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Presenting The Worst-Capitalized Central Bank In The West (Hint: Not The Fed)

Tyler Durden's picture




 

Submitted by Simon Black via Sovereign Man blog,

As the world’s top central bankers gathered at their annual jamboree recently, the governor of Bank of Canada, Stephen Poloz, undoubtedly received envious comments from his fellow money magicians for Canada’s perceived status as a global financial safe haven.

This newly found perception was perhaps best exemplified during a Bloomberg interview, when the CEO of RBC Wealth Management – the biggest financial institution in Canada said that “Canada is what Switzerland was 20 years ago, and the banks in Canada are what Swiss banks were 20 years ago.”

This is the new flavor of Kool-Aid. Canada is seen as the new banking safe haven and an “island of safety and stability” because of its perceived sound fiscal position, commodity wealth and solid economic performance.

Now, anytime I see central bankers slapping each other on the back, I’m going to be skeptical. But here at Sovereign Man, our conclusions are all data driven… so we dove into the numbers.

First, the Big Daddy himself—Canada’s central bank.

Any strong, healthy banking system requires a central bank with a pristine balance sheet… specifically, substantial net equity as a percentage of assets.

So how strong is the balance sheet for Banque du Canada? Not very.

As it turns out, Banque du Canada is actually the most pitifully capitalized central bank in the western world. They’re in such bad shape they actually make the Fed look healthy.

Hong Kong’s Monetary Authority Exchange Fund is a good example of a strong balance sheet; their latest figures as of 30 June show a whopping capital reserve equal to nearly 22% of total assets.

This is a massive margin of safety for the central bank.

The US Federal Reserve, on the other hand, shows a capital reserve of just 1.27%. And Canada? A tiny 0.47%… as in less than one half of one percent.

This isn’t safety and stability. It’s a rounding error.

Moreover, Canada also has ZERO reserve requirements for its banks; this means that Canadian banks are not obliged to hold any of their customers’ deposits.

So yes, it’s legally permissible for a Canadian bank to loan out 100% of its customers’ funds.

Not to worry, though. The Canadian Deposit Insurance Corporation (CDIC) is standing by to insure bank deposits up to $100,000.

But when you look at it closely, there isn’t much there for depositors at all. There’s roughly $646 billion of eligible deposits in the Canadian banking system. Yet the CDIC only has $2.8 billion in cash available to insure it all… a ratio of just 0.43%.

Even more troubling is that Canada has legislated an actual Cyprus-style confiscation of deposits in the event that Canadian banks deplete their capital.

Buried deep into the government’s Economic Action Plan 2013 is a provision that would implement a “bail-in” regime for “systemically important banks”.

This would legally allow the banks to tap into customer deposits if the banks get into trouble… something I don’t find particularly safe.

Last, the Canada myth really starts to become apparent when you look at the country’s gold reserves.

At the beginning of this century Canada held 46.19 tonnes of gold. Now they hold only 2.99 tonnes. That’s a whopping 93.5% decline in gold reserves in just over a decade!

In other words, Canada’s monetary leadership has made a conscious decision to reject real assets in favor of paper assets that can be conjured out of thin air.

They’ve managed to run their central bank into borderline insolvency.

It’s important to look at facts and not rely on sentiment.

To anyone who rationally looks at the data, the obvious conclusion is that Canada is certainly NOT the safe-haven it’s been built up to be.

 

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Wed, 09/03/2014 - 17:20 | 5177270 SafelyGraze
SafelyGraze's picture

no reserves required

none

 

Wed, 09/03/2014 - 17:21 | 5177274 knukles
knukles's picture

Gotta smoke, eh?

Wed, 09/03/2014 - 17:27 | 5177294 Mark Carney
Mark Carney's picture

Mission Accomplished!

 

your move Stephy boy!

 

LOL K BYE

Wed, 09/03/2014 - 17:33 | 5177315 El Oregonian
El Oregonian's picture

Oh, but Americans are Hoarding all that money! CNBC says so!

//sarc off

Wed, 09/03/2014 - 17:35 | 5177322 Pool Shark
Pool Shark's picture

 

 

"Reserves? We ain't got not reserves. We don't need no reserves. I don't got to show you any steenkin' reserves!!!"

 

 

Wed, 09/03/2014 - 17:48 | 5177358 remain calm
remain calm's picture

The funny thing about China's 22% capital reserves is that 3 trillion is in US bonds(dollars), Rot Roh Shaggy we got a problem, zoink!

Wed, 09/03/2014 - 18:45 | 5177578 cifo
cifo's picture

So what happens to the Central Bank of Canada if it becomes "insolvent"?

 

Wed, 09/03/2014 - 19:10 | 5177642 Leonardo Fibonacci2
Leonardo Fibonacci2's picture

"This newly found perception was perhaps best exemplified during a Bloomberg interview, when the CEO of RBC Wealth Management – the biggest financial institution in Canada said that “Canada is what Switzerland was 20 years ago, and the banks in Canada are what Swiss banks were 20 years ago.”

