Friday, 2 November 2012

1 to 1:63 Ratio

1 to 1.63 is the debt ratio in Canada now. It means for every dollar that people make, on average, they spend $1.63. It is more than 1.5 times. Too much but not me! It is said that when the economy collapsed in the US in 2008 the ratio was 1 to 1.70. We are close.
I don`t know what the role of Government would be here. Is this enough just to broadcast it once in a year in a TV news show like CBC which is barely watched by anyone? The Government is elected and appointed by people to govern them. That, I believe is the role of the Government. At least it is said in the Western democracy. The Government of Canada keeps saying that they have strong banking system. May be. May be not. What strong banking system it is that they give loan to someone after a year and half working to buy a $650,000 house! I do not know that system as strong. I know that system as unwise. There is no doubt that the greedy banks think of the money that they can make out of these guys but when the market collapses that houses value will go as low as $100,000 or less.
There was this Oriental guy who worked with us back to British Columbia. He told me a bit about what was going with the housing and economy in general a bit.
The government has the power and authority to prevent that from happening here but doesn't see to be doing its job. Just a few days ago the Minister of Immigration announced that around 260,000 more immigrant will enter the country in 2013! What a stupid policy! Where is those guys are going to work? Sure we have so many Fast Food chain restaurants, supermarkets and shopping centres here and all those greedy companies who bring their products from China hire on daily bases. So why don't we hire them all there. Sure someone can has a wonderful life with a $12 an hour salary. So we can conclude that we are on the right path!
(Photo: This little picture has nothing to do with the ratio but resembles the greedy companies that make their items in countries like Bangladesh, India, Vietnam, China and sililar for as low as $5 and sell them here in North America for as high as $120)

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