h/t LazyJones:Bank of Canada Assets and liabilities, weekly. I’m sure this is totally normal.
72 Replies to “It’s Probably Nothing”
Banking crisis on the way. Prepare to bail out the big 5
There is exactly one way to bail out the Big 5. Issue new shares at fair value and sell them weekly over the next 20 years. If we are going to rescue billionaires, taxpayers might as well earn the reward for taking the risk.
And that “fair value” would be????????????????
The stock market value as the shares crater. Ain’t rocket science.
In that case the value would be zero. Good luck selling those. Ain’t rocket science,
Freeze the bank and send in the fraud squad.
Under CDIC rules the shareholders bail out the banks in Canada, which is why you should not own any Canadian bank stocks.
You forget the exception to the rule.
*Bailed out because LIBERAL!
Pierce, what should bother many will not. The big five can take every dime I have invested by government mandate to cover their losses. Nothing is ever secure in this country or any other. Read up on Greece.
Did anyone else wonder what would happen when Trudeau opened up Canada’s federal treasury and yelled ‘free money!’??
Where else would the feds get all that money they are throwing around? The bond market?
I will add that we are soon to get reacquainted with the proper definition of inflation.
Inflation is already here. I take it you don’t do the grocery shopping in the family?
J B, inflation in spades. Houses in my area are about 30% more expensive than they were two years ago. Groceries, well for two people. we are seniors, we are spending about $500 a month plus. That does not include treats outside our regular budget.
Inflation is not here already! Your groceries are costing more due to the carbon tax, not inflation.
The difference between the GST and the Carbon Tax, is that at each stage of processing or transport, the GST is refunded to those claiming it as a input tax.(meaning that the GST at each step, IS NOT pasted on) The GST Tax doesn’t add up at each step like the Carbon Tax.
The Carbon Tax is rarely exempt(only a few inputs on the farmer’s cost are even exempt)
So at each stage of production or processing more Carbon Tax is accumulated on the item. Then finally at the grocery store all Carbon Taxes on over head costs are also added to the food cost. Carbon Taxes on maintaining their parking lot, be it paving or snow clearing, roofing and siding costs, heating and cooling of the store, Carbon taxes on the purchase of fridges, freezers, shelving, tills and belts, lighting and signage in the store.
I could go on with more,,, just know, it’s all been added to the cost of food,,, a hidden Tax.
I’d like to know how popular the Carbon Tax would be if it was all a separated tax, and obvious when you pay for something.
A few weeks ago I saw butter going for $7.15 a fucking pound.
Yes inflation is here, and not due only to the Carboon Tax.
Loony devaluation.
Interest rates going down, inflating housing costs.
Chinese demand for consumables.
Government manipulation of calculating their “official” rate.
I don’t have hard and fast numbers, but it seems real inflation has been over 10% a year for several years. Witness the cost of veggies and beef Increases alone.
Those on fixed incomes have been getting hammered for years. Financial gurus have been sounding the alarm for years, to not rely on Term Deposits or other fixed income assets, instead turning to ETFs to squeeze out more income.
This is not a problem, but a huge benefit for Canadians. Assets at the Bank of Canada have grown astronomically in just a few months. Since the people own the Bank of Canada, we are now all millionaires. All praise the Dear Leader!
Sadly CBC will be running with that Zimbabwean logic as soon as they see it.
Dear Leader is Glorious,all Canadians have become Zillionaires on his watch.
Bless Dear Leader of the mobile eyebrows.
As a loaf of bread will cost $8 million Canadian.
The only hope we in the West have is Exit Now.
As a US State or even as a US Territory,we would still be better off than as beasts of burden to the effete Eastern Elites of “Central Canada”.
Should we refuse to stand alone.
After WE,the charity,comes W.E the great escape.
One flaw possible there.
A Wexit to a Biden/Heels Up DeMarxist nation will be no better than the Fascist Liberals.
The Demarxists are the Head Office, LPC is a branch office of the same company.
Let’s hope that Biden and his morally bankrupt party self-destruct quickly.
John, I am afraid the solution to our problems is a return to what was called sanity, something we left behind a few decades ago. The intellectual decline that has allowed the acceptance of insanity will not be easily reversed.
^^^^This.
That quote about good times, bad times, strong men, weak men.
The remnant.
The ones who created the wealth that created the good times are all almost dead, take it from me, my peers have vanished like snow in June.
Coming up with the solution is easy; we already know what it is. Implementing it, though…….