 I use to work for RBC several years ago.  I love how the top executives of RBC always make gratuitous comments without knowing a fucken thing about what they are talking about.  They hire newbies and offer them $45K/year to manage 400 personal accounts in the branches.  The salary is really crappy and the VP's say, "hey you work for the best bank in Canada &  you should be privileged to work for us. The salary is not that important!!"

While these VP fuckers make $250K +++ per year, bonus and massive stock options.  I say, FUCK OFF CAUSE YOU ARE TAKEN CARE OF & I GOT BILLS TO PAY!!!

 

Thu, 09/04/2014 - 00:21 | 5178541 bankerbackbacon
bankerbackbacon's picture

Leonardo Fibonacci2  you should be privileged to work for us.

 

You're right PHI their cheap fuckers, I worked for them at one point too. They work you like a slave too, and so highly leveraged. I used to fudge my sales numbers as they were nazi's for that as well.


Wed, 09/03/2014 - 20:15 | 5177781 Matt
Matt's picture

Parliament can put through a bill creating money out of thin air to recapitalize the central bank or any of the banks. As long as this was replacing destroyed money, it maybe wouldn't be inflationary.

Wed, 09/03/2014 - 20:36 | 5177848 Deathrips
Deathrips's picture

Parliment?

 

Its english parliment and their puppeteers that are pulling Canadas parliments strings.

 

Its theivery.

 

Ever hear of the Canadian Crown Corporations?

http://en.wikipedia.org/wiki/Crown_corporations_of_Canada

 

Check out what Canadians (and other commonwealths) own and what they are being drained of by the BOE and BIS.

 

RIPS

Thu, 09/04/2014 - 04:36 | 5178822 asteroids
asteroids's picture

The Loonie will crash. The gold and silver priced in Loonies will explode. Capital will leave the country. THEN it gets interesting as the world stupidest real-estate market will then implode as interest rates rise. Just as a good fraction of Canadians look to retire. Compare RY, TD, or BMO to JPM or GS. Straight up for 2014. But... it's too early to short anything yet or to buy gold or silver. But, that could change any day.

Wed, 09/03/2014 - 17:55 | 5177375 Slave
Slave's picture

So the facts don't fit the rhetoric? My tin foil hat detects that some tribal treachery is afoot.

Wed, 09/03/2014 - 18:15 | 5177470 BurningFuld
BurningFuld's picture

What you should do is teleport back to 2007 and bet against the Canadian Housing market for the win!

Wed, 09/03/2014 - 18:21 | 5177487 Duffy
Wed, 09/03/2014 - 17:34 | 5177318 kaiserhoff
kaiserhoff's picture

Yeah, but Canada is financing all of those crack houses in Vancouver.

What could go wrong?

Wed, 09/03/2014 - 17:34 | 5177323 nope-1004
nope-1004's picture

Canada produced such fine examples such as Justin Beiber and Mayor Rob Ford.  So what if both are coke addicts.  Just BTFLoonie, eh.

 

Wed, 09/03/2014 - 17:41 | 5177341 CCanuck
CCanuck's picture

Fuck you Mark Carney, the first Rat to Jump Ship and Take-off Eh!

Ask any Canuck what they think of our banking system..."Canada is #1, we did not screw around like the American Banks"

Canucks still think our banks did not require a bailout back in 2008...duhhhh! Former finace minister admitted to it 5 years after telling  the public that our banks were safe and did require assistance....Should have seen the tears when that cocksucker kicked the bucket 6 months after retiring...whaaa..whaaa..what a great politician they said...DUHHHHHH!

You should see the looks I get when I tell people their money will be taken just like in Cyprus, its already law!

They tell me to put on my tin-foil hat, and enjoy the hockey game...with that shleeple glazed over look...duhhhh!

Anyway.....FUCK YOU TWICE, Mark Carney, you cocksuckn' rat bastard!

 

Wed, 09/03/2014 - 17:51 | 5177393 The Fonz...befo...
The Fonz...before shark jump's picture

Agreed and look at the regulators in Canada.... The primary ones OSC and BCSC....

Look at the small ball these guys go after...it's either penny stocks, insider tracking (usually on a non bell weather stock)...never addressed HFT, sat on hands after the bailout....stealing a living.....these people also need to be strung up..useful idiots the lot of them

Wed, 09/03/2014 - 18:41 | 5177568 crazzziecanuck
crazzziecanuck's picture

Indeed.  CIBC was bailed out around something like 1.5 times the worth of the entire bank.

It would have been cheaper for the taxpayer to simply let it die.

Thu, 09/04/2014 - 08:04 | 5179050 Canbankr08
Canbankr08's picture

I'm pretty sure the bailouts came from the Fed though not from the BOC or the Canadian government and were supposedly "repiad in full" whatever that is supposed to mean these days...

Wed, 09/03/2014 - 21:42 | 5178091 angel_of_joy
angel_of_joy's picture

For a so-called Conservative who also doubles down as an economist, Stephen Harper looks pretty stupid right now. He appears more interested to play "tough" (insert your favorite sarcasm here...) in front of Putin, than to recapitalize his own fucking banks, or shore up his totally insane reals estate market...

