One of The Reasons the Corrupt U.S Federal Reserve creates demand for U.S Dollars: The Bank of Canada Working with TD Bank Buys Foreign Car Loans – September 18, 2020,
The video below breaks down why there is still demand for U.S Dollars. I’ll try to give an easy to understand explanation below the video. The video is titled ‘Is the Bank of Canada up to Shady Business?’ on The LeDrew Three Minute interview.
A brief history about Stephen LeDrew, he’s actually a Liberal, he’s more of the classical Liberal separation from church and state, a little welfare is okay, freedom of speech and live and let live type of a guy. Well, in prior years, it was easy to tell the difference between a Liberal and a Conservative, but the planet has gone so far Left, that if you were to listen to Stephen LeDrew you’d be shocked to learn that he’s a Progressive.
Anyway, he dabbles into a topic I’ve been writing about for years and that’s the Bank of Canada.
So did you get that? The Bank of Canada is buying junk bonds fro the private Sector and not only are they buying them, but they’re also working with TD Bank, which is a PRIVATE BANK. Now, this is blatant fascism, some call it Corporatism, primarily because Canada doesn’t exactly have a powerful military, fascism typically requires a powerful military, but this is what leads me to write about the U.S Federal Reserve.
Because country after country line up to get U.S dollars. Now, some people think that countries like Canada are being forced to use U.S Dollars or price things in U.S dollars, but this is far from the truth, countries like Canada are also viewed as a safe haven in comparison to other nations.
Foreigners are buying up Canadian debt at a record pace | financialpost.com
Investors from outside the country bought a net $49 billion of Canadian securities in April, the largest monthly purchases from abroad on record
The problem Canada is facing is SERVICING our debts, this is obviously a problem in Canada’s private sector, but it’s quickly becoming a problem in Canada’s public sector. So COVID-19 actually crashed Canada’s housing market, to the point the ‘mortgage deferrals’ are now a thing. Because of the way Canada chooses to handle Coronavirus by basically giving from money away using this magical government tool called The Canada Emergency Response Benefit (CERB).
What’s actually happened is that the other secured debt markets went ignored, namely the people defaulting on auto loans. Now, the news conveniently hasn’t been talking about auto loan deferrals, because more people use public transit than people who drive and if taxpayers, including the environmentalists, knew that the government using the bank of Canada, was bailing out auto loan companies using government resources(the BoC) well there could be hell to pay.
A reminder about the Bank of Canada that makes it different from the U.S Federal Reserve, the Bank of Canada isn’t as independent in comparison to the U.S Federal Reserve. It’s not so much that Justin Trudeau and the Liberal Party of Canada aren’t calling the shots to the BoC, but let’s just say nobody in Canada would be surprised if that was the case.
At any time Justin Trudeau as an example can force Canada Post back to work, that’s because Canada Post just like the Bank of Canada is a Crown Corporation. So in short, the Canadian dollar is politicized. But more than that investors can feel safe that Canada will debase it’s currency before it defaults on its financial obligations.
Now, as I’ve stated many times before, domestic debasement of the Canadian dollar will have little to do with how the Canadian dollar trades on the Forex markets. Canadian taxpayers pay for the debasement, but if you live outside of Canada what the hell do you care if the Canadian dollar is debased.
As a Canadian, I hoard U.S dollars, because I know if the US dollar is debased, the Canadian dollar used in Canada will be debased even more. My American family can’t stand Canada because their U.S dollars don’t benefit them any here. But for me and I can buy and sell the dip with the U.S dollar and come out a winner.
Now had I been an American, I would think this is insane, and my response is yea, it is insane, but I want to show you why the world hasn’t dumped the U.S dollar yet. When the U.S dollar standard comes into question will only happen when there is a cash flow crisis, meaning that servicing the debts become unbearable.
I personally believe Canada is reaching that point. I brought up the name Stephen LeDrew and him being a Liberal because it’s my belief that Progressives and Liberals never imagined that their ideology along with Keynesian economics could dissolve in an economic socialist hell hole.
