Incomes Are Rising In Canada But Incomes Are Still Not Keeping Up With Inflation, Canadian Productivity Down Sheltering Canadians From The True Cost of Living – June 1, 2021,
Because CERB/CRB actually equated to an income boost for Canadians apparently non-collateralized debts have actually declined, which if factually actually equates to Canadians rejecting this debt-fueled economy. What this would also signal is that collateralized debt instruments like a mortgage may in fact be the main cause of concern which again would put into question both the Canada Mortgage and Housing Corporation(CMHC) and the Bank of Canada(BoC).
If Canadians are paying down debt when they have disposable income, why does Canada need a subsidized housing market? Well, we all know the answer to that, which is that it’s because Canada’s Public Sector is bankrupt and don’t want to tell Canadians the truth that without the inflation tax Canada would have to engage in PERMANENT austerity measures.
In Argentina, their big government doesn’t have the worlds reserve currency, so when laws are passed that guarantee particular segments of the Argentine economy are ENTITLED to public funds and regulations that benefit it, the remainder of Argentine society is stuck with paying the inflation tax which manifests itself in Argentina with debased Argentine Pesos, that have no sustainable value on the decentralized forex markets.
Because the Argentine government has all sorts of protections, which in Canada are similar to our Department of Canadian Heritage, there is no realistic way for the private sector in Argentina to grow the economy. Currently, in Argentina, crypto-mining is taking off because oddly enough their energy market is subsidized and I’m sure in time the argentine government is going to be forced to regulate bitcoin mining in Argentina because the greater society of Argentina will have no benefit subsidizing these bitcoin miners, however with that said, when government picks winners and losers all sorts of oddities occur.
The oddity occurring in Canada today has to with, incomes and asset prices rising during a period of time in which Canadians are less productive? Now, as we all know the Canadian government can no longer SERVICE its debts with taxation, and this during a period of time when central bank interest rates are near zero.
What this ultimately equates to is higher consumer prices and the private sector in certain segments having to go further out in the risk curve, which ultimately means more expensive collateralized debts. Why this is important is that this will make the cost of living even higher and most Canadians haven’t felt the higher cost of living because of stay at home orders, which actually equates to a lower cost of living.
Ultimately what I see happening are massive cuts to government spending, which I think will happen after the Bank of Canada engages in negative interest rates. A few things are happening in the economy, first, the Canadian dollar is gaining ground on the U.S dollar, but the second problem is going to be debt defaults because I think a lot of people forgot about debt deferrals, which are rampant all over Canada, that’s why it’s hard for me to trust the information below because if home values are rising what a lot of people do is they pull equity out of their homes to pay down unsecured debt.
Or maybe instead of paying the minimum payment people will pay the minimum and a little extra or debt deferrals that weren’t being paid on unsecured debts are being paid now. When I read the data, it’s very misleading to the point that I almost find it to be a waste of time now. There is so much information being omitted in the figures now, that wouldn’t be omitted in the past.
I like to write that the economy already crashed, but because debt deferrals are a thing now, the data is written as if prior arrears don’t matter. I don’t know how to interpret that and it’s for that reason why I stick with my gold strategy meaning, I calculate the strength of the Canadian economy in Gold.
Although the price of Gold is rising today, I see massive deflation coming to the global economy which is going to manifest itself in a lower gold price, now, with that said, it doesn’t mean that Gold will be readily available, nor does that mean that central banks won’t be printing money, what it does mean is that people are going broke and those in debt, once the retail banks realize what’s happening, are going to find out that cash flow is going to get harder to come by, because, without austerity measures, I don’t think people comprehend that this current inflated fiat price of government is going to be permanent and UNSUSTAINABLE!
Posthaste: Frugal Canadians diligently cut non-mortgage debt even as household net worth climbs to $12.8 trillion | financialpost.com
Interesting times ahead!
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