Wed, 09/03/2014 - 17:31 | 5177309 BandGap
BandGap's picture

I'm invading Western Canada when the SHTF. I got it on a tip from these boards.

Wed, 09/03/2014 - 20:08 | 5177757 Deathrips
Deathrips's picture

I heard that rumor too. I also heard they give you a fresh plate out puotine, with warm cookies and milk after.

I have started researching by watching the movie "Canadia Bacon".

 

https://www.youtube.com/watch?v=2l_6a2H37QM

https://www.youtube.com/watch?v=l5l0PD80u9k

 

Study hard.

 

RIPS

Wed, 09/03/2014 - 18:27 | 5177511 booboo
booboo's picture

TAKE THAT YOU SNOOTY MAYO EATING FROGS

Wed, 09/03/2014 - 17:23 | 5177281 Relentless101
Relentless101's picture

Interesting. I didn't know Canada and the U.S. were different entities.

Wed, 09/03/2014 - 17:31 | 5177310 Dr. Engali
Dr. Engali's picture

We like to pretend that we aren't conjoined twins that happen to have a tumor attached at the south.

Wed, 09/03/2014 - 17:37 | 5177330 BobPaulson
BobPaulson's picture

I have tried to tell my friends here in Canada that in the early 90s they eliminated all deposit requirements and nobody believes me. They don't get that when a private bank like Scotiabank makes a mortgage, they just print it, voila. Once again, too surprising to believe. 

(Let me reiterate this: when a loan is made, the private bank can print Canadian currency into existence). All the bank of Canada does through the mint is print notes.

Wed, 09/03/2014 - 17:39 | 5177340 NeverForgetSilver
NeverForgetSilver's picture

My coworkers believe that nothing will happen to Canadian banks when I talked to them about bail-in. They won't believe me and accused me of lying.

Wed, 09/03/2014 - 18:13 | 5177465 Whalley World
Whalley World's picture

Shamefully, Canada lied through it's teeth on the safety of Canadian banks during the 08 crisis.  In fact, all the major Canadian Banks took a bailout and many were in excess of their market cap.

Here is the link to the Canadian Centre for Policy Alternatives white paper on "The Big Banks Big Secret" and the figures that spell out the bailout taken by each bank.

https://www.policyalternatives.ca/publications/reports/big-banks-big-secret

 

Wed, 09/03/2014 - 19:52 | 5177722 GrandPaFred
GrandPaFred's picture

Whalley World:

 

Truth be damned - all that matters is whether us sheeple bought the BS

 

[Democrecy - is the right to vote for our brand of thief...]

Thu, 09/04/2014 - 08:32 | 5179185 Canbankr08
Canbankr08's picture

I also have tried to tell people about the bail-in but they usually either don't care, don't believe me, or don't believe that a bail in situation could occur. It is kind of crazy, I just tell people don't beleive me go and read the federal buget from 2013 I can't remember the page # off hand but I've given it out before, you can go read for yourself if you like.

My favourite part of the whole Harper legalizes Cyprus style bailout in 2013 thing is that it took the S&P a whole year to realize and didn't downgrade any Canadian bank credit ratings until 2014. Then whenthey did they said it was because of some bs like "we believe the Canadian government might be less willing to bail out the banks then they were in the past." I was like ya... no shit... they said they aren't going to bail them out last year, there's no maybe they will or maybe they won't.

Wed, 09/03/2014 - 18:32 | 5177535 pitz
pitz's picture

Scotia has to borrow money from somewhere to fund any mortgage it issues.  Just like any other (non-central) bank in Canada. 

Wed, 09/03/2014 - 19:14 | 5177657 Womb Service
Womb Service's picture

No Pitz. Banks create money ex nihilo. Loans beget deposits. The Bank of England recently wrote a nice little paper explaining this. Do try to keep up.

Wed, 09/03/2014 - 20:43 | 5177875 pitz
pitz's picture

Central banks, perhaps.   But not commercial banks, such as Scotia, BMO, etc. 

Wed, 09/03/2014 - 21:15 | 5177979 Womb Service
Womb Service's picture

No, man. Commercial banks. You really need to get a clue. Or stop intentionally posting disinfo. 

Thu, 09/04/2014 - 10:26 | 5179666 BobPaulson
BobPaulson's picture

Money is debt, and since Canada is the only country in the world that has 0% fractional reserve, it all gets printed down at your corner friendly neighborhood bank. Ever notice how they don't give a shit about getting deposits anymore? Deposits are only useful to them to take to the tables.

Sorry bro, back of the class if you don't know what money is. That's entry level reading around here.

Fri, 09/05/2014 - 20:59 | 5187170 pitz
pitz's picture

Nope, commercial banks don't print.  They have to borrow.  Just like everyone else who isn't the Bank of Canada, in Canada. 

