The Exact reason Why I don’t Hoard Canadian Dollars: Loosening the mortgage stress test will make housing less affordable (Sabrina Maddeaux) – November 3, 2022,
I used to like CANDIDATE Donald Trump; I liked the 2016 Candidate, Trump, that sounded like he would be the BRAVE U.S President to SHRINK the size of government; boy was I wrong; people tend to forget during the Covid-19 outbreak; Donald Trump actually spent more money PER-CAPITA than the current FAR-LEFT Prime Minister of Canada Justin Trudeau, there are social media posts of people blowing their free government money supposed to be used for growing or maintaining their businesses on parties and other luxuries. During the Trump presidency, I argued all the free money he sent out led to the CRYPTO BOOM because if I’m getting free money from the government, why shouldn’t I gamble some of it on what appeared to be a sure BET?
With that said, there’s one benefit to living in the United States, there are MILLIONS of Americans, who understand Federal Government overreach, but this is not the reality in most commonwealth countries. In Canada, a lot of Canadian voters EXPECT the Federal government to overreach; Canada’s health care system is the perfect example; Canadian health care is really starting to struggle because, DESPITE the REDEFINITION of recession, the economy is clearly deflating in many ways, one of those ways is LABOUR shortages.
You see, it’s so beneficial to be on welfare in Canada that unless a job is paying you more than welfare will pay, you’re likely going to be on some sort of welfare in Canada. To solve this problem the government assumes that flooding Canada with immigrants will solve this problem. Still, immigrants, after about a year of working in Canada, start to realize the same ECONOMIC and financial problems old-stock Canadians have realized, which is that unless you’re upper-middle-class, you’ll likely need some FEDERAL government handouts to THRIVE.
Canada’s housing market is like a pyramid scheme, and once you realize that, you’ll comprehend why the Federal Government will not allow the housing market to deflate. If the housing market can’t deflate, EXPECT the Canadian dollar to be permanently DEBASED! For people who have a hard time coming to grips with why the U.S. dollar gets strength during periods of recession, look no further than the State-owned enterprises like the Canada Mortgage and Housing Corporation (CMHC), which is currently constructed to prevent the Canadian housing market from collapsing.
The Canadian taxpayer is on the hook if the Canadian housing market crashes, and this is why Sabrina Maddeaux, whether she knows it or not, wrote the article I point to below. Ofcourse the Federal government has to find a way to keep the Canadian housing market elevated because unsuspecting Canadians will be stuck with the bill either way.
Under Prime Minister Stephen Harper, his system was to grow the debt of the private sector, and with Prime Minister Justin Trudeau, his strategy was to grow PUBLIC sector debt. Justin Trudeau embraced Vote Buying politics; unfortunately for Justin Trudeau, the Canadian federal government was already very large before he became Prime Minister, and this is why a lot of Canadian State-owned enterprises are having financial difficulties under the reign of Justin Trudeau.
Canada’s public health care has been having all sorts of problems, and I think Canadians heard about the Bank of Canada losing money. Yes, you heard that correctly; the Bank of Canada is LOSING money; why? Because of the mismanagement of resources by the FEDERAL GOVERNMENT. We can play pretend all we want, but the only reason the Bank of Canada exists to keep the Federal Government SOLVENT!
FP Answers: The Bank of Canada lost $522 million in three months — here’s why | nationalpost.com
Here’s what you need to know about the Bank of Canada’s ballooning liabilities and the long-term implications
The private sector doesn’t need the bank of Canada; it’s the other way around; private banks could even return to a PRIVATE SECTOR gold standard if they wanted to; the petrodollar doesn’t have to be linked to any government; the petrodollar is a thing because oil is a very important resource to the GLOBAL economy. The Bank of Canada is merely LEGISLATION, it’s not a necessity for Canada, and I bring this up because Canada’s Federal government is also involved in INSURANCE, namely mortgage insurance, which is an asset for CMHC.
Now mortgage insurance can quickly become a LIABILITY if the housing market starts to deflate; if I can no longer pull equity out of my house, I’m poorer, now imagine for a moment that consumer price inflation was happening while asset price DEFLATION was occurring. If I’m rich, that’s not a problem, but if I had to lie to get a mortgage, and 67% of my income goes to servicing my mortgage, that sounds like a life of misery to me.
Now, the mainstream media will obviously frame what I wrote in a different, but this is how I see things. If you’re smart, you should consider the reality that the Canadian dollar, at least domestically, might get DEBASED to prevent the economy from crashing, and I want to point out that when I listen to Pierre Poilievre who might be the Prime Minister in 2023, he’d better get it through his thick skull, that central bank is NOT the main culprit, the main problem in Canada is our DEMOCRACY.
Once Pierre Poilievre is prime minister, he will be blamed for EVERYTHING, and if Pierre Poilievrei is under the illusion that firing the Bank of Canada governor is the root cause of the madness, he’s in for a rude awakening because I’ve never known a central banker in Canadian history who wasn’t POLITICAL. Lowering interest rates will not stop the bleeding; in my opinion, whoever wants to be Prime Minister better be prepared to implement AUSTERITY!
Interesting times ahead!