I told you in today’s editorial entitled “2023 will be worse than 2022 according to the IMF” that we have experienced deglobalization and that this deglobalization involves the transition from a globalized economy to a deglobalized economy, which is not possible without several very major shocks to our economies happen.
When we see Justin Trudeau’s very “liberal” Canada banning foreigners from buying real estate, it should make all the headlines in the international and national press because it’s a very strong weak signal of the way the world is going.
This is reported by the site 20 Minutes in this short article.
Foreigners will not be allowed to buy houses in the country until 2025
“A drastic measure to change the situation in the real estate market. Foreigners will be banned from buying homes in Canada for the next two years starting this Sunday, a ban intended to address the country’s shortage of homes and apartments.
Exceptions apply to refugees or permanent residents, and the law only applies to apartments in the city and not to tourist structures such as summer chalets. Prime Minister Justin Trudeau proposed this measure during the 2021 election campaign, after his Liberal party regretted that foreign investors were driving up prices and making it difficult for Canadians to access real estate. She was adopted in the spring.
Doubts about the effectiveness of the measure.
However, the real estate market has recently slowed down under the influence of the interest rate hike decided by the central bank to curb inflation. According to the Association of Real Estate Agents, the median price of a home last month was CA$630,000 ($465,000) up from $800,000 a year ago.
Some experts doubt the measure will be effective, as foreigners make up less than 5% of homeowners in Canada, according to the national statistics agency. They believe that it would be better to speed up the construction of new housing.
Admittedly, purchases by foreigners in Canada are far from the majority, as in France, by the way, but that doesn’t matter.
The main thing here is to understand that globalization is really faltering and that all of this is part of some form of logic.
If you want to reduce the flow of travel because the plane pollutes the environment, you end up having to reduce passenger traffic…
Karl SANNAT
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Source 20 minutes here.