Wed, 09/03/2014 - 21:09 | 5177874 GrandPaFred
GrandPaFred's picture

pitz:

 

The way I see the Ponzie is this:

Bank creates Debt out-of-thin air per demand for loan[s]

Payments on this loan on other hand are assists - require real dollars

 

Shares/profits/investment/CEO perks drawn from income [assits inflow]

SHTF when inflow drops [bad loans/no new loans/poor stock investments etc]

 

Banks can and do try to smooth the fluctuations by exchanging overnight

Debt between themselves - however that then has cost on assit side.

 

Above seems 'airie and unreal' but take USA Debt where real Debt is reported 17 trillian but is actually some 220 trillian in IOU's. There isn't that many dollars printed to begin to cover 'payment-in-full' [USA isn't even able to cover interest on that debt without borrowing an extra 1 trillian every year]

 

Our whole financial system isn't based on assits like you and I are trying to live on. It's based on Debt - in other words Debt functions like a cancer... it consumes, never creates...

Wed, 09/03/2014 - 17:23 | 5177282 Infinite QE
Infinite QE's picture

Isn't this all just an illusion, this capital issue, when the entities can print money at will? Dark pools. Shadow this and shadow that. How can anyone believe any of it?

Wed, 09/03/2014 - 17:39 | 5177339 kaiserhoff
kaiserhoff's picture

Printing money is a great idea, until no one wants your currency.  One way this can go bad is when cash flow from the central bank goes negative, increasing the deficit, and soon you are printing to pay interest on your debt.

See Argentina..., once, twice, thrice...

Wed, 09/03/2014 - 21:47 | 5178115 angel_of_joy
angel_of_joy's picture

As some smarter guy nicely put it some time ago "Devaluing a currency is like peeing in bed. It feels good at first, but pretty soon it becomes a real mess."


Wed, 09/03/2014 - 17:25 | 5177287 cassotto
cassotto's picture
(Hint: Not The Fed) muwhahaha that one made my day

three cheers to you ZH!

Wed, 09/03/2014 - 17:25 | 5177289 Callz d Ballz
Callz d Ballz's picture

assets = larger printer cartridge

Wed, 09/03/2014 - 17:28 | 5177298 NeverForgetSilver
NeverForgetSilver's picture

Bank of Canada, like the rest of CBs, can print too. They have been doing that at half of the US rate.

Wed, 09/03/2014 - 17:29 | 5177302 Dr. Engali
Dr. Engali's picture

I guess the only safe thing to do is buy a ranch in Chile and store my gold in Switzerland.

Wed, 09/03/2014 - 19:19 | 5177663 Terminus C
Terminus C's picture

And Singapore.

Wed, 09/03/2014 - 21:15 | 5177972 GrandPaFred
GrandPaFred's picture

Dr. Engali:

 

You may store your gold with me - I'll take good care of it...

[just like Ft Knox - it's here, I swear... but, you can't get it back]

Thu, 09/04/2014 - 10:30 | 5179681 BobPaulson
BobPaulson's picture

How about a ranch in Alberta with your gold in your ranch?

Wed, 09/03/2014 - 17:33 | 5177313 JamesH
JamesH's picture

Presumably the run down was  done by Carney and we have got him now

Wed, 09/03/2014 - 19:22 | 5177666 Terminus C
Terminus C's picture

Too bad someone else already sold your shit or Carney could have stolen all your shit too.

You know... it's almost like tptb are laughing at us when they put a person named Carney in charge of the bank...  Of course he's gonna fuckin' steal everything...

 

Wed, 09/03/2014 - 19:28 | 5177677 Terminus C
Terminus C's picture

The Cover of this particular issue was called "The Good Banker" showing his theiving fucking smug mug.

http://www.readersdigest.ca/home-garden/money/one-one-mark-carney

I wanted to puke when I saw this.

Wed, 09/03/2014 - 21:20 | 5178002 GrandPaFred
GrandPaFred's picture

Terminus C:

 

ah, a size 46 coat on a size 38 body....

either he's a 'flasher' or coat made to hide the stolen dollars when he leaves the office each day.

Wed, 09/03/2014 - 17:33 | 5177316 Billy Shears
Billy Shears's picture

I know some Canucks and by and large they strike me as rather stingy, parsimoniousness showing up in their central banks reserves, or lack thereof.

Wed, 09/03/2014 - 17:33 | 5177319 Steroid
Steroid's picture

If Canada has a codified bail-in law it means that all deposits will count as reserves.

So Canada is safe though the depositors are not so much.

The ultimate socialism.

Wed, 09/03/2014 - 17:34 | 5177320 Bay of Pigs
Bay of Pigs's picture

Safe haven? Nobody remembers TD, Royal Bank, CIBC and other Canadian banks getting bailed out by the FED during the 2008/9 crisis either. They took in billions despite telling the rest of the world they were healthy and didnt need anything.

Just moar smoke and mirrors from the Bank of Canada...just like all the CB's.

