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Big Announcement. I will be giving away my book and you will be able to by my book at cost at Amazon. I will do this on 18th of February 2016. My Book will be available for $12.50 and my Ebook for $0.99. The reason why I am doing this is that our world markets is about to hit a brick wall and I want you to have the knowledge of what can happen when a fiat currency collapse!
I want you to have the insight by understanding the future to protect yourself from what is coming in the coming year. You will not hear the mainstream media mention this as they are the marketing organization for Wall Street.
Meanwhile in Canada!! Here is the delusion of what Canada’s politicians think about gold. Here is a quote “Canada’s gold reserves belong to the Government of Canada, and are held under the name of the Minister of Finance,” explained a spokesperson for the Bank of Canada on Wednesday. “Decisions relative to gold holdings are taken by the Minister of Finance.” Quote: “Under the old system, (gold) backed up currencies,” Lee explained. “The U.S. dollar was tied to gold. One ounce was worth US$35. Then in 1971, for lots of reasons I won’t get into, Richard Nixon took the United States off the gold standard.” Quote: “It is a precious metal, like silver … they can be sold like any asset.” Quote: “It gives them more strategic flexibility to sell the gold, take the money and invest in U.S. government bonds, or United Kingdom bonds or French bonds or German bonds,” Lee said.
Gold reserves sold in December -1.28 tonnes. Leaving the big Canadianeconomy only with 0.1% of it’s reserves. If Canada would go to a gold backed currency in the case all other currencies would move as a big global move to gold. Stupidity has bought Canada in the same boat as Japan as Hyper Keynesianism is taking over the country!!
Here is the link to the announcement and an article:
Here is the numbers:
Canada Gold Standard: Based on M3
$34.352.954 for an Oz of Gold
Canada Gold Standard: Based on M2
$22.679.620 for an Oz of Gold
Canada Gold Standard: Based on M1
$13.632.786 for an Oz of Gold
Canada Gold Standard: Based on M0
$1.318.803 for an Oz of Gold
To give you a historical view on gold. I want to show you the Canadian gold holdings between today and back in the 1890’s. It is surprising how Canada sold off all their gold in the 50-70’s as they got ready to go away from a gold as a backing to their currency to a fiat currency system that has failed.
Remember what gold is as it is an insurance on your wealth! You need to protect yourself from failing currencies becoming worthless. If you had bout gold in Venezuela in 2010 lets say 10000 Bolivares Fuerte worth of gold. Today you would have 40000 worth gold in Bolivares Fuerte? If you had kept your Bolivares Fuerte in your bank account only in 2015 you would have lost 60-70% of your money as it lost its value to commodities as the supply of currency in Venezuela went up 275% in 2015.
History is ridden with people loosing their life savings and killing themselves!!!!!
I am writing to you as I have several indicators flashing red. This market crash is almost a replica of 2007-08. The whole global economy is teetering on the brink of collapse as the paper ponzi is looking like a gigantic house of cards. There are several snow flakes that can start the gigantic avalanche.
Where to start?
Lets start with 2008. In 2007 the sky was blue and markets were great, but all the experts and insiders were fleeing behind the scenes as the market was falling apart. It is very important to keep in mind that if you follow mainstream media, they are in place to keep the WallStreeters from loosing too much money. They are there to push bad investments and scare the masses to jump in on top and sell at the bottom. The game is rigged and you need to understand it.
In 2008 it started years before when the markets crashed in 2001 you had the 9/11 event to cover up the collapse of the global economy. Gold started rising and markets needed to be calmed. Many central banks started selling their gold on the open market. This was to keep a full fledged panic from happening. Interest rates were forced down in order to flood the markets with more debt to try to force the economy into growth. Now bankers wanted to get innovative and bankster minions found out that selling loans to people with No Income, No Jobs and No Assets. (NINJA) Loans were born.
The Bankers didn’t stop there. How about creating a derivative called Mortgage Backed Securities or Collateralized Debt Obligations. Where the NINJA loans were put into derivatives and shipped off all over the world where they blew up Norwegian pension funds and whole RM’s investments. These idiots buying these derivatives rated at the highest quality. Never let a bank or an investor sell you anything with a very finite description of Exit strategies, terms and what type of investment it is. The paper avalanche started, but got caught in a forest protecting the monetary system. The forest got severely destroyed, but there were still a couple of treest standing protecting monetary system. Now the Forest is way smaller and the avalanche waiting to happen has quadrupled or increased sixfold over the last years of free money and continuing decreasing interest rates close to zero or below.
Drought
The Crash 2007-08:
During the crash in 2007-08 commodities crashed with commodity, transportation, banking and retail stocks. Meanwhile margin calls on mountains of debt invested into an over leveraged stock market, commodity sector and banking sector. Banks had gambled on derivatives and Bear Sterns goes into bankruptcy. Lehman Brothers had only $28B on their books of derivative exposure. This is just a drop in the bucket compared to what bankers have leveraged into the shadow banking system and dark pools around the world. The Wall Street Casino scam is about to fall apart, but who holds the bag is uncertain. Is it pension funds like in 2008, is it central banks around the world?
So looking at the 2008 crash. What did commodities and stocks do?
Here are a couple of charts that will blow your mind when you see the charts compared with today.
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As you can see above bank stocks are acting the same way they acted in 2008. Let take a look at the commodity markets and how they are also reacting exactly how they reacted in 2008. Check out these charts.
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The leverage is at record highs with the derivatives market being about 6 times bigger than the global GDP with $1.5Q in different derivative bets. This is almost a tenfold increase from 2008 as a small derivatives book of $28B at Lehman Brothers collapsed the world economy. Now the threat is way bigger with Deutche Bank being a whooping $75T exposure to derivatives.
Get prepared!!
Above is Caterpillar the company that shows if the world economy is building or not. It s about to do what it did in 2008.
Interest rates are being pushed down again. Now they can only become negative for most countries. Check the historical charts from 2001.
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Commodities are ultimately king in any crash of a fiat currency system! So understand that water, gold, food, guns, silver and other commodities always have value and not paper!!
The paper bond bubble is about to pop. Look at the global M0, M1, M2, and M3 currency supplies.
I want to thank all the people who have been following me and sharing my work with the world!!! I am truly grateful for your help and I will give all the time that I can to all of you to analyze and overlook the world of finance, economics, monetary system and geopolitics. Though they are wast it has become easier than ever to overlook these topics.
I challenge you to start what me and others have done!! Start spreading the truth about Money, Economics and Geopolitics and all the other important topics that needs public exposure!!
What will happen in 2016? Well there are a couple of things that it looks like will happen. I have been thinking a lot about what 2016 has in store for us and we have seen already the first week of the year what will be coming this year in the financial markets and the world. Though it is hard to predict a time frame for things there is certainly easy to predict an outcome if we study the history behind it.
Lets get down to the prediction part. Although I said it is hard to put a date on predictions involving human activity it is easy to see history repeat itself.
Predictions 2016!
The Canadian Dollar will continue to crash. I can see a floor maybe at $0.50 Canadian Dollars to $1 US Dollar or even further. It depends on how hard Stephen Poloz the current head of Bank of Canada is willing to destroy it to “help exporters” as he stated in his “throne” speech the 8th of Desember last year. The problem with printing currency through low interest rates and QE is that inflation will come after and it will hurt both producers and people in the economy. Today there are over 20 Central Banks that do this and it is most major ones. So to be competitive is almost impossible and it is just a race to 0!!!! Stop playing with peoples wealth and livelihoods bankster idiot.