Won’t happen without things crashing. Its too late for anything less at this point. Once that is done (if not before or during) break out ropes, lamposts, and firing squads. Start hanging and shooting. Then ban everything progressive forever.
It looks even worse when you include the Government of Canada bonds and the repo agreements. The inflation created went straight into the equity market (again) but it will eventually make its way into the real world.
So that would be 140,000,000,000. 140 billion? That’s 50k per Canadian. Out of control. Only people in Vancouver who bought their home in the 70s have that kind of money.
Check your math
140 000/34 =4 118.
So a mere $5000/per citizen.
Which would be ?/taxpayer?
Of our 34 million how many actual contributors to the public wealth are left?
I have been using 1/3 for years,but now?
Say 1/3 of any population is of working age and working,if 1 in 3 of them is employed in governance,another 1/10 devoted to compliance with rules and regulations,the same busy “self reporting”,plus however many are busy performing “government contracts”..
Makes it hard to calculate .
We are all on the take,by design.
Death by a thousand thefts,you cannot find a place to make a stand,as the social services are used to club anyone who questions stupid spending..
“But FREE Healthcare”.
But free schools,however you spell that in emojis.
“Best governance ‘evah”.
Given our total combined debt,I think the last real taxpayer should be petitioning the USA for a green card.
If you are under 40 ,move to the States,you can buy your childhood neighbourhood ,later, as a retirement home.
You are also starting with the wrong number. If you include bonds and repos, the total is about $550 billion rather than the $140 billion used here.
Last fall Canadians had the option of a massive clean up by voting PPC. But preferred voting for same #LibCons parties.
A Bernier gov’t would have balanced the budget in two years by cutting in the fat (CBC, corporate welfare, equalization, etc), would have encouraged investments and growth, while eliminating many inter-provincial trade barriers, etc.
“Canadians had the option of a massive clean up by voting PPC”
PPC was never an option. Options are real alternatives, not fever dreams.
Yes.
Legacy parties such as the CPC or the LPC are the real options. That’s how we got ourselves in this sludge of a post nation state; that’s also a real alternative, Oz?
No wonder Cdns are among the planet’s stupidest people.
Enjoy!
“That’s how we got ourselves in this sludge of a post nation state; that’s also a real alternative, Oz?”
No it isn’t. The fiscal condition of Canada was just fine when the CPC was in power. Your post asserting otherwise is a lie.
PM Harper’s CPC steered Canada through a Global Economic Recession very nicely with surpluses at the end.
The present CPC are not Harper CPC.
True, bluetech. However, I don’t give a rat’s ass about Canada. I was just setting the record straight on Ray’s lies.
NO, this present state is NOT due to the CPC. NO, Maxime Bernier was NOT a realistic alternative.
Where did that lead us?
“Legacy parties such as the CPC or the LPC are the real options.”
The LPC is a legacy party and has existed since the 19th century.
The CPC is NOT a legacy party, it came into existence in 2003(21st century) Held power from 2006-2015.
I get tired of your lying. Do you ever get tired of lying, ray? It makes you look stupid. Do you think people read your lies and say to themselves, “Gee, that ray sure is clever. I think I’ll vote his way.”?
Maybe some do, but not conservatives. Conservatives do not value liars or their lies.
ray, that was the plan but Canadians are liberal socialist to core, no if’s and’s or butt’s. I would dare to suggest that 99% of Canadians, including Oz, actually do think “health care” is free. Unfortunately we pay through the nose for “medical care”.
“Canadians, including Oz, actually do think “health care” is free”
You’re an idiot. I live in Alberta, have owned my own company for decades, and I’ve paid plenty out-of-pocket for healthcare.
Oz lives in Alberta. LOL. Those same Albertans who get raped out of oil money for equalization AND who think by voting #LibCons Kenney (Ontario), #LibCons Scheer (Ontario) or unelected Lewis (Ontario) will fix it all.
LMAO.
Ottawa laughs at Albertans like Oz.
——————–
BTW Oz, you called me a liar. L:et’s see…
1. “The fiscal condition of Canada was just fine when the CPC was in power. Your post asserting otherwise is a lie.”
ANSWER: Since 1966, Canada has ran mostly deficits. Except from 1997 until 2007. Then 2014.
That’s TWO years of Harper w/o a deficit.
Source: https://www.fraserinstitute.org/blogs/federal-deficits-in-canada-another-view
DECISION” Oz lied. #LibCons style lied.
