Canadian banking haven myth exposed

Canadian banking haven myth exposed

"One of the reasons that Canadians (and international commentators, other finance ministers and global financial institutions) buy this Canadian banking fairy tale is the way the government accounts for the money borrowed to support the banks." The sorry spectacle of Conservat

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Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your loans, guys and gals, because we are going into a high interest rate period. Very high. It will be the equivalent of going into the double digit interest rates we had in the 80s where many people threw their house keys at the bank and we had record numbers of ba

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E-cigarettes save lives, money

E-cigarettes save lives, money

"We know that cigarettes have thousands of chemicals in them and we know that they are killing us. They have been for over a hundred years. So now, the e-cig industry comes along with only one or two chemicals in their mixture and people are freaking out over these as well. Whe

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US inches closer to big bank charges

US inches closer to big bank charges

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Canada’s home sales top predictions; why a real estate crash is inevitable

Canada’s home sales top predictions; why a real estate crash is inevitable

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Comparing today’s recession/depression to the 1980 recession

Comparing today's recession/depression to the 1980 recession

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Why savers are getting screwed

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Geithner admits USA bankrupt to US Senate

Geithner admits USA bankrupt to US Senate

"Never in our history has Congress failed to increase the debt limit when necessary. Failure to raise the limit would precipitate a default by the United States. Default would effectively impose a significant and long-lasting tax on all Americans and all American businesses

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World economies on verge of currency revaluations to deal with debt

World economies on verge of currency revaluations to deal with debt

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford Basically what the world central banks are doing is increasing their money by devaluin

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Is Obama the next Mugabe of Zimbabwe?

Is Obama the next Mugabe of Zimbabwe?

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US raiding foreign countries with dollars, not soldiers

US raiding foreign countries with dollars, not soldiers

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FDIC wants your retirement cash to save banks: Bloomberg

FDIC wants your retirement cash to save banks: Bloomberg

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person drowning

“Inflation came in hotter than expected. Markets were expecting to see a 2.2% increase in headline inflation but it came in at 2.4%. The more important piece of information is what happened to core inflation because I think markets will largely look past the increase in energy prices. The more important issue is that the core inflation advanced 1.8% — that’s up from 1.5%. Markets were actually expecting an unchanged reading at 1.5%”

“I really don’t think this changes anything from the point of view of the Bank of Canada. I still think that the Bank of Canada is going to remain on hold in the coming months. There is still an awful lot of uncertainty related to the economic outlook as we’re looking at unsettled financial markets related to what’s going on in Ireland and continued concerns about the U.S. economy. I think the Bank of Canada won’t view today’s inflation report as unduly worrying. So while we have seen core inflation move back up a bit and closer to the Bank of Canada’s 2% target, it doesn’t change my assessment that the Bank of Canada is probably on hold until the middle of next year.”

“Whenever you have stronger inflation numbers, it should be positive for the currency, because it raises the odds of the Bank of Canada doing something sooner rather than later, but I think if the Canadian dollar does get a lift on that perception, I think it would be the wrong one.” source

Canadians doubt official reports

Canadians have way too much mortgage and consumer debt. The only way to curb this problem is to incease interest rates, and of course that makes most readers here (and Canadians) unhappy. Many advisors tell us that rates should be no less than 4 or 5% in this market (Canada), and we are going to continue to shoot ourselves in the foot until we get that correction. Many bankers are upset at the Bank of Canada for letting this slide. What has happened is that the Bank of Canada is punishing responsible people in favour of those in serious mortgage and debt. The result? Higher commodities for everyone.

The price of energy is up, mainly due to the HST, which drives up costs in other sectors, like food and shelter. This in turn is reflected in a higher inflation rate. The Bank of Canada justifies the need to “cool off” this inflation by raising interest rates.

shadow stats real inflation rate Real US Inflation Chart provided by Shadowstats

Consumers who are already paying outrageous interest on debt will then face even higher interest rates as the banks immediately and exponentially pass along Bank of Canada increases despite their rates never dropping in sync with the current 1% rate in the first place. Thus, cash-strapped consumers will be gouged even more, creating a vicious circle.

Probert from Canada writes:

According to my calculations, life in November of 2010 is actually costing me about 12% more than it did a year ago! Where does the 2.4% number come from?

Commuting back and forth to work now costs me 14% more today than it did a year ago. The HST increased the cost of gasoline automatically by 8% and the additional rise in fuel costs accounts for the other 6% increase. Fuel for transportation costs me 11.75% my NET EARNINGS every month. I needed a 14% increase like I need a hole in my head! This doesn’t even include the costs of financing, insurance and maintaining a vehicle.

The cost of electricity in Ontario went up automatically by 8% with the introduction of the HST. Furthermore, the introduction of “Smart Meters” is also costing me an additional 4% on my overall electrical bill! Electrcity is now costing me 9.23% of my total household NET INCOME.

What do you think the inflation rate is?

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My property taxes have increased every year for the past eight years! They now account for 5.76% of my total NET HOUSEHOLD INCOME! Every year, my property taxes go up, and services get reduced or illiminated, or service fees now apply.

Only the wealthy unaffected

Naturally, only the wealthy elite will receive any mitigating increases to their incomes (likely at the rate of unjust enrichment), while the rest of us are forced to struggle earning even less and paying more. I’m having a hard time reconciling Dalton McGuinty’s promise that the HST would create 600,000 jobs unless they are part-time minimum wage.

If the HST ultimately causes mortgage and debt interest payments to increase, thus causing substantial economic damage to the families, retirees, and businesses of Ontario, proving Dalton McGuinty’s promises of HST prosperity as malicious falsehoods, then he and his Liberals should face criminal charges and class action litigation.

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