Thank you for showcasing that dialog from the house of commons. That clip should be viewed by all Canadians, as we all should be asking these questions...and getting answers
There's two ways out of this. A deflationary bust, or hyperinflation. I know the government is trying hard for the latter but then the value of homes will fall in relation to everything else. Said another way, a million dollar home is worthless if it costs you 40, 50 thousand dollars to buy groceries. So I think this credit cycle is coming to an end and I can't wait to see the fireworks. Buy gold.
@Go Live do you know what the interest and mortgage rates are in Venezuela? Guess what happens to your mortgage unless you have a long term fixed which is unavailable in Canada.
Good video. I didn’t realize the government in Vancouver was considering so many tax hikes. Those road tolls is only going to hurt those businesses in those zones even more. This would reduce tax revenue from those businesses that is probably more than they would get from road tolls. Not the way they should be going about it to help those businesses recover. What they need to do is drastically reduce government wages so those workers know what the average person who makes far less is struggling with.
I agree with you Steve. Most people do not understand money in Canada. I was disheartened to see our Finance Minister is one of them. The Ministry of Finance in Canada finances (i.e. through financial policy) government spending. I liken this to my wife, who sets our household budget. If I wanted to go on vacation (or build a bridge) I would have to ask the finance department to fund it. In my case, I'd have to get a new job if I want to spend beyond my current means. The government issues bonds. The government takes on a liability, and the purchaser gains an asset. The Bank of Canada is a crown corporation (owned by the Gov of Canada) - independent from the government in that it has it's own governance structure. The BoC has two ways it can set monetary (not fiscal) policy. (1) Raise or lower the over night lending rate between banks in Canada, and (2) issue reserves to commercial banks in trade for a select list of marketable assets (e.g. Canadian Bonds, and other assets). I believe you mispoke Steve, when you said that the BoC sets to cost of money. This is not true. The current over-night rate in Canada is 0.25%. I was just in the market to re-finance my mortgage. I am not sure about you, but my lending rates are no where near that low. In fact, consumer lending rates and the over-night rate are quite de-coupled in Canada. Verify this for yourself. The Ministry of Finance issues government bonds that are bought, in part, by commercial banks. The BoC offers to purchase the bonds from the commercial banks in exchange for a BoC reserve. How much the BoC buys is determined by the monetary policy. When the commercial bank exchanges the bond for a reserve, this is an asset swap - a reserve for a bond. Some would say that the reserve is a liability for the BoC. But I would argue that this type of money creation is not Canadian Dollar currency creation. Reserves are denominated in Canadian Dollars, but they can not be readily exchanged on the open market for Canadian Dollars. I think of BoC reserves a BoC laundomat tokens. They have a value, but they cannot be readily spent. Because they can't be spent, they are not inflationary.
That has to be the best description of how things work I have ever heard!! Well thought out and easy to understand. Thank you If we could only teach that to everyone.
Pollievre is the pit bull for the Conservative party, he’s fun to watch in action. We know the 1% know how the system (ponzi scheme) works, if the 99% (the rest of us), maybe less than 5% know, I’ve recently learned the truth about our monetary system, thanks to channels like yours!
Steve, great video. The percentage 5%. They can't print forever, its not possible. In the 80's we had stagflation...High inflation and a stagnant economy. I think this is coming....Bond yields will rise , the BoC cannot keep rates low. Maybe you could do a video on stagflation and your opinion on it ?
@@saretsky Even with low yields and rates we can see stagflation. I see prices rising as long as the BoC is printing alongside a meh economy with stubborn high unemplyment as many peaople not in demand jobs can't find work.
Some municipal governments are brutal! I don't understand how these large cities can re-elect these politicians. In Abbotsford I find it annoying when our municipality resurfaces a road, then 4 months later, cuts up the entire road to run a pipe down the road! Meanwhile in Vancouver they want to put a river down a centre of a road! Flowers and plants are nice in medians, but having to pay municipal workers $25 an hour to take care of them is a huge waste of money!
Read the Bank of Canada Act. It says plainly that the Queen owns all the shares. When she dies Charles owns the shares. The minister of finance has possession of the shares but doesn't own them. If I manage a restaurant and have the key, it doesn't mean I own it and it can be taken from me at any time.
The clip with the back and forth question period was awesome!!! Clearly our Finance Minister is clueless... So sad. less than 1% of the population understands the role of the BOC and how money is created....
I have studied Modern Money Theory, aka MMT, like it or not, it very well explains most part of how money works. There are two great figures in mmt world, I highly recommend you spend time and cover that in your program. It's great work. Stephanie Kelton, Warren Mussler Thanks.
But just think how good it feels to have given them 1.8 years more of life. It's worth destroying 90 percent of the populations future. The shit wave has been surfed. Time for a celebratory drink, Randy.
My honest opinion is that probably 2-3% of the population understands the monetary policy. On a recent fishing/drinking trip I told my brother and 2 buddies that we are living in the biggest bubble economy of all time. It’s actually a bubble within a bubble. All 3 looked at me like I had 3 eyes. These are educated business owning men.
Hi Steve, I appreciate your work and I watch your videos. Longtime subscriber. I watched your older content and I was on the same page, real estate prices were detached from the economic reality and I believed that at some point it would crash. Now I see the change in your beliefs and I understand your point regarding the view of the evolution going forward of the price of real estate as a consequence of Bank of Canada and the Government policies. There is one thing that has no logic to me in this whole equation: The money that the Bank of Canada is printing and the Government is pumping into all kinds of programs is not going in real estate. The banks give loans and mortgages not free money. Everyone has to pay back whatever they take from the bank. Please if you can explain a little bit, I'm curious... Anyone who has something to say please comment. Thanks
All the debt is accounted for and our creditors which are basically China and the industrial exporting countries know exactly what we are good for. As soon as they get one whif that we are over extended they are pulling their cash and capital and getting out of dodge. JT as dumb as he is the people around him know that he can’t borrow indefinitely. He blew the wad in the early part of the pandemic and he knows that he climaxed to early like he does with Sophie. The debt will get bigger but the big spending is done. The central banks including the BOC talk a good game about getting inflation up but when push comes to shove if they see inflation coming on they will stamp it out like a spark from a transformer in California. Taxes are coming and printing is going to be shelved.
I did a minor in Economics and the Monetary classes I took scare me. The idea that our economy is just 1 large pyramid scheme is scary. We need to produce to reduce this reliance on consumer spending. On your question, I think 10 - 15% of the population understands monetary policy. Most of these people would have learned about monetary policy in school or through work (banking/investing).
