Try Anything But Do Not Raise Interest Rates: No more regulations on the housing market please, if the Bank of Canada is too scared to NORMALIZE interest rates, home prices will continue rising – November 26, 2021,

Ever since Barack Obama bailed out Wall Street with the help of the Federal Reserve, we’ve entered a bizarro world. Former President George Bush allowed for these things called NINJA Loans. The Policies of the Bush Administration lead to the housing market crash and Barack Obama’s reaction to the housing market accelerated the problem.

a NINJA loan equals “no income, no job, and no assets.” you get home. Despite what idiots will tell you Canada had no such program and if we did, it was a minuscule part of our mortgage industry. What Canada did have however was an idiotic dream that all Canadians should have the right to homeownership and because rental controls are a thing in most provinces in Canada, which actually help to push up rental prices because, in order for landlords to recoup their losses from maintaining their property, they have to charge higher prices to future tenants.

Rental Controls prevent rent prices for existing tenants from rising past a certain threshold and because of this law and the government’s ability to meddle in the housing market, a demand was created for people to be able to bypass paying rents and move into homeownership. The Federal Government in Canada began meddling in the housing market and when Wall Street was bailed out and interest rates in the United States crashed to zero, the Bank of Canada lowered their interest rates to zero as well.

Now, the actual reason for the Bank of Canada lowering its interest rates to zero is similar to the reasoning The Bank of Japan debases its currency, to help exports. In case people don’t know, fiat money doesn’t work unless interest rates are MOSTLY determined by the market, because central bankers are allowed to suppress interest rates, the market adjusts as do political philosophies.

Justin Trudeau ran on platform that said because interest rates are low, so now is a good time for Canada to get into debt and “invest” for the future? Well, if the Prime Minister can run on that platform, why can’t housing speculators embrace that same ideology? Buy a home now and reap the benefits later? Even Erin O’Toole claimed that if elected Prime Minister he would protect Canadians nest egg, meaning that he would fight to make sure home prices remain abnormally high.

This is the general political climate in Canada, Trudeau and Erin O’Toole got the largest share of votes in the 2021 election, so I ask people to stop adding more regulations to the Canadian housing market because this appears to be what voters want. In the article I point to below, they’re looking at the disaster that is New Zealand’s housing market and they’re attempting to apply that to Canada.

There’s not a housing shortage problem in Canada as I like to point out, there’s a distribution of housing problem. If as an example most of the condos being built in Toronto or Vancouver were rental purposed housing, rental prices wouldn’t be so high and people who have been saving for a downpayment on home would be able to purchase the home they desire, because there would be fewer people competing for that home.

The real issue in Canada is that existing property owner, their friends and family own MULTIPLE properties because the prices of their existing properties keep rising in value. I don’t think people comprehend that some properties within a few years go from $300K to a million dollars. That would give the owner of that property the financial ability to put a down payment possibly on three different properties.

Because on average a property that costs around $500K requires a downpayment of $120K, now if someone or some family does this, and their new properties then rise in value again? They now have even more purchasing power. This is the disaster the Canada Mortgage and Housing Corporation(CMHC) and the Bank of Canada(BoC) created.

Now, because rental controls are still a thing, there is little incentive to build rental purposed housing, something Erin O’Toole claimed he would help to create demand for. Now, this is all really silly, because this is an interest rate problem, and what most people are trying to do is NORMALIZE zero percent interest rates. Well if interest rates remain at zero indefinitely, rampant inflation is inevitable as will be civilization moving further to the Left politically.

n case people aren’t paying attention, zero percent interest rates indefinitely, will lead to full-blown socialism, I keep reading from Conservatives who are confused as to why all of these far Left-Wing nuts are being presented as virtuous human beings who we need to emulate, there’s nothing capitalistic about a central bank. In a free society, there’s no central bank, a central bank is a Marxist’s dream. The Socialists are merely attempting to ratify their control over the money supply.

Now, obviously, this will lead to economic destruction, but how it officially happens is anyone’s guess, the cost of living is going to continue to rise and Leftist agendas will continue to destroy the economy, there will come a breaking point in which the gears stop working because they’ll be no more grease, this is when what appears to be an asset turns into a liability, this could inflationary or deflationary, in Canada, I’m betting it’s inflationary because we have a lot of government in the financial sectors and they’re going to want to be bailed out.

Now, hyperinflation is actually deflationary on the economy, because fewer people will want to work for wages in a declining currency, it’s at this period in which houses and condos will return to being money pits because for most people they do maintenance related repairs to their homes via their increases in purchasing power, well hyperinflation kills your purchasing power, because wage earners or what I expect will be an increase in private contractors, will price their fees to do certain labour intensive jobs at a pricing point they believe the debased Canadian dollar will be in the future.

Now, sure the government can implement price controls, but then people can simply stop working and this is where bartering becomes normalized. Because once the floor comes from beneath fiat currency, either the central banks raise rates, or face potential extinction, by extinction I mean a gold standard or a loss of credibility.

Regardless of what the crash looks like, you’d be wise to position yourself to benefit from it now. Money is nothing more than what it can buy. So now would be a good time to buy assets that will be easy to barter during inevitable periods of economic chaos. You solve rising home prices by NORMALIZING interest rates, anyone claiming that government regulations will make things better in the housing market clearly doesn’t understand that central banks are a government regulation.

Want to solve the housing crisis? Address super-charged demand | theconversation.com

Interesting times ahead!