Bailouts and the Chinese Communist Party are helping Canadian Real Estate Prices Go Higher During Coronavirus Pandemic – December 7, 2020,
As most people know the Chinese Communist Party has used this pandemic to take over Hong Kong, which obviously means that some Hong Kongers are leaving Hong Kong and coming to places like Canada, the people of Hong Kong are used to paying higher rental and real estate prices so for them, the Canadian real estate market isn’t that bad, in fact, they might be getting more bang for the buck.
Also, I think Canada and the world for that matter forget that good habits never change, and if people were financially responsible prior to the Coronavirus Pandemic with their savings and their investing, while the Central banks and governments borrowed and spent, well that means during the bad times those savers could use their money to buy what appears to be a real estate market that will in theory never crash.
If you had bad spending habits prior to COVID-19 chances are, you’re not understanding where all of this money is coming from to buy up real estate, but the truth of the matter is simple, governments al over the world have printed too much money and everybody can see that the Canadian and other currencies are going to be debased.
I subscribe to the argument that there will be deflation in the economy, however, I do believe that deflation will be met with money printing, the Bank of Japan as an example is now the largest owner of Stocks in Japan and most people believe that Japan is a glimpse into the future of the Canadian central
BOJ Becomes Biggest Japan Stock Owner With $434 Billion Hoard | bloomberg.com
The only political party that has a realistic chance of beating Justin Trudeau and the Liberal Party of Canada is the Conservative Party of Canada and nowhere in the Conservative Party of Canada’s mandate does it say that they’ll cut the size of government. I’m sure they will but not by much, which means Canada is, for the most part, stuck with these bloated expenses and costs to pay for government.
Currently, Canada can barely service its debts with tax collection, imagine a few years from now, as more small and medium-sized companies declare bankruptcy? That obviously equates to the debasement of the Canadian dollar and debasement of currency is good for real estate which is an asset that’s based on mortgage DEBT.
I wrote about this way back in June 2020, the only thing that will make the Canadian housing market crash is f the market says ‘no mas’ because Canada isn’t the only country in a financial mess, I personally don’t know how this will unfold, what I do know is MainStreet Canada is running out of money and it’s unlikely that Canada’s private banks are going to put themselves or their brands on the hook for insolvent Mainstreeters.
What I think will happen is the government will have to introduce a UBI of sorts which of course will make the situation worse but can be a bandaid to save face for a desperate politician or maybe the government will shrink and regulations will be cut, I’m not sure. Canada’s economic problems aren’t hard to solve, the problem is the political will to it.
I’ve read a lot of Canadian Liberals and Leftists comments on Twitter, Facebook, and Youtube, they’re clueless and or ignorant about what’s happening and they believe they can have their cake and eat it too and because on the surface it looks like printing money is solving all problems who can blame these financial morons for believing that this can go on forever, especially if the politicians present themselves as knowledgable.
I see consumer price inflation in the face of deflation in Canada’s future and I think people buying real estate are simply getting ahead of the curve!
‘We haven’t seen anything like this before’: pandemic boosts Canadian real estate | globalnews.ca
Interesting times ahead!