Canada Kicks Ass
Has Housing Bubble Sprung A Leak?

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Scape @ Thu Aug 11, 2005 12:43 pm

Experts: Don't Count On Property Values Rising

Forbes: Housing Bubble "Dangerous"

In markets like San Diego the rise in prices has slowed dramatically and it is speading fast.

   



Toro @ Sat Aug 13, 2005 7:31 pm

Ah Scape. Good to see you my man!

I totally agree with you. Housing is a bubble. I have pages and pages of SHOCKING statisitics to back up my claim. But ya'll would have to pay money for it! :wink:

   



Scape @ Sun Aug 14, 2005 1:08 pm

TORO!! Dam good to see you!

What your take on repatriating Canada's public debt to the Bank of Canada at the rate of of 2% per year to the 20% level and at market interest rates?

   



Toro @ Sun Aug 14, 2005 1:34 pm

Scape's an honest guy because he knows how I'm going to answer - and I respect that! I'll throw you a bit of a curve ball to flush you out.

I'm all in favour of it if it by "repatriating" you mean "retiring", which is what Canada has been doing for the past decade. Canada's national debt is what, around $500 billion. So at 2% a year, that's $10 billion a year, not too far off what the government has been doing. (I could find the exact numbers but I'm lazy.)

But I've got a feeling that's not what you mean! :wink:

   



Scape @ Sun Aug 14, 2005 3:14 pm

You are correct. Canada's public debt could be repatriated to the Bank of Canada up to the 20.8% level, where it was in 1975, from the present level of 8.6%, at the rate of 4% per year. This could all be done at market interest rates. Why? The current policy is costing Canadians about $37 billion a year in interest on a $500 billion debt. This is not only unacceptable, but unnecessary!

Obviously it is only common sense to borrow from ourselves, and pay that interest back to the people of Canada. Sadly, common sense has not been the driving force in government policy these days. It would seem to make logical sense for Municipalities to have access to low interest loans for infrastructure improvements. The same could be said for all levels of government.

Our municipal governments hold a tremendous burden and responsibility to their rate payers, as they must make decisions for the very intricate details which affect every citizen on a daily basis. They must have access to low interest funds, in order to create viable, sustainable and functioning cities, towns, and rural communities. To continue to tax the citizenry to support the infrastructure at increasing rates, as noted by the Federation of Canadian Municipalities, upwards to 55% will cripple the taxpayers. Sustainable municipalities is not optional, without affordable funding for these programs, the infrastructure will crumble and we will have chaos. That road to chaos is fast approaching, as the FCM also placed the infrastructure gap at $57 billion for the entire country in 2003.

Paying off the debt is good but we should also get rid of the middle man and deal directly with the source when it comes to municipal taxes. This mean municipalities, not RBC, should be the bank of the people and this means getting the BoC back in business. The counter argument to this is inflation of course but we already are at 55% tax rates, is that not an inflation all it's own?

   



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