I hope no one was offended by the Communist Litmus Test above in my last post. We've all been
raised on these principles and it's these principles that are encouraged from cradle to grave. I
stand in awe when I look at how these very nations which were built upon laws respecting life,
liberty, and private property have now become modern day police states under a top-down
managed economy that runs on a fraudulent monetary policy consisting of false weights and
measures.
So to keep this post relate back to the historic construction slow down, at this point, I feel there is
still a lot of activity due to old tenants moving to cheaper locations and utilizing the internet to
improve efficiency, and more government work such as museums, military, courthouses, etc,
since government is the first user of this funny money, they get the most bang for the buck and
they've historically expanded powers and properties during times of easy money (low interest
rates). Toronto's CN Tower was commissioned in 1976 but the idea originated in 1968, ONE
YEAR after silver was demonetized in Canada (no longer included in coinage). How is this
significant? When silver was demonetized, it no longer represented a check on excessive
government borrowing/spending from the Bank of Canada (private corporation - current chairman
Mark Carney is former Goldman Sachs). Which meant that the flood gates were opened on the
already out of control fractional reserve banking practices. Government could now fund any
project they desired without having the real money in hand. Just keep putting it on the tab.
Then in 1971 Nixon demonetized gold and all hell broke loose. This event was equivalent to
dropping interest rates to zero and government borrowing started its bubble. Fast forward to
1980 - gold hit a record $850 per ounce, silver $50, interest rates in the double digits and the
economy was in shambles. This was the result of excessive use of borrowing powers during
a time when cheap money flowed like water. I guess we reaped what we'd sown. So today
central bank over-night lending rates, coloquially known as interest rates are low low low!
Zero in fact. I'd say we should learn from the pages of history to see how it will repeat.
Here's the Canadian government's brief history of exploding debt since that infamous date
in history August 15, 1971 the date when Nixon closed the "gold window":
Excerpt:
"...The government spending legacy from the 1970s to the mid-1990s has left Canadians
shouldering a debt burden of $798.4 billion as of March 2004, or $25,044 for every person in
the country..."
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