Vote With Your Money & Exit Dollars
Canadians are at record levels of national & consumer debt.
Canada’s National Debt is over $1.2 Trillion.
There are over 27 million taxpayers in Canada, but only 18 million taxpayers pay taxes.
Divide 1.2 Trillion by 18 million & you get a government debt burden $66,666 per taxpayer.
There was just an election in Canada. Our share of government debt is over $60k and no matter who gets elected — Liberal, Conservative or NDP — debt is likely to keep growing until the ponzi collapses.
Private household debt including mortgages, credit cards, car loans, student loans is over $2.2 Trillion!
There are ~12 million households in Canada, the average household therefore has ~$160,000 average private debt.
That number seems high because it includes mortgages, if you take out the 1.6 billion in mortgages, there’s still over 600 billion in consumer debt ($22,000 per adult in Canada.)
Household expenses:
-Taxes 44%
-Debt Payments 15%
-Sin Taxes (gambling, alcohol, etc) 5%
-Gas Tax 2.25%
-Sales Tax (I couldn’t find this stat)
Canadians on average are struggling with debt & taxes. Disposable income is very low, so Canadians take on debt.
The most shocking takeaway is that household debt to income ratios are at their highest levels ever at 170% of disposable income! The average Canadians owes $1.70 for ever $1 they make.
Private lenders are committing usury as record level high interest rates are factors of magnitude higher than inflation & wage growth which is causing both public & private debt to grow exponentially, and will likely never get ‘paid off’ — instead it will collapse.
Money is broken.
This could be catastrophic long term for the Canadian economy because as the debt load for the average Canadian gets too high, that’s when people who were most susceptible to predatory lending practices start to default on their high debt & absurd interest payments.
When the most vulnerable people start to default, housing prices will drop.
When the housing prices drop, the collateral value on the loans will shrink.
That will affect people who previously had acceptable debt-to-income ratios. They will likely start to default as paying a $600k mortgage payment on a house that’s dropped to $300k in value will no longer make sense.
I see only 3 options here:
1) Global debt jubilee (possible, not likely)
2) Balancing budgets & being fiscally responsible (unlikely)
3) Bankruptcy & Recession/Depression (more likely)
Our money is broken at the core.
If you didn’t agree with the results of the Canadian election yesterday, vote with your money & buy bitcoin.
Just a little bit. At most, expose 5% of your net worth to bitcoin. Slowly average in no matter what the cost. Store it on a Trezor, not on an exchange.
This is what financial sovereignty looks like.
You will lose money on paper at some point holding Bitcoin, it’s 100% guaranteed that it will be quite volatile for a long time … but if you hold it long enough (3–4 years) I truly believe it will be a stronger store of value than the Canadian dollar.
Whoever gets elected to run our country, they are going to continue spending money and increasing debt.
Bitcoin is a non-correlated asset, meaning it moves up and down on its own, not tied to the moves of the stock market or the price of oil, etc.
Bitcoin is best thought of as a tail-hedge.
It’s not crazy to think that if over the next 10 years there is a global recession & governments start to default on their debts, Bitcoin could 100X that time frame.
Bitcoin is not just black swan insurance, but it’s also a good investment as it’s a game changing technology that hasn’t yet ‘crossed the chasm’ yet to global adoption/awareness.
Bitcoin is going after 3 significant use cases, and it just has to achieve one of them to hit the top of the bell curve and accrue significant gains in value.
- Asset: A new asset class, a hedge against global monetary collapse.
- Money: Decentralized store of value, the evolution of gold in the age of the internet.
- Currency: Uncensorable, government resistant, borderless payment system for the internet.
There’s an extremely low probability that any other asset will 100X over that same time period.
Yes, you can achieve 100X gains through getting the right investment in a startup, or building your own business, but I’m not including that here.
I believe the future of money lies in Bitcoin, because it’s not controlled by governments, it has better monetary properties than gold, and it forces fiscal responsibility — they can’t print more bitcoin!
Vote with your money and exit dollars.