Wed, 09/03/2014 - 17:39 | 5177338 nope-1004
nope-1004's picture

 

 

Bottom of page 144-145.  Will blow your mind.

http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf

Wed, 09/03/2014 - 17:57 | 5177366 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

I keep seeing this document and not much else. 

 

Canadians don't care much for finance of the political and ideological type, so maybe its just not discussed.

 

But I'd like to see how it actually is codified into law rather than just this general statement of "hey, we are totally gonna do a bailin thing that will like totally make thigs stable in case anything that can never happen happens".

 

As someone else said in this thread, a bailin regime could make all depositor funds part of bank capitialization in the literal sense depending on how it is done.

 

*edit*  Until I see such a document, I will continue to believe that even the ZH conspiracy crowd has no idea how badly the Canadian depositor will get screwed.  If we dont know the details we must assume they are outrageous

Wed, 09/03/2014 - 18:54 | 5177586 geminiRX
geminiRX's picture

Garth Turners blog has a good explanation of the "bail-in" - and deposits less than 100,000 are exempt. It's a short but insightful read.

http://www.greaterfool.ca/2014/08/03/baleful/

Wed, 09/03/2014 - 17:47 | 5177370 Stanley Kubrick
Stanley Kubrick's picture

It'a actuily pages 154-155 using the  PDF page counter.

Fuckin' pricks assert the 'bail-in' is a risk management device that protects taxpayers.....

Who's got the rope & where's the lampost?

Wed, 09/03/2014 - 17:56 | 5177408 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

I've seen an argument that the IMF paper that spawned the bailin idea actually had measures to bring financial and criminal accountability among to the bank executives.  IOW, it was intended to be a way to stabalize things while also finally punishing those responsible.

 

Of course no nation has bothered codifying the second part and I doubt anyone will.

Wed, 09/03/2014 - 19:17 | 5177661 BurningFuld
BurningFuld's picture

If you live in Canada and are worried about Banks then please move your monies to a Credit Union as they offer extra bonus provincial guarantees on deposits.  Please be sure to pick a good province. (IE. not Ontario)

Wed, 09/03/2014 - 20:17 | 5177789 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

As I understand it, the big bonus of the credit unions is that federal legislation prevents them from getting mixed up in the derivatives casino.  Even if your CU goes BK you would probably get 90 cents on the dollar back whereas the big banks will take your money 100x before you hit the ground and still be bankrupt.

Thu, 09/04/2014 - 08:42 | 5179231 Canbankr08
Canbankr08's picture

I love that part of it, how its all to protect tax payers... I guess those taxpayers with no money in the banks or offshore assets etc. 

 

Not that a bailout would be a good idea or anything but still what kind of protection is having your deposits taken?

Wed, 09/03/2014 - 18:16 | 5177476 orangegeek
orangegeek's picture

MSM is Canada is a daily promotional piece on MOAR socialism.  No one knows about what goes on in Canadian banks because it is never reported - the pigs in the main house don't owe you an explanation, or so says Orwell.

Wed, 09/03/2014 - 17:34 | 5177325 FieldingMellish
FieldingMellish's picture

Bank of Canada's assets are in the ground graciously being looked after by junior gold mining companies until they day they are confiscated... I mean "needed".

Wed, 09/03/2014 - 17:51 | 5177390 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

Yep, thats exactly why I don't take advantage of the "tremendous opportunity to leverage the coming precious metals gains".  

 

I think the mining stocks are "undervalued" precisely because the big players see that it will take a financial crisis to reset PM prices and that event will spell bankruptcy for miners (which TPTB will pick up for pennies on todays dollars while the current stockholders get 0) or governments will nationalize gold mining, removing the opportunity to profit much.

 

I think when the big one comes, people might be suprised at just how coordinated the "unplanned emergency measures" seem to be.

Wed, 09/03/2014 - 18:20 | 5177486 PeeramidIdeologies
PeeramidIdeologies's picture

Mmm indeed

Wed, 09/03/2014 - 17:35 | 5177326 skbull44
skbull44's picture

The very reasons I have been removing my 'wealth' from the Canadian banking system the past few years. I believe zerohedge has highlighted the abysmal tier one capital ratios Canada's bank have had in the past. But I must add that the national myth about our banking system is strong and powerful, with a compliant corporate media propagating it every chance it gets; especially how well Canada 'weathered' the 2007/8 financial crisis. There aren't nearly as many challenges to the narrative here as well...but I'm trying...
http://olduvai.ca

Thu, 09/04/2014 - 00:09 | 5178520 I am a Man I am...
I am a Man I am Forty's picture

Zerohedge has never highlighted Canada's banks "abysmal tier one capital ratios" because Canada's large banks don't have abysmal tier one capital ratios.  I'm not talking about the central bank, I'm talking about RBC, TD Bank, etc.  

Wed, 09/03/2014 - 17:35 | 5177327 css1971
css1971's picture

No offense or anything, but I have no idea how capitalisation can be applied to a central bank.

Thu, 09/04/2014 - 00:11 | 5178523 I am a Man I am...
I am a Man I am Forty's picture

Great comment, no shit.

