Central Bank Asset Growth

[macdon02]

The thing about gold for me is the Roosevelt factor where owning physical was banned. If the wheels absolutely fall off society as we know it, food, as a store of wealth takes a bigger priority. I suspect bitcoin will be banned as well in this hunt for an equitable restart. Who knows where we are headed but 1 thing is forsure, the academics intentions will not occur. This is gonna get wild. First to crash = first to recover that's the refuge we need to watch for.

[macdon02]

So what happens to the US Currency, bond market and debt has no impact in Canada? I think most people would disagree.

Some sectors of the Canadian economy are back some are not. An unmitigated Covid out break will also shut dow the economy and result in a lot of pain and deaths. I don’t know any government in Canada that says we should do nothing and let it run it’s course. Ontario and Quebec are struggling to contain the damage.

The US currency will rip every govts face off around the world. They've issued their debt in USD. They are focused on keeping rates low, domestically, they can't control the USD. Until we see a G5 event which will be a reaction to higher USD ala 1985 they will not react. Lower USD makes paying debt easier for the world to repay but no govt has intentions of austerity. NOBODY has paid off principal since 2008. The real bubble is govt debt. And those ads by Govt of Canada on the radio about redeeming mature bonds needs to be taken. CB's do not wish harm on anyone, they have our best intentions at heart but are being forced into corners by politicians as the Guardians of the Galaxy. Listen to their guidance on rates, they always forewarn. Not all is evil. They do exactly as they say.

[jazz]

Hyper inflation is not a given either. Look at Japan.

Japan isnt a great example. Their main assets were/are an industrious work force backed by technology. Inflation has no effect on those. In fact they are deflationary.

Canada is a different animal, we are all hard assets with a lazy work force. Inflation will take root here and its effect will be felt. Some who own assets will make out ok. Most dont though and they will be flattened by the cost of living.

[Austrian Economics]

It's important to distinguish between retail / commodity price inflation and asset in inflation. A falling interest rate environment leads to retail / commodity price deflation and asset (equities and real estate) inflation.

Prices of commodities and retail goods can also go up due to non-monetary factors, such as supply shocks, taxes and regulatory compliance costs. A measure like the consumer price index doesn't distinguish between monetary and non-monetary influences on prices.

I'm not suggesting that we won't see some upswings in ag commodities in the near future, but the overall price trend is down.

[Austrian Economics]

If our economy does experience hyperinflation in commodity prices, that will be a clear sign that industrial infrastructure is collapsing beyond repair. This problem won't be solved by adjustments to the quantity of money. There will be no "angle" that someone can play to escape the consequences. It's much more fundamental than that. Basically, the economy has consumed its capital resulting in scant production of fewer and fewer goods and a return to a barter system. Whatever goods that can be produced will naturally command exorbitant prices.

[Hamloc]

So what happens to the US Currency, bond market and debt has no impact in Canada? I think most people would disagree.

Some sectors of the Canadian economy are back some are not. An unmitigated Covid out break will also shut dow the economy and result in a lot of pain and deaths. I don’t know any government in Canada that says we should do nothing and let it run it’s course. Ontario and Quebec are struggling to contain the damage.

Interesting article in financial post by Terence Corcoran about the costs of closing down the economy. I believe it was in Britain the cost was $17 million per death. Death loss from Covid-19 was far lower than computer models projected and I am not trying to say every life wasn’t important or that the loss wasn’t great but in reality governments over reacted and now they want to impose socialism on us all. On the farm I am no doubt lucky because my need to interact with people is very limited but I think people backing the policies of Bernie Sanders or AOC are very work challenged and intellectually challenged!!!

[Austrian Economics]

Here's an article that is very much on this topic, although from an American perspective. But it's pretty much the same story anywhere:

https://monetary-metals.com/silver-not-stimulated-7-oct/

"However, the government has long passed the point where it can get more tax revenues from the economy. So with every increase in its spending, it turns to borrowing.

The government borrows from Peter to stimulate Paul. This is much more politically popular, because Peter believes he has a good asset. The asset pays interest (though much less than ever before). And the asset goes up in prices, making Peter feel richer.

Got that? Peter’s savings are consumed to stimulate Paul, but Peter feels like he is making money.

God bless deficit spending! Everyone loves it: Peter, as we see is happy. Paul, of course, experiences that unique warm bliss which brings a grin to his face. Economists say it stimulates not just Paul but all the Johns in the economy, too. Wall Street loves it. Republicans. Democrats. Pretty much everyone."

[macdon02]

Here's the guy that the UN, IMF and ECB is listening to

https://en.m.wikipedia.org/wiki/Thomas_Piketty

[helmsdale]

There's a couple aspects of farmland that everyone who advocates for it as a "store of wealth" seem to forget.

