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Old March 10th, 2017, 11:38 AM   #61
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Another tact the Canadian government recently undertook to both protect against a potential real estate bubble and to limit money supply growth was to increase the down payment threshold and permissible amount of take home pay to be paid on mortgages. Thus fewer people can buy houses.

Pissed the banks and the builders right off, but the right thing to do in those circumstances.
BC and Southern Ontario still have over-valued real estate markets...so there must be some way new buyers are still getting in over their heads on mortgage debt. I haven't looked into it myself though.
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Old March 10th, 2017, 11:43 AM   #62
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A little deflation would be good for the economy. Cars etc. are too expensive and overvalued. Most folks are overpaid for what they contribute to society. Folks want to be paid for doing nothing and contributing nothing to society, much as the welfare recipients are.
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Old March 10th, 2017, 11:46 AM   #63
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The question that can't be answered until it's actually tried is: what happens to a capitalist system if it has to adopt full reserve banking rules?
It's actually never been tried before...even in the early, early days of banking, before there was modern banking and gold smiths were the keepers of gold and other valuables for nobility and other middle class, they soon learned they could distribute more value in promissory notes than they actually had on hand in gold reserves.
All I know is that aside from the gold standard believers, everyone else says you can't have a working capitalist economy and all lending would seize up immediately.
I don't think you'd have any kind of economy. The crash would be cataclysmic and recovery would be measured in multiple generations or more. Interestingly, IMO the most primitive societies would be the ones least affected and so if the remnants of "advanced" societies didn't kill them off while stealing their food, they would have to be the seeds of any new civilization that would replace the fall.
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Old March 10th, 2017, 12:06 PM   #64
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A little deflation would be good for the economy. Cars etc. are too expensive and overvalued. Most folks are overpaid for what they contribute to society. Folks want to be paid for doing nothing and contributing nothing to society, much as the welfare recipients are.
Everyone is over paid except you?
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Old March 10th, 2017, 12:10 PM   #65
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A little deflation would be good for the economy. Cars etc. are too expensive and overvalued. Most folks are overpaid for what they contribute to society. Folks want to be paid for doing nothing and contributing nothing to society, much as the welfare recipients are.
That would only work if you instituted total international trade bans or somehow managed to get all your trading partners to deflate at exactly the same relative amount.

Fat chance for either of them.
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