Telling my elderly parents to buy some BTC. Their answer is "...it's just out of thin air I don't trust it" while sitting on a mountain of FIAT. 1-3% of Canadians understand what is going on.
Many argue that BTC does not satisfy the fundamental functions of money (1) a store of value (2) unit of account, and (3) medium of exchange. It is hard for me to argue that BTC is really a medium of exchange, or a unit of account. I see it more as a speculative asset. Revenue Canada agrees with me.
@hmm1488 I have no regrets owning real estate. I will take real estate over bitcoin any day of the week. I can actually retire if I sold all my properties and bought all dividend stocks and never ever work again. What regrets will I have? World central banks will create their own crypto currencies.
@hmm1488 Bitcoin is not really scarce if you can buy fractions of it like 0.0000001 of a bitcoin. I feel bitcoin will become like Yahoo.com when the internet first became popular and then something like Google with better technology came and took over. Bitcoin will lose it value once central banks start creating digital currencies because Bitcoin is just a hedge against a currency crash with hopes of bitcoin becoming a world currency. That is every bitcoin holders wet dream. I still would rather own real estate
The BoC has Treasuries as Assets and Bank Reserves as liabilities. The Primary Dealers use the Reserves as assets to create digits (money). BoC only can create Bank Reserves and a lending rate. They can buy more Treasuries and lower the BoC rate and BOOM Canada QE, the next in line for Japanification.
Right on Steve. Kennedy and his envy based party (NDP) will raise taxes on the asset rich home owners many of whom are on fixed incomes and they will be hard pressed to pay for the huge increase in tax.
I can't tell if she's deflecting the questions because she's hiding something or if she's just incompetent and sincerely doesn't have the answers. Neither would surprise me
Just incompetent. When someone ask you a valid question on the economics and that you respond. You don't understand economics! It is like someone asking what is the sum of 2+2 and you say, clearly this person doesn't understand maths, you can't possibly know what is the sums of 2+2.
Thanks Steve for summarizing difficult events for the lay person. My thesis, your thoughts?: >pattern of recent tax increases (based on real property) shows that governments' (multi-level) view is that homeowners are now beholden since prices are artificially kept high on the backs of regular taxpayers (mortgage deferrals, unprecedented low interest rates, govt purchases of CMBs and BoC monetizing debt, blowing per capita debt level even higher when it's already highest in OECD). Those in main street suffered tremendously while the privileged few homeowners benefitted in this pandemic ... that when it's time to pay back the borrowed money, these homeowners and those in the RE industry (being the only one that's still standing) will bear the brunt of tax increases. If the above is true, I would say this would be a politically expedient and palatable position.
We understand why BofC doesn't want to raise interest rates, but what prevents the government from reducing maximum mortgage amortization periods down to 15 or 20 years instead of the current 30? That would reduce people purchasing power thus push housing prices down and reduce the bidding wars which only benefit real estate agents.
Property taxes do primarily come out of property prices, and there is property price inflation amongst deflation, so to some extent it limits the effects of lowering interest rates. The sensible thing to do would be to change the current property tax for a land value tax which doesn't hit homeowners as much as speculators but without the huge loopholes a vacancy tax leaves. Couple this with tax cuts to the rest of the economy and the recovery will be faster, more productive and more sustainable. The public debt is just the amount of currency needed to sustain the economy as is (demographics x productivity), it does not even need bonds to 'fund' it, that is a convention, as Keen and Kelton point out, the spending comes first, the bond issuance after.
It’s tragic and frustrating, in my experience I see no one has the slightest interest to learn a little bit how they system works, it’s their money and it shocks me how people just don’t care and won’t take responsibility for it. The hoax worked because everybody is distracted, looking the other way while the new monetary system is in the works and it’s going to ruin everyone that hasn’t prepared.
The roll of the central bank is to keep the economy going at all cost even if it means diluting the currency. The banks won't stay in business if everyone goes into bankruptcy. Canada definitely doesn't want a Lehman brothers moment in Canada. The FED could have saved Lehman brothers with a loan but they let it crumble and the entire banking system crumbled with it.
The way I see it, Vancouver deserves half the increase in value of the inflated real estate market. Vancouver is also littered with cars and can make some money off that too. The way I see it, Vancouver is the most desirable city to live in for all of Canada and anyone saying they will leave is bluffing. If the foreign buyers sell and leave, I say don't let the door hit you on the way out. Vancouver should also tax them 50% of the capital gains as a going away gift too. If they purposely try to sell bellow the assessed value, slap them with the same tax on the assumed assessed value too.
If Vancouver really wants to rattle some cages, they could also remove the tax exemption for primary dwelling above the properties increase over inflation. I'm pretty sure there are now more renters than homeowners who vote. I'll happily vote for anyone who taxes out all the property value increases over the last 20 years if it will mean property prices finally go down. There's an endless supply of people who want to move here, so Vancouver can get away with it.
Taxing entrance into an expensive city is regressive and harms the people that cannot afford to live in the city but work/shop in the city. It is the opposite of the kind of targeted taxation that is needed to address inequality. What is the rational to something like this?
Steve - appreciate the effort you put in your content, I’m probably among those who don’t understand monetary policy, but I turn to someone like you to inform myself. This being said, would you be able to point to something else as a solution, other than what most/all governments have done with monetary policy in these difficult times?
Steve what do we do Gold leads insolvency And gold is heading lower In the US the banks are tightening lending, 20mil out of work The banks are on the other side of the trade The banks the smart money!!!!
The Yellen pick IMHO also isn't much of a surprise either, technically you do want someone from banking in the treasury, the issue in the Canadian case is that you have someone who's career has been completely abstract from finance in the most important financial policy-making role in Canada
Morneau dropped out because as a guy who's a career and therefore rep is based on financial acumen (including the success of Morneau Shepel long term) he couldn't take part in what we are about to see happen to our sovereign debt levels and the very real reality of liquidity crisis that would make what happened in greece look like a picnic
Yeah, so USA can fool around with their QE, but Canada is not the reserve currency, extending the value of Cdn Dollar is tricky, as increasing debt may devalue the currency.
People are considered human resources. The government is mining the resources in their jurisdiction (through the birth certificate creating a legal entity which is then borrowed on). The people (are actually the creditors) create (funds) money when they apply for a loan, the loan is monetized by the lender and then fractionalized and then loaned out at interest. If you can find an old publication called "Modern Money Mechanics" it will explain how money (so called) is created.
I understand everything.... Except who the hell is still buying condos in the cities right now? Who is subsidizing people to escape when prices are still this high?
