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Old 01-24-2023, 08:15 AM   #934
Azure
Had an idea!
 
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Quote:
Originally Posted by GGG View Post
I think that is an interesting theory that offshoring savings offset the money printing activity however if that were the case and didn’t occur with a corresponding replacement of GDP you would have had currency devaluation especially in the US. Would be interesting to see how it affected the overall system as you are correct that the basket of goods would get cheaper in that scenario.

I think you are looking at the supply chain issue incorrectly. I see it as supply chain reduced the supply of goods therefore to prevent inflation you need to reduce the dollars chasing those goods. By forcing more money into interest payments you reduce demand and therefore the supply chain problems is reduced. Once the supply chain issues work their way through we should see lowering rates which Opendoor outlined very nicely in his post of what currently is happening.

Money laundering in BC is something like 5% of the housing increase per the BC government so a part of but again not a significant affect.

I go back to this one being pretty simple. People with jobs didn’t spend people without jobs didn’t produce and were given money. Then everyone started spending again while productivity was crushed due to a variety of factors. Then inflation occurred. In hindsight it seems pretty obvious and the solutions seems to be working.

Yes it sucks for people and yes the ongoing problems in Canada of competitiveness and corruption still exist.
We do have currency devaluation.
Quote:
The value of the United States dollar has fallen considerably in recent years, raising questions over the dollar’s long-term viability as a safe-haven currency.

According to data presented by Finbold, the U.S. dollar has depreciated sixfold over the past 50 years. In 1972, the worth of one dollar was $1, but by 2022, the value of a dollar has dropped by an incredible 86%, to $0.14. The dollar depreciation data is derived from statistics supplied by the United States Department of Labor and calculated by the researchers at officialdata.org.
https://finbold.com/real-value-of-on...last-50-years/

Again, I am not saying that controlling interest rates should not be done. I am saying that the feds are literally sitting on their hands when it comes to these issues.

Also not a Liberal Party versus CPC Party issue. This behaviour has been going on for years all across North America with every elected government.
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