The Actual Cause of The Canadian oil price crisis – November 30, 2018,
The Canadian dollar has existed since 1858 and the truth is, that right now, as we speak the Canadian dollar should cost Canadians in my estimation around $0.85 to purchase $1 USD. So what happened you ask? What happened was on December 4, 2007, the then Bank of Canada Governor Mark Carney under pressure, cut interest rates. That was 11 years ago and for you Conservatives out there, that was under then Prime Minister Stephen Harper. Canadians may not remember this but at the time the Real Estate lobbies and other low-interest globalists and corporatists wanted the Canadian dollar low, because if it wasn’t low then they’d have a harder time competing in the U.S market.
At least that’s what they told then-Prime Minister Harper, being that Mark Carney was slow to lower interest rates any further because the Canadian markets hadn’t crashed to the same degree as the U.S markets crashed, Stephen Harper in 2010 was able to give the Corporatists and the Globalist exactly what they wanted and this my dear reader is what led to the demise of the then Prime Minister Stephen Harper.
The moment Stephen Poloz became Bank of Canada Governor, he cut interest rates and then he cut them again and again and again, Stephen Poloz cut rates so low that hoarders of the Loonie assumed there was a crash looming, so a lot of people sold off Canadian dollars, and from there a new economic stimulus happened in the form of Real Estate and at the same time a disaster happened in the Oil patch which was a crash in Oil prices. I covered all of this, I remember it like it was yesterday.
Now, the excuse Poloz gave for reducing interest rates revolved around Alberta’s supposed crashing economy, but this is not what happened at all, the oil market in Alberta crashed because investments were pulled, because from an outsiders perspective the assumption was that the Canadian economy was going to collapse, when it wasn’t, what happened was Stephen Harper made a promise to balance the budget, I don’t think anybody really cared if he did, but Stephen Harper wanted to make sure that the budget was balanced leading up to the election and in the process he assisted in making every Canadian poorer. There is nobody that can convince that Stephen Poloz was not Stephen Harper’s puppet.
The dollar in Canada was rising because the world was ready for Canada to take the lead economically, people have to remember, that Obama was President of the United States and Canada had hired a Conservative candidate and the economy looked prim and proper. The problem is Stephen Harper listened to the corporatists, the corporatists told Stephen Harper that the Loonie should be lower or Canadian businesses would suffer, this was all globalist B.S, prior to Trump and Trudeau Canada was basically a tax haven for investors, they weren’t going anywhere, however they’d probably have to hoard more Canadian dollars, which would be uncomfortable if Canada wasn’t ready to lead.
When I say is Canada ready to lead economically? Switzerland as an example is a country that can lead economically. Even at minus interest rates most investors refuse to drop their Swiss Francs, the world has been looking for that alternative country in North America and the assumption in 2007 was that, this place was going to be Canada, unfortunately for Canadians Poloz completely messed up the economy, the Loonie fell, Canadians all of sudden felt poorer and then to make matters worse here comes Justin Trudeau who promised to do everything Stephen Harper didn’t do.
Trudeau said while campaigning that he would raise taxes, run a deficit, fight for social justice and grow the government. I bring this up because most Canadians don’t care about deficits, most Canadians can’t even qualify for an unsecured loan, most Canadians don’t understand the difference between good debt and bad debt, so when most Canadians heard Justin saying screw balancing a budget, I’m going to run the country on debt, a lot of Canadians said count me in.
So Albertans understand, the investment community knows who Pierre Trudeau was and what he represented, the investment community knows socialism is bad for business, making matters worse was the hiring of Rachel Notley. I was actually sympathetic when Albertans hired the radical leftist NDP candidate because the Conservatives, in my opinion, weren’t man enough to tell Albertans the truth. Things are going to be a bit harder as Canada transitions into a different type of economy. What type of economy is that you ask? An economy where the Canadian dollar is high and we purchase other resources and assets from other countries with the power of our higher valued currency.
Do you follow me here? With a high currency what you should be doing is buying up more assets, the moment the value of the yuan rose, what did China do, what did the Chinese do? They began buying up American, Canadian, Australian and European assets, why? Because you don’t want to only hoard your own currency, having a high currency doesn’t mean you have to trade in it, when you own assets over all parts of the world and everybody wants in on your market, you get better-bartered deals, you also attract more investment, as long as your country isn’t stupid enough to have silly regulations like minimum wages (Something Switzerland doesn’t have) a higher currency puts you in a much better tariff position.
Countries with higher valued currencies are in much better situations to protect their countries sovereignty. Did Canadians think that the Euro or the European Union was created for no reason? it was created to make sure outsiders didn’t by up Europe on the cheap, their regulations add another barrier of protection for their industries, now obviously it’s flawed, but make no mistake about it, as a country you do not want a lower currency, this is a globalist corporatist trick. Lower valued currencies especially those not run by dictators is asking for trouble. Have Canadians not noticed what’s been happening to our media? Do Canadians really think there’s nobody behind the scenes pulling the strings? Come on, be serious!
Corporatists sold Canadians on a dream that a Lower Loonie is somehow a good thing. Now, why I’m writing this is if you live in Alberta, you’re economy actually has the most to gain from a real estate crash. If you’re from Alberta and you want Pipelines built what you should be doing is pressuring the Bank of Canada to raise interest rates. Why are interest rates low in the first place? Low-interest rates aren’t helping anybody in Canada except for real estate people.
The best thing that Rachel Notley hasn’t done is introduced rent controls, this actually puts Albertans in the best position if the real estate market crashes. Rent controls are what’s causing properties in Ontario and most importantly British Colombia to rise. No, rent controls equate to the Albertan economy being able to rebound the fastest from a real estate crash. As a Torontonian, what I’ll tell you is rent controls is what’s going to really make the British Colombian housing market crash like never before if interest rates rise, rent controls are what will give Albertans the investment their province needs. Rent controls will actually be the deciding factor that will get the pipeline built.
If you’re an Albertan, if I were you I’d start to ask questions about why interest rates are so low, ask Poloz why low-interest rates haven’t helped the Albertan economy like he said they would. Poloz’s reasoning for lowering interest rates revolved around helping Alberta right? well, it’s been almost 10 years now? why hasn’t it worked? It hasn’t worked because interest rates in Canada should be as low as they are today.
I’ve been writing about this for years now, The Canadian dollar should be soaring, this should actually be the best period in Canadian history, the Canadian banking sector wasn’t bailed out to the same degree as the U.S banking system, we did it right, we did it the best, but somewhere along the line, some special interest groups decided that Canada should have low-interest rates, Canadians should get into more debt, the Loonie should be kept lower and Alberta should go green.
People will try and convince you that OPEC caused this crisis, they’re liars, where’s Norway’s Oil crisis? the crisis was caused by lower interest rates, unnecessary regulations, a Lower Loonie, Consumer Debt, Lack of investment in Canada a lack of vision for the future of the Canadian economy. But as I started off in this post, if you’re living in Alberta start asking why interest rates in Canada are so low? If they tell you it’s to help your economy ask them how? and why hasn’t it worked for 10+ years?
Wake Up Alberta, you’ve been bamboozled!
Interesting times ahead.