Negative Interest Rates are Coming To Canada if the Loonie Continues to Climb: Bank of Canada reiterates it could cut rates further if COVID worsens – December 10, 2020,
One thing that has to be made clear, real estate is worthless without commercial activity, if there’s no commercial activity happening in the area in which you live, the property value of your residential real estate is subjective. Although the Bank of Canada is trying to blame COVID-19 on why they’re going to go Negative, the reality is, they’ll be going negative because the Canadian dollar is continuing to strengthen against the Greenback and as most Western Canadians know, Quebec and Ontario can’t function without an artificially low loonie.
By almost every metric, Canadians CURRENTLY enjoy a better PER-CAPITA standard of living than do Americans, so ask yourself then, why is the Canadian dollar lower than the Greenback? What’s that you say, Canada and Australia both have equivalent resource sector economies and that’s the reason why the Canadian dollar is so low, sure let’s imagine Australia borders with the United States too, I’ll play along if you play along!
The truth of the matter is that the Loonie is artificially low and because of the amount of debt Canadians have, this scam that’s been happening in Canada since the 1990s is about to get put to the test, once the Bank of Canada experiments with negative interest rates.
Currently, Donald Trump is the President of the United States, but the media is saying Joe Biden won the election, let’s say this happens, I think what most people forget is what happened when Barack Obama was President of the United States, when Barack Obama was President of the United States, the U.S dollar and the Canadian dollar reached parity.
During that Stephen Harper, Stephen Poloz era, even though the Canadian housing market NEVER CRASHED, Stephen Poloz made up an excuse to lower interest rates in Canada, the effect of Poloz doing this was the Canadian dollar began to slide and real estate prices began to rise!
If you’re wondering why prices are going up in Canadian during a deflationary period it’s because without higher prices the Government can not be financed. Most Canadians already know that taxes can’t pay for all of this government, but the last thing Canada needs is for this news to be overtly obvious, so the current Deputy Governor Paul Beaudry made sure he’s not going to spook the markets but at the same time prepare them for the inevitable.
As many people are aware, COVID-19 numbers are being inflated everywhere, even Elon Musk reported that he tested positive and negative for Coronavirus on the same day.
So, obviously one can conclude that the coronavirus is being used POLITICALLY. With that established there’s nothing to see here, only a warning that if Joe Biden who appears to have a lot of ties with China becomes the U.S President, a few expectations include a slower U.S economy and if Biden raises taxes and adds more regulations to the U.S economy, all of a sudden Canada becomes a better place to PARK your money.
Furthermore, the price of oil in U.S dollars under Joe Biden guaranteed will go up, Joe Biden can barely complete a sentence, imagine Joe Biden having a conversation with OPEC? Would Joe Biden based on his Iran position even be able to hammer out a deal with OPEC? OPEC might screw over Joe Biden just because of his position on Iran and Biden joining with the Paris climate agreement suppresses U.S energy, so OPEC can play America like a fiddle raising and lowering Oil prices whenever they feel like it, just like they did before.
Being that Canada is viewed as a resource nation, this has the potential to push the Loonie up higher, while at the same time the COST OF LIVING rises in Canada. I’ve been writing for years that Canada is heading for a CASH FLOW problem. Now I don’t know maybe this MMT thing might save us, but you can’t hide productivity numbers and Canada’s private sector is heading in an interesting direction!
Bank of Canada reiterates it could cut rates further if COVID worsens | reuters.com
Interesting times ahead!