High housing prices are a part of a larger chain of cause and effect. A million dollar housing market in Vancouver may look like the fault of Chinese laundering money through home buying, but there’s more to it.
For one, China is a corrupt place but with so many successful entrepreneurs, it makes sense for them to want to park their money in safer havens like Canadian property and companies.
It wasn’t so long ago that Mao’s regime murdered billions, China may have figured out freer markets, but political power and corruption remain more of a problem there than here in the West.
In our confederacy of dunces, people, especially in Vancouver, target Chinese homebuyers without grasping any other factor, except maybe a few quick jabs at AirBnB.
Despite permitting the conditions that led to the housing market becoming so lopsided, the government is now tasked with fixing the problem.
But which level of government and how long it will take and what exactly will they do?
The answer, of course, will come from the market.
Specifically, a Chinese bank looking to seize numerous Vancouver properties and other assets currently valued at $7.3 million.
A Chinese fugitive left with an unpaid $10 million debt and now the Chinese bank is filing a lawsuit with the Supreme Court of British Columbia.
The Chinese claim the defendant is hiding stolen assets abroad.
“The person involved left China with a large debt owed,” said the lawyer who representing the Chinese bank in this case.
Vancouver residents are, of course, worried and furious the situation has even gotten this far.
What precedent will be set if the lawsuit goes to court and a Chinese bank becomes the owner of private property in Vancouver, British Columbia?
It’s not as if banks are innocent in the matter.
The banks are fucking us, where’s the aggression in fucking them back? It’s merely defensive fraud, an eye for an eye.
But this leaves the whole world blind and so Canadian and Chinese technocrats finalize deals regarding “stolen” assets.
But if Chinese residents flee China with stolen capital, buy up Canadian land and assets, and then get caught by Chinese authorities who work with the Canadian legal and bureaucratic system to effectively force these assets back into Chinese banking and government hands, who didn’t exactly come to these assets ethically to begin with — then, where is the moral foundation for cooperating with the Chinese?
On what basis can we believe their evidence?
Are these Chinese Vancouver homebuyers laundering money to fund their corruption, or are they innocents fleeing the country with their life savings?
Communists are notorious for their show-trials. So I guess it’s up to British Columbia’s monopoly court system to decide.
In the meantime, the larger picture of cause and effect remains hidden.
A higher standard of living comes from savings and investment. Production must come before consumption.
By manually lowering interest rates, central banks worldwide are flooding the market with “free capital,” draining the planet of its resources and raising the costs of living by debasing the money.
Before Vancouverites and Canadians can come to terms with the housing crisis, clear definitions of knowledge and property are in order.
That economics is descriptive language describing reality as it is, but in politics and the law, there is no such thing as uninterpretable language.