The stupidity of Central Banks Propping up asset prices: To beat money laundering, check ID, Government begets Government – December 9, 2020,
Direct access to China and the United States without the burden of the US Federal Government breathing down your neck, British Columbia would be rich in this era without a government. In fact, I think you could replace Premier of British Columbia John Horgan with a statue and as long as you don’t overly regulate the province, it would produce excessive revenue.
So what’s going on? Why is money laundering a problem in British Columbia, well the article tells you why, it’s because of propped up real estate prices, the government via policy, and central banks protecting the assets of the rich. Of course, the opinionated writer doesn’t even mention what’s causing the problem, because why should he? Why bring that negative attention to himself?
Instead, the writer wants to increase the size of Britsh Columbias already bloated government. The reason why money launderers love B.C and Canadian real estate is that Canada’s central bank as well the Canada Mortgage and Housing Corporation will bail out the rich.
What’s that you say, the Canadian housing market will crash one day? My reply I’ll believe it when I see it, our entire economic system revolves around propping up asset prices to pay for government. Canadians are comfortable with the idea of debasing the Loonie to pay for social services, I might not like it, but I’m only 1 vote, Canadians love debasing the Loonie so much that the Conservative Party of Canada based on polling data has been forced Centre-Left politically.
So, this equates to debasing the Loonie becoming the new normal which is why the writer below made sure that her views aligned with big government. Government begets Government, and what this ultimately equates to is the poor getting poorer.
Propping up asset prices means the owners of said assets must raise the cost of living for the individuals who can’t afford or don’t want to own assets. Higher priced mortgages equate to higher rental prices and if there’s some new form of government registry system to monitor these money launderers, that equates to high priced lawyers, judges, police officers, financial people, and all sorts of entities which will fuel the cost of housing.
Now, let’s imagine the government got out of the mortgage market, well then money launderers would be at risk of the Canadian housing market crashing and they’d be less likely to dump their money into a condo or house, furthermore if the government got out of the mortgage market and there was a rethink of rental controls, apartment houses would be where EMPTY condos exist today, and it’s very hard to launder money in a rental apartment.
But whatever, this is where we are now and I expect the problem to get worse and worse whether or not more regulations are added to the B.C housing market!
Opinion: To beat money laundering, check ID | financialpost.com
Interesting time ahead!