In reaction to the European debt crisis, we have seen sophisticated and coordinated efforts by European leaders to come together to create more government and more intervention. More government, however, has been shown to only aggravate the current economic and political atmosphere. Why must government get out of the way? Limited government means limited power and […]
Archive | July, 2012
The Ponzi Scheme in Canada’s Housing Bubble
Posted on 17 July 2012.
Canadian mortgage requirements tightened in recent weeks from a maximum amortization period of 30 years to 25 years, the consequences of which will serve to undermine the currently bloated real-estate market as less buyers will be able to enter into the market as mortgages become more expensive (assuming a same down payment). How is this […]
Posted in Housing Bubble2,276 Comments
Fractional Reserve Banking System
Posted on 11 July 2012.
Most people believe that banks safeguarded their deposits in their vaults and maintain a liquidity ratio on or about 100%. In other words, banks only lend out the money which they had on deposits. However, today’s banking system reality is far different, posing a great risk for all economies going forward. What is a Fractional […]
Posted in Housing Bubble, US Dollar Collapse1,594 Comments
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