Canadian Federal Department of Finance wants to Tax Your Idle Money – January 13, 2019,
Canadian Federal Department of Finance wants to Tax Your Idle Money to reduce or eliminate any interest paid on it. It should be pointed out that current interest rates in Canada are near zero(1.75%), however, this move coincides with what a lot of people have been saying regarding the Canadian economy that not only is it broke, but unless a new magical monetary scheme is created to replace our current fiat monetary system, most Canadians will simply not be able to afford the cost of living, that will approach quickly if interest rates remain at current levels.
The reason in a free market that prices fluctuate coincide with new innovations that usually make our lives easier. In the 1990s using pagers was common, then pagers were replaced by analog cell phones then analog cell phones were replaced with digital cell phones and finally digital cell phones were replace with smartphones. In theory what should have happened is the prices for all of these new gadgets should have lowered the costs, but because of innovative concepts like leasing and/or financing phones, this obviously allowed companies like Apple and Samsung to artificially inflate the price of their phones.
To see if the bank of Canada owes you or has your money click the link below:
Bank of Canada – Unclaimed Balances Portal
Car leasing and Financing artificially inflated the price of making an automobile and also those magical financial innovations also have derivatives, which often also have their own derivatives and these financial schemes, which even reach the Real Estate markets in Canada artificially raise the cost of living not only in Canada but all over the world and give people the illusion of wealth that only a select few are benefiting from.
No, as many people know the only real money this world has is money derived via actual labor or human capital, which is why in a free market system, wealth tends to be generated at an accelerated pace, so fast in fact that in many respects government can’t keep up with actual consumer demand. This, of course, leads to the government to create rules and regulations, which obviously leads to wealth creators concentrating in certain sections of the economy. Currently, money has lied dormant in area’s of the economy where the government has selected to be beneficiaries, the problem this has caused globally namely in developed countries like Canada are the central banks being forced to make some very tough decisions on where to find money.
There are a lot of talks to bring 3rd world immigrants into countries like Canada, the U.S, and Western Europe, the reason for this is simple, the actual labor needed to maintain the West’s standard of living is decreasing primarily because if you live in Canada the cost of living is killing you and because we’re no longer in a free market where economies inflate and deflate, inflation going forward will be inevitable until there’s a financial crisis.
The main problem with a financial crisis happening right now is explaining to the population that there’s no easy fix, if a financial crisis happens now, the unemployed or the unemployable will simply have to work or starve, the most likely scenario is however that Leftest minded people will opt for the government to regulate the economy more, which in a hyperinflated currency situation is something the Government can’t do, because most rich people don’t hold fiat dollars and instead are heavily invested in cash flow producing assets. What a cash flow producing asset does is it protects a person from hyper-inflation.
A cashflow producing asset is real estate income for example, so sure the Canadian government can hyperinflate the currency, but if you’re an owner of real estate you simply past those costs over to the consumers or the renters, same thing happens for food, clothing, commodities in general, the owners of property adjust their pricing accordingly, which then means that the people who are physically working to get an income at their jobs will ask the government for a minimum wage hike, but a minimum wage hike could also result in further price inflation. Now, in the 1990s this wasn’t that big of a deal because there weren’t people in as many debts and they’re in today, but being that there are so many people in debt, in Canada, hyperinflation in Canada’s currency will more than likely result in massive bankruptcies which is already happening:
Why bring this up you ask? Because the government can see the writing on the wall and what tends to happen as Canadians find that they have less and less money is that they start to look for income in places, they didn’t know existed prior. A lot of people stumble on government programs or institutions that existed and that they contributed too for many years when they run into financial hardship. Most of these social safety nets are inefficiently run, but similar to insurances, the expectation is that only a few people will ever show up to collect, the hope is that there’s never a bank run on these entities.
The reason, in my opinion, Ottawa is looking to tax dormant accounts revolves around the coming financial hardship that’s going to hit Canadians like a ton of bricks. what’s often ignored about down economies is what happens to subprime lenders disappear. A lot of people complain about loan sharks, but loan sharks do a lot for the economy, they create the illusion of wealth, in a down economy, a person can’t even get into debt, because in most instances those loan sharks disappear and well, the Canadian economy, namely our financial sector is very regulated. So I bring this up because it’s obvious to me that Government is going after anything they perceive as productive labor or productive income generated by hard work. Because wealth or wealth taxes will bankrupt the retired. Beware Canada the crash is near.
Money in the bank: Ottawa looks for new ways to tax dormant accounts – CBC
To see if the bank of Canada owes you or has your money click the link below:
Bank of Canada – Unclaimed Balances Portal
Interesting times ahead