Negative Interest rates in most major western countries. As The US FED has tried to show that they believe the global economy and its local economy is recovering. A recovery is far from the truth!! With massive unemployment, not the official 5.0%, but more 12-13% looking at worker participation rates. With massive drop in commodity prices. Stock prices are trying to follow, but manipulated markets are showing resistance as the banking sector are throwing free money on the stock market and real estate bonfires. You can call a negative interest rate two things a tax on your savings or a way to force money out into the economy. The problem is that most money flowing out of the monetary system is going into peoples mattresses not the economy in spending.
Oil will hit new record lows. Under $20 is very possible as less and less economic demand is forcing the price down as supply is steadily increasing. Also with Iranian oil hitting the markets we will see a even harder drop. We could see in a crazy scenario $10 a barrel oil. The continuous tension in the middle east and a all out war could cause oil prices to raise as high as $200 a barrel, but it is not likely. There is a joker there that will be hard to predict, but the ongoing tension between Iran and Saudi Arabia is not a good development for oil!
We might see one or more hyper-inflationary events in 2016 as currencies will get abused and distrusted by the public in several countries. Below is a list of several suspects that can see a hyper-inflationary events. Both Argentina and Venezuela has both has recent hyper inflation and destruction of their currencies. Also War in several countries might move inflation up and a distrust from the people in those countries might cause a 1993 Yugoslavian hyper inflationary events as countries abuses their power to print currency to buy military equipment!
All out war in the Middle East as Shiites, Sunnis and Jews confront each other. Mostly their ideological governments that have a collectivist mind frame that believes that the others should not exist as they don’t believe in what they do. Saudi Arabia vs Iran will be the key factor. And of course Erdogan in Turkey which is looking more and more like a tyrant.
2016 Market Crashes. We are seeing the start to the current crashes that will happen as most major markets are down. This is just normal as they have been pumped up by cheap credit and Quantitative Easing by Central Banks. China in the last two weeks have force buy shares for 230 Yuan in order to desperately keep their massive real estate and commodity bubble afloat and to keep consumer in a certainty markets will always go up. Bankers are there to make a profit on you. They will tell you whatever they can to keep you convinced the markets are fine so they can exit why you buy at record highs. See the charts below if you are not convinced. Also remember the 7 year cycle in markets which is just due.
Commodities further down in a deflationary spiral while Gold might inch up on risk. You have to remember that gold is heavily manipulated through the paper gold price GLD on COMEX. This will just continue, but we might see a breakout as COMEX is dangerously near default as the paper to gold ratio is at record ponzi scheme highs!
A big terrorist attack in the US to cover up a potentially big market crash? They did it in 2001! To cover up the dot com crash which normally unfolding would have crashed the system and global failure would have been imminent. Remember the $10k capital control implemented in the banking system after 9/11. A great way to strangle peoples freedom of currency movement.
More bankruptcies as more and more debt and unfunded liabilities are strangling local and national governments world wide. We will also see an increase in pensions and other government promises disappearing!! So much for the money you paid to these programs!! Your money will not be safe in Fiat Currencies in 2016!! http://dailyreckoning.com/205-trillion-in-unfunded-liabilities/
Watch out for the IMF and the world bank to push more countries into Special Drawing Rights debt as they try to spread their currency and strangle economies under water with cheap money that they will never pay back and then take your resources, land and infrastructure from you as you default on your IMF loans!! http://www.imf.org/external/np/exr/facts/sdr.htm
Bigger inequality problems as governments continue to help bankers and corporations to accumulate more and more power in the economy. We don’t have capitalism today in a free market way we have Keynesian government spending and corporate fascism!! The more money printed and the more QE and lower interest rates the more power those with access to this cheap money will get!!
More riots and looting as governments and big banks will be pushing division of groups and racism to put them up against each other instead of uniting us all to change the monetary system and governments for better. Also currency printing will be on the forefront in this push to eliminating people from cooperating against corrupt government and corporations.
A big drop in Small and Medium size businesses as more taxation, legislation and rules strangle the most important people in the economy that is the backbone of any economy.
The China Debt bubble will unravel as they have seen a massive raise in debt and will de-leverage!!
There you go. There is the 15 points I see as high probability to happen in 2016.
Lately I have been engulfed in a couple of big projects. One of them has been writing a book on the history of money from a different point of view than many academics!
I wanted to get the truth out about the money you use in your local country and how throughout time this type of government enforced currency becomes worthless over and over again!!
It frustrates me that no one in mainstream media is talking about this! Why is no one telling the people about the inevitable? The failure of our monetary system.
Do you think that you own the money in your bank account? Or do you think that your retirement will be paid out when you retire?
The money in your bank account is not really yours. It is the banks and only when you take your money out of the bank in cash does it become yours again! The retirement money that you hope you will be getting from the government that you have paid into over years is also uncertain if you will get when you retire.
If our monetary system fails that money that you saved up will have the faith like over 600 other currencies throughout history it will be come worthless over night if you haven’t protected your wealth like 1000’s of elites do as they know the ultimate faith of our monetary system.
They also know how to use today’s system to make themselves very wealthy. By printing new money and then buy assets with it. And as the new money hits the market when the asset is bought the asset will have increased in value and they have accumulated wealth.
We have been told a lie about the money we so openly accept to use and it is time to educate yourself on what the truth is about our monetary system!!
I highly suggest you read my new book:
The End of Freedom:How Our Monetary System Enslaves Us
It will delve into the history of our current system, but most importantly what is happening today and how you can protect yourself against any danger approaching of a massive market failure and peoples lost trust in the monetary system.
I was blessed to get the foreword done by G. Edward Griffin the Author of The Creature of Jekyll Isle: A Second Look at The Federal Reserve and the Founder of Freedom Force International.
His book is known as the bible on Central Banking and the banking system!
I also wanted to share with you a mini documentary with me and my friend Josh Sigurdson of World Alternative Media. Where we will give you a quick run through of our monetary history and inflation. Click Here
I wrote early in 2015 about what I think will happen this year. And unfortunately some of my predictions have come true. I have seen a lo of weaknesses in the global economy and we have been blowing bubbles of epic proportions. Meanwhile our media does everything that it takes to keep the people in a sphere of misinformation.
Under is all my predictions. I will under them make comments on all my predictions and then I will talk more about what the outcomes is for the rest of the year and add a couple of predictions that I see unfold in the next year and into 2016.
Lets talk trends and forecasts:
In 2015 we see a stock market crash. This stock market crash globally will probably not be the defining one. We do see another round of QE currency printing, but after this one the crashes will come very rapidly and with no real economics in play there will be a continuous infusion of printing and negative interest rates to keep the dead economy alive on life support.
Continuous increase in debt levels world wide. The Compounding interest game is not over and we believe the only time it will decrease is the end of the current monetary system.
More financial innovation, more risky lending like Car Title Loans. These types of loans are a sign of people being desperate to keep their head over water from stagnate and decreasing wages combined with inflation in food and commodity prices.
Gold might be able to break out again to $2000+, but will it be papered over and more manipulation through gold derivative creation by Central Bankers world wide. A rising gold price should be in place in a real market, but since mid 2013 prices have been stagnate.
More Bail Ins watch Ukraine, Greece, Italy, Spain, maybe Canada, US, Australia, New Zealand and Switzerland??
Oil prices down to near $35 a barrel as the supply want stop. Can we see the raise of creation of Carbon taxes and Gas taxes as Government oil income comes to a minimum. http://www.cnbc.com/id/102313435. We all know how there is a lot of theories out there, but have anyone thought about that and also a consolidation of power among the petro companies as the small companies are running deficits and might get taken over by the big guys.
