The Debt Collector

My younger, angrier brother Ethan has started a youtube channel where he is documenting some of the concepts discussed on this lowly blog.  For his first video he tackled primer #1 about deflation.  It’s very well done overall.



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8 Responses to The Debt Collector

  1. Roy Stacey says:

    Well Done!!! Funny, insightful, witty, and deadly accurate. Can’t wait for more.

  2. jesse says:

    I certainly appreciate the time your brother must have taken producing this video. It undoubtedly took a lot of hours and there is some good stuff in there. I think, though, it’s a bit disingenuous to think that the nil reserve requirement in Canada’s banking system is proof of upcoming instability, incompetence, or conspiracy. The Bank Act provides control over the money supply through OMOs and capital reserve ratios.

    This should not take away from the message that debts cannot increase perpetually at the rate they have in the past few decades and will likely need to reverse. Look at Japan — the modern world’s case study on deflation — and their personal savings rates. If deflation does take hold in Canada it means higher savings rates. If that fails to materialize it’s higher interest rates and “stealth” expropriation. Pick your poison.

  3. Hi Jesse

    Just to clarify my position on Canadian banks: I’ve never believed that our banks were in the rough shape that their American counterparts were in. Clearly we had better regulations. However, in comparing the global banks, we find that although Canadian banks are in better shape, the entire group as a whole is pretty rotten. So we hold up Canadian banks as among the best of a rotten group. I don’t think our banks are in nearly as good a shape as we believe. Banks always look good at the tail end of a period of credit expanion when defaults are minimal and excess reserves are easily re-lent back into the system for more profits. We’ll see how they look in a few year’s time when our made-in-Canada credit bubble deflates.

    For another interesting perspective on our ‘conservative’ banks, check out the following Sprott article:

    Click to access 11_09%20Dont%20Bank%20on%20the%20Banks.pdf


    • jesse says:

      I don’t necessarily have a problem with the assertion that Canadian chartered banks have some issues, but the assertion that the Bank Act with its “nil” reserve ratio is somehow riskier than the US’s at 10% is not correct, at least not without better analysis of other de facto methods of controlling the $ supply.

  4. mflat says:

    Loved the video, and learned a lot. Been reading for years, and although these terms get thrown about a lot, it’s hard to find good primers for the layman. Yours ranks up there with the best.

    Will definitely watch the whole series as they come out.

    Great job

  5. Pingback: Bubble in China means Canada at risk; The economic headwinds in pictures | Financial Insights

  6. Pingback: Inflation, Hyperinflation, Deflation, Stagflation, Screwflation……what’s in store for Canada? | Financial Insights

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