People are still buying because we all know condo prices will skyrocket once Covid is over and the government is allowing 400,000 new immigrants into Canada every single year. Huge population growth is coming. Rich immigrants will take up all the real estate and the gap between the rich and poor get wider..
Interests rates wont rise. The idea of MMT is that inflation will continue to rise and our taxes will pay the interest on the debt purely based on an inflated currency.
The US can do a ton of QE (monetary and fiscal) because they have productivity, they can counteract it later with production/growth. Canada can't do endless QE without turning into Japan. Canada's economy is mainly supported by blue collar workers/immigration, real estate and oil sands.. we''re not doing so hot in terms of productivity. Policy makers will eventually have to decide which road they choose to take, either they keep QE policies and rates go negative (and the dollar plunges) or they let the economy run normally and a correction will happen. Can't predict something that hasn't been decided on yet. With Liberals in power we're more likely to see a continuation of QE but anything can happen, we've never been in this position before. High real estate prices have to be matched with high rent prices.. where that extra money comes from, who knows.
@Go Live I'm talking about Japans economy in the 90s, tech back then was completely different than it is today. Canada can't go back to their immigration numbers until 2022 at the earliest and even if they do that still doesn't make up for the gap, the issue is a lack of high end white collar productivity. This wasn't as big of an issue when we had oil and gas churning money for us but it doesn't look like we're going back to those days. Every government is talking about going green and moving away from fossil fuels, what are we gonna do when everyones economy opens back up and we can't keep up because oil demand fell?
@Go Live But what's your point? I'm talking about keeping a bubble (the real estate market) going with endless QE which ends up hurting long term growth, rates would have to go negative. The dollar would lose a ton of value.
I think you mean to say debt created not credit. When the bank prints money it is debt. I am working on a new economic plan that incorporates worker self directed enterprises powered economically by blockchain technology to create the peaceful transition away from capitalism and the crazy Monetary Money Theory needed to sustain it. Land tax is also another way to avoid austerity. The discussion is much needed, our need to address our educational strategy in our learning institutions is perhaps the most important, and I would assume most politicians in Canada have no idea how the monetary system or policy differs from the fiscal side,...lol. The employment of all is not a pipe dream and could easily be done. Look forward to interaction on this subject! peace my fellow earthlings
I would say that most people I know have an idea of what is going on, I'm old. It reminds me of before the GFC in 2006/7 but people seem to now be more aware. The thing is, MMT will happen/is happening all over the world not just in Canada. The Commons bantering was entertaining but I promise you that Mr. Polievre would be doing exactly the same thing if he were in her shoes. Neither of them are dumb. The bigger issue is - how will it end? The 'great reset' seems to be a new topic both in mainstream and other media. I'd like to see more information as worldwide views on that roll out as well as digital currency integration worldwide. In terms of real estate and Vancouver taxes impacting it. Yes it's gonna happen so don't overspend on your purchase.
I told my mom's partner that the banks create money based on reserves, and that the money they lend out they don't actually have. He looked at me like I was crazy. Percentage of people who understand this is less than 1%.
I've tried to talk about it with family as well. And they just think I'm nuts. So I think it's just better that u make your moves. and just be quiet. My wife who is a very Savvy business woman has no clue. but I do and I do teach my son how about it. great video today
Steve, I work with the public. Every time I meet someone in banking and finance I traditionally ask them the big question... do they know where money comes from? Ironically after asking literally dozens in banking, finance, and economics the vast majority of people in the financial system don't even know how it works. They are just pigeons holed to take margins and move fiancial products... From my experience, it seems only investment bankers, bitcoiners, silver gold stackers, conspiracy theory types, and the odd real estate agent get it.. . I get crazy looks when I explain it... probably because it is unbeleivably true.. Maybe do an episode on COMER vs. Bank of Canada?
Steve, I like your videos. The Bank of Canada of Canada balance sheet is readily available on-line. I suggest that it is even scarier than you picture it. And, it appears to be a "complete disclosure" sort of website but if one tries to drill down for the details, you'll find that they are hard to find and/or interpret into everyday English. www.bankofcanada.ca/rates/banking-and-financial-statistics/bank-of-canada-assets-and-liabilities-weekly-formerly-b2/ Note the Assets Purchased Under Resell Agreements - what are they? I suspect this is BoC buying bonds from Canadian charter banks with a fixed price / interest rate. Note that the liabilities are mostly to Members of Payment Canada which again is the charter banks primarily. Note that these liabilities are replacing the Gov't of Canada as the main liability. My interpretation of this is: The banks are selling their bonds which may be mostly Gov't of Canada bonds to the BoC but the charter bank cash is sitting on the books of the BoC as a liability which makes the banks safer on paper . If you aren't confused yet, you are a better interpreter of financial wizardry than me. Net result is that the big 5 banks are working closely with BoC to keep interest rates ridiculously and artificially low. This won't increase cash in peoples pockets. That has to come from Gov't of Canada stimulus. And yes, BoC with the charter banks can buy up the bonds, trade them back to the BoC with some kind of guaranteed profitability. If you can drill down and figure this out, we would all appreciate this. One other point is that all central banks around the world are trying to do this so which fiat currency to hold is a tough question. I don't think I'll be buying Vancouver real estate to park cash. Thanks in advance for any comments.
I would say that less than 5% (perhaps even less than 2%) of the populace understands how money is created and distributed. The so called 1% understand fully how this works as they are first in line at the Bank of Canada lending window. We are, as you stated in the video, now operating in an artificiality.
Good video. But your question "what percentage of the population understand the role of a central bank?" is a bit of a trick question. Actually, there are 2 questions here: the correct role under orthodox theory and the real role as currently practiced. With each crisis, a new red line is crossed. I guess the next red line is for the central bank to directly buy equities. I have a question or two for you: at what point would higher land taxes cause land prices and rents to fall? Is there a Laffer curve effect when it comes to land taxes?
I agree with your comments but what is alternative. I've likely held more fiat than I should lately but thought markets may actually go to fair value. Tough environment from my perspetrive. Thanks for the video. Percentage that under, sub 10%
canadians have very little cash saving,. so they cant go after cash holders for taxation ( just will be hit with inflation). but the property owners will be hit . that seems like the last wealth holder in canada the last and only juice. so that's where all the deficit spending payment needs to come from. nowhere else
Best thing about going after a homeowner for taxes is that A they can’t pick up and move the asset and B most owners keep their children their. Try telling your wife and kids their moving and leaving their school to save money from the taxman. Absolutely genius the best store of tax wealth in Canada. SFD homes in Brampton!!!