A further move on sanctions on Russia, Russia might get cornered. But we don’t see a move from Russia until maybe next year 2016. We know Russia have a couple of cars to play. Nuclear bombs, gold and US debt. Which one is hard to guess, but I do hope it is not my first guess. I am all for peace and I don’t want a total nuclear holocaust!!!
Venezuela goes bust and maybe ends up in hyper inflation. With a current 2014 inflation rate of 63.42% as per Tradingeconomics.com A currency reset or a gold standard? It could be a “Black Swan”
Ukraine hyper inflation? A current inflation of 24.90% can snowball if Ukraine goes into full blown civil war.
Comex default? It is very possible with a current leverage of paper gold GLD of about 100:1.
Will we see a crash I fracking junk bond derivatives? Who has bought these and what is the banksters leverage on these assets as Fracking has been in a massive boom.
Greece exiting the Eurozone and defaulting once more. This can happen as the political turmoil in the failed Collectivist state is getting nearer.
Will Bitcoin regain power as Bail Ins might become a reality. Bail Ins will scare people all over the world as they find out that their fiat national currencies are not safe in their bank account. We can see many more Cyprus moments.
Canada will finally have a big collapse of all of it’s raked up debt and a collapse in Real Estate Prices in some areas like Vancouver, Toronto and Alberta with the oil price problems.
More riots across the world as many collectivists around the world tighten their grip financially and politically. Will we see more civil wars?
More people waking up and joining people who want to get their freedom back.
Has my predictions come true?
1. A global stock market crash: There has not been any crashes that are defining moments, but we are seeing the start of it with China loosing over $3 Trillions of money over the last month. Over 30% Crash in Chinese stock prices and with over 45% of the stock market has halted in stocks in corporations frozen to keep the selloff from going down too far. This will only make things worth. Here is a great video from philosopher Stefan Molyneux he goes in deep detail on what is happening. China’s Centrally planned approach will only make things a lot worse until the free market regains control and the Chinese market most probably will fall another 30%.
2. The global debt will increase: The global debt has only increased and many are starting to struggle especially those that have massive government debt that will be un-payable. The US now have over $18T in government debt we haven’t even mentioned the $100T of the US unfunded liabilities.
The Global debt is reaching new highs. Here are some great charts that tells all about the global economy:
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3. More risky lending: We are seeing more and more risky lending around the world again as people have been told we are in a recovery. The problem is that this recovery is being fueled by a mountain of debt. The mountain of debt coming from Margin Debt gambling in stock markets. Continuous borrowing of money to debt ridden governments who cannot pay their bill with their current tax revenue. Subprime lending starting to emerge again. Canada is about to have a sub prime loan bubble to pop as the US had, mostly BC and Ontario also Alberta is looking not so good as oil prices are down and a new big government party has taken over their provincial government. There are of course Puerto Rico, Greece, France, Great Britain, Spain, Portugal, Ireland and Italy that are suffering for highly leveraged public debt. Canada has it’s biggest issue with private debt.
Most of the countries mentioned above should really go for bankruptcy as the longer they wait the worse the pain will be and the more the oligarchical banks will get money printed to them by central banks and the government will put the debt that is used to bail out insolvent nations and banks on the tax payers liabilities.
4. Gold will break the $2000 mark: This prediction is something I believe less and lee in happening this year. Right now the bankers have regained price fixing of Gold and Silver prices as they use their massive GLD and SLV holding in paper gold and silver which is many times backed 100:1. They use this paper to control the price of precious metals and they have been good at it. Experts are saying the real price of silver should be more around $150 instead of $15. There are also shortages in metals starting to take place with recent halt in silver eagle production by the US mint. The paper price of Gold and Silver might stay stagnate, but the physical metal that you can keep as insurance in your home might have a big premium in the coming months as the global over leveraged markets will start to pop and the bubbles will pop in countries world wide as their over indebted private and public sector cannot pay back the debt they owe as interest rates starts naturally ticking upwards.
We will see a lot of government and central banking intervention and we are seeing it in China now where people who make bets on the economy might get imprisoned.
5. More Bail Ins watch Ukraine, Greece, Italy, Spain, maybe Canada, US, Australia, New Zealand and Switzerland:
We are seeing risk for bailins right as I speak.
The most prominent risk is of course in Greece where banks have been closed for weeks as the politicians decide who will they take money from. The pensioners or the young people by getting into more unsustainable debt. Bail Ins are also talked about in Ukraine as they might be failing to pay their IMF debt. Italy, Spain, Portugal and now even Germans should be warned about the bail in crisis as their main bank Deutche Bank have over $28B in loans to Greece which if they default on will having to go bankrupt and might be forced to take German Depositors money. This is still evolving, but we might see a result soon as Greece by tomorrow has to come up with a solution to it’s sovereign debt crisis which German and other banks fueled by lending to them in the first place.
6. Oil Prices at $35 a barrel: We are still not there, but with current oil prices around $52.16 for WTI Crude. Experts predicted at the same time as I a rise up to $110 a barrel, but it looks like I am very much closer to predicting the right outcome even though I am not spot on, but $17 away from the target I thought by looking at fundamentals. A potential nuclear deal with Iran can open up for Iran to sell oil on the international market and this might be what can push oil down to it’s $35 mark. The shale oil fields in North America has seen a massive slow down as their price is unsustainable for them to make a profit. In Bakken alone almost a 50% drop in wells producing shows how bad the oil price has been for over leveraged frackers.
7. Further sanctions against Russia: We have seen many of them already. It looks like they have slowed down, but Russia seems to have moved away from being an importer to become an self sufficient economy that haven’t been hit as hard as western countries hoped for. In Ukraine the turmoil is even worse and it is mostly not Russia’s fault. Though both NATO and Russia are fighting a proxy war in Ukraine.
This shows that I was right back in early 2015 when I predicted Venezuela to end up in hyper inflationary state. Maybe not yet, but with 510%annual inflation that means Venezuelan salaries would have to go up 5 fold in order to not loose all their purchasing power. Also the US put out an executive order making Venezuela a threat to national security as many bankers from the US made loans that they new would not get repaid by the collectivist state.
This is not at any hyper inflationary level yet, but it shows a trend towards printing more money and the Ukraine might default on it’s IMF loans. The difference between Greece and Ukraine is that Ukraine have it’s own central bank and can print its money at will.
10. Comex default: A COMEX default is not in the books yet, but has the current leverage ratio increased since the start of the year? Right now I can’t find any new numbers on the ratio, but with gold and silver physical shortages developing the leverage ratio of the GLD can have become even higher since I predicted a 2015 default.
It was a good plan, as long as oil prices stayed high. But now, with oil prices half what they were six months ago, there’s tremors in that debt mountain, and concerns that an avalanche could quickly take out the weakest oil companies, which simply won’t be able to generate sufficient revenues to service their debt. Not only that, their collateral is evaporating as well. Goldman Sachs analysts figure that $1 trillion of oil investments are virtually worthlessas long as prices stay this low, because marginal fields are simply not worth drilling.
As analyst Ed Westlake at Credit Suisse summed up the trouble in a recent note: “in four years of $100/bbl oil, the global oil and gas industry has taken on a quarter of a trillion dollars in debt, has delivered zero production growth outside of North America and is facing a $1 trillion+ reduction in global revenues.”