Wed, 09/03/2014 - 17:40 | 5177344 AgeOfJefferson
AgeOfJefferson's picture

One of the many reasons I left my home country of Canada in 2008 to move to China. I also became a non-resident so those thieves could no longer steal my money. What a joke of a vassal/US puppet...

Wed, 09/03/2014 - 17:49 | 5177377 Mark Carney
Mark Carney's picture

China, ya you are SO much better off there.

Wed, 09/03/2014 - 18:23 | 5177496 caustixoid
caustixoid's picture

In China he pays his taxes monthly and he's done - there are no audits 5 years later.  Taxes are lower than Canada.  And he probably doesn't keep more than spending money in China itself.  So yeah, he IS better off there. 

Wed, 09/03/2014 - 19:19 | 5177662 BurningFuld
BurningFuld's picture

Right. Except for the fact that he is in China.

Wed, 09/03/2014 - 19:37 | 5177694 Rakshas
Rakshas's picture

...... there are a few decent countries available, I've been hangin round Vietnam for the past couple years lots of western style developments around from Hanoi to HCMC - Saigon- surprisingly VN offers a high degree of personal freedom - for those interested in volunteerism VN is a good example but like so many other ASEAN countries income tax applies to monies earned in country if you work outside and bring money into VN you don't pay income tax ...... yeah what a backward country ......... and the fishing is really good too....... 45kg fish everywhere ....... 

Wed, 09/03/2014 - 21:06 | 5177955 Knicker Thief
Knicker Thief's picture

I did the same 4 years ago! Shanghai rocks!!! If I ever see Canada again it'll be too soon...

Thu, 09/04/2014 - 08:02 | 5179045 litemine
litemine's picture

Take a good lungfull of whatever is there to breath.......I hope you never need medical care.

Thu, 09/04/2014 - 00:13 | 5178524 I am a Man I am...
I am a Man I am Forty's picture

Just about any country will treat you better than the one you are born in.

Wed, 09/03/2014 - 17:43 | 5177352 Huckleberry
Huckleberry's picture

Geeez, end-times. Simon Black actually has a worthwhile article... We are doomed

Wed, 09/03/2014 - 17:44 | 5177355 StagStopa
StagStopa's picture

22.18   1 oz canadian maples...

go lower pm`s  please

Wed, 09/03/2014 - 17:49 | 5177359 Yen Cross
Yen Cross's picture

   Here's some good times. GDP ranking | Dat 

     Via the World Bank. Updated July 1st, 2014. I think the numbers are complete " horse shit", but I'm interested in what otherZ/H readers think.

  Here's another fun link. http://www.nationaldebtclocks.org/

Wed, 09/03/2014 - 17:57 | 5177374 johny2
johny2's picture

I wonder how they get these politicians to obey completely whatever they are told to say and do. it is something beyond the money and status.

actually some things are best left undiscovered.

Wed, 09/03/2014 - 18:35 | 5177544 Gamma735
Gamma735's picture

I am speculating that they have evidence of said politicians with either dead hookers or live boys.

Wed, 09/03/2014 - 18:08 | 5177446 FranSix
FranSix's picture

The reason why Canadian banks feel they are the cream of the crop is that they can rely on interest rate fixes @1%, rather than see treasury bills in special pricing.

Just don't let anyone tell you that it's perfectly acceptable for the banks to head over to the central bank and have their mortgage bond derivatives called covered bonds swapped for treasuries.

TD.TO

http://scharts.co/10DJLw5

Thu, 09/04/2014 - 01:53 | 5178681 flyingcaveman
flyingcaveman's picture

Well practiced at helicopter dropping money.  Nobody up there bats an eye about it either, just thinks of it as benevolent government.

Wed, 09/03/2014 - 18:10 | 5177451 deagle44
deagle44's picture

capital requirements don't matter to central banks.  This article belongs on Russia Today.

Wed, 09/03/2014 - 18:20 | 5177459 orangegeek
orangegeek's picture

Canada is a pile of socialist goo.  If it weren't for Alberta oil, Canada would be worse off than Spain.

 

Decades of left wing government with bloated financial agendas that continuously fail without repercussion (ie: some politicans belong in jail, but instead they whip out golf balls when testifying).

 

When oil prices fall back to 30-40 per bbl, Canada is fucked.

 

And with 400 million people in north America, but 7M assholes insist on speaking useless french while the goobamant insists on dumping billions to force feed it on the rest of the country - what a shit show.

Wed, 09/03/2014 - 18:23 | 5177491 PeeramidIdeologies
PeeramidIdeologies's picture

How does that regurgitated bullshit taste?

Wed, 09/03/2014 - 19:32 | 5177683 BurningFuld
BurningFuld's picture

Damn it he's right! And if Saudi Arabia didn't have all that oil they would all be living in tents too. Those fuckers.

Wed, 09/03/2014 - 19:52 | 5177719 PeeramidIdeologies
PeeramidIdeologies's picture

Those poor igloo living bastards! They could never make it on their own!