Less than 2% understand the game that is monetary policy and how to exploit it. Makes it all the better for the rest of us. Low rates will be with us for years if not a decade. The roaring twenties here we come!!!!
No Pierre was not brash, he was asking very straightforward questions and there was nothing remotely impolite in his demeanour. If is questions were actually inappropriate for the party he was addressing them to and were to be answered by a banker, rather than the finance minister, it would not have taken her so long to make that assertion, which incidentally she made only once.
I would be shocked if more than 1% understand the role of the Bank of Canada. Would love to hear your thoughts, Steve, on the history of the Bank of Canada, as I think the BoC’s role shifted dramatically in the 1970’s, did it not? Are we going back to the old way now, or are recent developments something new entirely?
Costa Rica is very inventive with new taxes since there is only farming and some tech exports, but at a certain point companies like INTEL just pack up and leave, ame with California now, can that happen in Van ?
@@saretsky At least we have youtube and creators such as yourself to partially fill this gap! When enough people realize this, hopefully things will change
Hey Steve, I've talked with alot of individuals. Just to pick their brain and get an understanding of their views and opinions on the matter. I would say 2%. Thats being fair. And again thats talking with alot of people. Most people born in the 60's seem to refuse to listen to what I say and don't believe a word of it. They deny all of it and feel attacked. Quite interesting actually.
People born in the 60's will say that they lived trough a lot of economic crisis and that this time, it is not different. So if you are young, they assume that you worry for nothing, because of your lack of experience.
Wrapping my brain around all the concepts involved in modern monetary systems is equivalent to experiencing the reality of being "slapped silly." It has become as whacky as this present government is. Let's all put our collective brains up on the shelf and go home to drool at leisure. This round of drinks is on Trudeau. 🍻🥂🍾 Pretty soon he'll have 99% of us living in virtual reality homes, eating cbd gummiebears, and we'll buy into the idea that we've never been happier. Right. Or maybe not.
Wow politicians not answering questions... man like fuck. I’m so mad right now honestly I’m so pissed off . You know what? I’ll just leave Canada and not fucking pay those taxes . Watch what happens keep the shit up . All rich people will leave I don’t even I care where I go I’m out bud lol keep it up!!!! Keep it up!
Christya looks really bad there. Does she just not know? I feel that through the work of Steven Van Metre, Lyn Alden and others I'm starting to get a good grasp of how the U.S. Fed creates bank reserves that allow the commercial banks to monetize debt - both government and non government. However, I'm not sure how that system differs here in Canada. Is the BoC directly buying tresures for actual cash money? Or is it a reserve swap like in the US. There's also a subtlety in the ownership structure. The US FED is owned by the Commercial banks whereas the BoC is owned by the Crown. To put it in a succinct nugget, the commercial banks create money by issuing loans. If banks aren't lending, money is not getting created. It's really just that simple. How's that, Steve?
I think the usa has a debt ceiling which if increased has to be passed. Freeman doesn't even know if we have a ceiling or what ours is. Something the public should know.
Can Steve or anyone tell me why City of Vancouver seems to be the only city so far in the lower mainland going bankrupt? Is it because the city’s finance is badly managed? Or, is it just a matter of time before other municipalities going bankrupt?
Thank you for showcasing that dialog from the house of commons. That clip should be viewed by all Canadians, as we all should be asking these questions...and getting answers
Always a red flag when someone asks a basic question and the answer is a non answer/ deflect of the question
Red flag is an understatetement..
@@russwes0706 lolllllllll, true
So true
Thanks Steve, from a fellow British Columbian.
Everyone who avoided our schools and never watches CBC should be fine.
??
lollllllllll, true
There's two ways out of this. A deflationary bust, or hyperinflation. I know the government is trying hard for the latter but then the value of homes will fall in relation to everything else. Said another way, a million dollar home is worthless if it costs you 40, 50 thousand dollars to buy groceries. So I think this credit cycle is coming to an end and I can't wait to see the fireworks. Buy gold.
@Go Live - I don’t follow...
@Go Live do you know what the interest and mortgage rates are in Venezuela? Guess what happens to your mortgage unless you have a long term fixed which is unavailable in Canada.
@Go Live in other words you don't believe BOC can substantially raise rates if inflation picks up? BTW the policy rate in Venezuela is currently 36%.
How is this person in ANY leadership role in our country? WHAT A JOKE.
She's Justin's Lacky!
You have to be a good liar to be a leader unfortunately for us
@bowenskye yes and her grandfather was a nazi
Reflects the populace
She is George Soros’s protege.
OMG.... I can't believe that clip.... Freeland is so lost it's shameful as a Canadian. I thought Yellen was bad....
She owns the BoC...duh?
Good video. I didn’t realize the government in Vancouver was considering so many tax hikes. Those road tolls is only going to hurt those businesses in those zones even more. This would reduce tax revenue from those businesses that is probably more than they would get from road tolls. Not the way they should be going about it to help those businesses recover. What they need to do is drastically reduce government wages so those workers know what the average person who makes far less is struggling with.
Canada needs to increase the GST from 5% to 7% for a few decades to pay for all this.
I agree with you Steve. Most people do not understand money in Canada. I was disheartened to see our Finance Minister is one of them. The Ministry of Finance in Canada finances (i.e. through financial policy) government spending. I liken this to my wife, who sets our household budget. If I wanted to go on vacation (or build a bridge) I would have to ask the finance department to fund it. In my case, I'd have to get a new job if I want to spend beyond my current means. The government issues bonds. The government takes on a liability, and the purchaser gains an asset.
The Bank of Canada is a crown corporation (owned by the Gov of Canada) - independent from the government in that it has it's own governance structure. The BoC has two ways it can set monetary (not fiscal) policy. (1) Raise or lower the over night lending rate between banks in Canada, and (2) issue reserves to commercial banks in trade for a select list of marketable assets (e.g. Canadian Bonds, and other assets). I believe you mispoke Steve, when you said that the BoC sets to cost of money. This is not true. The current over-night rate in Canada is 0.25%. I was just in the market to re-finance my mortgage. I am not sure about you, but my lending rates are no where near that low. In fact, consumer lending rates and the over-night rate are quite de-coupled in Canada. Verify this for yourself.
The Ministry of Finance issues government bonds that are bought, in part, by commercial banks. The BoC offers to purchase the bonds from the commercial banks in exchange for a BoC reserve. How much the BoC buys is determined by the monetary policy. When the commercial bank exchanges the bond for a reserve, this is an asset swap - a reserve for a bond. Some would say that the reserve is a liability for the BoC. But I would argue that this type of money creation is not Canadian Dollar currency creation. Reserves are denominated in Canadian Dollars, but they can not be readily exchanged on the open market for Canadian Dollars. I think of BoC reserves a BoC laundomat tokens. They have a value, but they cannot be readily spent. Because they can't be spent, they are not inflationary.
