A recent addition to the news category of No Surprise There. Average Joe Voter would happily choose lower debt service costs and more free stuff from the government over unaffordable housing any day, since he cannot grasp the connection between those two phenomena in the first place.
Nearly two-thirds of Canadians (64 per cent) say they desperately need interest rates to fall, given the financial constraints they’re under. Over one-third (36 percent) report feeling anxious or stressed about their financial situation, while one-quarter say they’ve had to stall life plans (26 per cent) or are constantly putting out financial fires due to an endless stream of unexpected costs (24 per cent).
Isn’t Trump advocating for lower interest rates?
Trump advocates for the right policy (lower rates) but for the wrong reasons. In a fiat currency system with exponentially rising debt, interest rates have to fall or the banking system will implode as fewer and fewer people will be able to shoulder the rising debt burden if interest rates were to somehow remain unchanged or go up. Since fiat debt is “repaid” by simply rolling older bonds into new ones, aggregate debt must increase by at least as much as the compounding interest charges. Increased spending makes the burden rise that much faster on top of all that, and Trump wants lower rates to enable greater spending.
You need a gold standard in order to pay down debt in aggregate, and we don’t have that.
Two things:
1. The discount rate in the US is at least 1.5% more than in other western countries.
2. Trump and Bessent are trying to deflate the US dollar, you have to be able to see that.
Justin said he could borrow cheaper than us! Unfortunately he didn’t tell us he’d drive the debt and the interest payments through the roof! Can’t we just shoot this POS, and cut government spending at all levels?
Shrug. We don’t have an interest rate problem. People have a buying-with-borrowed money problem. They can’t say “no” and walk away.
“41 per cent of Canadians have reduced discretionary spending, 33 per cent are increasing savings or building emergency funds, and 27 per cent are prioritizing debt repayment.”
Well that’s good news.
But interest rates didn’t really get high historically.
(We locked in for 5 years at 6.5% in 2001, then 5.5% 5 years later.)
The ultra low days were the anomaly and this fooled a lot of people.
And then “leaders” around the world printed money like the ignorant assholes they were and the MMT flag wavers did their thing and then boom!
Remember when PM Pole Smoker tried to tell us inflation was the Russian’s fault.
What a turd.
In a just world, a lot of people would be hanged.
In a truly just world, a group of 50,000 Canadians would sit a Roger’s Center, while the top 1,000 Laurentain Elites and their flunkies in the Librano Party would be run out and it would be thumbs up, or thumbs down. No Lions, Grizzlies and Polar bears should do nicely, eh?
That’s a start.