Opt-Out of Common Core, Opt-In to The Ron Paul Curriculum
by Ron Paul
Oklahoma recently took action to protect the state’s children from the federal education bureaucracy by withdrawing from Common Core. Common Core is the latest attempt to bribe states, with money taken from the American people, into adopting a curriculum developed by federal bureaucrats and education “experts.” In exchange for federal funds, states must change their curriculum by, for example, replacing traditional mathematics with “reform math.” Reform math turns real mathematics on its head by focusing on “abstract thinking” instead of traditional concepts like addition and subtraction. Schools must also replace classic works of literature with “informational” texts, such as studies by the Federal Reserve Bank of San Francisco. Those poor kids!
Glen,
I feel that Canadian real estate bubble is due to the fact that there is no other place money can go and grow. Canadians are bigger savers than Americans and people do worry about where to put their money. Currently there is no place to put money. Stock does not rise and interest is near 0. The only way to retire is to borrow money to buy houses and watch it grow. I was watching for 7 years before my first rental property purchase since I was making a lot of money in stocks/gold from 2004 to 2010 and I am glad I got in finally. Otherwise, the loss in investment in 2 out of the last 3 years will hurt me more. Off course, there are foreign money coming in from Asia which also ignites the property market in Toronto and Vancouver and other larger cities to a lesser degree. About 1/3 of my university classmates have children studying abroad. At same time the parents may sell one of their properties in China and buy a property here just for insurance. Unlike North Americans, Chinese do not trust the government and want to have a second place just in case. At same time, it is honorable to have foreign assets.
I live in Calgary so there is another factor – the oil boom. Calgary is doing well economically and has been for the last ~20 years. The income has been rising. The rent and house price is rising even faster after the correction in 2008-2009. All the lost was recouped at 2013.
Lawrence thank you for the response.
Sorry Glenfidish, I did not see that post until now or I might have responded. To answer your first question, no, I do not think Canada is suffering a housing bubble. What it is suffering is very bubbly prices in just a few select postal codes in its two major cities of Vancouver and Toronto. It could get a lot worse too if you live in one of those areas because of capital inflows that are propping markets and putting a bid under prices. Let me explain….. First of all, Canada is a highly coveted and desired destination for capital at a time when many other countries are experiencing economic stress. It is safe, politically stable, suffers almost no corruption in public office nor the judiciary and it is a nation known for its good educational system and its broad spectrum of technologies, ideas and commodities exported abroad. In many regards it is the dream destination of most outsiders looking for a better home. For example, Federal public debt is low relative to most other developed countries, health care is top quality (and affordable) and the pension system is funded unlike that in the US. Those features amongst many others make Canada an excellent destination for capital seeking a haven against the oncoming storm. Furthermore, the country is non discriminatory, multicultural, welcoming of immigrants and it is wealthy, healthy and environmentally clean by almost every measure of standard known in this world. Other than the weather, who would not like a passport to the place? Dreamsville baby. How long foreign demand will last is uncertain of course but I anticipate it will accelerate if China turns down and more of those people seek financial refuge abroad. As the world becomes less stable it seems likely to me therefore that Canada will be a net beneficiary and that means real estate prices in key areas could hold up very well over a long period of time. I do not anticipate a crash despite the high cost of housing in some regions although prices should soften in lesser demanded areas. A hard economic landing is not in the cards. But would I be a buyer of housing at todays prices?……NO! Price to rent and price/income ratios are far too high by historical standards. Too much of the economy is currently invested in housing for that market to remain really healthy longer term and it should be obvious then that some price flattening will occur especially as the demographic picture is trending to the higher end of the age spectrum. Canada is aging faster than other Western nations and this is a liability where house prices are concerned. The problem for buyers is that they might wait years for a good opportunity to enter. As we have already seen in Toronto and Vancouver and a few other key centers, prices have proven they can rise in excess of many peoples annual take-home pay in a single calendar year. Ouch! I guess all I can say is the following…..if you do decide to buy then keep in mind your purchase is based on a multi-decade commitment. Should you put down the minimum demanded by CMHC and then see prices fall below what you paid you will not be able to escape the commitment unless you can pony up the difference between the total debt (plus legal fees, CNHC costs, staging and realtor fees) and the sale price that is offered. It means you will lose your down-payment plus more and be obliged to make up for the difference out of pocket. I would not risk it unless I could pay at a minimum 20% down or greater and then afford to just sit tight. Then again, we are all (I mean the whole world) heading into what I believe will be an epochal credit bust. In that case all debt is a sin. Personally, I do not have any nor would I take any on. This is a time for storing up nuts for the winter in my opinion, not for leveraging yourself into debt slavery at or near a market peak. But that is just my opinion. It might not be worth snot in the long run and as we know the real estate bears in Canada have been beaten to ratshit already over the past 10 years where annual price growth averaged 7% and counting. I guess my point is this….if you believe that the powers that be can keep boosting asset values indefinitely then anytime is OK to buy. I would not bank on that though. Not if my life depended on it.