Fracking is called a new subprime scheme as many frackers operating costs lie between $50-80. The oil price is now just above $50 meaning most frackers run an unprofitable business where they are over leveraged in debt. If the oil price continues to stay this low. Not very long from now fracking will be a thing of the past until the oil price comes back up again.
12. Greece defaulting on its debt once more and potentially exiting the Eurozone: This has become very true as Greece has defaulted on its debt obligations once more. They are now in the final stages tonight as I write this to see if a bankruptcy and a grexit is the way to go or if they will go the most likely hard way! Another bailout and bank bail in. The thing is that Greek banks can be bankrupt by Monday 13th and the turmoil and wealth confiscation of those who didn’t pull their money in time will start and pensioners will be loosing the most as they saved the most.
Greece has for a long time spent beyond its means and in 2010 they failed to pay their creditors being big banks, but the bailout did not go to the Greek government, but to the big banks as the eurozone wanted to keep it’s banks alive in order to prevent full Euro collapse.
What is certain is that Greece is bankrupt and they will hurt for a while if they manage to stay in the Eurozone or not. If they stay the pain will be more long lived.
The question we should ask ourselves is if the ECB is looking at getting full financial control over all central banks in the eurozone as they are a collectivist idea.
13. Will Bitcoin regain it’s power as Bail Ins will happen?: Certainly the Greek turmoil have moved the prize upwards as people try desperately to find any safe haven to keep the little wealth they have left after the bank holidays started over 2 weeks ago. Here is a chart showing the move. If we see a bail in in Greece be certain the price of Bitcoin in Fiat Currency will move up quite the bit more.
14. Canada will have an economic collapse Alberta through oil, BC and Ontario subprime lending:
Alberta have seen a recession start already as the Alberta oil price almost correlates with the housing prices. When a economy is not well diversified it will have its ups and downs with the commodity prices of the majority produced commodity in that economy. Then we have the propped up housing markets of Toronto and Vancouver. These markets have been over leveraged with debt and when debt becomes over leveraged risks are taken and many subprime loans are made. Like it was in the US. Here are some major subprime lenders in trouble in Canada that can cause a major financial crash in one of the worlds most “secure banking” nations in the world.
Tonight’s first order of business: the part of the financial market that lives in the shadows — less regulated or not regulated at all — is a fast-growing one in Canada.
That’s the bad news. The good news is that it is still relatively small, and, if you’re a borrower who can’t get a loan any other way, perhaps a necessary one. Still, it’s worth asking — if you can’t get a loan any other way, do you really need that loan? And if it’s a mortgage, are you putting yourself and perhaps others at risk, by taking one?
— Amanda Lang
In 2014 subprime lending accounted for about 8% of lending in Ontario. Now the Canadian subprime lending isn’t close to the 24% in the US it might damage he economy quite seriously. Read this article for the Financial Post.
15. More riots around the world: There has been hundreds of riots world wide since I predicted more. Most of these are outcomes of income inequality and frustration coming from the people in many countries. How has the governments responded? In Denmark you will get fined if you insult any public officials. In Spain you will be fined hard if you are attending any protest against the government and you will be fined €30k Euro if you insult a police officer. These laws are draconian and they are meant to intimidate people from speaking out when they are trampled on by governments, big corporations and big banks. We will continue to see riots, protests and other terror attacks until the monetary system is reformed and those in power pushing collectivism and police states step down.
16. More people will wake up to the ideas of individual freedom: Individual freedom should be the cornerstone of any free society. Many people are calling for more government to fix current issues. The problem is that they don’t understand economics. If a government spends more than its tax revenue then it should quickly become insolvent, but what it has done is fraudulently gotten into loans with big banks that the banks and government knew would never get paid back. What has happened through governments and bankers doing this is that more and more people are waking up to freedom oriented thoughts like libertarianism, anarchism and other systems that make you free from the clutches of the big government making you a slave through getting into debt forcing you to pay it back by forcing you to pay taxes.
We will see a lot more things happen as the financial crisis are back and the bankers and governments have become bolder than ever to manipulate stock prices, markets and commodities so everything looks awesome to the general public using our local TV to propagandize us into believing the economy has recovered.
When the government says one thing expect the opposite!
I want to first express my gratitude to all the people who have followed and believed in what I do. Without the people who support the truth and freedom to speak of the truth there would be no light at the end of the economic tunnel.
Although we are facing years of turmoil and volatility and exceptional markets and prices which would show no real attachment to the economy. I believe we can make moves towards a more free and educated society.
I want to take some time to express some of the goals The Economic Truth has for this year. By expressing our goals we then become accountable to you to give you better information, better content and grow all over the world so more people get to know that there is hope in speaking the truth and freedom principles. If we don’t follow our goals we will have issues of contributing to society and helping changing it by focusing outside our goals. We need laser sharp focus and we need to take action so we can all be on the same page and you all can help us achieve our goals so we all can become a great force of good and positive change for millions of people world wide.
Our goals for the next year is getting our Youtube Channel up and running, having Economic Truth Meetup’s in 3 or more countries, set up a monthly google hangout and economic education forum and discussion, tripling out people following us on Twitter and Facebook. Plus add many competitions to win prizes of real value.
Is there anything you want to see us do?? If so we are very open for suggestions!!! We want your input on what we do!
We are very passionate about educating people about Economics and economic systems. We do believe all individual humans have the right to make their own decisions in what they believe as long as it is not in aggression against a group or other people. You need to understand that if we want a successful revolution in this world we need choice! A choice is freedom, but not limited to certain options, but to all options available for human societies.
Let us all take actions to help the economic truth grow into something that is way bigger than all of us x a billion. Let’s leave a legacy for our kids, and their predecessors not of debt and monetary imprisonment from our actions, but of freedom and choice for them all. Lets revamp our education and take away the power from self interest groups to rule us. Let us give the gift of critical thinking back to our kids and their following generations. Let us share rather than compete and hide new inventions, technologies or destroy these by copyrights.
An open community based society that have decentralized power is the way to go. Where of course free markets work their ways without any form of government interference.
Lets talk trends and forecasts:
In 2015 we see a stock market crash. This stock market crash globally will probably not be the defining one. We do see another round of QE currency printing, but after this one the crashes will come very rapidly and with no real economics in play there will be a continuous infusion of printing and negative interest rates to keep the dead economy alive on life support.
Continuous increase in debt levels world wide. The Compounding interest game is not over and we believe the only time it will decrease is the end of the current monetary system.
More financial innovation, more risky lending like Car Title Loans. These types of loans are a sign of people being desperate to keep their head over water from stagnate and decreasing wages combined with inflation in food and commodity prices.
Gold might be able to break out again to $2000+, but will it be papered over and more manipulation through gold derivative creation by Central Bankers world wide. A rising gold price should be in place in a real market, but since mid 2013 prices have been stagnate.
More Bail Ins watch Ukraine, Greece, Italy, Spain, maybe Canada, US, Australia, New Zealand and Switzerland??
Oil prices down to near $35 a barrel as the supply want stop. Can we see the raise of creation of Carbon taxes and Gas taxes as Government oil income comes to a minimum. http://www.cnbc.com/id/102313435. We all know how there is a lot of theories out there, but have anyone thought about that and also a consolidation of power among the petro companies as the small companies are running deficits and might get taken over by the big guys.
A further move on sanctions on Russia, Russia might get cornered. But we don’t see a move from Russia until maybe next year 2016. We know Russia have a couple of cars to play. Nuclear bombs, gold and US debt. Which one is hard to guess, but I do hope it is not my first guess. I am all for peace and I don’t want a total nuclear holocaust!!!
