Follow Peter Earle on X.

Read the article: https://econamericas.substack.com/p/reasons-delayed-homebuying

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This is Chapter 21 of Financial Sovereignty for Canadians. Founding Econ Americas members receive a signed copy of the book.

Read the chapter: https://econamericas.substack.com/p/esg-snake-oil

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She acknowledges bitcoin’s volatility and higher risk but suggests a 2–5 percent portfolio allocation: “When the price pulls back, I see a buying opportunity, because it is the asset I value most.”

Hays believes the crypto era is still in its early steps. She points to growing interest in digital assets from the US government and to Tether’s accumulation of US debt as signals of mainstreaming: “Bitcoin could become the way out for the US government’s trillionaire debt.” Over time, she contends, governments could hold more crypto in reserves, making bitcoin increasingly akin to gold.

Listen to the podcast and subscribe on Substack and YouTube.

Recommended Links:

* Follow Demelza Hays on X.

* “Tracking BTC to USD Trends and Marketcap,” Crypto Research Report.

* “When Crypto Makes Sense (III): Accessing High-Barrier Investments,” Econ Americas.

* Read the book: Hijacking Bitcoin: The Hidden History of BTC by Roger Ver.

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Credit Card Use in US Records Sharp Decline

The slowdown in borrowing suggests households may be shifting from credit-fueled spending to greater caution.

Americans’ use of credit cards in the 12 months through August saw its steepest contraction since the COVID-19 pandemic recession, suggesting that the U.S. consumer sector may be shifting from credit-driven resilience toward a more cautious footing.

According to the Federal Reserve’s G.19 Consumer Credit report for August, total consumer credit grew at a negligible 0.1 percent annual rate, a sharp deceleration from 4.3 percent in July. Revolving credit—primarily credit cards—fell at a 5.5 percent annualized rate.

Journalist Tom Ozimek requested implications for: (1) household spending, (2) consumer sentiment, and (3) the broader economic outlook.

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My responses:

(1) While there is not a one-to-one relationship between credit-card borrowing and household spending, it is still tight. Any decline in credit limits or credit utilization will hit luxury goods hardest, because the decline suggests a reduced perception of wealth among card users. This is particularly the case because we have not witnessed markedly strong per capita GDP growth.

(2) The relationship with consumer sentiment is muddy, because credit-card utilization can be both a leading and lagging indicator, depending on the conditions. There is so much going on at the moment, from technological shocks to geopolitical uncertainty, I would not blame consumers for tightening their belts. Further, revisions to macroeconomic data have revealed their inaccuracies and contorted presentation. Such confusion dampens confidence in the US trajectory.

(3) More than 20 years has now passed since the release of The Coming Generational Storm by Laurence Kotlikoff and Scott Burns. This book foresaw the debt debacle we face today, with tension between the Baby Boomers and their progeny. While the United States continues to lead the world in many economic metrics and attract much of the world’s top talent, that position is shaky. Another government shutdown makes us aware of fiscal recklessness and mismanagement from the US federal government. The debt burden on the productive economy continues to grow, and I foresee the new normal of modest growth continuing long into the future.

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He shares lower-risk ways to gain exposure to mining assets and explains differences between the three major capital markets in Canada. Beyond commodities, Madsen highlights Canadian industries and companies that deserve fresh investor attention, including technology and manufacturing.

For more insights in finance and economic intelligence and exclusive updates, subscribe to the Econ Americas Substack.

Recommended Links

* Follow Ian Madsen on LinkedIn.

* Read Ian Madsen’s commentaries.

* Buy the book: Financial Sovereignty for Canadians.

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Let me provide here my own show notes: takeaways and resources. There were many more than eight to share, so I recommend people watch the full show (starting six minutes in).

For those seeking mining stock recommendations, consider Adrian Day’s Global Analyst newsletter. I read every edition, and I have negotiated a 10 percent discount for my readers. Use the FERG coupon code at AdrianDayGlobalAnalyst.com, or call +1 410-224-8885.

* The path to a successful referendum cannot be rushed. There needs to be sufficient education and cultivated support before the vote.

* Albertans are profoundly distinct from Canadians (although Saskatchewanians are similar to Albertans). Insults hurled at Albertans, in an attempt to intimidate them, only demonstrate the fact that we are not the same. Although I was not raised in Alberta, Calgary is my family home on my mother's side, and it is where my grandmother and many other relatives remain.

* Bought-off regime media are not to be trusted. They are enemies of journalism and free thought, and we must continue to promote citizen journalism, such as Unscrew the News, and independent formal outlets such as the Western Standard.

* Alberta independence must be a broad movement and will have to go through one of the major parties. My personal view is the United Conservative Party, with the right membership, can be that vehicle. The People's Party and the Libertarian Party, although upholding great ideas, have demonstrated the nigh impossible task of starting a successful new party without wasting resources and creating more enemies.

* Ottawa loyalists will attempt to impose many roadblocks before the independence movement. These include throwing policy bones to soften sentiments, demonization via regime media and education, and overflowing the province with new arrivals to dilute support.

* The right to bear arms is a litmus test of self-rule. It is a policy that sets Albertans apart, since they have a strong sense that they should be able to defend themselves and not wait for momma government to save them.

* The referendum will succeed on provincial pride: the flag, the history, the shared values, the pioneer way of life. While the economic case for Alberta independence is overwhelming, the distinct identity will move hearts. An important case study is the Brexit campaign, which overcame the unwillingness of the UK political class to leave the European Union. The best book on this, that I know of, is All Out War: The Full Story of How Brexit Sank Britain’s Political Class.