That has to be the best description of how things work I have ever heard!! Well thought out and easy to understand.
Thank you
If we could only teach that to everyone.
Pollievre is the pit bull for the Conservative party, he’s fun to watch in action. We know the 1% know how the system (ponzi scheme) works, if the 99% (the rest of us), maybe less than 5% know, I’ve recently learned the truth about our monetary system, thanks to channels like yours!
Since listening to you Steve, my percentage of understanding is much higher... keep sharing your thoughts!
Thank you for the video - this is very informative. I am from Canada and am quite ignorant of our monitory system. I need to study this
You're behind the 8 ball, get studying.
Steve, great video. The percentage 5%. They can't print forever, its not possible. In the 80's we had stagflation...High inflation and a stagnant economy. I think this is coming....Bond yields will rise , the BoC cannot keep rates low. Maybe you could do a video on stagflation and your opinion on it ?
@@saretsky Even with low yields and rates we can see stagflation. I see prices rising as long as the BoC is printing alongside a meh economy with stubborn high unemplyment as many peaople not in demand jobs can't find work.
Some municipal governments are brutal! I don't understand how these large cities can re-elect these politicians. In Abbotsford I find it annoying when our municipality resurfaces a road, then 4 months later, cuts up the entire road to run a pipe down the road! Meanwhile in Vancouver they want to put a river down a centre of a road! Flowers and plants are nice in medians, but having to pay municipal workers $25 an hour to take care of them is a huge waste of money!
They make about 32, plus pension and benefits.
Read the Bank of Canada Act. It says plainly that the Queen owns all the shares. When she dies Charles owns the shares. The minister of finance has possession of the shares but doesn't own them. If I manage a restaurant and have the key, it doesn't mean I own it and it can be taken from me at any time.
its actually owned by the Crown Temple Bank of London...the queen is a bobble head and probably in dept to the Crown..
@@bonniejohnson1518 The rabbit hole is deep!
I am in my 40's and just started learning, and this is why I am here :)
The clip with the back and forth question period was awesome!!! Clearly our Finance Minister is clueless... So sad. less than 1% of the population understands the role of the BOC and how money is created....
I have studied Modern Money Theory, aka MMT, like it or not, it very well explains most part of how money works.
There are two great figures in mmt world, I highly recommend you spend time and cover that in your program. It's great work.
Stephanie Kelton, Warren Mussler
Thanks.
The average age of a covid death is 84 and our life expectancy is only 82.2
But just think how good it feels to have given them 1.8 years more of life. It's worth destroying 90 percent of the populations future. The shit wave has been surfed. Time for a celebratory drink, Randy.
Better start saving your piss jugs
My honest opinion is that probably 2-3% of the population understands the monetary policy. On a recent fishing/drinking trip I told my brother and 2 buddies that we are living in the biggest bubble economy of all time. It’s actually a bubble within a bubble. All 3 looked at me like I had 3 eyes. These are educated business owning men.
Hi Steve, I appreciate your work and I watch your videos. Longtime subscriber. I watched your older content and I was on the same page, real estate prices were detached from the economic reality and I believed that at some point it would crash. Now I see the change in your beliefs and I understand your point regarding the view of the evolution going forward of the price of real estate as a consequence of Bank of Canada and the Government policies. There is one thing that has no logic to me in this whole equation: The money that the Bank of Canada is printing and the Government is pumping into all kinds of programs is not going in real estate. The banks give loans and mortgages not free money. Everyone has to pay back whatever they take from the bank.
Please if you can explain a little bit, I'm curious...
Anyone who has something to say please comment. Thanks
All the debt is accounted for and our creditors which are basically China and the industrial exporting countries know exactly what we are good for. As soon as they get one whif that we are over extended they are pulling their cash and capital and getting out of dodge. JT as dumb as he is the people around him know that he can’t borrow indefinitely. He blew the wad in the early part of the pandemic and he knows that he climaxed to early like he does with Sophie. The debt will get bigger but the big spending is done. The central banks including the BOC talk a good game about getting inflation up but when push comes to shove if they see inflation coming on they will stamp it out like a spark from a transformer in California. Taxes are coming and printing is going to be shelved.
I did a minor in Economics and the Monetary classes I took scare me. The idea that our economy is just 1 large pyramid scheme is scary. We need to produce to reduce this reliance on consumer spending.
On your question, I think 10 - 15% of the population understands monetary policy. Most of these people would have learned about monetary policy in school or through work (banking/investing).
@Steve Saretsky Yo, I think you've been hacked.
Steve "the real news " Saretsky
Thanks boss for getting the word out!
Your on my top five weekly listen too....
Telling my elderly parents to buy some BTC. Their answer is "...it's just out of thin air I don't trust it" while sitting on a mountain of FIAT.
1-3% of Canadians understand what is going on.
Many argue that BTC does not satisfy the fundamental functions of money (1) a store of value (2) unit of account, and (3) medium of exchange. It is hard for me to argue that BTC is really a medium of exchange, or a unit of account. I see it more as a speculative asset. Revenue Canada agrees with me.
Your right, at least Canadian dollars are backed by Canadian goods and services.
@hmm1488 I have no regrets owning real estate. I will take real estate over bitcoin any day of the week. I can actually retire if I sold all my properties and bought all dividend stocks and never ever work again. What regrets will I have? World central banks will create their own crypto currencies.
@hmm1488 Bitcoin is not really scarce if you can buy fractions of it like 0.0000001 of a bitcoin. I feel bitcoin will become like Yahoo.com when the internet first became popular and then something like Google with better technology came and took over. Bitcoin will lose it value once central banks start creating digital currencies because Bitcoin is just a hedge against a currency crash with hopes of bitcoin becoming a world currency. That is every bitcoin holders wet dream. I still would rather own real estate
What if they shut down the internet or emp things? How will u get access to but coin?
The BoC has Treasuries as Assets and Bank Reserves as liabilities. The Primary Dealers use the Reserves as assets to create digits (money). BoC only can create Bank Reserves and a lending rate. They can buy more Treasuries and lower the BoC rate and BOOM Canada QE, the next in line for Japanification.
Imagine her answer when her husband asks her something like "how much did you take from our account to spend on your new shoes?"
