“The Trap” (Part 2)
The question is WHY are Cities still re-zoning land when the market for such is literally collapsing around us ?
One reason I have noted in the past is that Re-Zoning is like the equivalent of the Federal Reserve for Local Gov’ts.
Once a “Higher and Best use” is established….the taxes rise.
EXAMPLE: I recall when the City of Richmond literally ambushed many parties in the City Center plan…..the RONA store owner stated his property taxes went up from approx $ 80,000 to $200,000. Business tenants properties usually pay Triple Net, ie they are responsible for paying the property tax.
Thus if a City approves say a 30 storey Hi – Rise where once a one – story retail store or stores existed, many tenants cannot afford the tax increase…and/or the developers have bought the property and evict them. The City thus loses more land in this crucial economic base , retail / commercial land – base zonings. To the City that’s a major revenue increase
Once the Hi Rises are built even more revenue comes in via the property taxes applied to each property.
However….they are still building condos…Why ?
Unlike many I know, I don’t think we are much different than the U.S., at least in the economic sense. We are following the same path as the U.S. housing bubble. Wall Street and the Bankers set up a plan of global economic warfare, it was no accident. The ponzi scheme was designed to ” Bait ” people into a false sense of prosperity/ security…then B-O-O-M…trapped…..”stuck”……..just like a mouse.
The Wall Street boys and Banksters cried foul with all the “human mice they caught”….baited with cheap credit and false hopes……but they didn’t want the “mice ” per se….they wanted the bait back..the bait being something that never really existed in the first place, fiat money and via fractional reserve banking.
Once the bubble burst, the Banksters cried they would go under, and were TOO big to fail waaahhhh . The Gov’t, already bankrupt…. still cut ” trillion dollar bailout cheques” without any subject to clauses…as no one seems to know WHERE the Trillions of $$$$ went.
NOW…we are seeing another agenda unfold….Apparently many people in the US have no idea who actually holds their mortgage….they could be in the hands of anyone…….and many suspect China holds many of these.
Where I am going with this, is that I sense a similar set up here….lots of people took the bait…now stuck like a mouse in a trap. They will lose their homes while the banks cry poverty….and it has been already been reported that Canadian Banks were given Billions already. aka The banks have realized that they will , historically have made the best ever profits via this scam ……they lobbied the Gov’t to not only allow but underwrite (CMHC)and subsidize these ill – gotten gains , again with the corrupt monetary system and many people taking the ” bait “.
More condos will dilute peoples existing equity….a huge spiral and ripple effect …..sheer economic chaos. Local Gov’t themselves will eventually experience major revenue drops….keep in mind they too have become addicted to funny money. We already see this in the US….some City’s cannot afford to pay their own employees more than minimum wage.
Is this attack like a war ? It IS a WAR …..
History has shown that once economic chaos has resulted, carpetbaggers come in . The average citizen and their remaining assets are exploited. The people are kept so impoverished they willingly surrender to their oppressors and we re-enter and re-visit the life of feudalism , peasants, slaves and serfs.
Get the scam? The Banksters and their cronies have the best of both worlds….They reap the benefits of the bubble….get 100+% return on their non existent fiat currency money used as bait to create a crisis…and likely ALSO have the ability to acquire the hard assets of those trapped by the bait.
They are like drug pushers that claim to be victimized and claim to have lost both their cash and their product..and want BOTH returned. WTF?
CONCLUSION: Unfortunately…Too many ” took the bait “, got stuck ….and via the reasons and rationale outlined above…will drag the REST of US down in one big fluusssh. That in my opinion is the “end game”.