U.S. economy Negative 6.7 million jobs shy of its February 2020 levels, Canadian Dollar Rises – July 2, 2021,

It wouldn’t surprise me in the least if the Bank of Canada had negative interest rates. One of the baffling facts about Canada is that it sold off its gold reserves, while at the same time raised mining and energy costs. A country rich in natural resources from a financial and economic perspective has openly declared itself a service sector economy.

A service sector economy puts a lot of trust in its currency holding value, but currencies globally have all been losing their purchasing powers, the Canadian dollar might be gaining traction on the U.S dollar, but does that really mean anything? The U.S economy is still negative 6.7 million jobs since February 2020.

 

America is opening up and still was only able to gain 850,000 jobs in June. Most Marxists and Leftists, in general, don’t understand that the private sector pays the taxes, actually, if people understand the period in which Karl Marx published the communist manifesto on February 21, 1848, that tax structures weren’t as numerous or as complicated as they are today, they’d understand why both socialism and communism fail almost everywhere they’re tried.

What’s been propping up socialism in the modern era is the US Dollar. Capitalism is actually quite new, but socialism is very old, socialism WILL not work with a gold standard, and definitely will not work with a Bitcoin or crypto standard, if there’s gold standard socialism turns into war QUICKLY. When people who understand money talk about a trade deficit, what they’re actually referring to is a BARTERING DEFICIT

a trade relationship is like this You work for me I work for you, but it’s not my responsibility to tell you what to do with your money. If you as an individual or government you decide to waste your money, that’s on you and or your government. My responsibility is myself, so when the U.S economy is clearly contracting because non-working Americans are reaping the rewards of other people’s labor, the labor usually responds by raising prices.

But in America, the world at large isn’t raising prices on American consumers, the entity raising prices on American consumers is the U.S Federal and in some instances State governments. This is one of the reasons why in most instances, other countries debase their currencies to the U.S dollar. In Canada as an example, our government in many instances punishes us for Ameicans selling us stuff.

This is of course, deflationary in origin and to make up for the shortfall, because remember if it’s difficult for American businesses to sell to Canada, entire distribution channels that would be in Canada creating jobs and paying taxes, won’t exist and therefore in order the government to cover this shortfall, the Canadian government and therefore the Bank of Canada has to monitor the value of the Canadian dollar to prevent it from getting to strong next to the U.S dollar.

Because you see a stronger Canadian dollar results in less tax revenue for the Canadian government, that is if you subscribe to the notion that prices in Canada would come down if the Canadian dollar got stronger? Of course, prices wouldn’t come down in Canada if the Canadian dollar strengthened, because the UNIONIZED Government workforce will refuse to take a pay cut, which would result in private businesses in Canada changing their behavior, possibly moving, because you have to remember a higher loonie equates to higher wages paid and the largest business USUALLY do business INTERNATIONALLY.

Now when priced in Gold all wages are the same everywhere and if some people are getting paid more than their wages are worth in the market, deflation occurs. This is why I often write that deflation is being hidden by inflating the fiat money supply.

Being that Americans have a ridiculous consumption rate in comparison to the rest of the world, the larger the U.S government gets the more it MUST grow its PRIVATE SECTOR workforce. If this stalls which tends to happen whenever a Democrat is in office, other nations around the world often have to debase their currencies to bailout the U.S government.

But as I like to point out, for Canada it’s worth it politically to do so because Canada doesn’t spend as much money in comparison to the U.S on say its military, and a lot of the essential public services in Canada take a financial backseat to “WOKE” political causes.

Now, if the U.S dollar lost its money-printing status, Canada loses its standard of living, which ultimately means in my personal opinion NEGATIVE INTEREST RATES are coming to Canada. Just being honest, I’ve never seen America have a president as dumb as Joe Biden. What’s worse than Joe Biden is his insecure Vice President, I’ve dealt with insecure people before, they’re very expensive.

Dumb people are controllable and my hope is that the people controlling Joe Biden know what they’re doing. With Kamala Harris, because I believe she’s insecure, she may go overboard to prove that she’s not insecure, which is why I wonder if Joe Biden were to step down, how she would govern. As with Justin Trudeau, I treat Leftist fairly.

My main complaints with Canada’s Liberal government has to do with them coming after law-abiding gun owners and limiting freedom of speech as well as freedom of expression. When it comes to money, I don’t see much of a difference between Canada’s Liberals and Conservatives, they’re both wasteful Erin O’Toole who I suspect will beat Trudeau hasn’t made the economy much of a priority, he’s a corporatist and Trudeau’s a corporatist, they may differ in their corporatist governance.

But if the Canadian dollar strengthens I expect both Trudeau and O’Toole to react in the same way, which would be to debase the Canadian dollar. So America’s struggling economy is ultimately the worlds struggling economy, so for myself, the end games occur when digital money is openly decoupled with physical money. We’ve already seen the decoupling with Bitcoin, which has a ridiculous valuation in terms of gold, but I’d argue a fair value in terms of fiat money.

I consider fiat DIGITAL money worthless and so does the Bitcoin community, but digital U.S dollars are still considered legal tender, which is why the financially savvy use digital dollars to purchase physical assets. I don’t see Bitcoin as a storer of value but that doesn’t make it valueless. Although I see digital fiat money as worthless, the market still loves it and still rewards it with appreciation next to other fiat currencies.

The problem occurs when the private sector because of government regulations and taxes is forced to raise the cost of living and the new government cost of living doesn’t match the market cost of labour, this is how hyperinflation gets started because this is the point in which the government can longer make political promises without there being an immediate cost to the consumer.

Money is nothing more than a convenient form of bartering and once the government severed that relationship and the wheels fall off of the economy, it’s not only about returning to a gold standard, it’s not only about a global reset and/or a digital dollar, it’s also about CUTTING COSTS and it’s the cost-cutting that the public will reject, it’s why everyone should take a look at many European countries prior to the creation of the European Union and the Argentine people, who would rather a rapidly debased peso instead of the alternative which is Austerity measures/shrinking the size of government.