The Bank of Canada ranks LAST out of 100 major central banks globally
Friends:
I have blogged and talked on social media for years now, often several times a month about the #COMER lawsuit in Canada and all related issues.
The COMER group, which I am a part of -- has been in court SUING the Federal Gov't to give control BACK to the people of the monetary supply and policy.
Canada came off the gold standard in 1974, the USA came off in 1971.
I remind people ALL THE TIME of this corrupt mismanagement that people actually pay for every day.
You can get updates via www.COMER.org
Today I found a good article on ZeroHedge for some of this.
While other central banks have been busy increasing their gold reserves, Canada sold off all its gold reserves in 2016.
https://www.zerohedge.com/news/2016-03-03/its-official-moment-canada-has-no-gold-reserves-left
There is precedence in a central bank selling off its gold, and it didn’t work out very well. In 1999, when the price of gold was low at $282.40 an ounce, the United Kingdom sold half of its gold reserves, worth approximately $6.5 billion.
This sale raised $3.5 billion.
By 2007, the price of gold had risen to $675.00 an ounce, and the UK had lost more than £2 billion. This financial disaster, known as Brown’s Bottom, did not work out well. And Canada appears to be following in its footsteps.
With many uncertainties globally, Canada’s gold sale could have serious consequences.
In this age of fiat currency, many people forget that gold is actually money, and has never stopped from functioning as a reliable store of value. Gold is a relatively liquid currency and one of the most highly traded.
As per Canada’s senior Finance Department economist Bill Morneau, the reason for the gold sale was the cost involved in storing the gold and the fact that gold offers a poor return.
If you ask me, that is absolute GARBAGE for a really really poor excuse. It is beyond laughable.
https://www.zerohedge.com/news/2016-03-03/its-official-moment-canada-has-no-gold-reserves-left
How about fire some bureaucrats in big government and use the space to store the gold??????
That seems like strange logic since gold has outperformed the S&P 500 since 2000. The price of gold went from $35.00 an ounce in 1967 to over $1,300 today.
As former US Federal Reserve chairman Alan Greenspan has said:
Central banks have been big buyers of gold since 2010. The prime buyers have been Russia and China, but most other central banks have scrambled to follow suit.
On the other hand, Canada has now joined developing countries such as Angola, Belize and Tonga that have no gold reserves at all. Is Canada headed for disaster?
Canada’s current reserve position of $10,412 billion in the IMF entitles it to 2.26 percent of votes within the organization. It has reduced its reserve position by $1.2 billion. With the sale of gold, Canada is greatly reducing its voting power in the IMF.
Is Canada’s financial power gradually diminishing along with its gold reserves? It seems to have created a mysterious scenario of “ … and then, there were none.”
Following the sale of its of gold, Canada’s market debt has surpassed $1 trillion in a historic milestone.
http://www.cbc.ca/news/politics/federal-market-debt-1.4590441
This debt is mostly due to the uncontrolled borrowing made possible by the Bank of Canada’s easy lending policies. Canada has a current debt ceiling of $1.168 trillion, and it is anticipated that Parliament will have to increase that ceiling in the near future.
According to the government, it has the power to borrow to refinance its massive debt. But borrowing will only serve to increase the already existing mountain of debt further. Canada has become one the leaders in global debt, and its solution appears to be to continue adding to it with new borrowing. Canada household debt now equals 101 percent of its GDP.
Canada is in a BAD spot financially.
- Any shift in the global economic wind would leave Canada twisting in the wind, it seems.
Ironically, Canada’s record debt comes at a time when economic growth is at 3% (2017) which was the highest in six years and many economists expect this to continue.
That optimism, however, is misleading. Canada’s economic growth comes at a time when its total deficit spending has increased to beyond $18 billion. Outstanding corporate credit reached a historic high of $803 billion in 2017.
In addition, Canada is facing a mortgage bubble, with homeowners who bought lavish houses on easy credit now finding themselves unable to afford increased interest rates on their mortgages or being unable to sell a house they can no longer afford.
Canada’s financial policies has been a puzzle to many. While other countries are amassing gold, it has deliberately sold off all its gold reserves, while other countries are attempting to reduce massive debts, Canada appears to plan on increasing its own.
Countries that have historically valued gold have been or have strived to be global powers. The mere ownership of gold has always been a sign of authority. Canada, on the other hand… is flying solo, and might be heading for a crash.
Source in Parts
Thanks for Reading.
Hope you are doing better than #Canadastan.
Canadian tire money
thank godi've been saving, hopefully they'll also take timmies gift cards
That is my retirement plan!
Since their labour issues and policy issues, they are hurting but lol
A true Canadian eh.
Clowns.
LOL
Years ago I purchased an old beat up copper token from newfoundland dated in the late 1800. On it was an inscription that read "copper is better than paper".
It was interesting to me that even back then the people had a distrust for fiat money, and preferred something tangible.
Great story and reply.
This seriously infuriates me. I remember when I was young, there were regularly commercials about how the economy was running in the black, that we were ranking #1 place to live in the world, etc.
Sadly, as a country, we have been making some truly poor decisions in leadership that's truly seeing the degradation of the country. I would like to blame it all on justin, but this has been a long running trend.
Excellent article.