Because of Canadian Government Stimulus, some are Analysts bullish again on Canadian banks as five out of Big Six surpass expectations??? – August 28, 2020
If you’ve never heard the phrase “Late Stage Socialism” I’ll briefly explain to you what it is. It’s derived from Karl Marx, who talks about late-stage Capitalism in which the Marxists just at the right time seize the means of production and basically the government takes over the entire economy.
Well, unfortunately, for the Marxists most of the world has been operating on a quasi-socialists marketplace in which some capitalism is permitted by the governments of the world. In no way shape or form is the current world we’re living in capitalism, we do have freer markets in some areas of the economy which generate wealth, but a major component of capitalism is DEFLATION
Deflation is a sale price or a decline in value in obsolete ideas, theories, technologies, and practices. To prevent deflation the capitalist has to add and maintain REAL value to the marketplace. Now, the unfortunate thing is that true capitalist are rare, but they’re also very impactful to society and unfortunately for the capitalists themselves, the creator of a new idea or invention isn’t always the beneficiary.
Nicola Tesla was a perfect example of an individual who wasn’t able to financially benefit from his inventions/creations. As cruel as this may sound, this market is what drives prices and wages down and it’s also why so many people in the world are opened to a little socialism here and there. Nothing is safe in capitalism, if there’s a way for one entrepreneur to profit at another entrepreneur’s expense, this will happen because deep down, most people don’t want to be wage slaves, most people want to be free of having a boss.
Late Stage Socialism is the market realizing that there is a boss and rebelling against said boss or bosses. How or when does the market rebel against the power structure, well this happens when there’s a cash flow problem for Mainstreet.
Once Mainstreet finds itself enslaved to the government and the legal entities the government prefers, the Mainstreet market protests, now how the protest happens, is not something I can predict, but it happens and this is usually when there’s a cash flow crisis.
Now, in a fiat-based monetary system, the central bank can provide liquidity to the banks, but that’s not the only thing that happened in Canada, in Canada, the Canadian government is paying once productive people a fair salary to be unproductive, in many instances I’m reading that people are making more money doing nothing than they made when they had a 9-5 job.
Canada’s economy shrank at fastest pace on record in Q2, but turned the corner in June | CBC
Now, a reminder that these working people who are now not working were for the most part responsible for paying for people on Welfare who were unproductive long before this COVID-19 crisis hit us. The government was in debt paying for prior welfares and has had to take on more debt to pay for increased welfare related to its now unemployed working classes.
Adding to this disaster are mortgage deferrals, mortgage and rent deferrals don’t simply go away, or maybe they do, who knows, but the real problem Canada is going to have in the future is obviously debt servicing and that’s what I find so interesting about the article below. The article below, barely acknowledges how banks are profitable.
Now I personally think Canadian banks will be bailed out in the event of a crash, but that’s not the problem, the problem is Mainstreet has shrunk and the barrier to entry to accumulate cash-producing assets in Canada is higher than ever and the government has added on more regulations.
This to me is late stage socialism the obvious is staring people in the face, but we desperately want to hold on to the way things once were. I recommend the reader take an honest look at the current Canadian economy because the signs of what’s to come is literally staring you in the face.
Interesting times ahead!