and 3 mortgage lenders disappearing or simply raising their barrier to entry. This is what happens in a rising interest rate market and if people don’t understand why this occurs? The answer is simple.
As the Federal Reserve and the Bank of Canada raise interest rates investor money goes to the safest place with the least regulations that being the Central Banks. When money goes here in great abundance to take advantage of normalized interest rates, as this happens subprime lenders start losing investors The subprime market is usually a derivative based market, a derivative in financial terms is a loan that comes from another loan that comes from another loan.
So let’s say I get a loan for 2% interest I sell that 2% loan to someone else for 8% then this person sells that 8% loan for 19.99% and then someone else might sell that exact same loan for the legal limit which is usually around 29.99%. Now, what’s important to know is that it’s all the same exact money, from the same exact source but what the lenders are getting from this arrangement are the fees, but if the fees to service these loans are cut off from the source, the fees go up and what you get is a game of hot potato where every financial entity is trying to get out of these loans as soon as possible.
When this collapse occurs, people usually remain quiet for as long as possible until a report comes out that this or that financial institution is bankrupt, now the people who got out early know why, but it’s not in their best interests to explain why and as this happens the entities that get caught or the banking entities with the most long-term loans which in some instances are the big banks. the reason why alarms start to sound about a financial crisis when mortgages are up is because a mortgage is a long-term investment, a bank can’t simply dissolve a mortgage, because this industry is so regulated a bank has to release the details of the other loans it’s involved with, which is where the concept of a bailout comes into play. Because if a bank is tied up in a bunch of different financial instruments that affect several sectors of the economy, it’s likely that this bank might get a government bailout.
Unfortunately, and I’ve said this before Donald Trump is in office. I’ve said this before if Barack Obama wasn’t a mixed race President there is no way he would have been able to bail out the banks the way he did. If Barack Obama was Hilary Clinton or George Bush there would have been massive riots in the streets of America and all over the globe. Donald Trump, on the other hand, is a different figure, Donald Trump is despised by many and his base will not allow the billionaire to bail out his rich buddies. Everything Donald Trump has done economically for America will be ruined if Donald Trump bails out the too big to fails when the U.S economy crashes.
Donald Trump better do what he said he would do which is to renegotiate the debt if he expects to go down in history as one of the great U.S Presidents. This coming crash is coming to Canada and I personally hope it comes soon because if it comes 10 years from now Canada is going to have a similar problem that Argentina is facing. Which is allowing the government and it’s subsidies (Crown Corporations) to get too large.
I’ve pointed out that under Trudeau we’ve created a massive public sector along with a dwindling Private Sector, it’s hard for most people to understand that if this trend continues Canada might reach that magic mark of 25% of the Canadian economy is Unionized Public sector jobs. There’s no coming back from that. There has to be a complete cultural shift in order to correct a problem like that. Unions were made for the Private Sector, not the Public sector, Canada Post workers strike because their Unions know the government has it’s back, Canada Post I believe is 50,000 people strong.
They’re already the highest paid carrier workforce in Canada but it’s not enough for them and why should it be? They’ve gotten their way before? They’ve made the government kneel before, why not push your luck? This is how Argentina ended up in the stagnant state it’s in today. Public Sector unions won’t allow the Government to shrink and it’s embedded into the culture where to speak against it is blasphemous, big government stooges will defend their right to exploit the private sector to the death. I’m warning my readers and fellow Canadians to be aware of the economic collapse that’s approaching.
To solve it we need to remove regulations and we need to do it soon because the real problem in Canada is that the barrier to enter our economy or job sector is way too high. In Ontario our minimum wage is $14 an hour, this means that certain jobs simply won’t exist in Ontario. Now, the argument for a minimum wage is that more money gives people more money to spend, well my rebuttal is more money created by the government equates to hyperinflation and if we don’t remove these frivolous regulations soon, when the crash happens there will be no way to solve it!
Interesting times ahead