Bird,
Thank you very much for the well detailed and intelligent response. You nail it on all aspects and it truly makes sense. I agree 100% like you that this would not be a wise time to chase it and go in. I will admit that I have been on the sidelines for 5 years, however my money was put into other assets and im waiting for the moment if it ever arises :). At the same time my wife’s patience is running dry lol.
Thanks again Bird
Thanks Glenfidish. I have the same problem here by the way. My wife wants to buy a house despite the fact price / income ratios are a stupefying 30 on the chart! That means the cost of a typical home here is often in excess of 30 times average annual incomes. It is possibly the highest in the world. I had to get the charts and graphs out to show her what reversion to the mean was all about and to prove just how insanely out of balance these prices are. Like a lot of women she is not convinced by facts. Her friends bought and have seen massive equity gains the past few years, Triples and quadruples for God’s sake…..I said, look sweetie, those paper-gain numbers don’t mean squat unless you sell and turn it into cash. Meanwhile, in our neighborhood not a single house has sold in many months and yet there are dozens going begging at nosebleed prices. That’s all the evidence I need to find another hobby and wait it out. Happier buying days will come.Best to be cash heavy when the day arrives. Because cash is the one thing almost nobody has any of. Same story here as over there.
I meant to say that when almost everyone you know is equity rich and cash poor living in debt to the eyebrows and getting by on credit it just seems certain that the cycle is at an end and the conclusion can only result in falling prices. As soon as I see someone buying a big fat late model 4X4 out of home equity I just roll my eyes and wonder where the sanity has gone! People are just stupid when it comes to asset values. They all think it is real money.
I said, look sweetie, those paper-gain numbers don’t mean squat unless you sell and turn it into cash
Bird, your above quote is so true. Iv’e mentioned this at many social gatherings without getting into what’s better per say as to buy or rent currently. But this does hit it on the money. If you don’t sell it will never be a gain. And more to the fact is when you try and run to the exit doors when the shit hits the fan, your already to late. So sad but very true.
Glenfish,
I feel family peace is more important than money. I purchased several properties in the last few years and feel that diversification makes me feel better. My wife is opposite to yours. I was forced to sell our old house after we bought a new one in 2003. My decision of buying house in China in 2004 was also killed. She was counting on me to make money in stock market every year. It was OK before 2011 but things got bad after that. I used the opportunity to persuade her to buy our first rental unit in 2011. The ease of renting the unit out impressed her. We then bought a couple more. So far they are all rented and bring in good income. I feel the house is not cheap any more but it is a lot harder to catch the bottom in housing than stock. It might be a good idea to buy a small unit near downtown. Since baby boomers mostly have inadequate savings and no pensions, they have to sell their big house and down size. Smaller units should be safe. It is easy to rent out so you are not forced to sell. Once you have one property other than your house, your wife will feel better.
Lawrence,
Seems you did good! Good on ya buddy. Sometimes you gotta make a move that lets you sleep at night. Money coming in is always a great thing 🙂
cheers
I believe Armstrong’s conclusions are predicated on the assumption of interest rates rising. I am hesitant to agree with that possibility.
CFS yes i understand but my question is interest rates rising based on us economy? Is his work based on us economy or rates rising around the globe?
Historically Canada follows the us economically. Im curious as to if and when our housing bubble does crash eventually.
What is a housing bubble? You better beware.
I am getting tired of Democrats praising Obama’s destruction of the US, with regard to his treatment of illegal children.
Sorry if this is Off Topic, but here is the law on illegals:
http://www.law.cornell.edu/uscode/text/8/1324
Read it.
It is illegal (that means AGAINST THE LAW for you dumacrats) to harbor and transport illegal aliens into and within the US.
So not only are Obama’s orders illegal. He is a flagrant unconvicted FELON.
Impeach the bastard.
The fact that he was advertising back in January for people to transport the children shows that this was premeditated felonious action.
It shows Obama is determined to destroy the US as we knew it.
Without the rule of law, there is no justice; there is no civilization.
