I have finished an important book which is just going off to press now for printing. This is an important work on how the central banks are trapped and how the manipulations of the World Economy are collapsing in upon themselves. The major central banks are now shifting policy from protecting the people and the economy to protecting the government. Not all are following this policy. Those that are burden with socialist programs are imploding. The more than 10 years of Quantitative Easing has destroyed bond markets and managed to get government addicted to low-interest rates that the private sector has been turning its back on. There have even been German bond auctions with no bid from investors.

This addresses the Modern Monetary Theory, its origin, and where it would leave us at the end of the day. We are at a crossroads in economic theory because ALL of the old theories has completely collapsed. Everything from Keynesian back to Marxism has crumbled to dust. Hopefully, this work will encourage real research and open the eyes in a subject that puts at risk our entire way of life.

Those attending the WEC in Orlando will be entitled to a hardbound autographed edition.

QUESTION: Central banks around the world are currently purchasing equities. If they continue to purchase equities, will we ever have a significant market downturn again? What happens when central banks acquire enough shares to control corporations?
PE

ANSWER: Yes. The central banks have been buying equities to try to diversify their balance sheets as they also see what is coming down the road. Still, they are not the major buyers to influence the market in that manner. Corporate buybacks have been a much stronger factor in the marketplace.

The reason why we will not have a major crash is simply because this time it is different — the crash is in the debt markets.

In Vancouver, if you have a property that someone else would love to tear down to build a high rise, the government has created a scheme to make you pay taxes as if you were a high-rise. Small businesses pay some amount of tax on the airspace above their businesses, which they have not developed. Yes, the B.C. government taxes property assessed on their “highest and best use” value. Essentially, a single-story building for a small mom-pop business is taxed as if they had sold out to a land developer and now own a multi-story commercial building.

QUESTION: Chicago real estate- is there any future before 2032 or do we hope for a Detroit situation as the only possibility for prices to rise?
Thank you!
Bob

ANSWER: Real estate will rise marginally but only when we see the shift from public to private. However, that will not be a rally in real terms. The crisis for Chicago is that there is no realization that the current system has failed. Instead, they continually try to impose new taxes and enforcement to sustain a system that cannot be maintained. Once we reach a point where the government realizes that this is a failed system, then and only then can we hope for change. The American Dream of homeownership is being destroyed in Illinois. There is just no chance for change until it results in major civil unrest.