* Albertans face two options: (1) remain straitjacketed in a parasitic Canada on the decline or (2) leave and forge their own path. The latter will stem from a rugged individualism that is alien to contemporary Canada. The Albertan psyche has a combination of classical liberalism, social conservatism, rural get-up-and-go, and entrepreneurial spirit.

There is robust intellectual backing for Alberta independence. In particular, I recommend following:

* the Haultain Research Institute;

* the Alberta Prosperity Project;

* Cory Morgan;

* Michael Wagner.

While I have only just started it, Nadine Wellwood's book, Alberta Rising, is now available on Amazon.ca and Amazon.com.

If you would like to book a consultation with me, please sign up here.

Skarica's book covers many asset classes and also emphasizes the importance of investing in gold as a reliable store of value, especially in these uncertain times. He also explains how to target corporate bonds with put options as effective tools for managing financial risk.

When it comes to crypto, Skarica compares bitcoin to gold in terms of its function as a hedge—particularly in struggling economies. However, he cautions that bitcoin has in recent times mirrored the Nasdaq's performance. That trend could undermine its role as a safe haven. Regarding altcoins, he considers them high risk and largely unproductive as investment vehicles.

Buy the books:

* Mega Returns, David Skarica: https://amzn.to/4hiUIv5

* Financial Sovereignty for Canadians, Fergus Hodgson: https://econamericas.com/financial-sovereignty-canadians/

In 2013, Canadian entrepreneur Gabriel Scheare moved to Valdivia, Chile, with an ambitious vision. His goal was to build an innovative real-estate project designed as a startup village for entrepreneurs. This became Fort Galt.

By producing dark chocolate up with the highest quality in the world, Paccari Chocolate has brought stability and opportunity to more than 15,000 people in rural Ecuador. Cofounder Santiago Peralta shares how Paccari has built on direct, long-term partnerships with farmers. He pays them twice the market rate—AKA and efficiency wage—to ensure sustainability throughout the process.

Over the past 20 years, Paccari has released 70 flavors of dark chocolate, won more than 450 international awards, and expanded into products like healthy cereals and dairy-free ice cream. Although dark-chocolate production has increased around the world, Peralta says the biggest competitor remains ignorance: most people still choose chocolate from popular brands tied to harmful practices, such as the use of unhealthy ingredients or child labor.

Paccari, therefore, has not escalated only because of their quality. They have tied the farmers and their own story to the brand. The “Paccari Way” has earned global recognition from institutions like Harvard Business School and Technological Institute of Monterrey, and Forbes has praised the company for setting new ethical standards in business. As Peralta puts it, “You can be part of the problem or part of the solution. We have chosen to be part of the solution.”

Recommended Links

* Follow Santiago Peralta on X.

* Follow Paccari Chocolate on X.

* “Yusuf Amdani on Third-World Business: Build a Nation within a Nation” by Fergus Hodgson.

* World of Opportunity, by Yusuf Amdani.

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To compound the problem, easily half of all new jobs in the US economy, under the Joe Biden tenure, came from the public sector. Such jobs might deliver a paycheck, but they do not add much value. Further, they compound the problem of rising national debt and cement the new normal of elevated inflation. My preference would be to remove government spending from GDP calculations, as advocated recently by Peter St Onge.

Although I have followed Yost's work for a few years, a recent article by him caught my attention and compelled me to examine it in more detail. Although I do not agree with its entirety, it has many insights and is worth a read: “You're Gonna Have to Serve Somebody.”

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In this episode, Yost delves into the challenges he has experienced personally, grappling with unsatisfying work and manual labor to survive: “All work has dignity in it, but the situation in which you’re working may not be a very dignified situation.” He addresses how to get out of major corporations and approach freelancing with an eye towards financial stability. We also touch upon open discrimination against straight white men—under the branding of diversity, equity, and inclusion—and how to respond to it: “Acknowledging that young men are facing rough waters right now is the first step … to gaining their trust.”

Links:

* Yost on X;

* Yost's Mises Institute archive;

* “The Tragedy of Great Power Dating”;

* the Yost Post.

Note: we recorded this in late January.

The province with both the Rockies and the Prairies contributes the lion’s share of Canada’s oil and natural-gas production, serving as a cornerstone of the national economy. A massive portion of the Alberta economy, however, is confiscated by the federal government in Ottawa to fund redistribution programs.

The chief reason behind the case for a sovereign Alberta is the structural impossibility of reform within Canada. This means that, no matter how distinct Alberta might be from the rest of Canada, there is no hope of an end to the pillaging and alien governance from Ottawa.

This is personal to me, because my mother grew up in Calgary, and her side of the family remain primarily in Alberta. Further, my personal belief is that a sovereign Alberta would a world leader for both next-generation governance and individual liberty.

That is why I devoted the last chapter of my book to Wexit. For this episode, of what I plan to be a monthly release, my sharp video editor helped me prepare a promotional clip for Financial Sovereignty for Canadians. If you have not already done so, please consider ordering a copy on Amazon.ca. If you are in the United States, you can order directly from me or get a copy from Amazon.com.

In addition to the above, I recommend The Sovereigntist's Handbook (2023) by Cory Morgan and Wagner's earlier book, No Other Option (2021).

Organizations mentioned:

* Alberta Prosperity Project;

* Frontier Centre for Public Policy;

* Haultain Research Institute;

* Western Standard.

Fergus Hodgson, CAIA, is director of Econ Americas and author of Financial Sovereignty for Canadians and The Latin America Red Pill. Book a personal consulting session with him and follow him on X, LinkedIn, and Telegram.