Canadian Central Banks and Governments Propping Up The Housing Markets To Benefit The Speculators – March 13, 2021,
So in Canada as well as many parts of the world, MARKET interest rates are fraudulently conceived and this ofcourse benefits the speculators, and I’m not only talking about the wealthy speculators, I’m also referring to the middle class and even poor speculators also.
When the U.S housing market crashed, I was proud to brag that Canada’s housing market was in mu better shape, we didn’t have those silly teaser loan rates that suckered Americans into buying homes they could never afford, no in Canada we had safeguards to avoid that type of economic destruction.
But you see prior to the housing market crash of 2007 and 2008, there was still a market interest rate, sure it was manipulated, but back then the Canadian dollar and interest rates were manipulated primarily to prevent the Loonie from appreciating next to the Loonie because our manufacturing sector was and still is reliant on us artificially pricing down our labor costs.
All that aside, things began to change when Barack Obama became President of the United States and the U.S dollar began to fall rapidly, the Canadian dollar reached parity with the Green Back and this was proving to be disastrous for Ontario and Quebec, which rely heavily on a debased Canadian dollar, to make a long story short, Stephen Poloz became the Bank of Canada Governor and he began to work wizardry on interest rates and other central bank schemes and eventually the Loonie didn’t only come down in value it came WAY down, to the point it looked like Canada was openly mocking the United States with our currency manipulation.
The then-Republican candidate Donald Trump began calling out Canada on the obvious, labeling us currency manipulators which we were and he ran an election, n which he openly campaigned on preventing U.S trading partners from debasing their dollar, now, while all of that was happening in the United States, the housing market in Canada took on a life of its own, not only were their talks of a housing market boom in major Canadian cities even some smaller cities saw prices rise, now this is all well and good on the surface, but speculators typically lead to economic crashes and the thing about economic crashes is that they’re all different, it’s usually the silliest thing that triggers the economic collapse.
Now, for myself, what I see wrong with Canada’s housing market is the cost of living for renters, especially new renters, many of whom don’t have jobs and probably won’t have jobs in the foreseeable future. There are more and more calls for UBI in Canada, that’s all well and nice, but if UBI hurts productivity and tax collection, Canadian currency isn’t exactly in GLOBAL demand like U.S currency is.
So if there are too many Canadian dollars floating around chasing the same good(housing), while Canada’s real economy is producing fewer stuff, interest rates will be forced up and the way I see it Canada, it’s unlikely that most Canadians will comprehend what’s happening for months.
As a matter of fact, it wouldn’t surprise me if Canada’s central bank doesn’t notice inflation running red hot. Inflation in Canada is actually running red hot right now, but it’s being covered up by all of this Federal Government Welfare in the forms of CERB and debt-deferrals.
Canadians forget that debt deferral are nothing more than the deflationary crash never happening the REAL market compensates for this money printing not matched with goods NOT being produced by raising interest rates. But you see there’s a problem with everything Canadian economy we’re regulated up to our eyeballs, and even with the regulations, there are still Canadians crying foul in the housing market.
The CBC article below is basically a woman telling CBC, save me from my speculation, the lawmakers need to make me whole for gambling and losing. People forget it’s called a HOUSING MARKET! If there was no risk, there’d be no market, as an example, a lot of business owners lost their life savings during COVID-19… crickets… I hope Canadians understand this is not sustainable!
Interesting times ahead