2. “PM Harper’s CPC steered Canada through a Global Economic Recession very nicely with surpluses at the end.”
ANSWER: With a recession, and an increase in federal spending from 2008, the federal debt grew by $5.8 billion in 2008–09. Large annual deficits from 2008 to 2013 has Canadian debt surpassing the $600 billion mark by November 2012, making it larger than the 1997 peak in absolute dollars (although far smaller in comparison to GDP).
Source: https://en.wikipedia.org/wiki/Canadian_public_debt
DECISION” Oz lied. #LibCons style lied. Again.
Canada was at war in Afghanistan from 2003-2011. War is expensive. It spills blood and wastes prosperity.
Despite calls from the LPC/NDP/Bloc for more spending during the Global Recession, Harper kept recession bailout spending down to a respectable level, coming out of the recession better than any other G8 nation.(and while at war)
For most of my life, Canadian Federal Debt has been above $600 Billion.(born in 1959)
I worked tirelessly for the Wild Rose Party to fix the rape of my beloved Alberta.
The company I own is an Energy Consulting firm. It matters personally that Canada steals from Alberta.
Maxime Bernier’s PPC is not and never will be a realistic alternative to the LPC. You’re a fool and liar, ray.
Well Oz, stop talking like you don’t know what we are talking about.
Oz, according to the government of Canada we were not at war anywhere in the middle east, even though I have a few fucked up friends who were there. Hard to fight when you have ROE that protects your enemy. You seem to be a contradiction when posting. I can’t get my head around some of the stuff you think.
“according to the government of Canada we were not at war anywhere in the middle east”
Afghanistan is not in the middle east. Afghanistan is a landlocked country located within the continent of Asia.
Why does the Trudeau/Morneau “bank bail-in” law they snuck into their first budget come to mind. Likely, their corrupt plan all along.
What sort of assets is the BoC holding? What sort of asset or asset mix spiked that sharply in the last few months? Does the BoC have a large holding of gold and silver? Or have they sitting on a large pile of freshly printed money? (I’m assuming that there wasn’t a sudden payoff of several very large loans.)
They hold mostly government of Canada bonds and treasuries, although lately they have been sopping up some of the excess supply of provincial bonds as well. They hold zero gold or silver.
The process is simple. Step 1 is for the BoC to create new money with a few keystrokes. They then immediately place this fresh cash into accounts of the banks and take from them government bonds and treasury bills (the difference is simply time to maturity) and hold them in their account. No debt is paid off or retired.
The purpose of all this is to absorb some of the excess supply of government debt in order to avoid the interest rate rise that would be required to do so if it was left entirely to markets.
The consequence of all this is that suddenly large dollups of brand new money is out there chasing something to buy. Some of it chases Shopify common stock, but soon enough, lots of it will chase food, fuel and other essentials of life.
All welfare states were technically bankrupt before the fiscal incontinence from the Chicom virus economic shutdowns. There aren’t enough “rich” taxpayers to pay for the debt legacies never mind the ongoing runaway deficits. The Central Banks will monetize this debt and the BoC asset growth you see above is just the beginning. Anyone looking to the US as a safe haven isn’t paying attention. The long sought inflation will materialize as Gold and Silver are now signalling.
Canada’s population is just under 37.8 million. Our national debt has increased by 50% in the last few months to around $1.1 trillion. That comes to $29,000 for every man, woman, and child in this country. And that’s actual debt, not including the obligations we have to pension plans and the like. Those aren’t insignificant.
A couple of comments:
– It is useful to Google the title of the graph, and play around with the components of the BoC assets, and liabilities. Total assets, which includes GoC bonds, has the same scary shape as the blue line above (GoC bonds). Note that by definition the BoC total assets must equal total liabilities, so the BoC total liabilities graph shows the exact same scary shape. What increased on the liabilities side is not “currency in circulation”, but assets held by “members of Payments Canada” has shot up dramatically. And that’s scary, since if and when chartered banks increas lending, given their assets at the BoC has shot up, money supply shoots up, and that is inflationary.
– so I have been buying gold shares since late February, and Kate’s graph shows why the price of gold has shot up. Roughly 30% of my RRIF is in 8 different gold companies and ETFs, and yes, my RIF is doing well. I would recommend that SDAers invest in gold. As a former coin collector, I would suggest steering lear of coins and bars. But for survivaists out there who distrust banks, make sure you study the coin and gold bar market before investing.
