Central Bank Asset Growth

[jazz]

The BoC cant keep those assets on its books forever, eventually it will need to find a buyer and interest rates will have to be higher to entice anyone to take on our debt.

Someone pointed out Canada has trillions in assets so its no big deal. Our trillions of assets are worth zero if they are stuck in the ground and there is no investment to dig them out.

Canadas debt to gdp is all that matters. If one expands and the other doesnt, you have a problem. I see nothing in the 500B spent that will increase our gdp. I se a lot of things that are going to drag it down.

[burnt]

Oh most of us were called right wing conspiracy flatearthers when we brought this very subject up several years ago .
This has been planned for Canada the day Trudeau got in

Long before that, but he's putting it into fast forward.

Which casts the whole pandemic thing under the shade of intention as it created the perfect moment to put the plan into operation.

But of course, with our newfound, enlightened attitude, we believers all understand and unequivocally accept that it's all for the betterment of our world.

[chuckChuck]

Blaithin where are you? We need another intervention here. Some of the "boys" are back to their favorite political subject after you chided them for their undignified comments! LOL

Mallee and others were adamant we should start a political thread to keep the commodity subject free of this kind of stuff. Was it all just hot air?

[burnt]

The BoC cant keep those assets on its books forever, eventually it will need to find a buyer and interest rates will have to be higher to entice anyone to take on our debt.

Someone pointed out Canada has trillions in assets so its no big deal. Our trillions of assets are worth zero if they are stuck in the ground and there is no investment to dig them out.

Canadas debt to gdp is all that matters. If one expands and the other doesnt, you have a problem. I see nothing in the 500B spent that will increase our gdp. I se a lot of things that are going to drag it down.

You may be confusing natural resources with assets.

They are not necessarily interchangeable.

What some see as assets are your property and net worth.

Think about it.

Then just relax and let the amazing new utopia have its way with you.

[jazz]

Just so we can remove chuck from the conversation, $500B was enough money to cover every single home in the country with solar panels and probably 10% of the prairie sunbelt. It wasnt done again. Why isnt it a priority if climate change is so dire?

It was enough money to put a hydrogen pipeline to every city in the country.

And it was enough money to put 100 new hospitals up in the country so we never have a situation again where we have to lock down for a bug.

Nope, all of it went into vote buying.

[chuckChuck]

So the US has been using mega amounts of stimulus for years and their debt to GDP ratio prior to Covid was going higher, while Canada's was declining.

So stimulus and support in canada is bad but in the US its okay?

I don't see any any Conservative premiers saying they want less help from the Feds! Hahah

[FarmJunkie]

Obviously it’s working. Look at Chucks response. If u can’t see this is what’s happened your the problem. Next you gonna tell us we are being racist against dum people. We can’t fix problems if u don’t admit there is one.

[macdon02]

Brian Chang of Crusoe Economics has explained how the BoC doesn't necessarily need to unwind. He's got some dandy articles specific to Canada only. Ive yet to find anyone as good as him on all things Canada. But im interested if anyone has good links on the mechanics of BoC.


https://crusoeeconomics.com/2020/06/18/does-the-bank-of-canada-need-to-unwind-its-balance-sheet/

[furrowtickler]

Brian Chang of Crusoe Economics has explained how the BoC doesn't necessarily need to unwind. He's got some dandy articles specific to Canada only. Ive yet to find anyone as good as him on all things Canada. But im interested if anyone has good links on the mechanics of BoC.


https://crusoeeconomics.com/2020/06/18/does-the-bank-of-canada-need-to-unwind-its-balance-sheet/

You crazy flatearther, lol
Quit with the conspiracy already ... I mean truth of what’s going on

[chuckChuck]

Obviously it’s working. Look at Chucks response. If u can’t see this is what’s happened your the problem. Next you gonna tell us we are being racist against dum people. We can’t fix problems if u don’t admit there is one.

Your words not mine. Try to stick to the issue.

[macdon02]

Japan and ECB have been using stimulus as well and look at how well that has worked. BoJ is the only buyer of Govt debt in Japan. Now ECB is talking going digital, so the decision is made. They wrecked their bond markets. Word on the street is everyone but the Fed is going to electronic currency, barring a dem win, elimination of paper currency in Jan 21. This means Canada will as well. Kiss your physical loonies goodbye and we likely see negative rates with no ability for a bank run. We are past the tipping point on ever believing govt will pay back principal. Look for talk of "perpetual bonds" basically a default. The ability to save wealth will be recreated in a shift from public to private. It's a massive mess created by idealists.

[furrowtickler]

Errol has been warning of this for years ... he must be a flatearther conspiracy theorist as well

[furrowtickler]

So the US has been using mega amounts of stimulus for years and their debt to GDP ratio prior to Covid was going higher, while Canada's was declining.

So stimulus and support in canada is bad but in the US its okay?

I don't see any any Conservative premiers saying they want less help from the Feds! Hahah

We live in Canada , not the US .... for the thousandth time

[Austrian Economics]

Japan and ECB have been using stimulus as well and look at how well that has worked. BoJ is the only buyer of Govt debt in Japan. Now ECB is talking going digital, so the decision is made. They wrecked their bond markets. Word on the street is everyone but the Fed is going to electronic currency, barring a dem win, elimination of paper currency in Jan 21. This means Canada will as well. Kiss your physical loonies goodbye and we likely see negative rates with no ability for a bank run. We are past the tipping point on ever believing govt will pay back principal. Look for talk of "perpetual bonds" basically a default. The ability to save wealth will be recreated in a shift from public to private. It's a massive mess created by idealists.

I don't think that a move to a digital currency really affects much, and I doubt that the central banks really care if you use paper money or not. Any business beyond a mom and pop enterprise cannot function transacting solely in cash.

I definitely agree that negative rates are on the way. As a fiat currency collapses under the dead weight of debt that cannot be repaid, rates have to go lower and lower just to provide relief for debtors. Whether the "solution" is perpetual bonds or MMT, these ideas are just a way to put lipstick on the pig of widespread default.

[AlbertaFarmer5]

I don't think that a move to a digital currency really affects much, and I doubt that the central banks really care if you use paper money or not. Any business beyond a mom and pop enterprise cannot function transacting solely in cash.

I definitely agree that negative rates are on the way. As a fiat currency collapses under the dead weight of debt that cannot be repaid, rates have to go lower and lower just to provide relief for debtors. Whether the "solution" is perpetual bonds or MMT, these ideas are just a way to put lipstick on the pig of widespread default.

So, can there be such a thing as a painless default by either of these means?

By painless, I mean not resulting in mass chaos, obviously it is not painless to anyone trying to be financially responsible.