Canadian mainstream media looking to blame America for the inevitable Canadian economic downturn, but in the end it won’t matter, the Canadian voter is to blame – September 27, 2020,
If my audience was used to be writing Left Wing talking points and I wanted to protect my job, I’d probably write the exact types of articles Daniel Tencer writes for the Huffington Post. Who cares what the truth is, the narrative is extremely important.
In my opinion, the Huffington Post tends to side with the bankrupt New Democratic Party, and being that Jagmeet Singh has signed onto to Trudeau’s economy which let’s call it for what it is, is destined to failure, the convenient scapegoat is the loud-mouthed U.S President Donald J. Trump.
As it stands in 2020, when people think American politics, the Canadian mainstream media has taught everyone to think ‘Orange man bad’ plus when you have Canadian bankers like Admir Kolaj, who work for TD, which as Canadian Member of Parliament Pierre Poilievre points out has a very interesting relationship with the Bank of Canada and foreign clearly insolvent financial entities, why not shift attention away from Canada and blame America for our problems.
Blame America, sounds good and when Bank of Montreal chief economist Doug Porter, provides another scapegoat, it’s only right that Daniel Tencer provides a narrative that caters to his base. But, unfortunately, or fortunately depending on how you look at things, it really doesn’t matter, debasement is debasement.
In a fiat cash fueled economy which has been proven over and over again, government spending appears to be the valuation model for how fiat currency is valued domestically. I’m of the opinion the Canadian dollar will be used outside of Canada in the months ahead and this has little to do with the U.S President and more to do with the bad spending habits of Justin Trudeau and Jagmeet Singh.
In America, Trump is spending, however to the dismay of many environmentalists and socialists, Trump is also cutting regulations. In simple to understand terms regulations are actually worse than taxes because regulations add to private-sector costs.
A lot of Progressives like to brag how high taxes were in the past, but the reason people could stomach and avoid paying those high taxes in the past had to do with the fact that there were fewer regulations. Trudeau and Singh are not only adding more regulations to the Canadian economy, but they’re also spending like drunken sailors.
One of the posts that got me the most traffic was a post I wrote about fiat dollars vs. a gold standard, now first and foremost if Canada had a gold standard, Canada Emergency Wage Subsidy (CEWS), Canada Recovery Benefit (CRB), Universal Basic Income, Universal Health Care all of these existing socialist programs would not exist, because actual labour/human capital has to go into digging gold out of the ground.
A fiat system bypasses all of that, however, the drawback to a fiat monetary system is that most people don’t know how to measure it. Fiat money is a politically-based money-system in which the forex markets base everything on confidence and government policy.
Canadians enjoy the luxury of being viewed as a world reserve currency, it’s unlikely that this will change even when the Canadian economy crashes, in fact, if let’s say Joe Biden is the President in 2021, it wouldn’t surprise me if the Canadian dollar on the forex markets began to soar, what can’t be hidden with fiat money is the cost of government.
The cost to service government debts can’t be hidden, we’re not China, we’re not even Brazil, our public debts are exposed to the world and what tends to happen, for a lot of Forex traders is they will force the hand of Central Banks to squeeze out profits.
Canada’s Keynesian financial sector has benefited us greatly, what hasn’t benefited Canada are our politicians, I’ll call it for what it is, geographically we’re the luckiest country on earth. We’re bordered with the United States and the U.S political machine often ignores our financial wizardry that we use against America to pay for our social services.
Trudeau knowingly or unknowingly has pushed our financial wizardry to its heights and, in my opinion, we’re Canada is headed for DOMESTIC Canadian dollar debasement, in which Canadians will understand by 2022. I personally think Donald Trump will win the 2020 election but if he doesn’t win or let’s say the U.S election results are delayed, what’s going to hit a lot of people by surprise will be energy prices.
Lucky for Canada, Trump is a man of oil, Trump keeps in constant contact with OPEC leaders in the middle east, it’s one of the reasons Trump was able to broker historic deals for Isreal, the Leftist mainstream media ignores all of this and if Biden becomes President, he’s feeble, he’s weak, even if he doesn’t have dementia, he behaves like a man who does, people in the middle east will have zero respect for Joe Biden.
If humans are paying attention, under Obama, the terrorism did not stop, now, under democratic leadership, U.S democrat run states have domestic terrorist destroying democrat run cities. Now, as an investor, I don’t really care about politics, what I care about is the bottom line and the bottom line is that modern-day democrats appear to be incompetents.
My personal views are that the internet hasn’t been kind to the Political Left, because the internet is allowing freedom of thought at a level that doesn’t allow ‘Progressives’ the luxury of controlling the narrative anymore. In the past a person would have to go to the library to learn Austrian economics, this is no longer the case, the internet is awash with Austrian think tanks.
Now, the problem with individualism, the problem with Austrian economics is that once you learn it, you can’t unlearn it. Sure you can sprinkle your own secret sauce to the argument, but the foundation of Austrian economics won’t allow you to pivot away from sound finances.
With that said an economic downturn and the solution to the said economic downturn at this point in human history is no secret. Sure humanity can choose to be ignorant about it, but that’s a choice and as Ford Motors Canada has proven, the private sector has the government by the Nads as does the voter, there’s a reason why UBI is a bad idea and Canadians unfortunately are going to find out the hard way the limitations of government.
The Canadian cash flow crisis has already begun, we’re entering into a period in which I call ‘late-stage socialism’. The central banks all over the world are going to start firing blanks and the governments with the highest cost are going to soon figure out why it will be in their best interests, to raise interest rates.
Will the central banks do the right thing and raise interest rates? Probably not, but as I’ve stated in prior posts, it’s not going to matter, debasement and debt is a cash flow crisis and a lack of productivity is a lack of productivity!
Interesting times ahead!