For those that didn’t hear James Dines on the weekend, he predicts Gold will go to $3 to $5000 / oz and Silver to $500 / oz. The miners will respond first but there lots of ways to play it. Just remember that those figures are a year or two out and they don’t get there in straight lines and they won’t stay there long unless we become Zimbabwe. The leviathan state will not sit and watch so expect drastic measures.
Agreed. One thing to worry about, if and when the gold price shoots up, is that governments might nationalize gold mines. Papua Guinea is in the process of nationalizing the Barrick mine there (this has been going o for a year now, where the government has complained about pollution and poor relations with the locals). In Canada and other vounties, I would not be surprised about other radical moves, if the price of gold shoots way up, such as special taxes on gold output. Governments are becoming more left wing, and are hungry for money.
One could try holding physical gold and silver (I did at one time), but with left wing governments, they could outlaw the physical possession of coins and bars. Or they could impose special taxes on such ownership. Anything is possible these days.
I’ve got at least 150 silver coins, mostly Canadian. I’ve got way more lead to ensure their security.
Physical gold is money. Go buy a gold coin, it’s not taxed, instead, there’s a commission paid to the Shylock.
That is just the T-Bills. IT IS MUCH WORSE THAN THAT.
If you go to total borrowing the Bank of Canada hasn’t added $140B in made up money, it has ADDED over $420B in made up money.
Click the link and select Total Assets.
Pre Covid it was $125B in total, now less than six months later it is almost $550Billion.
How does the CMHC figure into this? The banks are laughing because CMHC (ultimately Canadian taxpayers) are guaranteeing an enormous amount of mortgages.
As long as K-becers don’t have to pay their share while getting larger transfer payments to make up for the Big Time Inflation that’s coming then I think everything is just peachy and always will be.
Expect a big downgrade real soon. Pretty soon Canada will be like Venezuela, order your havahart trap or dog catchers net while you can and look up recipes for cat and dog meat
I’m going to look for a Long Pig recipe book.
Canada’s Total Public Debt is over 5T now. In 2014 it was at 4.1T under Harper. Trudeau added another 2T from the looks of this.
Buddy’s comment……I’m going to look for a Long Pig recipe book. Ha Ha Ha. We Albertans are tough and stringy. Easier pickin’s in Ontario and Quebec
That would be nice but I suspect Trudeau will just come up with a nice fat pay off at the expense of the west and Quebec will continue propping him up.
So what is the suggestion?
That the country could go bankrupt?
And then what happens?
Do the creditors start seizing assets for payment in kind, or do they impose monitary limits on the federal government to only those areas where they actually have constitutional jurisdiction?
Just asking for a friend.
I imagine they just ramp up the presses, pay off all the debts in monopoly money and make your life savings worthless through inflation. That’s how it traditionally happens.
Hence the need for Gold!
if you can’t beat ‘em – join ‘em!
welcome to modern monetary theory in a global environment. where nobody is sure where it will go, but it beats immediate collapse, and debt to gdp is just a figure on a spreadsheet.
make lots of money, and don’t get caught in the day late / dollar short category. simple really.
the rich get the peaches
and the poor get the pits.
the rich get the prunes
and the poor get the shits.
– jp donleavy
From zero hedge on the effect of too much liquidity.
The last year had made me attempt to become an expert in PPE, epidemiology, supply chains, dams, black history in Canada (it’s a short subject), and now macro-economics. So many new hobbies.
I can’t wait for the US election to pass so I can go back to worrying about the Greta army and watching pipelines not get built.
It’s not rocket science.
Govt can either pay back unsustainable debt over decades (unpleasant and restricting for politicians) or it can inflate to make it worth less.
When they attempt to inflate it away they can still throw depreciating currency at you to buy your vote for a while…..if you print the world’s reserve currency as the US does, you can do that for many decades.
But the shadows must inevitably lengthen……..
and we are witness to that. you can call it quantitative easing or you can call it quantitative tightening – either way it is an arrogance of control based on choosing winners & losers until it falls into rejection of those with hands on the levers.
Look out below. When the law of gravity kicks in on the world of finance.
Banking crisis on the way. Prepare to bail out the big 5
There is exactly one way to bail out the Big 5. Issue new shares at fair value and sell them weekly over the next 20 years. If we are going to rescue billionaires, taxpayers might as well earn the reward for taking the risk.
And that “fair value” would be????????????????
