Warning Stephen Poloz suggests that there may be an interest in developing a private market for mortgage-backed securities in Canada – May 9, 2019,
You see dear reader Canada has a price control problem, Canada has a Crown Corporation problem, Canada in actuality is and should be the richest nation on planet earth by a loooooooong shot, but you see, Canada in the future has some decisions to make, namely are we going to keep this artificially low Loonie scam going, because investors are starting to look at the Canadian economy and nothing is adding up. What is adding up is that the low Loonie is attracting the wrong type of investors. With every passing day, Canada’s reliant on shady money is getting larger and larger, if we’re not already in time we’re going to be tops on the list for countries to launder your money. Why? Because Canada has not only embraced Keynesian economics we’ve also heavily sprinkled our economy with price controls.
Price controls are a topic in which you have to understand the free market to comprehend, most bank and financial people understand price controls, most people who invest in stocks understand price controls, however, the average human doesn’t know what the hell price controls are, where they are and how they distort prices for everything. The Loonie isn’t supposed to be low, let me make that clear, Canada’s quality of life exceeds the United State, Canada continuously beats the U.S in terms of quality of life, now ask yourself a question, why doesn’t the value of currency reflect that? Iceland as many people know experienced a currency crisis and an economic crash, it’s understandable why their currency is still trying to recover, what’s Canada’s excuse for a low currency? I’ll wait!
When’s the last time you Canada had any form of credt crash or credit crisis? I’ll wait! When’s the last time you heard of Canadian banks in financial hardships? I’ll wait! When’s the last time you’ve heard Americans had a better quality of life than Canadians? I’ll wait! So why then is the Loonie so devalued? Could it be that we’re currency manipulators? Could it be that our pricing mechanisms are all distorted because we allowed a Crown Corporation to be an insurance for mortgages?
To understand what’s happening in Canadian Real Estate you’d have to understand deflation, now deflation in retail terms is a super sale, 90% off sale, you know a sale that makes people with REAL money rush to a store to pay deflationary prices they can’t find anywhere else. That’s really all a deflation is, now deflation only hurts the Public Sector because deflation equates to fewer taxes and Public Servants get paid via the Private Sector via income taxes, sales taxes, tariff taxes, capital gains taxes etc. Deflation from a governments perspective is a disaster because it symbolizes incompetence and it also brings the leeches of society out onto the streets.
It’s very important to remember that an entitlement mentality stretches wider than you’d imagine. Even so-called Libertarian Right-Wingers will turn into Marxists if their bottom lines are threatened, it’s only those of us who consider ourselves individualists that laugh at the sight of deflation. People who believe in government solving problems, debtors and other financial morons they’ll beg for a savior to save them from this deflationary madness as they won’t know what to do with themselves. This, in reality, is how all these price controls came into existence in the first place. Canada is filled with price controls because a lot of Canadians don’t have the ability or the know-how, to demand their own wages or demand their own salary.
CMHC in many ways has facilitated people who would never be allowed to own home to now call themselves homeowners, the problem is that these lower down payments combined with a devalued loonie have turned Canada into a money laundering haven. It’s so obvious that even Stephen Poloz is trying to find the right words of warning that won’t rattle the markets. The Canadian dollar is being infused with poisons and I’m not sure when, but there’s going to be a time when the Canadian dollar is going to have to pick its poison, either raise rates or lower them, the problem with lowering the Canadian dollar at this point is that it’s not going to have that much of a stimulative effect as it would in years past. It’s almost near zero now, negative interest rates have proven not to add much stimulus to an economy.
Japans economy is now named a Zombie economy, but you see when you go to Japan, you’ll notice that there’s still a lot of small businesses thriving, what’s not thriving in Japan are public services. “Hurry up and die,” is what Japan’s Finance Minister told its old People, why? Because an aging population gets hurt the most from 0% and below interest rates. Remember in a normal interest rate environment, you can live off of your savings, without putting your money in the stock market, in a zero, and below interest rate market, you better find a way to get your money working for you, because in a zero percent interest rate market at best your cost of living will rise at only 1%. Furthermore, it’s become the norm for politicians to brag about the rising cost of living. Because Canada has such a big government in a financial downturn we’re in for a world of problems. I keep having to say these Crown Corporations aren’t counted as Public Services or Public servants when they should be. This is a major reason why a lot of people can’t see the economic problem that’s getting closer and closer.
Why did Stephen Poloz suggest that there may be an interest in developing a private market for mortgage-backed securities in Canada? Because CMHC and BoC have to separate agendas, being that the CMHC is fueling debt that TAX payers will have to pay for in the event there’s an economic downturn, Poloz is trying to tell them that they may want to consider either selling that Crown Corporation or phasing it out! Because if Poloz is forced to raise interest rates or even lower them CMHC profits on the backs of taxpayers and this my dear reader may trigger an economic collapse.
Why mortgage reform may have to wait for legislation, despite Poloz’s musings – Financial Post
Interesting times ahead
