Magic Money

RE: Economy: Concerns about banks safety unfounded The Times May 9/2013

Mr. Dixon are you telling us that Mr. Flaherty did not bring the same unregulated financial players into Canada that caused the American crisis with their 40 year no down payment loans, and they didn’t deregulate the whole financial sector, and it hardly matters whether those toxic loans ended up with CMHC or the gamblers that made them because those insurance polices you talk about are paid with out with Canadian tax dollars. 

Whether you want to call this present situation erroneous conspiracy theories or solid government policy the fact is that calling Canada's or any other countries monetary system stable at this time in history is just plain wishful thinking. 

Every country has to print at least as much new money every year to cover all interest on all loans but for the most part this is far from the present practice, America is printing $85 billion a month or about 3.2 trillion in the last 5 years, the European balance sheet is even higher $3.45 trillion or how about Japan which will double it’s currency in the next two years and most countries in the world are doing the same thing just to keep this monitory system afloat and while Canada is apparently just printing enough to cover interest it’s deficit is growing at an alarming rate and will be $673.1 billion by the end of the year. This policy is called Quantitive easing or the opposite of what was done in the great depression, printing massive amounts of money out of thin air and holding interest rates at record lows, only history will tell if this monetary experiment works and saves the present monetary system from collapse, but the simple fact is that every new dollar you print devalues the already existing ones so savers and seniors on fixed incomes are the biggest losers.  

It is not surprising that Conservatives always expand a countries debts, it is wealth redistribution from the taxpayer to the rich from whom the government borrows the money, the Republicans and Harper would like nothing more than to bankrupt the nation so they can justify eliminating all social safety nets.

Mr. Dixon appears to be very happy with the view from where he is sitting and thinks I need to join the real world, but this is the real world and the consequences of years of Conservative magic money theory. 

PS You might want to check out a very well done article on the whole world financial reality  PeakProsperity.com