The stock market value as the shares crater. Ain’t rocket science.
In that case the value would be zero. Good luck selling those. Ain’t rocket science,
Freeze the bank and send in the fraud squad.
Under CDIC rules the shareholders bail out the banks in Canada, which is why you should not own any Canadian bank stocks.
You forget the exception to the rule.
*Bailed out because LIBERAL!
Pierce, what should bother many will not. The big five can take every dime I have invested by government mandate to cover their losses. Nothing is ever secure in this country or any other. Read up on Greece.
Did anyone else wonder what would happen when Trudeau opened up Canada’s federal treasury and yelled ‘free money!’??
Where else would the feds get all that money they are throwing around? The bond market?
I will add that we are soon to get reacquainted with the proper definition of inflation.
Inflation is already here. I take it you don’t do the grocery shopping in the family?
J B, inflation in spades. Houses in my area are about 30% more expensive than they were two years ago. Groceries, well for two people. we are seniors, we are spending about $500 a month plus. That does not include treats outside our regular budget.
Inflation is not here already! Your groceries are costing more due to the carbon tax, not inflation.
The difference between the GST and the Carbon Tax, is that at each stage of processing or transport, the GST is refunded to those claiming it as a input tax.(meaning that the GST at each step, IS NOT pasted on) The GST Tax doesn’t add up at each step like the Carbon Tax.
The Carbon Tax is rarely exempt(only a few inputs on the farmer’s cost are even exempt)
So at each stage of production or processing more Carbon Tax is accumulated on the item. Then finally at the grocery store all Carbon Taxes on over head costs are also added to the food cost. Carbon Taxes on maintaining their parking lot, be it paving or snow clearing, roofing and siding costs, heating and cooling of the store, Carbon taxes on the purchase of fridges, freezers, shelving, tills and belts, lighting and signage in the store.
I could go on with more,,, just know, it’s all been added to the cost of food,,, a hidden Tax.
I’d like to know how popular the Carbon Tax would be if it was all a separated tax, and obvious when you pay for something.
A few weeks ago I saw butter going for $7.15 a fucking pound.
Yes inflation is here, and not due only to the Carboon Tax.
Loony devaluation.
Interest rates going down, inflating housing costs.
Chinese demand for consumables.
Government manipulation of calculating their “official” rate.
I don’t have hard and fast numbers, but it seems real inflation has been over 10% a year for several years. Witness the cost of veggies and beef Increases alone.
Those on fixed incomes have been getting hammered for years. Financial gurus have been sounding the alarm for years, to not rely on Term Deposits or other fixed income assets, instead turning to ETFs to squeeze out more income.
This is not a problem, but a huge benefit for Canadians. Assets at the Bank of Canada have grown astronomically in just a few months. Since the people own the Bank of Canada, we are now all millionaires. All praise the Dear Leader!
Sadly CBC will be running with that Zimbabwean logic as soon as they see it.
Dear Leader is Glorious,all Canadians have become Zillionaires on his watch.
Bless Dear Leader of the mobile eyebrows.
As a loaf of bread will cost $8 million Canadian.
The only hope we in the West have is Exit Now.
As a US State or even as a US Territory,we would still be better off than as beasts of burden to the effete Eastern Elites of “Central Canada”.
Should we refuse to stand alone.
After WE,the charity,comes W.E the great escape.
One flaw possible there.
A Wexit to a Biden/Heels Up DeMarxist nation will be no better than the Fascist Liberals.
The Demarxists are the Head Office, LPC is a branch office of the same company.
Let’s hope that Biden and his morally bankrupt party self-destruct quickly.
John, I am afraid the solution to our problems is a return to what was called sanity, something we left behind a few decades ago. The intellectual decline that has allowed the acceptance of insanity will not be easily reversed.
^^^^This.
That quote about good times, bad times, strong men, weak men.
The remnant.
The ones who created the wealth that created the good times are all almost dead, take it from me, my peers have vanished like snow in June.
Coming up with the solution is easy; we already know what it is. Implementing it, though…….
Won’t happen without things crashing. Its too late for anything less at this point. Once that is done (if not before or during) break out ropes, lamposts, and firing squads. Start hanging and shooting. Then ban everything progressive forever.
It looks even worse when you include the Government of Canada bonds and the repo agreements. The inflation created went straight into the equity market (again) but it will eventually make its way into the real world.