Right on Steve. Kennedy and his envy based party (NDP) will raise taxes on the asset rich home owners many of whom are on fixed incomes and they will be hard pressed to pay for the huge increase in tax.
I can't tell if she's deflecting the questions because she's hiding something or if she's just incompetent and sincerely doesn't have the answers. Neither would surprise me
Most likely both.
Just incompetent.
When someone ask you a valid question on the economics and that you respond. You don't understand economics!
It is like someone asking what is the sum of 2+2 and you say, clearly this person doesn't understand maths, you can't possibly know what is the sums of 2+2.
Talked to couple professors from UBC 0% knowledge on monetary policy
Welcome to Venezuela
how are the black friday deals in venezuela? cause i just bought a whole bunch of stuff here in canada with my worthless paper money.
@@Guron90 enjoy it while you can
Trudeau taught her "Question|Answer Avoidance 101"
Thanks Steve for summarizing difficult events for the lay person.
My thesis, your thoughts?:
>pattern of recent tax increases (based on real property) shows that governments' (multi-level) view is that homeowners are now beholden since prices are artificially kept high on the backs of regular taxpayers (mortgage deferrals, unprecedented low interest rates, govt purchases of CMBs and BoC monetizing debt, blowing per capita debt level even higher when it's already highest in OECD).
Those in main street suffered tremendously while the privileged few homeowners benefitted in this pandemic ... that when it's time to pay back the borrowed money, these homeowners and those in the RE industry (being the only one that's still standing) will bear the brunt of tax increases.
If the above is true, I would say this would be a politically expedient and palatable position.
We understand why BofC doesn't want to raise interest rates, but what prevents the government from reducing maximum mortgage amortization periods down to 15 or 20 years instead of the current 30? That would reduce people purchasing power thus push housing prices down and reduce the bidding wars which only benefit real estate agents.
The days of reckoning are here. Look around you, whatever they let you see anyways. Pretty soon there will be nowhere to run, and nowhere to hide.
Property taxes do primarily come out of property prices, and there is property price inflation amongst deflation, so to some extent it limits the effects of lowering interest rates. The sensible thing to do would be to change the current property tax for a land value tax which doesn't hit homeowners as much as speculators but without the huge loopholes a vacancy tax leaves. Couple this with tax cuts to the rest of the economy and the recovery will be faster, more productive and more sustainable.
The public debt is just the amount of currency needed to sustain the economy as is (demographics x productivity), it does not even need bonds to 'fund' it, that is a convention, as Keen and Kelton point out, the spending comes first, the bond issuance after.
This video makes a very strong case for buying Bitcoin.
Or gold
A small fraction of 1%. Most of what is happening is outside the understanding of most Canadians. Though tragically the masses are cheering.
It’s tragic and frustrating, in my experience I see no one has the slightest interest to learn a little bit how they system works, it’s their money and it shocks me how people just don’t care and won’t take responsibility for it. The hoax worked because everybody is distracted, looking the other way while the new monetary system is in the works and it’s going to ruin everyone that hasn’t prepared.
That clip was legendary
0.1% of the population understands the role of a central bank, what is money and currency and how currency is created.
way less than 1%..Many of that 1% who think they know only know the tip of the iceberg
The roll of the central bank is to keep the economy going at all cost even if it means diluting the currency. The banks won't stay in business if everyone goes into bankruptcy. Canada definitely doesn't want a Lehman brothers moment in Canada. The FED could have saved Lehman brothers with a loan but they let it crumble and the entire banking system crumbled with it.
You are doing a great justice to the common man in Canada letting us in on your insight you don’t answer the questions You just lay them out
.00001% I tried to talk to my family about the housing market and none of them knew what a mortgage broker was.
How many home owners in the group?
I vastly overrate the % because I only follow financial industry people on social media.
@@Rawdiswar Zero
The way I see it, Vancouver deserves half the increase in value of the inflated real estate market.
Vancouver is also littered with cars and can make some money off that too.
The way I see it, Vancouver is the most desirable city to live in for all of Canada and anyone saying they will leave is bluffing.
If the foreign buyers sell and leave, I say don't let the door hit you on the way out. Vancouver should also tax them 50% of the capital gains as a going away gift too. If they purposely try to sell bellow the assessed value, slap them with the same tax on the assumed assessed value too.
If Vancouver really wants to rattle some cages, they could also remove the tax exemption for primary dwelling above the properties increase over inflation.
I'm pretty sure there are now more renters than homeowners who vote. I'll happily vote for anyone who taxes out all the property value increases over the last 20 years if it will mean property prices finally go down.
There's an endless supply of people who want to move here, so Vancouver can get away with it.
Taxing entrance into an expensive city is regressive and harms the people that cannot afford to live in the city but work/shop in the city. It is the opposite of the kind of targeted taxation that is needed to address inequality. What is the rational to something like this?
Steve - appreciate the effort you put in your content, I’m probably among those who don’t understand monetary policy, but I turn to someone like you to inform myself. This being said, would you be able to point to something else as a solution, other than what most/all governments have done with monetary policy in these difficult times?
Steve what do we do
Gold leads insolvency
And gold is heading lower
In the US the banks are tightening lending,
20mil out of work
The banks are on the other side of the trade
The banks the smart money!!!!
@Steve Saretsky
Keep up the good work 👏
It represents a profound misunderstanding of how one of the main people responsible for finance in Canada can't answer a simple question.
The Yellen pick IMHO also isn't much of a surprise either, technically you do want someone from banking in the treasury, the issue in the Canadian case is that you have someone who's career has been completely abstract from finance in the most important financial policy-making role in Canada
Morneau dropped out because as a guy who's a career and therefore rep is based on financial acumen (including the success of Morneau Shepel long term) he couldn't take part in what we are about to see happen to our sovereign debt levels and the very real reality of liquidity crisis that would make what happened in greece look like a picnic
Yeah, so USA can fool around with their QE, but Canada is not the reserve currency, extending the value of Cdn Dollar is tricky, as increasing debt may devalue the currency.
New Zealand is actually up approximately 20% year on year and not 8% (I'm "lucky" to own one house here).
sadly people will start to ask questions when the options to protect yourself will have run out please share
great video as always keep it up
Reason why they want to take 2.2 million gun owners guns away.
People are considered human resources. The government is mining the resources in their jurisdiction (through the birth certificate creating a legal entity which is then borrowed on). The people (are actually the creditors) create (funds) money when they apply for a loan, the loan is monetized by the lender and then fractionalized and then loaned out at interest. If you can find an old publication called "Modern Money Mechanics" it will explain how money (so called) is created.
I understand everything.... Except who the hell is still buying condos in the cities right now? Who is subsidizing people to escape when prices are still this high?