First off is the fact that you legally register your deed. The government knows you own it, and they know what it's valued at. If SHTF, what government is going to let landowners keep what the general population will deem as ill gotten gains? Regardless of whether you cash it out at some future point, or simply hold onto it, government is going to want a piece of that pie. They are already very publicly floating the idea of a wealth tax. Nobody needs to know that you have a vault full of gold or precious diamonds in your basement, but the whole country will know exactly how many 1/4's you have to your name. It's not private!

Secondly, due to legal impediments in most jurisdictions, it can only be subdivided up so many times, so it's not like you can sell off a piece of it to cover a shortfall in cashflow, or purchase items necessary to live. It's not divisible

Thirdly, many see it as a cash producing investment in the form of rent. Ask landlords of appartments or invesment properties in many places around the world how that's working out for them in the current environment? The government can with the stroke of a pen revoke the tennants responsibility to pay you rent in part, or even in whole.

Fourthly, It's very difficult to defend. Again, if SHTF, and you live somewhere other than on the land in question, how do you possibly compel a tenant to pay for the use of said land? We rely on the state to ensure contracts are upheld, but if this world really starts to burn, what law enforcement agency is going to use the threat of violence against a tenant to uphold your rights as a landlord?

THIS government in particular, has already showed that it has a strong dislike for passive investments. When they finally get hungry for tax dollars, passive investment is going to get thrust back into the spotlight, as will capital gains whether realized or not.

Land as a store of wealth is a long ways from a "sure thing" in my mind if we as a society take a running jump off the high diving board into the shallow end of the pool.

[macdon02]

"Nobody needs to know that you have a vault full of gold or precious diamonds in your basement, but the whole country will know exactly how many 1/4's you have to your name.*It's not private!"


Umm but they do know if you own gold because there's a registry. All sales are reported back to govt. Unless you're melting coins or cutting up electronics, there's no way of avoiding it. Just ask next time at the post office or bank.

[helmsdale]

"Nobody needs to know that you have a vault full of gold or precious diamonds in your basement, but the whole country will know exactly how many 1/4's you have to your name.*It's not private!"


Umm but they do know if you own gold because there's a registry. All sales are reported back to govt. Unless you're melting coins or cutting up electronics, there's no way of avoiding it. Just ask next time at the post office or bank.

Yes physical pure gold... I perhaps shouldn't have said "vault", but more like "firesafe", and it could be full of jewelry, heirlooms, and other assorted gold pieces. The trade off is that they have to be "assessed" as to their purity if you were to try and trade with them.

There is no way to own a piece of farmland, even a small one, that's off the books.

[MBgrower]

There's a couple aspects of farmland that everyone who advocates for it as a "store of wealth" seem to forget.

First off is the fact that you legally register your deed. The government knows you own it, and they know what it's valued at. If SHTF, what government is going to let landowners keep what the general population will deem as ill gotten gains? Regardless of whether you cash it out at some future point, or simply hold onto it, government is going to want a piece of that pie. They are already very publicly floating the idea of a wealth tax. Nobody needs to know that you have a vault full of gold or precious diamonds in your basement, but the whole country will know exactly how many 1/4's you have to your name. It's not private!

Secondly, due to legal impediments in most jurisdictions, it can only be subdivided up so many times, so it's not like you can sell off a piece of it to cover a shortfall in cashflow, or purchase items necessary to live. It's not divisible

Thirdly, many see it as a cash producing investment in the form of rent. Ask landlords of appartments or invesment properties in many places around the world how that's working out for them in the current environment? The government can with the stroke of a pen revoke the tennants responsibility to pay you rent in part, or even in whole.

Fourthly, It's very difficult to defend. Again, if SHTF, and you live somewhere other than on the land in question, how do you possibly compel a tenant to pay for the use of said land? We rely on the state to ensure contracts are upheld, but if this world really starts to burn, what law enforcement agency is going to use the threat of violence against a tenant to uphold your rights as a landlord?

THIS government in particular, has already showed that it has a strong dislike for passive investments. When they finally get hungry for tax dollars, passive investment is going to get thrust back into the spotlight, as will capital gains whether realized or not.

Land as a store of wealth is a long ways from a "sure thing" in my mind if we as a society take a running jump off the high diving board into the shallow end of the pool.

most land owners hold title to their land, the crown ultimately is the owner. One day they ("government") may just take it back?

[furrowtickler]

What would a Conservative government done differently?

Think about this for a minute if you possibly can ...


I don’t give a hoot about the US at this point .. can’t you see what’s going on here in Canada ??
For the sake of your kids and / or grandkids...

[furrowtickler]

most land owners hold title to their land, the crown ultimately is the owner. One day they ("government") may just take it back?

https://www.google.ca/search?q=agenda+21+in+less+than+5+minutes&ie=UTF-8&oe=UTF-8&hl=en-ca&client=safari

Again take a very close look at agenda 2030
That video displayed in an early thread .... watch number 1 .... just sayin

[TASFarms]

Think about this for a minute if you possibly can ...


I don’t give a hoot about the US at this point .. can’t you see what’s going on here in Canada ??
For the sake of your kids and / or grandkids...

To bad it didn’t have what The Liberals did to that country in that time line.