Canada Has No Gold But A Mountain Of Debt... Things Will End Badly

Authored by Alex Deluce via GoldTelegraph.com,

While other central banks have been busy increasing their gold reserves, Canada sold off all its gold reserves in 2016. The Bank of Canada ranks last globally out of 100 major central banks.

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. The 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.

According to Canada’s senior Finance Department economist Morneau, the reason for the gold sale was the cost involved in storing the gold and the fact that gold offers a poor return. 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 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.

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 not situated in a good financial place. Any shift in the global economic wind would leave Canada in a very precarious position.

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.

Comments

King of Ruperts Land Pearson365 Thu, 04/26/2018 - 15:30 Permalink

Canada has been producing a lot of gold lately. In 2016, they ranked 6th in the world, producing 165 tonnes, 5.1% of world production. That is about 5 million ounces. In 2016 the royal mint had 987,000 oz of bullion coin sales. So there is enough gold being produced to supply the production of Maple leafs.

I do know that there is raw placer gold dore bars and Raw gold copper ore concentrate being directly exported out of the country. In time of national crisis, this could be prevented and it could all be directed through the mint.

The Royal mint has a huge vault full of gold bars being held for private hands. Banks and the rich 0.0001% that own most of Canada.

Canada could return to a gold standard again.

With the right policies Canada has the potential to become even greater than it ever has been.

Dancing around with shit on your dick, chanting incantations to Moloch is not the way forward.

Those policies would not be based on rainbows, unicorns, fake science, carbon demonetization and social (fake)justice.

They would be based on agriculture, industry, commerce founded in real science, real truth, real liberty and real justice.

In reply to by Pearson365

Laowei Gweilo directaction Thu, 04/26/2018 - 17:29 Permalink

 

maybe Canada just realized that 'Fed Gold' is about as useless as 'Paper Gold'

We keep our gold in the ground -- safer there than with banksters and politicians

 

Canada has some of the largests gold reserves and gold production capacity in the world. If gold ever mattered again the state would seize the gold miners and we'd have all the gold we need to make a gold standard. 

 

Seriously ... what difference do the US gold reserves do? How do you know yours aren't zero lol.

In reply to by directaction

PrometeyBezkrilov any_mouse Mon, 04/30/2018 - 14:32 Permalink

" Somebody, very private, is going to be purchasing Canadian assets..." Like water resources for example? Nooo, you are a conspiracy nut....No way. It's all good and dandy. And when milk triples in price in 3 years it is inflation, but when rotting wood houses triple in price-this is investment. No wonder the ruling parasites can swindle the public using the same trick over and over again-no need to make up new ways.....

In reply to by any_mouse

King of Ruperts Land Deathrips Thu, 04/26/2018 - 14:01 Permalink

To be fair, Canada is mostly honest about its finances. There are honest stock market valuations based on real earnings. Unlike the USA federal reserve deception, Canada has a National Bank, but admits that the country has always been owned by a rich elite. There is gold in Canada it is just honestly admitted that it is owned privately.

Once the people in Canada get their heads (or other things) out of their asses, which is happening, they might be in an OK place. I feel that country is about to "red pill". There is lots of gold to dig up in that country if they wanted to. They still export much food, so they probably won't starve. They will be crushed by the ice ace though. I am sure the carbon tax will save them there (NOT).

In reply to by Deathrips

King of Ruperts Land east of eden Thu, 04/26/2018 - 15:00 Permalink

"I don't see another 'ice age' happening", Well try opening your eyelids and using your eyeballs for a change. Winter has hung on longer this year for North America. In a scary kinda way. Check with farmers and watch the plantings. See birds dying in snow and listen to the cries of hunger as there are no bugs to eat yet.

Get your head out of that glow bull warming, bull shit, glow bull tyranny religion masquerading as "science" and study up on what a grand solar minimum is. Which it has been years now that hard scientific evidence has pointed to.

Any human being north of 40 who is not a freak'n glow bull, exterminist, death cultist, rock (planet) worshiping, minion of Satan will see that a little warming and CO2 increase is great and wonderful for life and ice age cooling spells the real disaster situation.

In reply to by east of eden

silverman Ocean22 Fri, 04/27/2018 - 10:52 Permalink

Geoengineering is sorcerer's apprentice stuff. The planet's climate is controlled by our sun, and its been very inactive lately, with more of the same forecast by those who study such matters. These are cycles which have been repeating for millions of years. The technocrats who think they can control these things are delusional and fail to consider the unintended consequences of their actions.

"There are more things in heaven and earth, Horatio, than are dreamt of in your philosophy." - William Shakespeare 

In reply to by Ocean22

wetwipe TheWholeYearInn Thu, 04/26/2018 - 13:50 Permalink

I've got gold, bitcoin, bitcoin gold, a gold bitcoin, cash, bitcoin cash, dash, splash, trash and mash. I'll be ok when the shit hits!

 

.... And in other news Barry and Paul Chuckle will return to our TV screens after a 10 year absence. https://www.bbc.co.uk/news/entertainment-arts-43907917

Congratulations guys!

 

We live in truly hellish times.... Thank god for my support group on FaceBook.

 

In reply to by TheWholeYearInn