Venezuela goes bust and maybe ends up in hyper inflation. With a current 2014 inflation rate of 63.42% as per Tradingeconomics.com A currency reset or a gold standard? It could be a “Black Swan”
Ukraine hyper inflation? A current inflation of 24.90% can snowball if Ukraine goes into full blown civil war.
Comex default? It is very possible with a current leverage of paper gold GLD of about 100:1.
Will we see a crash I fracking junk bond derivatives? Who has bought these and what is the banksters leverage on these assets as Fracking has been in a massive boom.
Greece exiting the Eurozone and defaulting once more. This can happen as the political turmoil in the failed Collectivist state is getting nearer.
Will Bitcoin regain power as Bail Ins might become a reality. Bail Ins will scare people all over the world as they find out that their fiat national currencies are not safe in their bank account. We can see many more Cyprus moments.
Canada will finally have a big collapse of all of it’s raked up debt and a collapse in Real Estate Prices in some areas like Vancouver, Toronto and Alberta with the oil price problems.
More riots across the world as many collectivists around the world tighten their grip financially and politically. Will we see more civil wars?
More people waking up and joining people who want to get their freedom back.
Remember we still are humans that are capable of love, peace and freedom
That is some of my predictions and trends that I see will become the focus around the world as the fiat currency petro dollar system gets further down into the black hole of debt and interest. I think we need to be reminded about how important it will be that we get together and fight the criminal minds running this dysfunctional and failing economy. We need to partner up join forces. We need to become friends and fight against the failing status quo.
I have a suggestion!!!!! Join Freedom Force International!! I have been supporting this international group of individuals monetarily for the last couple of years and I think you should too!!!
I recently attended a conference in Paso Robles California with Freedom Force. And I got excited about the fight for freedom of individuals!!!!!!! Let us change the world by living our life through these principles.
Swiss Gold Referendum a historical vote without the power of the elites?
On November the 30th the Swiss people will vote on backing their Swiss Franc by 20% gold. First do they have enough Gold to sustain the current gold price in their local currency or will the Gold price in Swiss Franc go through the roof. Will Switzerland need to request gold back from their partners storage vaults around the world?
Lets take a look at the potential outcomes of the Swiss Gold Referendum.
74703200000 CHF 20% of M0 2118.98 CHF Gold 3027,12 CHF Gold 70% of Gold reserves in Swiss. 113287800000 CHF 20% of M1 3213.45 CHF Gold 4590,65 CHF Gold 70% of Gold reserves in Swiss. 178503200000 CHF 20% of M2 5063.31 CHF Gold 7233,30 CHF Gold 70% of Gold reserves in Swiss. 188398600000 CHF 20% of M3 5343.99 CHF Gold 7634,28 CHF Gold 70% of Gold reserves in Swiss.
Oz Gold Total Reserves 35254237 70% in Switzerland Total Reserves 24677966
10% at Bank of Canada and 20% in Bank of England.
1,122.89 current gold price in CHF Oz.
Seeing these numbers above tells us on the high end you can make 679% Return on your physical gold and on the low end 188% over night! So you could make a smart move owning physical gold. Remember Silver could also make the similar move together with the gold price.
What is the history of gold? Currencies have been in several cycles throughout history being backed by gold or not. Here is the history of today’s world reserve currency being backed by gold since 1776. http://en.wikipedia.org/wiki/History_of_the_United_States_dollar
The US have seen three different FIAT Currency Central Banks.
The US have had several Central banks 3 of them that issued FIAT currency and 3 that had a gold/silver/other commodities standard backing them. At one time in the 1860’s one southern currency was backed by cotton and the cotton planters property which means slavery. That makes us think about how todays debt based system is based upon us being half slaves being forced into work in order to pay off our debt. We need to work longer hours and many people in the US and the rest of the world are being forced to work 2-3 jobs in order to keep themselves afloat.
I believe FIAT Currencies combined with Fractional Reserve Lending System by banks in a breach on human rights. You can try to argue with that, but when there will never be enough debt to pay off the existing interest and those who are on the low side of the income ladder are at a place when the new debt supply runs out they are the ones getting caught holding the bad debt and loosing their jobs not affording their mortgage, credit card and student loan debt payments. Is that fair that someone at the top could borrow billions for 0-3% interest while you either can choose from a credit card at 17.99%+ and payday loans up to 2000%.
Then the tax system is rigged against you as well. That is for another blog post.
Back to the Swiss Gold Referendum!
So what is some possibilities and causes after a Majority YES vote in Switzerland at the end of this month?
First of all if it happens now the Swiss people especially the workers and those with the least money can reap the massive benefits of a super strong currency. It is true wealth creation for the people.
Of course their currency is now super expensive so exports would fall, but Switzerland is not the biggest exporter. They would be able to buy a lot of assets in other countries. A 20% Gold Standard will mean that Swiss governments and corporations can buy very cheap products from example countries who are moving the wrong way like Japan. More Toyotas, Samsung products for Swiss people super cheap.
On the other side globally can it cause a global move towards a gold standard for every country? Of course it can, but countries like my residing country Canada and my country of birth Norway who has almost zero gold reserves this move can become devastating to their economies.
Can it start wars? Of course it can. No one hates gold more than modern day bankers and central bankers who wont be able to fit their fractional reserve banking as they will be restricted of money printing. A 20% gold standard is not enough in my mind to protect yourself against the hunger for wealth out of thin air bankers as there is money to play with that are not backed. Fractional Gold Standards have shown throughout history to be flawed as the banking system will still be able to charge interest on newly printed money then creating more money inflating the money supply without increasing the gold value and you will have the 40’s and 80’s all over again and the cycle of fraud by bankers charging interest will continue.
Only a 100% backing would prevent them from creating money out of thin air? hmm. maybe not, but it would be caught very soon. We should outlaw interest charges on loans like the Islamic Banking System!!
That way you cannot print money out of thin air charging interest continuing the Ponzi scheme. A natural increase in gold supply could give the possibility to print more currency as population grows so people have easier access to money and can participate in the economy.
Conclusion?
Are you for or against gold? I am for and hope this vote can turn to a YES, but the establishment will fight tooth and nail to their FIAT grave to stop people from voting yes. All I know it will be some interesting weeks ahead and maybe this could be the black swan event or snowflake that can start the monetary avalanche world wide.
The move by the Swiss people can be historical and if it happens all I know is that I will buy some Swiss Franc in the coming weeks. Remember this is my opinion and not an investment advise as I am not a certified financial advisor.
The move can also mean the death to the IMF’s global currency SDR’s or maybe it is an underlying cause in the making so the IMF can enact a gold standard by adding Swiss franc to their currency basket backing the Special Drawing Rights or World money.
Switzerland is of course the land of the ultra rich and maybe they can steal some of the rich people’s gold deposits in order to not make their Swiss franc to over expensive?
What do you think will happen after a potential yes vote? Comment or share below, got to our facebook page, twitter account or send me an e-mail.
The CPP has as of June 30th 2014 about $226B Canadian dollars worth of holdings. A look at this portfolio helps us get a look at what types of risks are involved in the CPP and whether the Canadians 45 years and younger will ever be able to retire. The current portfolio have around 36.9%, in Currency risk mostly held in US Dollars, 41.5% held in Equities about 30% in Private of Stock Exchange 70% is invested in Public Companies traded on the Global Stock Exchanges(The biggest held stocks are in RBC Royal Bank of Canada and TD Toronto Dominion Bank. 13.9% Is invested in a wide array of Real Estate and Infrastructure most of it being invested in Cash Flow investments. The rest being in Dividend and Interest accruing investment and 2.41% invested in derivatives of that. Below is a picture of the board running the CPP.