People are still buying because we all know condo prices will skyrocket once Covid is over and the government is allowing 400,000 new immigrants into Canada every single year. Huge population growth is coming. Rich immigrants will take up all the real estate and the gap between the rich and poor get wider..
Other words. Govt has to lock in low interest for decades, until the debt paid off. Win WIN, no ?
Interests rates wont rise. The idea of MMT is that inflation will continue to rise and our taxes will pay the interest on the debt purely based on an inflated currency.
This is sickening
The US can do a ton of QE (monetary and fiscal) because they have productivity, they can counteract it later with production/growth. Canada can't do endless QE without turning into Japan. Canada's economy is mainly supported by blue collar workers/immigration, real estate and oil sands.. we''re not doing so hot in terms of productivity. Policy makers will eventually have to decide which road they choose to take, either they keep QE policies and rates go negative (and the dollar plunges) or they let the economy run normally and a correction will happen. Can't predict something that hasn't been decided on yet. With Liberals in power we're more likely to see a continuation of QE but anything can happen, we've never been in this position before. High real estate prices have to be matched with high rent prices.. where that extra money comes from, who knows.
@Go Live I'm talking about Japans economy in the 90s, tech back then was completely different than it is today. Canada can't go back to their immigration numbers until 2022 at the earliest and even if they do that still doesn't make up for the gap, the issue is a lack of high end white collar productivity. This wasn't as big of an issue when we had oil and gas churning money for us but it doesn't look like we're going back to those days. Every government is talking about going green and moving away from fossil fuels, what are we gonna do when everyones economy opens back up and we can't keep up because oil demand fell?
@Go Live Read up on why that happened, i don't even know what you're trying to argue about tbh. Can you state your position clearly?
@Go Live But what's your point? I'm talking about keeping a bubble (the real estate market) going with endless QE which ends up hurting long term growth, rates would have to go negative. The dollar would lose a ton of value.
@Go Live they're the first example that comes to mind when you think about this type of policy, several European nations have adopted it as well
ahhhhh good ol fiat monetary systems.......breaking down by the day just like they always do
Hi Steve. When you say this debt will never be paid back, what does it really mean? It just stays there forever as the new normal?
Not sure cash is trash Steve, look at a 20 years DXY chart. It's a clear 10Y bull run, even with all the things Fed did. Started in 2008.
I think you mean to say debt created not credit. When the bank prints money it is debt. I am working on a new economic plan that incorporates worker self directed enterprises powered economically by blockchain technology to create the peaceful transition away from capitalism and the crazy Monetary Money Theory needed to sustain it. Land tax is also another way to avoid austerity. The discussion is much needed, our need to address our educational strategy in our learning institutions is perhaps the most important, and I would assume most politicians in Canada have no idea how the monetary system or policy differs from the fiscal side,...lol. The employment of all is not a pipe dream and could easily be done. Look forward to interaction on this subject! peace my fellow earthlings
Great stuff thank you
I would say that most people I know have an idea of what is going on, I'm old. It reminds me of before the GFC in 2006/7 but people seem to now be more aware. The thing is, MMT will happen/is happening all over the world not just in Canada. The Commons bantering was entertaining but I promise you that Mr. Polievre would be doing exactly the same thing if he were in her shoes. Neither of them are dumb.
The bigger issue is - how will it end? The 'great reset' seems to be a new topic both in mainstream and other media. I'd like to see more information as worldwide views on that roll out as well as digital currency integration worldwide.
In terms of real estate and Vancouver taxes impacting it. Yes it's gonna happen so don't overspend on your purchase.
I told my mom's partner that the banks create money based on reserves, and that the money they lend out they don't actually have. He looked at me like I was crazy. Percentage of people who understand this is less than 1%.
I've tried to talk about it with family as well. And they just think I'm nuts. So I think it's just better that u make your moves. and just be quiet. My wife who is a very Savvy business woman has no clue. but I do and I do teach my son how about it. great video today
It’s tragic, unfortunately the more the ignorance the better for the Ponzi scheme to continue
Steve, I work with the public. Every time I meet someone in banking and finance I traditionally ask them the big question... do they know where money comes from? Ironically after asking literally dozens in banking, finance, and economics the vast majority of people in the financial system don't even know how it works. They are just pigeons holed to take margins and move fiancial products... From my experience, it seems only investment bankers, bitcoiners, silver gold stackers, conspiracy theory types, and the odd real estate agent get it.. . I get crazy looks when I explain it... probably because it is unbeleivably true.. Maybe do an episode on COMER vs. Bank of Canada?
I cant help but wonder if Bill Morneau is somewhere watching that clip and laughing
Steve, I like your videos. The Bank of Canada of Canada balance sheet is readily available on-line. I suggest that it is even scarier than you picture it. And, it appears to be a "complete disclosure" sort of website but if one tries to drill down for the details, you'll find that they are hard to find and/or interpret into everyday English. www.bankofcanada.ca/rates/banking-and-financial-statistics/bank-of-canada-assets-and-liabilities-weekly-formerly-b2/ Note the Assets Purchased Under Resell Agreements - what are they? I suspect this is BoC buying bonds from Canadian charter banks with a fixed price / interest rate. Note that the liabilities are mostly to Members of Payment Canada which again is the charter banks primarily. Note that these liabilities are replacing the Gov't of Canada as the main liability. My interpretation of this is: The banks are selling their bonds which may be mostly Gov't of Canada bonds to the BoC but the charter bank cash is sitting on the books of the BoC as a liability which makes the banks safer on paper . If you aren't confused yet, you are a better interpreter of financial wizardry than me. Net result is that the big 5 banks are working closely with BoC to keep interest rates ridiculously and artificially low. This won't increase cash in peoples pockets. That has to come from Gov't of Canada stimulus. And yes, BoC with the charter banks can buy up the bonds, trade them back to the BoC with some kind of guaranteed profitability. If you can drill down and figure this out, we would all appreciate this. One other point is that all central banks around the world are trying to do this so which fiat currency to hold is a tough question. I don't think I'll be buying Vancouver real estate to park cash. Thanks in advance for any comments.
I would say that less than 5% (perhaps even less than 2%) of the populace understands how money is created and distributed. The so called 1% understand fully how this works as they are first in line at the Bank of Canada lending window. We are, as you stated in the video, now operating in an artificiality.
look how fiscally responsible canada is. 1.299 usd/cad as the greenback gets flushed down the toilet.
