Gold making mainstream news and the markets haven’t factored in President Joe Biden yet: TSX futures rise as gold prices remain firm – July 13, 2020,
If you’re living in Canada, you’d be an idiot to hold Canadian fiat dollars in the hopes these loonies will appreciate in value, internationally the Canadian dollar might hold it’s blue next to other fiat dollars, but domestically the loonie is going to lose a lot of it’s purchasing power and this isn’t a secret.
I’ve never been much of a fan of the Liberal Party of Canada, however, there were in the past corporatist Liberals who at the very least attempted to give the illusion of balancing the books and by that I mean, prior Liberals would try to keep the inflation tax to a bare minimum.
Because you have to remember that as the public sector grows and calls for more government welfare balloons, eventually the government runs into a cash flow problem. The talk of the day for Canadian Keynesians is that the Canadian has been in word shape in the 1990s, I actually disagree, because personal debt levels weren’t allowed to exist the way they do now, but I digress and quite frankly I don’t care if anyone is dumb enough to compare debt levels or the economy now to what happened in the 1990s? They clearly haven’t been paying attention to home prices, which to me are the perfect reflection of where the Canadian dollar is headed.
If you live in Canada and the price of your home isn’t appreciating or doesn’t appreciate in the months ahead, your house is probably in the middle of nowhere. Because money will be flocking into the Canadian housing market, rent prices will be increasing and wages will be stagnant because the Canadian government is too big and this should actually be the most prosperous time in Canada’s private sector, but it can’t be because as I’ve stated in other posts, Government people don’t work for free.
Government people get paid an above-market wage in Canada in which the private sector, which functions in a market can’t pay unless the talent pool is worth the investment. I personally don’t see CERB taxes being paid back the way the government believes it will be.
Also because Justin Trudeau is adding on regulations, a lot of businesses in Canada aren’t coming back and it will be very expensive to replace them. Carbon taxes kills Canadian manufacturing jobs, Coronavirus ECONOMICALLY is an attack on Canadas Service Sector economy, the danger of having people working from home is that Canadians working from home might get replaced by foreigners who can work from home for less
Now I can hear people saying to themselves well the government can create a law to prevent this from happening? Of course, they can, but the great thing about an employee working from home is that you can move your entire business headquarters out of Canada.
I bring all of this up because the price of gold is going up in United States dollars, investing in Gold as a Canadian is a no brainer, the Canadian government sold off its gold and Trudeau is spending money like a drunken sailor and to make matters worse Trudeau has created an unfavorable economic atmosphere for businesses to raise taxes.
So… public sector bills will be paid by printing money, Canada’s not alone on this by the way, but a lack of productivity is a lack of productivity and Gold as an example has to mined, using human labor. Although some people see the world returning to a gold standard I see the opposite, I see the world being fed-up with Government money or the government backing money with a commodity.
Historically, the government has been the entity that has destroyed the value of money, I personally see the world getting comfortable with fiat dollars expiring and being replaced, by another fiat currency. It’s been happening in Argentina over and over again, it’s really not that big of a deal if… You know what you’re doing, it’s not like there aren’t rich people in Argentina.
I like Bitcoin not, as something to invest into, but for what Bitcoin represents. Bitcoin is a sign that savers are fed-up with fiat money. I see more and more people taking asset positions and not budging from those asset positions. Of course, this is always what the rich have done, but because there are so many private entities who are responsible for retirement payouts I see real inflation taking root in the market place and this is very bad for countries like Canada.
holding an asset position and possibly only selling off what you need too in fiat dollars, equates to fewer tax dollars being collected. This in the past would signal to the government that it should shrink, but I’m not sure about that in the modern era.
I see a zombie economy in Canada’s future, however, Canada isn’t the manufacturing powerhouse Japan is our government has no manufacturing industry to subsidize, Canadian oil doesn’t need subsidizing, it needs the government to get out of the way. Elon Musk and Tesla are the leaders in renewable energies and they’re still struggling to make a profit, mind you, Tesla, as far as I know, doesn’t manufacture in Canada, I point this out because a Green economy as it stands now will have to be imported into Canada because it’s uneconomical to build a green manufacturing hub in Canada.
Even mini nuclear power plants are the subject of hatred from Canada’s Leftists, economics has been thrown out the window by the current Canadian government and this bodes well for Gold. Lastly, the markets haven’t factored in President Joe Biden.
Now let me be the first to say that I don’t think Joe Biden will win the presidency, but he might! If there is a belief in the markets that Joe Biden will be the next President of the United States, Gold is going to skyrocket. Now, even if Donald Trump wins, the price of gold in my opinion will skyrocket for a different reason.
There is going to be a serious shortage of gold for industrial purposes if Trump wins and the markets go up, silver has the same problem. The price of gold will rise for, Joe Biden because people are going to dump U.S dollars in protest.
Sure nobody will say it publically, who in their right mind wants unnecessary bad press attached to their name. But if Joe Biden is president it equals more regulations, more social justice, more bad economic policies, and just an ugly economic outlook for the next 4 years. Hold Gold and wait it out will be the mantra, under a Biden administration.
Either way, gold prices are going up and in my opinion, Canada is on the wrong side of history. The government sold off our gold and our people are in record amounts of debt, meanwhile, Trudeau is spending like crazy and over-regulating the economy. Can you not see the obvious, devaluation of the Canadian dollar? I sure do!
Interesting times ahead!