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  • we got in this morass because the neoliberal state and its accompanying economy financialized every damn thing

    The problem is monetary policy, not deregulation. Deregulation of zoning and housing policy would actually prevent monetary policy from creating such a large housing bubble.

    Our Bank of Canada targets a 2% inflation, which means prices need to continuously rise as technology actively reduces goods prices, and we then exclude investments and housing appreciation entirely, and we do hedonic adjustments to discount goods inflation. Then there's likely an element of shrinkflation, as company find tricks to cheapen products or degrade services, which lead to no inflation in the CPI but higher profits and then lower prices.

    So the money supply needs to grow via low interest rates, in order to provide a windfall to boomers to encourage them sell their real estate holdings, to create new bank loans, to increase the money supply, which turns into aggregate demand, in order to create inflation in the CPI.

    But we can't build enough houses due to reverse neo-liberalism, so housing acts as liquidity sponges for cheap debt, and people hold them as investments in perpetuity since they think prices are always going to go up. Also as interest rates fall inflation falls, as interest expense is included in the CPI while housing appreciation is not, its a feedback loop due to its poorly constructed nature. The Bank of Canada now also buys half of all mortgage bonds to attempt to reverse this, so they're actually printing money in order to cause deflation funnily enough, again due to the absurd way the CPI is constructed.

  • Unfortunately, due to the piss-poor human condition, Canada - and every country on Earth that allows free speech - will go whatever direction the bots run by the nations that do NOT allow free speech want them to go. Anything else is a temporary reprieve.

    Boy, I sure didn't see that coming. It's going to be very interesting seeing where such a path ends. Uncomfortable, likely, but interesting.

    • Totally. I was thinking about China the other day, how crazy they seemed for building the Great Firewall fifteen years ago. I felt sad for their citizens being cutoff from the internet. Now I'm sitting here looking in and I'm all like - fuck, this has been a major contributor to their sovereignty. Both in that this allowed their own strong digital economy to develop instead of getting hooked on American Big Tech, and in that it keeps the propaganda that's threatening us at bay. I'm not saying that censorship is amazing all around but just like you said, had they gone with free speech online, they'd be subject to whatever Big Social makes money from that day. It's crazy how the tables have turned from this perspective. I'm not optimistic that there's a solution that both keeps speech free and protects us from this problem.

62 comments