So that would be 140,000,000,000. 140 billion? That’s 50k per Canadian. Out of control. Only people in Vancouver who bought their home in the 70s have that kind of money.
Check your math
140 000/34 =4 118.
So a mere $5000/per citizen.
Which would be ?/taxpayer?
Of our 34 million how many actual contributors to the public wealth are left?
I have been using 1/3 for years,but now?
Say 1/3 of any population is of working age and working,if 1 in 3 of them is employed in governance,another 1/10 devoted to compliance with rules and regulations,the same busy “self reporting”,plus however many are busy performing “government contracts”..
Makes it hard to calculate .
We are all on the take,by design.
Death by a thousand thefts,you cannot find a place to make a stand,as the social services are used to club anyone who questions stupid spending..
“But FREE Healthcare”.
But free schools,however you spell that in emojis.
“Best governance ‘evah”.
Given our total combined debt,I think the last real taxpayer should be petitioning the USA for a green card.
If you are under 40 ,move to the States,you can buy your childhood neighbourhood ,later, as a retirement home.
You are also starting with the wrong number. If you include bonds and repos, the total is about $550 billion rather than the $140 billion used here.
Last fall Canadians had the option of a massive clean up by voting PPC. But preferred voting for same #LibCons parties.
A Bernier gov’t would have balanced the budget in two years by cutting in the fat (CBC, corporate welfare, equalization, etc), would have encouraged investments and growth, while eliminating many inter-provincial trade barriers, etc.
https://www.peoplespartyofcanada.ca/platform
“Canadians had the option of a massive clean up by voting PPC”
PPC was never an option. Options are real alternatives, not fever dreams.
Yes.
Legacy parties such as the CPC or the LPC are the real options. That’s how we got ourselves in this sludge of a post nation state; that’s also a real alternative, Oz?
No wonder Cdns are among the planet’s stupidest people.
Enjoy!
“That’s how we got ourselves in this sludge of a post nation state; that’s also a real alternative, Oz?”
No it isn’t. The fiscal condition of Canada was just fine when the CPC was in power. Your post asserting otherwise is a lie.
PM Harper’s CPC steered Canada through a Global Economic Recession very nicely with surpluses at the end.
The present CPC are not Harper CPC.
True, bluetech. However, I don’t give a rat’s ass about Canada. I was just setting the record straight on Ray’s lies.
NO, this present state is NOT due to the CPC. NO, Maxime Bernier was NOT a realistic alternative.
Where did that lead us?
“Legacy parties such as the CPC or the LPC are the real options.”
The LPC is a legacy party and has existed since the 19th century.
The CPC is NOT a legacy party, it came into existence in 2003(21st century) Held power from 2006-2015.
I get tired of your lying. Do you ever get tired of lying, ray? It makes you look stupid. Do you think people read your lies and say to themselves, “Gee, that ray sure is clever. I think I’ll vote his way.”?
Maybe some do, but not conservatives. Conservatives do not value liars or their lies.
ray, that was the plan but Canadians are liberal socialist to core, no if’s and’s or butt’s. I would dare to suggest that 99% of Canadians, including Oz, actually do think “health care” is free. Unfortunately we pay through the nose for “medical care”.
“Canadians, including Oz, actually do think “health care” is free”
You’re an idiot. I live in Alberta, have owned my own company for decades, and I’ve paid plenty out-of-pocket for healthcare.
Oz lives in Alberta. LOL. Those same Albertans who get raped out of oil money for equalization AND who think by voting #LibCons Kenney (Ontario), #LibCons Scheer (Ontario) or unelected Lewis (Ontario) will fix it all.
LMAO.
Ottawa laughs at Albertans like Oz.
——————–
BTW Oz, you called me a liar. L:et’s see…
1. “The fiscal condition of Canada was just fine when the CPC was in power. Your post asserting otherwise is a lie.”
ANSWER: Since 1966, Canada has ran mostly deficits. Except from 1997 until 2007. Then 2014.
That’s TWO years of Harper w/o a deficit.
Source: https://www.fraserinstitute.org/blogs/federal-deficits-in-canada-another-view
DECISION” Oz lied. #LibCons style lied.
2. “PM Harper’s CPC steered Canada through a Global Economic Recession very nicely with surpluses at the end.”
ANSWER: With a recession, and an increase in federal spending from 2008, the federal debt grew by $5.8 billion in 2008–09. Large annual deficits from 2008 to 2013 has Canadian debt surpassing the $600 billion mark by November 2012, making it larger than the 1997 peak in absolute dollars (although far smaller in comparison to GDP).