I understand your frastration but when a country reaches its peak, all kind of people will cause damage to it even some good people. The empire will always decline. If you read history, you can see all great empires fall and there is no exception. Human cannot do anything to it. It is not common for any country to dominate the world very long. Only thing people can do is to protect hisself and his family. Obama is bad but I don’t think he is doing it on purpose. Otherwise how come so many people support him?
Only my opinion, Lawrence, but some people don’t stop and think!
I do not totally agree. Sure all Empires eventually end.
But neither the British Empire nor the Chinese Mongol Empire fully support your description. I do believe Obama is doing it on purpose.
Well, I think Great Britain willingly downgraded itself to a “second rated” country and handed over its power to US. If the winning country was German instead of US, Great Britain might be part of Germany already. GB is now a follower of the superpower. Without US saving it in the 70s, it would have bankrupted itself. As for the Mongolian Empire, the Asian side was overthrown within 60 years after it unified China. The country stay prosperous but ruling elites were all changed. I think its European side slowly decayed into small fractions after a few hundred years. Anyway, no superpower stays forever. US will stay strong for a long time but it cannot sustain its current coverage. It has to accept a multi-polar world to work together with others. It costs too much with the current strategy and US will bleed to death if it does not compromise. This is exactly Osama Bin Laden was counting on. He knew he will be destroyed but he was willing to drag US to a war to weaken it. Maybe you don’t agree, but I think Ron Paul gets the best strategy for US. The great moderation is the best choice, Confucius told us.
I agree with you re: Bin Laden.
I disagree with Ron Paul. I do not believe any isolationist policy will work at this point in time. But I also disagree with McCain and Cheney; they are too eager to get involved.
I think Obama is an idealist and his action ruins US with socialist agendas. I cannot imaging a president willingly destroy his own country.
What makes you think he is proud to be American?
Actually what makes you think he does not hate America?
We have to sit down and have a few beers together sometime, Professor.
I find this whole situation to be appalling! (Almost unbelievable)
I know I do not see well, but how many years have I been protesting against Obama in this forum?
His behavior is just so predictable.
The fact that his administration was advertising for transportation for 660,000 illegal children back in January of this year, long before children started to arrive, proves that this was a planned move.
The fact that he withdrew all troops from Iraq, (Because he refused to negotiate with the President of Iraq has two possible causes:
Obama was uninvolved with Iraq and did not care.
Obama wanted the ISIL group (To whom he had been supplying weapons in Syria) to win.
Since his psychological makeup appears to be hands on everything, I have to conclude the latter.
This is just one of many examples leads me to the further conclusion that Obama knowingly and determinedly is trying to destroy the US as we knew it.
Everything he does, from Obamacare , to tax increases, to eliminating voter IDs, to Replacing Mubarak in Egypt, to replacing Qaddafi in Libya, to massive illegal child immigration points to the same conclusion.
Nothing he has done goes against the conclusion, that I can think of.
I rarely drink beer, but will happily bring a good red wine.
I’ve recently learnt…
…beer isn’t just for breakfast anymore.
So praise the Lord & pass the potatoes !
60,000 illegal children.
But are they beer drinkers?
Bird, al and cory, sorry for posting this bit on pundits perspective. I had it posted on weekend report by I think bird did not see it.
Bird,
Great piece of work indeed! I appreciate the hard work and contributions to this site.
Bird if I may, can I get your honest assessment of the housing market in Canada? It seems homes have been going up in a straight line for quite sometime. At the same time household income has been declining. No government sector job is hiring. In fact they are letting go of people. It seems most jobs continue to come from construction which is beginning to slow down as permits are not being granted from what im told. For years now I have been debating to jump in and pull my hair for not having done so. I don’t want to chase these markets as opportunity only comes once or twice in a lifetime.
So these are a few questions i would like for you to answer please.
Is the canadian housing in a bubble?
If yes is it similar to the us bubble in 2007/2008?
How much higher can these prices continue?
Are Canadian banks as safe as they say they are?
Not sure if you follow marty armstrong. But martys cycle work seems its based on us economy right? He has housing hitting a wall in 2016 I believe and then the curtains fall.
What does Canadas housing future have?
Why has Canadas housing bust not come to fruition?
Is it being delayed?
Sorry for all these questions but you have a great deal of knowledge and Ive been contemplating what to do as im a current renter with my family. I live in toronto but the prices are absolutely insane at the same time rent continues to go up. What gives?
Thanks for your time Bird. Anyone else please be free to give your advice or knowledge of the matter.