Good video. But your question "what percentage of the population understand the role of a central bank?" is a bit of a trick question. Actually, there are 2 questions here: the correct role under orthodox theory and the real role as currently practiced. With each crisis, a new red line is crossed. I guess the next red line is for the central bank to directly buy equities.
I have a question or two for you: at what point would higher land taxes cause land prices and rents to fall? Is there a Laffer curve effect when it comes to land taxes?
I agree with your comments but what is alternative. I've likely held more fiat than I should lately but thought markets may actually go to fair value. Tough environment from my perspetrive. Thanks for the video. Percentage that under, sub 10%
Did someone hack your account Steve?
We need more Canadian content. 👍🏻
Japan 2.0, if BoC's debt is monetized Zimbabwe 2.0
canadians have very little cash saving,. so they cant go after cash holders for taxation ( just will be hit with inflation). but the property owners will be hit . that seems like the last wealth holder in canada the last and only juice. so that's where all the deficit spending payment needs to come from. nowhere else
Best thing about going after a homeowner for taxes is that A they can’t pick up and move the asset and B most owners keep their children their. Try telling your wife and kids their moving and leaving their school to save money from the taxman.
Absolutely genius the best store of tax wealth in Canada.
SFD homes in Brampton!!!
Increase the GST from 5% to 7% for a few decades and the problem is solved. Keep hiking the GST but the poor will be affected more than the rich.
@@Observer168 I think that’s a given.
Less than 2% understand the game that is monetary policy and how to exploit it. Makes it all the better for the rest of us. Low rates will be with us for years if not a decade. The roaring twenties here we come!!!!
@Go Live nope. Just a dude who works hard and invests his $$$. Understand the rules of the game and get playing
@Go Live okay...if it was so easy there wouldn’t be the top 1% now would there? What’s your issue Go Live.
@Go Live top 2% you douche. Pound sand.
@Go Live good for you.
@Go Live okay. Whatever you say clown
People think currency is money it not its debt.
Money comes from the word moneta. Moneta mintage of gold,silver,copper coins or bars.
Just checked the balance sheet of BOC today. The balance will balance itself lol
No Pierre was not brash, he was asking very straightforward questions and there was nothing remotely impolite in his demeanour. If is questions were actually inappropriate for the party he was addressing them to and were to be answered by a banker, rather than the finance minister, it would not have taken her so long to make that assertion, which incidentally she made only once.
I guess we have to give Pierre a time out for man handling and offending poor innocent Chrystia. Hopefully they can social distance kids and make up.
Things got real around 12:00 , nice work sir 🙏
What do you figure other countries are doing? What is the state of Chinese or Russian debt? How does that affect Canada’s credit rating?
I would be shocked if more than 1% understand the role of the Bank of Canada. Would love to hear your thoughts, Steve, on the history of the Bank of Canada, as I think the BoC’s role shifted dramatically in the 1970’s, did it not? Are we going back to the old way now, or are recent developments something new entirely?
Keep up the good work!
thanks
She is the female version of Michael Scott
Costa Rica is very inventive with new taxes since there is only farming and some tech exports, but at a certain point companies like INTEL just pack up and leave, ame with California now, can that happen in Van ?
I'd say probably 10% of people in canada understand how money is created? We need some financial literacy classes as required curriculum in schools
@@saretsky At least we have youtube and creators such as yourself to partially fill this gap! When enough people realize this, hopefully things will change
Hey Steve, I've talked with alot of individuals. Just to pick their brain and get an understanding of their views and opinions on the matter. I would say 2%. Thats being fair. And again thats talking with alot of people. Most people born in the 60's seem to refuse to listen to what I say and don't believe a word of it. They deny all of it and feel attacked. Quite interesting actually.
People born in the 60's will say that they lived trough a lot of economic crisis and that this time, it is not different. So if you are young, they assume that you worry for nothing, because of your lack of experience.
Will the "Honourable" Minister answer the fucking question!?
Wrapping my brain around all the concepts involved in modern monetary systems is equivalent to experiencing the reality of being "slapped silly."
It has become as whacky as this present government is.
Let's all put our collective brains up on the shelf and go home to drool at leisure.
This round of drinks is on Trudeau.
🍻🥂🍾
Pretty soon he'll have 99% of us living in virtual reality homes, eating cbd gummiebears, and we'll buy into the idea that we've never been happier.
Right.
Or maybe not.
Dont matter liberal or conservative they all print there way out.
No background in finances, has no clue that those are questions that her office needs to answer but at least we have a gender-balanced cabinet.
Honestly I think spending money during these times makes a lot of sense.
And I'm a Bitcoiner.
Interesting non-mainstream stuff as usual!
what is wrong with holding some fiat? How is gold doing by the way? any update steve?
What the central bank is doing scares me. Moral hazard?
Wow politicians not answering questions... man like fuck. I’m so mad right now honestly I’m so pissed off . You know what? I’ll just leave Canada and not fucking pay those taxes . Watch what happens keep the shit up . All rich people will leave I don’t even I care where I go I’m out bud lol keep it up!!!! Keep it up!
Inflation is a calculation on how wealthy people are doing....
Christya looks really bad there. Does she just not know? I feel that through the work of Steven Van Metre, Lyn Alden and others I'm starting to get a good grasp of how the U.S. Fed creates bank reserves that allow the commercial banks to monetize debt - both government and non government. However, I'm not sure how that system differs here in Canada. Is the BoC directly buying tresures for actual cash money? Or is it a reserve swap like in the US. There's also a subtlety in the ownership structure. The US FED is owned by the Commercial banks whereas the BoC is owned by the Crown. To put it in a succinct nugget, the commercial banks create money by issuing loans. If banks aren't lending, money is not getting created. It's really just that simple. How's that, Steve?
The US hasn’t been expanding credit but here in Canada the banks have been doing the opposite
I think the usa has a debt ceiling which if increased has to be passed. Freeman doesn't even know if we have a ceiling or what ours is. Something the public should know.
Best way to protect your wealth. Buy farm land. Buy gold, and most importantly...buy silver
Do you plan to put hundreds of thousands of dollars in gold and silver under your bed?
@@Observer168 hide it..
@@aycaramba081 Where would be a good place to hide hundreds of thousands of dollars in gold and sleep well at night?
@@Observer168 precious metals dealers are a good way.. try Miles Franklin..they're the best
@@aycaramba081 There is no problem buying it, just a problem storing hundreds of thousands of dollars of gold.
Can Steve or anyone tell me why City of Vancouver seems to be the only city so far in the lower mainland going bankrupt? Is it because the city’s finance is badly managed? Or, is it just a matter of time before other municipalities going bankrupt?
End the fed