PeakTrader.com

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PeakTrader:

People will adjust to limited space. However, it’ll be harder adjusting to a smaller economy.

The U.S. economy has been underproducing by $1 trillion a year in this depression, millions of jobs are needed, and federal debt is being added by $1 trillion a year.

The Baby-Boomers are beginning to retire and tens of millions will retire over the next two decades. If interest rates on U.S. Treasury bonds rise, interest on the national debt will explode, even with a balanced budget, which will leave much less money for Social Security, Medicare, disability, and other entitlements.

Because of the destruction of capacity, inflation can accelerate quickly, unless we remain in depression. It seems inevitable there will be a decline in living standards over the next two decades.

Many Americans will work harder to support people who don’t work (in goods & services and taxes), and those who don’t work will live on less.

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PeakTrader:

“Since 1790, the United States has suffered 16 banking crises. Canada has experienced zero.”

It can be summed up this way: Americans sometimes take too much risk, while Canadians always play it safe. If it weren’t for Americans, Canadians would be living in even smaller houses or saving until they’re even older to buy a house.

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The reality is Canadian houses are much smaller than American houses, and Canadians homebuyers are much older.

Canadian banks benefit much more at the expense of Canadian home buyers/owners.

So, of course, that strengthens the Canadian banking system.

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http://www.aei-ideas.org/2013/04/why-the-us-banking-system-is-so-dsyfuncational-vs-canadas/#comments

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