Source: https://en.wikipedia.org/wiki/Canadian_public_debt
DECISION” Oz lied. #LibCons style lied. Again.
Canada was at war in Afghanistan from 2003-2011. War is expensive. It spills blood and wastes prosperity.
Despite calls from the LPC/NDP/Bloc for more spending during the Global Recession, Harper kept recession bailout spending down to a respectable level, coming out of the recession better than any other G8 nation.(and while at war)
For most of my life, Canadian Federal Debt has been above $600 Billion.(born in 1959)
I worked tirelessly for the Wild Rose Party to fix the rape of my beloved Alberta.
The company I own is an Energy Consulting firm. It matters personally that Canada steals from Alberta.
Maxime Bernier’s PPC is not and never will be a realistic alternative to the LPC. You’re a fool and liar, ray.
Well Oz, stop talking like you don’t know what we are talking about.
Oz, according to the government of Canada we were not at war anywhere in the middle east, even though I have a few fucked up friends who were there. Hard to fight when you have ROE that protects your enemy. You seem to be a contradiction when posting. I can’t get my head around some of the stuff you think.
“according to the government of Canada we were not at war anywhere in the middle east”
Afghanistan is not in the middle east. Afghanistan is a landlocked country located within the continent of Asia.
Why does the Trudeau/Morneau “bank bail-in” law they snuck into their first budget come to mind. Likely, their corrupt plan all along.
What sort of assets is the BoC holding? What sort of asset or asset mix spiked that sharply in the last few months? Does the BoC have a large holding of gold and silver? Or have they sitting on a large pile of freshly printed money? (I’m assuming that there wasn’t a sudden payoff of several very large loans.)
They hold mostly government of Canada bonds and treasuries, although lately they have been sopping up some of the excess supply of provincial bonds as well. They hold zero gold or silver.
The process is simple. Step 1 is for the BoC to create new money with a few keystrokes. They then immediately place this fresh cash into accounts of the banks and take from them government bonds and treasury bills (the difference is simply time to maturity) and hold them in their account. No debt is paid off or retired.
The purpose of all this is to absorb some of the excess supply of government debt in order to avoid the interest rate rise that would be required to do so if it was left entirely to markets.
The consequence of all this is that suddenly large dollups of brand new money is out there chasing something to buy. Some of it chases Shopify common stock, but soon enough, lots of it will chase food, fuel and other essentials of life.
All welfare states were technically bankrupt before the fiscal incontinence from the Chicom virus economic shutdowns. There aren’t enough “rich” taxpayers to pay for the debt legacies never mind the ongoing runaway deficits. The Central Banks will monetize this debt and the BoC asset growth you see above is just the beginning. Anyone looking to the US as a safe haven isn’t paying attention. The long sought inflation will materialize as Gold and Silver are now signalling.
Canada’s population is just under 37.8 million. Our national debt has increased by 50% in the last few months to around $1.1 trillion. That comes to $29,000 for every man, woman, and child in this country. And that’s actual debt, not including the obligations we have to pension plans and the like. Those aren’t insignificant.
A couple of comments:
– It is useful to Google the title of the graph, and play around with the components of the BoC assets, and liabilities. Total assets, which includes GoC bonds, has the same scary shape as the blue line above (GoC bonds). Note that by definition the BoC total assets must equal total liabilities, so the BoC total liabilities graph shows the exact same scary shape. What increased on the liabilities side is not “currency in circulation”, but assets held by “members of Payments Canada” has shot up dramatically. And that’s scary, since if and when chartered banks increas lending, given their assets at the BoC has shot up, money supply shoots up, and that is inflationary.
– so I have been buying gold shares since late February, and Kate’s graph shows why the price of gold has shot up. Roughly 30% of my RRIF is in 8 different gold companies and ETFs, and yes, my RIF is doing well. I would recommend that SDAers invest in gold. As a former coin collector, I would suggest steering lear of coins and bars. But for survivaists out there who distrust banks, make sure you study the coin and gold bar market before investing.
For those that didn’t hear James Dines on the weekend, he predicts Gold will go to $3 to $5000 / oz and Silver to $500 / oz. The miners will respond first but there lots of ways to play it. Just remember that those figures are a year or two out and they don’t get there in straight lines and they won’t stay there long unless we become Zimbabwe. The leviathan state will not sit and watch so expect drastic measures.
