Most people believe that banks safeguarded their deposits in their vaults and maintain a liquidity ratio on or about 100%. In other words, banks only lend out the money which they had on deposits. However, today’s banking system reality is far different, posing a great risk for all economies going forward. What is a Fractional […]
Author Archives | Chris Ferreira
Fractional Reserve Banking System
Posted on 11 July 2012.
Posted in Housing Bubble, US Dollar Collapse1,594 Comments
Why Do People Invest in Real Estate?
Posted on 30 June 2012.
As mentioned in a previously article “the flow of money” money tends to flow in the path of least resistance. At the end, government officials with the financial bribes of lobbyists groups foolishly decide where investments should be re-directed instead of the free-market at the bennifit of major corporations. For instance, Real –Estate in Canada and in […]
Posted in Housing Bubble84 Comments
Economic Stimulus From the FED – Twist 2.0
Posted on 30 June 2012.
As inflation was tame, stocks prices went lower, and unemployment higher, many investors thought that another round of Quantitative Easing would be on the top of Fed chairman Ben Bernanke’s to-do list. Instead the FED once again reintroduced Operation Twist where a swapping of short- and long-term bonds, would lower the longer term bond yields […]
Posted in Economic Crisis, US Dollar Collapse266 Comments
How Will Canada Be Affected by US Inflation?
Posted on 20 June 2012.
Much has been stated about the stability of the US Dollar in recent year, as the federal reserve continues to pursues reckless economic polices i.e. using the printing press at full speed to inflate the money supply. Printing currency destroys the value period of money. Although, how will other fiat currencies par with the debasement […]
Posted in US Dollar Collapse1,998 Comments
Bank Bailouts Favour Malinvestments
Posted on 16 June 2012.
In our modern economic age of fractional reserve banking, bank bailouts are occurring at a global level, albeit with predominant frequency in Europe and the Unites States. The ideology that a bank can be bailed out and suffer little to no consequences is a fallacy which only undermines the general economy as a whole. There […]
Posted in Economic Crisis, Gold and Silver, US Dollar Collapse515 Comments
How The Reserve Currency Remains Powerful
Posted on 14 June 2012.
The single most important item that the US government must protect is the US Dollar from losing its fate and confidence as the reserve currency. This reserve currency was founded on the basis that it was “as good as gold” and constituted as real money; however, this ideology is quickly being deteriorated as today’s […]
Posted in Gold and Silver, US Dollar Collapse539 Comments
Mortgage Backed Securities For Dummies
Posted on 01 June 2012.
The concept of a mortgage backed security (MBS) is essentially a financial derivative of a pool of mortgages. Here is a short video explaining the concept of a mortgage backed security. As the video clip explains an MBS is a multiple-packaged mortgage loans to make another security. This process is known as securitization. These mortgage-backed […]
Posted in Housing Bubble1,801 Comments
Effects of Low Interest Rates – Part 2
Posted on 22 May 2012.
As mentioned in my previous post, “Effects of Low Interest Rates Part 1,” the easy monetary policies created by central banks and governments is what fuels economic booms and their consequent busts. Keynesian government intervention skews the business cycle: the creation of credit expansion undoubtedly provides growth, but this growth is now part of an […]
Posted in Gold and Silver, Housing Bubble, US Dollar Collapse37 Comments
Petrodollar Collapse
Posted on 09 May 2012.
The rise of the United States economy in the 70’s and 80’s was mainly due to Nixon’s abolished the gold standard. This event was historic as it allowed the green back to be . Although, as in history, allowing a currency to freely float in thin air will eventually cause inflation from easy monetary policies […]
Posted in US Dollar Collapse1,935 Comments
8 Top Economic Reasons For a Housing Correction in Canada
Posted on 20 April 2012.
Canadian are at unprecedented levels of debt – 150% over average income The Key Interest Rates are at artificially low levels –1% The price of housing is at 4.5 Times average income (11x in Vancouver), higher than the historical average mean of two to there. Federal and Provincial authorities are providing very low standards for […]
Posted in Housing Bubble14 Comments
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