Thu, 09/04/2014 - 09:09 | 5179353 Martian Moon
Martian Moon's picture

He is actually correct

Canada has "equalization transfer payments" between provinces, socialism on a grand scale

Several provinces are actually nothing more than welfare recipients

The French in Quebec, which would like to separate from Canada, are the biggest welfare recipents, to the tune of 9 Billion $ yearly if memory serves

Wed, 09/03/2014 - 19:31 | 5177682 Terminus C
Terminus C's picture

Of the 400 million, 100 million+ speak Spanish...

And... Free Jon Corzine!

Wed, 09/03/2014 - 19:43 | 5177707 Rakshas
Rakshas's picture

...... Harper is that you???

Wed, 09/03/2014 - 18:20 | 5177483 Duffy
Duffy's picture

Where'd the gold go?

Wed, 09/03/2014 - 18:24 | 5177500 PeeramidIdeologies
PeeramidIdeologies's picture

Great question.

Wed, 09/03/2014 - 20:40 | 5177842 CCanuck
CCanuck's picture

Sold it for Euro's around the bottom 2000-2001 I think.

Wed, 09/03/2014 - 18:26 | 5177509 nmewn
nmewn's picture

To the royal family...and friends.

Wed, 09/03/2014 - 18:29 | 5177522 caustixoid
caustixoid's picture

Guess you're not Canadian, because if you were you wouldn't care.

Wed, 09/03/2014 - 18:48 | 5177589 Duffy
Duffy's picture

hey any question that gets it s own facebook page is worth asking

 

https://www.facebook.com/pages/Why-does-Bank-of-Canada-have-almost-no-Go...

 

Now then - where have all the flowers gone?

Wed, 09/03/2014 - 19:29 | 5177678 the misanthrope
the misanthrope's picture

Simon should go back a little further. In 1990 Canada had approx. 450 tonnes.

This article has an idea where it went : http://canadianawareness.org/2012/11/the-story-of-canadas-gold/

 

 

Wed, 09/03/2014 - 21:41 | 5178085 GrandPaFred
GrandPaFred's picture

Duffy:

 

your gold is safe in Ft Knox -

[however like France & Germany's you ain't getting it back either]

Thu, 09/04/2014 - 07:59 | 5179030 litemine
litemine's picture

The Canadian Gold was sold......to become a member of the IMF.....now Canada holds SDR's.....and controlled through "Washington". We need to quit Nato....walk like we did with issues from the UN. Sell our Oil overseas and only become involved in Peacekeeping where our forces would come up against the USA and it's mercinary's.  We have been fucked over by our so called friends.........now we spy on our own....for American Corporations.....Donald Rumsfeild etc............Profits have scewed the 3rd world into starvation.

Wed, 09/03/2014 - 18:24 | 5177498 PeeramidIdeologies
PeeramidIdeologies's picture

LOL!!! So to clarify, everyone is looking to a strong central bank/banking system for future strength? Ok. Good to know.

Wed, 09/03/2014 - 18:25 | 5177506 Let them eat iPads
Let them eat iPads's picture

Just wait until Canada's massive real estate bubble blows up.

Wed, 09/03/2014 - 18:34 | 5177539 pitz
pitz's picture

Already well in progress.  Prices have been declining across Canada for more than a year now.  Bank profitability has been enhanced as an artifact of such, as they had the foresight to effectively 'short' the housing market.

Wed, 09/03/2014 - 20:37 | 5177849 CCanuck
CCanuck's picture

No decline in Toronto, or Van..Calgary and Edmonton have not burst either..not sure where your getting info from?

Wed, 09/03/2014 - 21:43 | 5178094 pitz
pitz's picture

Toronto, Vancouver, and Calgary have been falling for more than a year now.   Not sure where you're getting your info from. 

Wed, 09/03/2014 - 22:54 | 5178263 CCanuck
CCanuck's picture

I live in T.O and have been looking for property in Edmonton and Calgary, can you cite some stats?

Here is one states 5% increase yoy 2013-2014 across Canada.

Toronto +7.3%   Calgary +5.2%   Edmonton +3.3%   Vancouver +6.3%

http://crea.ca/content/national-average-price-map

What about your stats?

Thu, 09/04/2014 - 08:47 | 5179246 zzzddd1
zzzddd1's picture

In case you did not know already:

go through

greaterfool.ca

"A canadian housing bubble" blog.

It's Garth Turner's blog, he dissects some of CREA stats lies.

 

Thu, 09/04/2014 - 07:52 | 5179003 litemine
litemine's picture

You are a liar, plain and simple............Quite simple, Yes you are.

Wed, 09/03/2014 - 18:48 | 5177548 Duffy
Duffy's picture

I see your problem...

 

http://en.wikipedia.org/wiki/List_of_Canadians_by_net_worth#Richest_Cana...

 

Only 4 of the top 20 richest canucks are Chosenish.  Chosenish are about 1% of Canada, only 20% of the top 20 richest?

