The housing market is sustained by narrative rather than fundamentals, evidenced by existing home sales hitting a 30-year low in 2024 despite a 20% population increase.
The stock market and housing market are interconnected through the bond market, which currently maintains accommodative conditions through credit expansion.
Housing is unsustainable due to price-to-income ratios outpacing median income over the past 20 years, with corrections likely starting in Florida, Texas, and California.
The FHA loan program is being abused by investors and speculators who are walking away from properties bought with 3.5% down payments or less.
A Philadelphia Federal Reserve report suggests 30-50% of FHA loans in 2023 may involve occupancy fraud.
The COVID-era loan workout program effectively bans foreclosures by offering no-interest loans with second liens, keeping 52,000 FHA loans seriously delinquent in 2024.
The housing market is headed for a correction, with foreclosure starts up 20% year-over-year and inventory growth accelerating.
Government intervention in housing has made it unaffordable, similar to college and healthcare, necessitating a step back to allow price discovery.
Inflationary policies to keep home prices high are catastrophic for average people, causing retirement accounts to diminish and toxic assets to be parked in pension funds.
Entire generations are priced out of the housing market, resulting in frozen transactions and stratospheric prices, requiring the government to stop intervening for the system to settle.
Summary
The separation of East and West is accelerating, with foreign nations cooperating more due to export difficulties to America, potentially leaving the US isolated.
The dollar’s importance in global trade is declining rapidly as Asia seeks alternatives, with a potential return to a gold standard for currency exchange.
Central banks in the Eastern world have accumulated more physical gold in the last 4 years than in the previous 60 years combined.
The rate of stand for delivery in gold markets has increased four-fold in Q1 2023 compared to 2022, with 400 tons yet to be delivered.
The gold leasing game is ending due to increased risk awareness among central banks with balances in New York, London, and Switzerland.
The current credit bubble is the largest in history, with its burst potentially causing significant stock price falls and threatening company and bank survivability.
The Federal Reserve faces an impossible situation, attempting to rescue the fiat currency system while being in deep negative equity.
Higher interest rates are necessary to protect dollar holders but worsen the government’s debt trap.
The withdrawal of gold leasing will remove a crucial supply component necessary for the derivative system to function.
A persistent gold shortage is expected, putting banks at risk if they fail to cover their positions.
Bernier proposes accumulating gold reserves to strengthen Canada’s economic position in a new monetary order, criticizing the country’s current zero stated gold reserves as “completely insane” given gold’s status as a tier one asset.
To boost the economy, Bernier would unlock Canada’s vast oil and gas resources by withdrawing from the Paris accord, repealing Trudeau’s industry restrictions, and using constitutional powers to take full jurisdiction over pipeline constructions.
Bernier aims to balance the budget in one year through a $50 billion cut in federal spending, including reductions in foreign aid ($10 billion), media funding ($2 billion), and corporate welfare ($25 billion).
The proposed fiscal plan includes implementing a flat tax of 15% for both businesses and individuals, while also cutting capital gains tax to increase productivity and competitiveness.
During the pandemic, Bernier was the only political leader in Canada to oppose government mandates, facing arrests and censorship for his stance against what he viewed as fear-based propaganda.
Bernier criticizes the “woke agenda” and LGBTQ+ ideology in Canada, particularly its influence on children through education and medical practices, viewing it as a tool of political control.
As prime minister, Bernier would cut all military aid to Ukraine, supporting instead President Trump’s peace proposal as the best solution to end the conflict.
Bernier considers the vaccine passport system implemented during the pandemic as one of the greatest human rights violations by a Western democracy in modern history, calling for accountability from the government and media.
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