As you can see there is no protection against currency risk. I guess they can’t really start hoarding gold as they are watched heavily by the industry. But you can see that about 84% of their entire portfolio is paper investments valued in FIAT Currency. There is a huge risk here and if we were to hit the Currency reset button world wide and move with a global SDR system run by the IMF we are in deep trouble as if the SDR’s will need to go to a gold standard everything that is not denominated in gold backed currency will become close to worthless. Gold is a insurance against currency failure. Only about 16% is in Real Estate which has some value to it, but commercial and retail is a dangerous sector to invest in also if we see currency failure. Already we see monetary velocity the measure of how fast currency flows through the economy at record lows and on a downward trend. So where is the investments in solid commodities and land?? These are one of the most important factors of investing in a structural fiat currency failure trend. Land being land in great locations around growing cities or farmland holding real economic value as they can be used to produce important food to the population.
Countries that hold little gold as I spoke of earlier that the Bank of Canada only holds around 3.4 Tons of gold and that equates to a 0.01% of the countries GDP compared to the EU at 2.7% and the US at 2.2%. The risk is when the currency system fails and the elites moves to a gold standard world wide. Those who sit on investments denominated in Fiat Currency will sit on worthless “Assets”.
The CPP also need constant new contribution as the baby boomers are now soon starting to retire in full and the CPP needs to liquidate their portfolio while they need more people contributing to it. Recently a move to pay more for employees in CPP contribution was announced as there is a shortfall of people able to contribute into the Pension Fund. And we 45 years and under are paying into a system with more money than ever as the need for money to keep the pension plan going are at record heights and the money made does not make up for the increased payouts.
Conclusion
After we have taken a deeper look at the so-called booming economy of Canada, we can clearly see a lot of signs that should worry us and that politicians should talk about. We rarely hear anything other than how corrupt politicians in Canada are as they over use money and outright steal sometimes. How about asking the leadership in Canada about these 12 points? Or how about starting to look at ways to protect yourself from what smells and looks like a coming failure of our current monetary system. It is not a surprise that we see these problems as many of our current issues with Debt, Bank Leverage, Money Supply out of hand and Ever increasing Taxes are not a recent issues. Debt issues go far back and in history we learn about how Usury was banned in histories from the old parts of the bible. Usury is the charge of interest as you borrow money and even Jesus was onto the bankers their early Ponzi schemes when he chased the money changers out of the temple.
The Mississippi Bubble was caused by over printing of shares diluting their value. The Assignat during the French revolution were destroyed by the same principles astodays banking system is struggling with.
What will happen through any Ponzi scheme is the hockey stick moment through exponential growth. This Exponential growth science is very important as it explains how any Fiat currency ends in a death defying moment if we want always growth as the Central Bankers today wants! Below Scientist and founder of Peak Prosperity Chris Martenson explains exponential growth. And how the compounding effect is what creates massive issues.
Bankers earn money in compounding interest, but they give you simple interest. The difference is that compounding interest is always accumulating and simple interest is a percentage of a sum one time and it is not accumulating. This makes the world unfair for those who borrow in compounding interest and save in simple interest. The banks do the total opposite! That is why they always win in the bank run Fractional Reserve Lending system! Well in Canada the fractional lending does not exists as banks have a zero reserve policy.
Take a good look at the below 12 points we have gone through and really think how can I get around this? Here is some of my opinions!
1. Bank Leverage
Get out of the banking system options here are: Bitcoin, Gold, Land, Private Equity, Business, Fine art and Cash.
2. Bail In
Bail in risk can be mitigated by mostly doing the above, but also moving into a smaller local bank.
3. Deposit Insurance
Don’t think you will be saved as only 0.39% of all deposits under $100k is protected from a banking system crash and the Bail In enforcement.
4. Central Bank Reserves
Don’t trust that your government and banks will fix things. The Canadian government and banking system will be dealt the worst possible hand as Canadian Gold reserves are about 0.01% which will pale to comparison with the US, Russia and the EU all over 2.2%. If a gold standard is yet again to be enforced those who sit on the least gold loose their power in the global economy and Canada might not be a G7 member ever again. Maybe a G80? Don’t ever trust banks and governments to take care of you as they shown over 42 times throughout the 20th century that they failed to do!
5. The Way Government in Canada Borrow Money
If you had the chance to borrow money at 0.5% or 2.5% when you borrow billions of dollars what would be your choice? Pretty obvious isn’t it???
6. Banking and investment fees
Under is an illustration of you putting in the sum of $380k over a 25 year time you have given the bankers a fee of $566k although you have $1.28M you could have had almost $2M and that is how much fees steal from you. And then you had your money in a Canadian RRSP(Registered Retirement Savings Plan) so you will be hit with massive taxes as well between 20-40%. Now you are looking at $1M at the low end that you sit with using the bankers and government retirement system. On the other hand many rich are using insurance instruments the same way banks run their daily business sitting with way more money and completely fee and tax free. See the Pic below for illustration of a basic mutual fund:
7. Money Supply
This one is obvious. Money supply is always increasing in order to pay off the interest accumulated which needs new money in order to get paid off. This is a vicious cycle that always ends in misery as there will never be enough money to pay of the interest on the debt created. Even if we paid off all the debt in existence, that means all money there will still be a ton of interest owed on that money that can never be paid back and the Ponzi scheme is revealed!!! I post every quarter an update on the money supply of about 49 countries and it doesn’t surprise me at all that in 95%-99% of the cases countries money supply has increased!
8. Real Estate Construction as a Part of GDP
Real Estate price is always a sign of debt increase. Today we are seeing a boost in Real Estate prices. What is really boosting the prices. It is an underlying debt bubble and foreign investors pouring their money into some of the few places left with a real estate market going up and up and up. Norway and the UK has similar markets. The UK is more in trouble as they have government loan welfare paying 20% of your house mortgage value. This keeps the fake price of real estate in an upwards trend until it is not enough with 20% of your mortgage paid by the government and 30-40% and more and more. In Canada Construction and Lending + surrounding businesses almost equates for 25% of the countries GDP and this is excessive. In a market downturn the new houses are way overvalued and they have a markup on them to make the builders money.
Phoenix, Florida and other real estate market before they busted was over built and the banks were pushing for people who barely could afford into new houses. And the upper middleclass foreigners are also buying houses to get their money out of the country. This only fuels the bubble further and I am seeing locally more building and many foreigners buying houses, but don’t live there.
9. Debt
Money = Debt. This is the formula that you are not getting taught in school. Over 98% of money in circulation today is debt, and on that debt there is interest due. How do pay off that interest? You need to create more debt or else face depression with bankruptcies and foreclosures! That is just how the system works! Debt is increasing simultaneously with the Money supply! Debt is not the killer in itself, but it is the interest that keeps us in the need for a continuous growth pattern. That is why you hear politicians talk about economic growth all the time as that is the only antidote to keep the Ponzi scheme from falling apart. Yes, growth is possible, but infinite growth can only work if we have a supply of infinite resources, which this beautiful world does not have. It is finite and we need to make sure we use our resources wisely as they are the ones keeping us alive!!
