What if “The Plan” is to Devalue and Inflate?

Toronto (and Canada) grew in form, purpose and identity since that time. House price appreciation was Not a straight-line either, using rudimentary math is fun, but that’s not how we measure value – it’s based on what someone-else will pay.

41-CPI-adjTREBpricesVsNominal-NOV2018

50ft x 120ft lot, now you have to go to Georgina for that, their was no DVP, subway ended at Eglinton (working on Bloor/Danf), Don Mills was considered suburbs, this part of North York was cow pasture. Canada/Ontario was much different – it was like idyllic small town in 50’s, know neighbours, wife at home, kids walk/bike everywhere. Then Pearson, Trudeau, FLQ, Oil Shock, 5-10% Inflation, 6&5 Price & Wage Controls, 21% mortgages, 12% inflation, then rates drop and House prices double from 1985-1989, Interest rates up to 18% prices drop 25%. Then 1996 it rebounds – people are buying. Then 9/11 knocks people off balance – but only for a qtr. Prices continue with lower interest and easy/ easier credit until it all explodes in 2008. But zero % interest and continued easy credit propels it further. Final whoosh comes from “mortgage originators” rubber-stamping phoney credit applications for spec’s and flippers AND THEN fobbing those non-qualified loans onto CMHC(i.e. taxpayers) as syndicated loans under their Portfolio “re-insurance” scheme … see FannieMae/FreddieMac …. want to know why Uninsured Mortgage applicants have +2%B20 rules? because CMHC is overextend with garbage loans. Know what rates cannot go up? because Fed/Prov/Muni’s are barely able to service their borrowings at these low rates, Know why prices won’t fall? …because it’s in NOBODY’sbest-interest for that to happen. Not you, not me, not the lenders and not CMHC …. so what’s the solution? Devalue currency and “Inflate out” of the bubble …… But keep it quiet. If people think inflation is coming, they’ll horde hard assets and defeat the “rescue project”16475 Don Mills and finch

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