Written by Jeff Nielson Sunday, 09 September 2012 14:16
Regular readers know that going back more than a year now, I have been outlining two, potential (and nearly opposite) scenarios going forward. I indicated that either our economies would plummet into a high-inflation/hyperinflation price-spiral (due to excessive money-printing); or they would simply disintegrate, as the Western financial crime syndicate manufactured another crash in order to prevent the previously mentioned price-spiral.
The latter scenario was precisely what occurred in 2008. However, in a commentary from one year ago titled Why 2011 Is Not 2008, I documented to readers how the “solutions” foisted upon us by the Banking Cabal during this first crisis had dramatically and irreparably damaged all Western economies. The only exception to this mass-suicide was Iceland, which threw the Bankers out – and subsequently saved their economy.
Because all Western economies are much more crippled than they were just four, short years ago; I’ve indicated my suspicion that the Bank Oligarchs didn’t “have the stomach” for another manufactured crash. This is due to the fact that nothing in our economies is more fragile than the bankers’ own multi-trillion dollar paper Ponzi-schemes.
Creating another “crash” event would detonate so many gigantic losses on Big Bank balance sheets that no amount of money-printing could avert their total destruction. Put another way, it would require so many $trillions of new money-printing just to “stop the bleeding” with these fraud-factories that the result would be instant hyperinflation – as all the People simply and finally rejected these infinite stacks of the bankers’ worthless paper.
We now see increasing evidence that this suspicion is being confirmed. While the media again reports that our economies have plunged into another mega-crisis; this time it is doing so (relatively) quietly. In 2008, the Western propaganda machine was just one, gigantic Chicken Little.
Instead of “the sky is falling,” we were warned (in the most shrill, hyperbolic terms) that we were facing nothing less than the total collapse of our financial systems and our entire economies…unless we listened closely to the bankers, and did exactly what they told us to do. To emphasize their point, the Banking Cabal deliberately “crashed” the global economy – the inevitable result when this banking oligopoly colluded to simultaneously cut-off all capital to an entirely debt-based economic system.
Deprive some strung-out heroin junkie of his “fix”, and you guarantee a severe (if not fatal) withdrawal reaction. Deprive a global economy filled with debt-junkies of any more debt and you guarantee similar, severe “economic withdrawal” – an immediate economic crash.
The Big Lie which the bankers tried to pass-off on us was that History’s most-insane gamblers and reckless lenders were (suddenly) “afraid” to lend anyone money. However (as usual) the banksters’ own actions proved they were lying. Even after U.S. Big Banks had literally been guaranteed infinite, free funding (i.e. unlimited quantities of 0% loans); they still refused to do what they had promised – and lend into the broader economy.
For any banker-apologists who would still dare to suggest that the Big Banks don’t collude; the bankers have already proven you wrong. In confessing to market-rigging with respect to $500 trillion in LIBOR-based transactions; this is by definition a crime of collusion – since the LIBOR rate itself is set collectively, by these same Big Banks.
In 2012, we see the bankers and the Corporate Media again colluding. However, while in 2008 this tag-team unfailingly acted to amplify panic; today our don’t-worry-be-happy media optimists simply say to us again and again “problem solved.”
By my unofficial count, the propaganda machine has announced a “solution” to the (made-in-the-USA) “Euro debt crisis” on approximately a hundred separate occasions. That’s a very impressive performance by Europe’s bankers and Traitor Politicians – given that this “crisis” is a mere three years old.
Written by Jeff Nielson Thursday, 06 September 2012 11:46
I am far from the first writer to report that Canada’s housing-bubble is nearing some dramatic rupture. Indeed, I may be the last writer to have covered this topic – despite being based in Canada.
Why have I been the last scribe to jump on the media’s “bubble-mania” bandwagon concerning Canada’s housing market? Because there has been little to report here other than soaring debt-levels, which also exist throughout the Canadian economy; and, indeed, throughout all Western economies. The building bubble itself has not been even slightly newsworthy.
Lost in the mainstream media’s disjointed reporting on individual markets is a simple truth. As long as the West’s psychopathic banking cabal continues their policy of insane, destructive, near-zero interest rates; every housing market of every Western economy will be in a perpetual cycle of building bubbles or bursting bubbles. Period. Thus reporting that a “Canadian housing bubble” had formed had all the “news value” of announcing that the Sun had risen again in the morning.
What has finally caused me to jump into this topic are two factors. First of all we have very strong evidence that “the end is near.” Secondly, there is the entirely suicidal manner in which Canada’s current government has (deliberately) constructed this housing-bubble.
Regarding the former point, almost always an asset-bubble will telegraph to the market when it is about to burst with an unequivocal signal: falling sales. To understand why this is such an obvious warning-sign requires at least a rudimentary understanding of the mania which fuels such asset-bubbles.
In the case of housing-bubbles, that “mania” is composed of a mixture of the greedy and the fearful. For the greedy, the soaring prices which characterize any/all asset-bubbles are like a clarion call: “get rich quick.” For the fearful, soaring housing prices cause an anxiety attack: if they don’t “buy now”, they will never be able to afford to make a purchase. Allowing emotions to enter into one’s important financial decisions is an inevitable recipe for disaster.
What falling sales tell us is that the mania is over, and a point of “capitulation” has been reached. This occurs when both the greedy and the fearful say to themselves “too expensive” – the death-knell of any/every bubble. In Canada’s housing market, two of the largest urban markets (Toronto and Vancouver) are reporting dramatic drops in sales.
In Toronto, urban sales are now down 13% year-over-year, while in Vancouver sales have plunged by 17% over the same period, and are now at lows not seen since 1998. The end is near.
This brings us to the second factor: the made-for-collapse manner in which Canada’s housing market Ponzi-scheme has been constructed. Here two people merit 100% of the blame: Canadian Prime Minister Stephen Harper, and the man he appointed to run Canada’s central bank – Mark Carney.
As an ardent admirer of all things “American”; Stephen Harper wasn’t content with having just an ordinary housing bubble in Canada’s housing market. He wanted a Canadian bubble of epic proportions, just like Uncle Sam’s. Consequently, Harper’s Conservative government has totally unshackled Canada’s banks, and allowed them to run wild with reckless lending; exactly as occurred in the U.S. just before its own bubble burst (for the first time).
Only three short years ago; Canada’s financial system was the envy of the entire world. Today its financial sector is just another bankers’ Ponzi-scheme. At precisely the same time that the U.S. is belatedly dismantling (fraud-ridden) Fannie Mae, Harper’s government has been rapidly building Canada’s own “Fannie Mae”: the Canada Mortgage and Housing Corporation.
The CMHC has been buying-up mortgages so fast that the Harper government has had to raise its legal borrowing limit twice just since the Conservatives took power, and will soon raise it a third time as it nears its new limit of $600 billion. In proportionate terms it is now larger than Fannie Mae (at its peak), and this occurs as a Euro Pacific Capital report reveals that, “Once small, Canada’s sub-prime mortgage industry is now booming.” It goes on to report that there are now $500 billion in “high-risk mortgages” in Canada’s housing market – nearly half of the entire mortgage market.
Meanwhile, the obscene “home equity” loan market has also exploded in Canada. These “HELOC” loans (once known as “second mortgages”) have exploded by more than 170% in Canada over the past decade. This massive increase in needless debt inevitably and substantially increases the magnitude of any housing sector implosion.
Mission accomplished, Stephen Harper!