 

That's no sort of disproportionality, folks!

 

You want to be somewhere around the 2.5%/50-60% threshold, by gum.  Anything less is mere Romney-close.

http://opinion.financialpost.com/2012/07/06/lawrence-solomon-obama-jewis...

 

ok, ok, lol, forgive my glibness. 

 

Enjoy your bail-ins, hosers.

Wed, 09/03/2014 - 19:45 | 5177713 Fiat Envy
Fiat Envy's picture

A lot of crony capitalists on that list.

Wed, 09/03/2014 - 18:40 | 5177565 oudinot
oudinot's picture

Great article. Canada is in bad shape .

The myth that Canada is doing so well is because we did alright in the 2008 debacle.

Just luck.

Wed, 09/03/2014 - 18:57 | 5177613 Spungo
Spungo's picture

Some of them have capital. According to CIBCs 2013 annual report, they have a capital ratio of about 10%. The average of the banks was more than 7.5%

Wed, 09/03/2014 - 19:43 | 5177706 Fiat Envy
Fiat Envy's picture

Canada is backed by comodities.  If they have value the CB can fiddle.  If they go down no CB action can help Canada.

Wed, 09/03/2014 - 19:48 | 5177718 PeeramidIdeologies
PeeramidIdeologies's picture

Looking to your bank for help? Oh this is too much

Wed, 09/03/2014 - 19:48 | 5177716 PeeramidIdeologies
PeeramidIdeologies's picture

They still don't get it

Wed, 09/03/2014 - 19:56 | 5177732 Joebloinvestor
Joebloinvestor's picture

I bet the French Canadian bank is worse off.

Thu, 09/04/2014 - 09:22 | 5179392 Martian Moon
Martian Moon's picture

It is

Caisse Desjardins was taken to the cleaners in NY and billions in public sector employee pensions were lost

Since the Quebec government can't print money, and those were its peeps' money it lost (99% of provincial employees are ethnic French), they hired extra help at their Revenue offices and have been monkey hammering any business that shows signs of life, sometimes mailing out bogus tax bills to see if they might get paid by mistake, and seizing bank accounts without warning

Wed, 09/03/2014 - 20:13 | 5177772 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

Stephen Poloz is a Muppet Central Bankster that likes dancing on the head of a pin with his dance partner Janet
'the whore' Yellen. They never get tired and they have nice
happy smiling faces to match their dance routine. This is
CANADA has talent vs. American Idol Worship. The guest
adjudicator for the dance contest is none other than Alan Greenspan, and the other Three Stooges, Robert Rubin, Larry Summers, and Ben Bernanke.

p.s. I thought pick on CANADA day was Thursday? Who changed the date, Z/H?

Wed, 09/03/2014 - 21:31 | 5178053 general ambivalent
general ambivalent's picture

Canada is now offering 1500 bucks and course credit to any high school students who join the reserves. I wonder if this has anything to do with Baird recruiting an axis of minitrue along the drone curtain.

Thu, 09/04/2014 - 07:51 | 5178997 litemine
litemine's picture

Canada better get out of Nato.....We do not need to fight for the Petro dollar. America has paid Actors to promote how bad our oil is..............As a Canadian I always flush twice knowing Americans need the water. The lies that coume out , half truths and policies from the south truthfully hate American Politices, News and Banking. The truth is coming , watched the 2012 "the four horsemen"................monsanto............right in the fight for top honors. Reap what you sow. 

Wed, 09/03/2014 - 21:52 | 5178133 p00k1e
p00k1e's picture

Clearly multiculturalism doesn’t work. 

The euro look’in folks will be driven North! 

Wed, 09/03/2014 - 23:58 | 5178490 I am a Man I am...
I am a Man I am Forty's picture

RBC has a tier 1 capital ratio of 13.2%.  You might as well tell the whole story Simon, not just cherry pick your numbers.

Thu, 09/04/2014 - 01:40 | 5178665 Notsobadwlad
Notsobadwlad's picture

IMO, where money is created out of thin air, this analysis is meaningless.

Thu, 09/04/2014 - 01:59 | 5178691 basho
basho's picture

bloomberg is such a fountain of b*llsh*t

any country with a guy named harper at the head of it has got to be a disaster.

Thu, 09/04/2014 - 03:28 | 5178773 IronForge
IronForge's picture

Yikes!!!

Are there any benefits of operating out of Canada than the US?  Outside of Universal HC and literacy of the workforce, I'm straining to find more reasons.

Thu, 09/04/2014 - 04:20 | 5178812 Jano
Jano's picture

From article:

Moreover, Canada also has ZERO reserve requirements for its banks; this means that Canadian banks are not obliged to hold any of their customers’ deposits.

So yes, it’s legally permissible for a Canadian bank to loan out 100% of its customers’ funds.

Well, i my opinion, the fractional system starts at 99% and goes to the ZERO reserve requirements.

the only difference is the way to get there.

Therefore there is no difference to other banks, be it 7% or 15% or what so ever percentage of the reserves.

 

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