Former U.S president Ronald Reagan said the following:
‘If Fascism Ever Comes to America, It Will Come in the Name of Liberalism’
He saw the obvious, which is one of the reasons he stood idly by when Former Chair of the Federal Reserve 6 foot 7 inch Paul Volcker let interest rates rise. The only way to get rid of fascism is to allow Capitalism because Fascism is one of the worst breeds of Socialism.
Fascism is National Socialism, it’s the belief that the government has all the answers to your free market problems. Fascism in practice is usually short-lived as there eventually comes a time when he fascists have to show their fangs.
Fascism is a form of theft, you work an honest days work for the glory of your government and your government then wages war on your behalf against your personal wealth, which the government convinces you, belongs to it. If you go against your government, you’re not a Nationalist and if you don’t believe in helping out your fellow citizen via your government, well you’re not a socialist.
Fascism is anti-individualism, but do not ignore the market component of Fascism, because in the heart of fascism is the Karl Marx doctrine of ‘Late Stage Capitalism’. You see according to Marx after the capitalists get all the wealth the government at just the right time takes it all.
Well, Fascism is the same thing, all forms of socialism are variations of Karl Marx. Hitler made no mistake by calling his party the National Socialist German Workers’ Party. His plan was to use the production of others to carry out his own objectives. Well, the Bank of Canada by bailing out the auto-sector did the exact same thing.
Now let’s say you wanted to buy a car with cash, and you saved cash. well during an economic crash, cars would be cheaper, loans would be harder to come by and people who spent beyond their means would have been forced to liquidate.
You as a saver would have been rewarded for saving money, well, the Bank of Canada, said no, these private companies can’t fail, they’re too important, they’re in fact more important than you and therefore your Bank of Canada has decided that it’s better to go to war with Canadian savers than it is to allow bad Canadian loans to go bust.
Now, in America, you have a group called ANTIFA, they’re violent, they’re destructive, but it should be noted that if they’re indeed trying to get rid of the fascists, their cause is legitimate. If you’re anti-capitalist, anti-free-market, anti-freedom, anti-deflation, you like many Liberals indeed believe in a greater good and that’s why the market has a way of punishing you too, even if you identify as a Conservative.
Capitalism as Karl Marx points out is deflationary, a lot of Capitalists don’t want to accept the downside to Capitalism, I will, capitalism in a monetary sense is deflationary, the governments of the world print money not because inflation, they print money to fight deflation.
Deflation is good for the greater society, deflation is lower prices, deflation helps the poor, deflation shrinks the size of government, deflation is why there should never be a MINIMUM WAGE, deflation creates innovation, deflation is a reminder that money isn’t everything, deflation brings people together, deflation creates entrepreneurs.
Inflation creates Hitlers, inflation is Venezuela, inflation is big government, inflation is marxism, inflation is an ever-increasing minimum wage, inflation is zero percent interest rates to pay for pensions, inflation is government welfare, inflation hides a lack of productivity, inflation makes the rich richer, inflation protects the rich, inflation equals more taxes, inflation equals more wars, inflation is a debasement of your currency, inflation usually comes from GOVERNMENT!
The whole purpose of Capitalism has nothing to do with the money the point of capitalism is to raise the standard of living! This is why after the standard has risen a new innovation has to be created again and again and again to Infinitum! Rich people cal broke in a free market, if you hate rich people you want a market economy.
One of the reasons there are so many evil rich people in the world today is because of INFLATION! The government keeps on saving badly run companies. The Bank of Canada just saved some auto loan companies from going bankrupt, really think about that for a moment.
The small Canadian business owner loses everything because of COVID-19 and the Bank of Canada finds a way to help out the foreign auto loan company?Does that not remind you of Hitler helping the Aryan WORKERS Party at the expense of the Jews!
Interesting times ahead