Very little is ever heard, or even discussed today regarding the utter destruction of the value of Canadian currency over the past 50 years. Especially during a Federal election, when such issues could be debated in order to determine what aspiring leadership candidates might do about this type of problem. These topics are utterly verboten when the media can discuss fascinating topics such as the horse race, black face, or exposing identity politic moral positions on what genders are allowed to wed.
Back in the good old days, the time of hippies and the Vietnam war, the $CDN could buy you a whole lot of stuff for what appears to us today, to be very little. In fact you could buy a pretty nice new house in a pleasant suburb for under $15k. And that identical house today, totally original and un-renovated appears to be worth as much as $465k. Some people react to this type of evidence of the ravages of inflation on the value of the dollar by uttering some comment like ‘well the wages are higher today’. One wonders, if the wages just stayed the same as they were, and houses also about the same price, wouldn’t you be way better off? Can you not see how the price of hard assets such as real estate are vastly more costly in currency than wage inflation has been over the decades? Perhaps the central bank having an inflation target may do more harm than good to the 99% of people that go about their lives working and saving so they can eventually retire? Lets take a look at the value of the $CDN since the property we are studying today was last transacted.
So that $13,5k back in ‘66 would get you a new single house. Today that same money has the purchasing power of $105k. What kind of house can you buy in Calgary for $105k in 2019? Well I can tell you what it will buy, a total POS tiny condo that has a monthly condo fee of around $500 per month. Just the condo fee over two years will equal the cost of a house in 1966.
Back in monetary fantasyland of 2019, the house purchased for $13500 in ‘66 is in horrible condition, basically unliveable, is worth a claimed $465k (no way it is), and needs another $100k in immediate renovations, so its true cost is closer to $600k. Yet our inflation tool tells us that $13.5k from ‘66 is only worth $105k. Is it possible our wise leaders have been dishonest with us regarding the value of the currency it controls and prints over time compared to what the economy says about the value of tangible assets?
Can it be the the real purpose of the inflationary policies of the central banks are to rob people of small increments of their purchasing power over time such that the outcome is total debt servitude to the financial elites? For families to put a roof over their heads must they work themselves into an early grave while passing on their remaining mortgage to their heirs? Surely there is a better way to live than enduring exploitation. Maybe in a future post I will illustrate some strategies on how to overcome the ravages of the banking sector on your personal freedom.
This property is a tribute to our great and wise and utterly useless political class and their bankster masters, thanks again to you for destroying the purchasing power of our currency and through this monetary debasement enslaving future generations of aspiring homeowners to debt servitude in order to better enrich the financial elites of society.