Agreed. One thing to worry about, if and when the gold price shoots up, is that governments might nationalize gold mines. Papua Guinea is in the process of nationalizing the Barrick mine there (this has been going o for a year now, where the government has complained about pollution and poor relations with the locals). In Canada and other vounties, I would not be surprised about other radical moves, if the price of gold shoots way up, such as special taxes on gold output. Governments are becoming more left wing, and are hungry for money.
One could try holding physical gold and silver (I did at one time), but with left wing governments, they could outlaw the physical possession of coins and bars. Or they could impose special taxes on such ownership. Anything is possible these days.
I’ve got at least 150 silver coins, mostly Canadian. I’ve got way more lead to ensure their security.
Physical gold is money. Go buy a gold coin, it’s not taxed, instead, there’s a commission paid to the Shylock.
That is just the T-Bills. IT IS MUCH WORSE THAN THAT.
If you go to total borrowing the Bank of Canada hasn’t added $140B in made up money, it has ADDED over $420B in made up money.
Click the link and select Total Assets.
Pre Covid it was $125B in total, now less than six months later it is almost $550Billion.
How does the CMHC figure into this? The banks are laughing because CMHC (ultimately Canadian taxpayers) are guaranteeing an enormous amount of mortgages.
As long as K-becers don’t have to pay their share while getting larger transfer payments to make up for the Big Time Inflation that’s coming then I think everything is just peachy and always will be.
Expect a big downgrade real soon. Pretty soon Canada will be like Venezuela, order your havahart trap or dog catchers net while you can and look up recipes for cat and dog meat
I’m going to look for a Long Pig recipe book.
Canada’s Total Public Debt is over 5T now. In 2014 it was at 4.1T under Harper. Trudeau added another 2T from the looks of this.
Buddy’s comment……I’m going to look for a Long Pig recipe book. Ha Ha Ha. We Albertans are tough and stringy. Easier pickin’s in Ontario and Quebec
BQ to force resignation of Trudeau, Morneau and Telford. https://www.thestar.com/politics/federal/2020/08/12/bloc-will-try-to-force-an-election-unless-justin-trudeau-bill-morneau-and-katie-telford-resign.html?fbclid=IwAR16UFiZDNn2VDGvyd8wXzJ7Pa4jfquTqD0UyyIJ9Wjr8-nOGrYmrqhW4co
That would be nice but I suspect Trudeau will just come up with a nice fat pay off at the expense of the west and Quebec will continue propping him up.
So what is the suggestion?
That the country could go bankrupt?
And then what happens?
Do the creditors start seizing assets for payment in kind, or do they impose monitary limits on the federal government to only those areas where they actually have constitutional jurisdiction?
Just asking for a friend.
I imagine they just ramp up the presses, pay off all the debts in monopoly money and make your life savings worthless through inflation. That’s how it traditionally happens.
Hence the need for Gold!
if you can’t beat ‘em – join ‘em!
welcome to modern monetary theory in a global environment. where nobody is sure where it will go, but it beats immediate collapse, and debt to gdp is just a figure on a spreadsheet.
make lots of money, and don’t get caught in the day late / dollar short category. simple really.
the rich get the peaches
and the poor get the pits.
the rich get the prunes
and the poor get the shits.
– jp donleavy
From zero hedge on the effect of too much liquidity.
https://www.zerohedge.com/markets/mega-cap-tech-stocks-soar-again-reflation-rotation-ends-abruptly
The last year had made me attempt to become an expert in PPE, epidemiology, supply chains, dams, black history in Canada (it’s a short subject), and now macro-economics. So many new hobbies.
I can’t wait for the US election to pass so I can go back to worrying about the Greta army and watching pipelines not get built.
It’s not rocket science.
Govt can either pay back unsustainable debt over decades (unpleasant and restricting for politicians) or it can inflate to make it worth less.
When they attempt to inflate it away they can still throw depreciating currency at you to buy your vote for a while…..if you print the world’s reserve currency as the US does, you can do that for many decades.
But the shadows must inevitably lengthen……..
and we are witness to that. you can call it quantitative easing or you can call it quantitative tightening – either way it is an arrogance of control based on choosing winners & losers until it falls into rejection of those with hands on the levers.
Look out below. When the law of gravity kicks in on the world of finance.
Wile E. Coyote vs. Gravity
There’s only one solution. ….drill baby drill!!!! .woooooo!!!!!