Normalize Interest Rates You Idiots: CMHC funded think tank Generation Squeeze wants to add a progressive annual tax on homes valued at over $1 million – January 31, 2022,
For obvious reasons Federal Crown Corporation known as the Canada Mortgage and Housing Corporation(CMHC) doesn’t want to draw unnecessary attention to its cash cow and fellow Federal crown corporation partner known as the Bank of Canada(BoC). So it’s paying idiots to publish its propaganda, CMHC has a lot of cash and that cash is dependent on keeping this Canadian housing bubble afloat. Anyway, one of CMHC’s minions known as “Generation Squeeze” came up with the idea that taxing homes that the market has decided are worth more than $1 million is a great idea, to, I guess get the market to not value homes so high?
This, of course, is beyond stupid, because the main driver of higher home prices is the CMHC and BoC, the CMHC has a mortgage insurance product and the Bank of Canada is keeping interest rates low as not to bankrupt the Canadian government. Now, the idea behind government spending is to invest for the future of the country, but as we can clearly see, the various levels of government in Canada have used Zero Percent Interest Rate policies(ZIRP) to grow the size of the government.
I prefer to call buying votes by its rightful name and Justin Trudeau has been buying votes everywhere he can. The Canada Emergency Response Benefit (CERB) I’d argue was a vote-buying scheme that has led to more consumer price inflation, now, CERB wouldn’t be possible without ZIRP. If interest rates were normalized, chances are we wouldn’t be under any lockdown today, because servicing that debt would be too difficult to do, but because there’s a mood in the country that we found some sort of magic money tree, most Canadians don’t see the economic disaster waiting for us.
The mere fact that 100 square foot condos are approaching or surpassing 1 million dollars in certain parts of Canada, gives you a glimpse into the consumer price inflation problems that will be plaguing Canada’s future. Now, let’s be clear, debt is not real money, debt is merely an agreement to pay a certain amount of money in the future. But you see these promissory notes make the CMHC the richest crown corporation in the country and therefore, it’s wise, that the CMHC finds ways to shift attention away from the Bank of Canada raising interest rates.
This is why for me personally I think the Canadian dollar is going to use inflation to pay the bills. Sure I also made investments for both inflation and deflation, but I lean more towards inflation. I write these posts because it’s my duty as a Canadian to warn my fellow countrymen what could be on the horizon, but I have to protect myself and my family and the fact that CMHC is paying entities to shift blame away from the Bank of Canada, shows the Collusion in these State-Run-Monopolies.
Socialists and communists like to bring up monopolies that occur in capitalism, but often ignore government monopolies. The BoC and CMHC are perfect examples of State-run monopolies that are creating poverty. The article below brought “Generation Squeeze” to my attention, but Krystle Wittevrongel doesn’t make the Bank of Canada a central piece of the article. One of the reasons why I’d assume Krystle Wittevrongel avoids mentioning BoC normalizing interest rates is because the company this individual works for, got a media bailout via Justin Trudeau that I assume they’d like to pay a lower debt servicing interest rate.
Krystle Wittevrongel: Taxing homes is the wrong way to cool the housing market | financialpost.com
Interesting times ahead!