10. Commodities and Real Money
Canada has commodities, but lack real money. We have oil, potash and uranium. We have farmland amass, but we do need to understand that these real resources are the backbone of an economy as we need energy and food to keep us alive. Any boom in energy available creates a boom in a civilization, human or animal. The boom in oxygen during the past of the earth’s history created massive boom in population of animals and or insects. Here is a little history lesson for you:
Effects on life
The concentration of atmospheric oxygen is often cited as a possible contributor to large-scale evolutionary phenomena, such as the origin of the multicellularEdiacara biota, the Cambrian explosion, trends in animal body size, and other extinction and diversification events.[9]
The large size of insects and amphibians in the Carboniferous period, where oxygen reached 35% of the atmosphere, has been attributed to the limiting role of diffusion in these organisms’ metabolism.[citation needed] But Haldane’s essay[12] points out that it would only apply to insects. However, the biological basis for this correlation is not firm, and many lines of evidence show that oxygen concentration is not size-limiting in modern insects.[9] Interestingly, there is no significant correlation between atmospheric oxygen and maximum body size elsewhere in the geological record.[9] Ecological constraints can better explain the diminutive size of post-Carboniferous dragonflies – for instance, the appearance of flying competitors such as pterosaurs and birds and bats.[9]
Today the boom in population we have is also based on energy. Carbon energies from coal, oil and gas. We will see a depletion in these resources and that will be a hint of the end of our living standards as we know it. Many of the things we use today especially plastic is a bi product of oil.
Going back to commodities and to our economic system. Commodities are finite and cannot be recreated after they are gone. Debt can and you can print Quadrillions of it, but you wont increase the supply of a commodity or food unless you find more soil to grow on or manage to harvest Helium from another planet.
Back to Canada. The Central and Western provinces have a lot of access to commodities and food through the access to agricultural land. Manitoba, Saskatchewan, Alberta and some parts of Northern Ontario and BC have resources and farm land. These provinces are more resistant to downturns as the financial sector can fail there, but there will still be Energy and food available to their residents. During a crisis these provinces might be safer than ex. Quebec and Most parts of Ontario.
11. The CRA (Canada Revenue Agency) The Tax collectors
Taxes usually come into play to help a country go to war. This is no difference for Canada and others. Taxes is one form of government to make income for itself to go to war and they can also print money. The truth is that today Governments print money through deficit spending and then need to tax us more to pay off their unsustainable debt which they cannot pay down, but only pay interest on. CRA is a Private corporation with Government benefits that is set as the governments enforces of tax collection. A Crown Corporation is very similar to a SOE in China. State Owned Enterprise’s have governments backing them and giving them access to cheap money and deals.
The truth is that CRA is taking advantage of it’s position trying to scare people into paying more taxes to give themselves better revenues. If we do need to pay taxes. We can cut the government to a minimum and pay very little taxes. Many countries around the world with less resources have way less taxes and that means we can to. Government will only grow and grow until it has consumed the last taxable dollar in the private sector and then it will collapse back in on itself.
12. CPP (Canada Pension Plan)
We took a look at the assets held in the Canadian pension plan and it became apparent that they have a lot of Fiat Currency denominated assets. Mostly derived from the real thing. The CPP is not the same as in example the OilFund of Norway or several other Sovereign Wealth Funds where they get money from they half state owned Oil or Natural Resource companies the CPP gets their increased supply of money from their own people which pay a set amount from their paychecks every on of them to contribute into the common pot. The issue here is that they are taking money directly from the people instead of taking a limited supply of profit from their Crown Corporations profits instead?
On top of that during a Fiat Currency failure many of their holdings that are denominated in FIAT and that are paper investments will become worthless or close to it. As a Fiat only holds it’s value until we stop believing in it. It is all a game of confidence. When a Fiat currency get a loss of confidence from the people it was forced upon it will rapidly loose value as it will most likely need to be printed into oblivion and only things of real value will be left with value. These items would be real businesses not paper shares in them, Gold and Silver, other commodities not shares in their companies and at last land. By land I mean usable land not land based on consumption which is a big part of their holdings through their investments in Retail Shopping Centers. You are better off making your own plan and not letting governments steal your money!!
Final Conclusion
Canada is not the Switzerland that we hear in the news and it is only held out by a house of debt cards.
Maybe reconsider what you think is a great investment and see how you can mitigate your wealth’s hit when the structural cracks make the whole societal and monetary structure come down.
I hope I informed you enough to start looking into what information you build your paradigm on.
Debt is the mother of all indicators of a healthy system. When debt rises rapidly and other indicators like unemployment and Business Startups vs. bankruptcies rises. Something is wrong when people need to get into debt to afford goods, services and shelter. As the US and many other countries who suffers have had a minor rise of private debt, Canada has had an explosion. Canadians lend more than ever as they anticipate good times ahead. Their houses are their ATM’s and Credit is cheap through car loans and credit cards.
Canadians have more debt load now than ever in the history of the country and it is not slowing down. Here are some charts to show how Canadians have gotten more and more into debt since 2008.
Statistics Canada says the ratio of household credit market debt to disposable income increased to a new high of 163.4 per cent in the second quarter compared with 162.1 per cent in the first three months of the year.
That means Canadians owe just over $1.63 for every $1 in disposable income they earn in a year.
As you can from the last chart above Canadian household debt is skyrocketing while it is deflating all over the world. Making Canada look like everything is great. The truth is that Canadians live in a mirage of a recovery as the pump and dump of debt by the private banks have helped to increasing the bubble which should have crashed in 2008. Cheap currency have helped to keep the status quo, instead of raising incomes for people. The bankers have forced Canadians to accumulated debt to keep the inflation gap from eating them alive as they have less and less money.
Debt is money and Money is Debt in today’s system and when debt disappears so does money. Can Canadian debt continue to increase or will it hit the wall as the maximum amount of debtors and the possible payment back of the debt has hit the maximum possible potential. And will then hit a mass bankruptcy and foreclosures as there are no more people that has the possibility or willingness to get into more debt to pay off the interest on the current debt. In a Ponzi scheme you always need new blood at the bottom to feed the top and when no more money is created to pay off the racked up debt by the top of the pyramid. There will be no more money to pay off the interest that doesn’t exist in money yet.
Debt is dangerous and it has destroyed many empires throughout the last 2000+ years a FIAT Currency system is a Ponzi scheme by design and we all know what happen to them when no more people will participate as the Ponzi scheme is discovered.
Something that is helping Canada, especially in the Central and Western provinces is the real economy of commodities. How big is the commodity economy in Canada?
Commodities and Real Money
While money gets created, where is the possibilities to preserve wealth and keep wealth? What goes up in price I would ask? Food, Metals and other consumer goods has gone up in price ever since we went away from controlling the monetary supply to start up a central bank in 1914.
Can Farming and commodities keep the economy alive or will the debt burden be too big? Commodities and Food are of very importance as we rely on them to survive in our daily life. What would the world today be without Silver? We wouldn’t have solar power, Electronics or Cars as they all have an amount of Silver content that they couldn’t exist without. How about water? The most important commodity for survival of the human species and also food. Can we make sure to keep what we need of food, and commodities so that in a case of crisis we don’t have to worry as we are self sufficient. If the Supermarket does not get supplies it takes on an average 3 days to run out of supplies in a city.
So for survival and general protection against fiat currencies it would be great to have some food, water and other commodity reserves as they might be too expensive or in short run.
The Central and Western Economies of Canada does have a bigger influence of Commodities and agriculture, but unfortunately the Real Estate and Finance Sectors are exploding while The Commodity, Agricultural and Energy sectors are slowing down as the fiat currency system is making it’s last cycle of decadence and spending on things that does not count in real economic terms. Things extracted from the earth and harvested are real and they usually benefit people. Oil exploration in Canada is an example of how a very expensive way of extracting oil was made possible by cheap money and high oil prices.
