Reader Thoughts On “Canada Set For 2008 Style Collapse (Freepom)”
Tony Graupp: Greetings JC; Like I’ve been saying for quite some time now…. We’re headed for something “”BIG”” My consternation has been the ‘what & when’…
This could be ‘part’ of the answers we’ve been looking for… I don’t know….Things certainly look like they’re going to hell in a hand basket all around the world …
I remember taking a trip thru Canada to Alaska back in 2002, and the Loonie was worth $0.65 to the US Dollar…. This ‘fiat’ money thing is going implode at some point in the not to distant future…
I don’t know if they can install the SDR’s currencies before we have a world monetary collapse…After all,…it’s just another ‘paper currency’ Take Care Tony
Speedspirit: Just read on zerohedge-- Moments ago, the Bank of Canada’s chief finally said what we had been patiently waiting for over the past several months: admission that Europe’s experiment with negative rates is about to cross the Atlantic. From Market News:
BOC POLOZ: NOW SEES EFFECTIVE LOWER BOUND FOR POLICY RATE AROUND -0.5%
BOC POLOZ: CANADN FIN MKTS COULD FUNCTION IN A NEG INT RATE ENVRIONMNT
BOC POLOZ: ‘SHOULD THE NEED ARISE’ FOR UNCONVENTIONAL MONETARY POLICY, ‘WE’LL BE READY’
JC Collins: I already posted an article today about that. Have a read. Scary for Canada.
Moksha: JC – It appears that the stage is set for a fed mistake and credibility loss. However, what’s becoming clear is that no matter which path they take with the interest rates, they’ll end up making a mistake.
Will they hike and deflate or will they not hike and devalue? Even if they hike, they’ll be forced to do the opposite shortly after. May be that’s the plan… The reaction a few days later will definitely make them look as if they panicked and hence the lost credibility.
Another question. Corporations have been buying back their shares. Why would they do it if they can do that at lower prices in the future. Is this a clue that they’ll choose the hyperinflation path?
Your comments are greatly appreciated. Thank you
JC Collins: There are multiple reasons why a company would choose to buyback shares. The main ones are for ownership consolidation, which could be a large factor in recent buybacks, and another has to do with the shared being undervalued for numerous reasons.
The only way to be sure is to analyse each case and make the determination. I don’t think a broad interpretation such as hyperinflation would make for an accurate analysis.
In what industry segments to you see the largest buybacks? Is there a commonality? Could these shared be undervalued? If so, perhaps it would be a good time to buy some of those shares. Let us know what you come up with.
Moksha: Fair enough JC. I agree that there could be many reasons for a buyback. It’s just that all the major corporations have been doing it. Just thought there might be a non-obvious reason to this pattern. Here are a few links:
$500 Billion In 2013 Corporate Buybacks: Half Of QE (http://www.zerohedge.com/news/2014-01-06/500-billion-2013-corporate-buybacks-half-qe)
GE Announces One Of Largest Buybacks In History, Will Repuchase $50 Bn In Shares After Selling Most Of GE Capital (http://www.zerohedge.com/news/2015-04-10/ge-announces-one-largest-buybacks-history-will-repuchase-50-bn-shares-after-selling)
GM Authorizes $5 Billion Stock Buyback, Will Return All Cash Over $20 Billion To Shareholders (http://www.zerohedge.com/news/2015-03-09/gm-authorizes-5-billion-stock-buyback-will-return-all-cash-over-20-billion-sharehold)
Nike Just Did It (http://www.zerohedge.com/news/2015-11-19/nike-just-did-it)
IBM Reports Worst Sales Since 2002; EPS Beats On Aggressive Buybacks, Cut In Tax Rate (http://www.zerohedge.com/news/2015-04-20/ibm-reports-worst-sales-2002-eps-beats-aggressive-buybacks-cut-tax-rate)
AAPL Beats Revenues And EPS As Margin Declines, Guides Lower, Boosts Buyback And Dividend (http://www.zerohedge.com/news/2013-04-23/aapl-beats-revenues-and-eps-guides-lower-boosts-dividend)
Wal-Mart Reveals Masterclass On How To “Beat” EPS With Tax Rate Fudges And Buybacks (http://www.zerohedge.com/news/2014-11-13/wal-mart-beats-tax-rate-fudge-and-buybacks-guides-below-consensus-highly-promotional)
BofA “Finds” Capital Calculation Math Error, Halts Capital Action Plan, $4 Billion Buyback
moksha: The big corporations probably did it because borrowing was cheap. Quick way to boost profits in the short term. I don’t know about the long term impact though.
k cau: Buybacks are only a problem when the market tanks and you are dumb enough to borrow money to do it ….. oops!
David Aylward (@Aylward5: Scary for Montana too! My father-in-law’s whole business depends on rich Canadians.
Tony Graupp: Greetings JC; Please take the time to review this article by Brandon Smith…
As he seems to be on the same page as you are on…. TakeCare Tony
chuc1997: Did the IMF just deal its credibility a mortal wound by declaring USD allies’ debts different than non-USD debts?
pedrofalls: chuc1997 I saw that article earlier and thought to myself, ‘well if they are all in bed together, they must be fighting over the blanket and pillows.’
I’ll be *** if I can keep up with all the chicanery.But it is very interesting to try.
DineenJ: I see this as a larger picture where our banking system is using QE as a possible tool to take away the sovereignty of Canada. This is done by increasing national debt to levels that require higher taxes to pay off the interest this debt will create.
Not only will our per capita debt ratio be extremely high as we are selling off future generations to a life of high tax enslavement, but our country’s sovereignty will be sold off (if it isn’t already) to multi-national lending agencies who we may need to acquire loans from. This looks like a shift to turn Canada into a debtor nation, despite our abundance of resources.
With a government now in place in Alberta who is looking to build wind turbines and limit our use of coal and production of oil, this “green” script handed down to a local level from the United Nations Agenda 2030 looks like it’s going to turn many resource rich nations into debtors and the multilateral banks into the creditors.
All of the dissension in the media is feeding the consolidation of power by the UN/ international bankers who use the ideals of democracy, feminism, equality, and the green movement as a cover for global communism.
Curtis: JC, I am in the process of educating myself on economics. What policy changes are needed to remedy the developed world’s stagnating economies. According to Daniel Alpert, monetary policy doesn’t have the bite it used to. Compounding the problem the that globalization has presented new sources of “oversupply”. In your opinion what needs to be change in policy?