The US dollar fell last month and probably has further to drop. The US is facing massive stagflation pressures as it deals with rising prices, but no economic growth. This happened before in the 1970s. Here are 3 primary catalysts explaining why it’s happening again today. The US government butchered the pandemic response compared to other parts of the world… Read More »
Past and future predictions Last year I predicted rough waters for 2020’s economy, and suggested 4 investments to protect against uncertainty. How did those suggestions work out so far? National real estate prices are +7% from last year. Year to date my silver stocks (WPM.TO) is +79%. Major telco stocks are down by about -3%. XCB.TO, an ETF… Read More »
What is driving Canadian FIRE? Everyone is affected by the FIRE economy in one way or another. FIRE is an acronym that stands for Finance, Insurance, and Real Estate. Together, these 4 industries are growing over five times faster than the general economy and represent about 1/5th of Canada’s total economic output. FIRE is especially important in BC.… Read More »
Bar Stool Economics Capitalism in the United States is in serious disrepute. The Bush tax cuts have been said to give the top 0.1% of Americans an average of $520,000. That is over 400 times the average tax cut received by middle-class households. Many people are upset at how tax cut policies seem to disproportionately benefit the upper class. If anything,… Read More »
Economics is the only profession where you can gain great eminence without ever being right. Remember earlier this year when just about everyone anticipated higher interest rates, but then the Bank of Canada slashed rates instead? If mainstream economic predictions were right interest rates would be a lot higher by now, our wages would have grown to keep… Read More »
How Money is Created For a country’s GDP to grow there needs to be economic expansion, which means people must earn and spend more money. But in order for additional money to exist somebody has to create it first. That’s where you and I come in. 🙂 Money is created whenever we borrow money from a bank. When we take out a… Read More »