Oil is one of the biggest exports of Central Canada, but it is dependent on the US not producing more oil. Canada is very dependent on the US to Export their commodities and Food. Over 70% of their total exports goes to the US so the continuous bad economy in the US is not helping to grow the real economic sectors of Canada and is forcing people into the Real Estate and Financial Sectors.
Can the commodities sector help Canada stay afloat when the Debt bubble pops? Certain Provinces in the West can be more self sufficient, but the financialization and the move away from the real economy can damage the economy more than it will do good.
Will we see a bloom of the use of Gold and Silver? In Canada the banking sector have a strangle hold on the people in a way that no one really understands how gold and silver works. Gold and Silver is money. The campaign against the barbarous relics have been good, but people are waking up and I believe Canadians will at one point understand how important it is to have something that can hold it’s value through a structural crisis in the coming systemic issues the fiat currency system has.
Canada has gold within their boarders and I think we as Canadian’s should force our Central Bank to protect itself and us as the fall of the US empire will probably hurt Canada the most.
We have been talking about the importance of Commodities and the lack of an understanding among people on how gold and silver is important as an insurance. There are other dangers lurking in the Canadian financial wilderness and one of the most devastating ones is the CRA which is not a part of the government, but it is a crown corporation. Similar to the Chinese State owned Enterprise’s the Crown Corporations does have benefits from the governments as easy access to lobbying policy changes to help them thrive more and destroy the private businesses.
CRA
The CRA or Canada Revenue Agency is not run by the government, but rather is a for profit organization that has a mission to collect as much taxes as possible on the behalf of the government. The CRA have been caught time in and time again using scare tactics to almost extort money from you that you shouldn’t really pay, but they will tell you that you need to pay your taxes before you hire a good accountant to help you mitigate or even get money back on what the CRA said you owed them and had to pay.
Here are a couple of Cases where the CRA overpower and take advantage of people:
The official mission statement of the CRA is “to administer tax, benefits, and related programs, and to ensure compliance on behalf of governments across Canada, thereby contributing to the ongoing economic and social well-being of Canadians.” For the CRA, compliance means filing tax returns by the deadline, ensuring the declaration is complete and true, and paying the Canadian government what the CRA has determined is due in a timely fashion.
The CRA has become a destructive force and so has most other tax collectors for other countries. The most notorious one being the IRS in the US having their own SWAT teams to raid people’s businesses and homes if they believe you have hidden some tax dollars from them. When you give too much power to anyone there will be people seeking to get into those roles of power in order to misuse them for their own good. It is just human nature and many government institutions create positions like this on default by creating auditors, inspectors and semi police. These moves of tax collection is not new and they were as rough back in the dark ages when you had to pay taxes directly to the King when his tax collectors came and knocked on his door.
The Income War Tax Act, 1917, received Royal Assent on September 20, 1917. The scheme of the legislation provided for a simple and accessible appeals procedure, but not one without hazard for the taxpayer. Taxes were to be paid within one month from the date of mailing of the notice of assessment. Any objection to the assessment was to be made personally or by an agent (not necessarily a solicitor), in writing and in a form prescribed by the Act to the Minister of Finance within 20 days after the mailing of the notice of assessment. Failing that, the right to appeal was lost, unless the Minister exercised his discretion to extend the appeal period.
Taxes only becomes necessary to keep up a big government/empire. As they grow bigger and bigger they need to steal more and more money from the productive group of society in order to pay themselves. The only income the Government has comes from taxes. And when government gets too big it will become a self destructive force as it passes over 51% of the total economy. What then happens is that there is not enough income from taxes on the private sector and they will decline into an oblivion as they can’t afford to pay themselves and will need to print money to get out of it which will only destroy the economy further as the rentier class emerges using money to make money! The income tax acts of both the US and Canada came about from removing productive people from society sending them to war to destroy wealth and they had to get paid and there were no tax on peoples income so the government came up with a “fantastic idea” of taxing your hard earned money.
Almost a century later the warnings of those who studied history that said the income tax might start at 1%, but history shows that the tax rate will hit up to 50%-60%. This person was made fun of as people said why do you think that would happen? Well who is laughing today? Taxes will only increase and so will government until the system collapses in on itself. That brings us to the last point and that is CPP the Canadian Pension Plan.
Talking about things to collapse that the governments deficit spending does the CPP will be a great example of something that worked when there were tons more workers than retirees.
Conclusion
We talked in this post about Canada’s debt which is ever increasing. The debt burden in today’s Fractional Reserve Banking system will only increase as The newly created debt will always have interest charged to it, and that interest does not exist. If we paid off all our debt there would still be interest owed. And the system would collapse. Today’s system is built up like a Ponzi scheme and if there are no new borrowers of money to borrow more money to pay off the already due interest the loans will fail and the system will contract as the Ponzi scheme falls in on itself, but after this happens the banksters are still in control just that you lost everything you owned as you had taken out loans to your bank.
We also wrote about how Commodities play an important role in the Canadian economy when the system collapses. As Wealth or owned commodities will always have a real value that will never really go down in value as the supply of paper currency is the only thing that fluctuates. It is not all of Canada that is commodity rich, but the Western parts of Canada is witnessing some growth while the big financial centers are slowing. The Western provinces sits on a lot of commodities and Agricultural land. When debt and money creation skyrockets having land that is in good condition or having access to commodities becomes an important survival mechanism to the paper apocalypse that is slowly moving towards us. But do remember that of all of Canada’s exports 75%+ goes to our neighbors south and if their economy slows or crashes so does ours!
We also discussed the CRA Canada Revenue Agency and how they are used as an enforcer for the government mafia to take in taxes on the governments behalf. Since the early 1900’s when the Canadian tax code was one page and income tax came into existence.
History
Unlike the United Kingdom and the United States, Canada avoided charging an income tax prior to the First World War. The lack of income tax was seen as a key component in Canada’s efforts to attract immigrants as Canada offered a lower tax regime compared to almost every other country. Prior to the war, Canadian federal governments relied on tariffs and customs income under the auspices of the National Policy for most of their revenue, while the provincial governments sustained themselves primarily through their management of natural resources (the Prairie provinces being paid subsidies by the federal government as Ottawa retained control of their natural resources for the time being). The federal Liberal Party considered the probable need to introduce an income tax should their negotiation of a free trade agreement with the United States in the early 20th century succeed, but the Conservatives defeated the Liberals in 1911 over their support of free trade. The Conservatives opposed income tax as they wanted to attract immigrants primarily from the United Kingdom and the United States, and they wanted to give immigrants some incentive to come to Canada.
Wartime expenses forced the Tories to re-consider their options and in 1917, the wartime government under Sir Robert Borden, imposed a “temporary” income tax to cover expenses. Despite the new tax the Canadian government ran up considerable debts during the war and were unable to forego income tax revenue after the war ended. With the election of the Liberal government of Prime Minister William Lyon Mackenzie King, much of the National Policy was dismantled and income tax has remained in place ever since.
You can see from this that taxes was almost non existent, but as government grew and grew the few percent in example the income tax started at has now increased to way into the double digit. When income tax was created in the US some congress men warned of that the tax would end up becoming as high as 30-50%. They were laughed at, but who is laughing today when income tax in the highest brackets are way above that and the government have 100’s of more taxes. What happened? As the government continues to grow unless we the people interfere there will be even higher taxes and your savings looks like becoming the next victim for big bank and government greed and the chase of accruing ultimate power as greed leads to in every empire throughout history.
The Economic Truth 