Man, we are all takin a shit kickin' out there, aren't we? You see, I live in Canada (arrest me now) and a very prosperous part at that. In fact, I live in arguably the richest and most affluent part of this great Country. Oil rich, I mean OIL RICH. It's insane. The avg. median price of a home, I believe, is somewhere around $350k right now. Average. AVERAGE. Minimum wage here is (again, from my memory) $9.00/hr. I think that number may even be high. Now, if a home is too much, you can always get an apartment..for $200k and up. Still too much? There's always basement suites...for $800 a month. Insane.
Let me explain a little backstory to you. Over the last, oh say, 6 years we have experienced a HUGE boom in this province due to oil money. We have oil sands in the north of the province, and from this millions of barrels are extracted. The sands employ thousands of workers, who otherwise would not be able to make the wages they are making in other provinces of the country. So with this oil boom came the housing boom. I have never seen anything like it. Ever. Hundreds upon hundreds of new homes. Dozens of cranes building dozens of high rises. Condos in every suburban neighborhood.
The vacancy rate is something like 0.9%-1.5% I believe. But new building starts are way down. And this begs the question: how much is 1.5%? How many places lay vacant? Considering the amount built, 1% could be a few hundred, or a few thousand. I see it everyday. And 1% is conservative. It must be higher, because I have been looking and finding many units (some in very exclusive parts of the city.) Brand new condos, houses, all empty.
Speculators looking to make a buck? I'd say so. I'm currently looking for a new place and trust me..it is now easier than a year ago, when I was almost SOL.
Prices..remain the same. For now.
I don't work in the oil patch. I don't make huge money. I don't have full benefits (health care is gov. funded here, minus dentist, eyes, ears, stuff like that) and I need dental work. This is the majority. Oil profits do not trickle down to the citizens (a.k.a. sheeple) from Big Ol' Oil. I can not afford a condo, or a home to call my own. I am a renter, and a renter unless I make more money or prices come down. Gas is expensive. Rent is expensive. The Canadian dollar is basically par with the U.S. dollar. Americans aren't buying our exports. The numbers will support that, I do not doubt. The U.S. dollar sinks, we sink. Plain and simple. We do basically ALL of our trade with the U.S.A. These days, all they want from up here is oil. They taxed our softwood lumber (illegally) years ago, stopped our beef at the border. That hurt, and still does to this day. Just ask the ranchers and the millworkers.
People, we are all screwed. Face it. Wake the hell up and realize. We've all been suckered. The financial collapse of the U.S. economy is engineered. Plain and simple. Just like the implementation of the Fed down south before, we will have another "savior" institution arise from the ashes. A new, more continental system. I guarantee. We'll be right on board, like it or not. Expect to see more banks liquidated, seized, whatever can be done to phase them out. One central bank. That is the goal. IndyMac is the first big assimilation. Who's next? The sector knows, but they want to keep the rest of us guessing. It's better than coming out and being honest. 20 years ago we saw the same, with small banks being *pooFED.* It cost $125 billion of taxpayer money then. How much will it cost now?
So the point...
My boss took economics in University. It was his major. He fancies himself a know-it-all of the subject. I enjoy challenging his perception (WARNING: not to be confused with actual knowledge) of the system. Now I would imagine that he did learn about the U.S. economy. I'd HOPE he did, the same with Great Britain's system.
One day, we got on the topic of the U.S. meltdown, his opinion being it's a temporary issue, and that the Fed will save the day with rate cuts! Rate cuts are the answer! Let's get people into more debt! (a point which he didn't understand.) More affordable to borrow?! GREAT LET'S SPEND!
So the fed cuts rates, and cut rates, and cut rates. And we watched. And watched. And watched. The months passed and I "told him so" and loved it. So now.."When they raise rates it'll be all good." Hah. Sure.
I had to let him know at that point.
"The fed is a private bank that lends money to the Gov..you know that right? A private institution sets monetary policy for the States, boss."
He couldn't believe it. The look of bewilderment. Disbelief. He fought me on it. He had never heard such a ludicrous thing. I was a liar. I didn't know what I was talking about. He DENIED the truth of the matter because he is so far in his slumber.
"Everything is fine, houses in the homeland (here) will always be valueable. We will live long and prosper and our American friends will be fine."
I am the uneducated fool.
Ahhhhhhhhh. The attitude of a "scholar."
Which would explain why he works where he does.
Subscribe to:
Post Comments (Atom)
Posts
6 comments:
I was an economics major in college (in the 70s) and didn't know that about the Fed either until I researched it not long ago and nearly fell off my chair. Why didn't they teach Austrian economics in college? Anyway, the view of most educated people here in the States (teachers, mostly) is, "things will get back to normal soon." To paraphrase (nicely) the Irish guy in Braveheart, "we're screwed." Thanks for your blog.
Insane, isn't it? The whole "culture of the educated" is totally...fucked. The world of the elite, oh how I beg for a glimpse..
And I wonder what period of "normal" time they are referring to?!
great blog. I live in Alberta too, so I see and live your perspective.
Too bad the sheeple don't and there isn't anything we can do about it.
thanks my friend. Crazy place we live in, EH?!(hah)
Bloody hell - all we have to do in restore the tax burden where it belongs - onto the CORPORATIONS!
In 1913, we were screwed by the introduction of the Federal Reserve and corporations being given the rights of a "person".
I'd also add that the replacement of the original 13th Amendment has loads to do with that, as well.
yup. Pardon my language, but Fuck the fed, all goddamned money changing money grubbers.
The recession and soon to arrive depression is planned, and has been long in the planning.
Toronto -- hog town as it's accurately called btw and where I happen to (have to , for now) live -- has been experiencing a boom in development too, for a long while. Specifically high-rise condo development. And as far as I can see, most of them are empty. I've long been wondering just who is going to occupy/live in the countless condos when our birth rate is zero to negative and immigration is also low (comparatively speaking vis-a-vis recent years and decades). Only thing I could guess was that empty-nest boomers would be leaving the burbs for the urban condos. But then who would purchase the suburban homes? See. Ijust don't get it.
All I can think of is that a whole lot of people, including some developers are going to be taking a bath. And WHO will benefit? Hmm? Could it be the money changers once again?
btw, I learned some lifelong, valuable lessons from studying economics. But don't recall learning about the Federal Reserve until the internet. Yeah, what they don't tell you in school is a whole lot, especially a whole lot of truth!
btw, here in Canada the crown, aka the royal tennenbaums (haha, I mean the royal blue-bloods, those dastardly Windsors (and their relations) still owns everything. Why do you think they call certain gov't enterprises Crown Corporations, hmm?
Thanks for the blog. Right on...
Post a Comment