So we love digging into the economic data and trying to make sense of it all. Specifically over the last decade we used the U.S. data to help us forecast what our Bank of Canada will do with interest rates. As real estate investors interest rates are one of the biggest variables we have can’t control when it comes to our properties so we pay special attention to any economic data that may gives us clues as to their direction. In this episode of The Your Life! Your Terms! Show we dive into U.S. Demographics, interest rate trends, Ontario population growth and discuss what this all means for us over the next ten years. Enjoy!!
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Transcript
Hey everyone, it’s Tom Karadza. I said, look, we haven’t done one of these in a little while. So it’s Nick and I doing an economic chit chat where we are discussing some of the things that we look at to try to figure out and forecast what might be happening in Canada around interest rates and property prices because the headlines to us are pure garbage. So, uh, we look around at stuff, we kind of analyze it, break it down for ourselves. Over the last 10 years or so, we’ve been sharing that with rock star members. And on this episode of the podcast we’re going to just give you a little bit of a flavor of some of that kind of stuff. So we just go back and forth pretty informally. You’re not gonna be able to see the charts that we’re referencing, of course. So we did our best to try to describe some of the data points that we’re sharing.
So hopefully enjoy this stuff. If you are a real estate nerd like we are, um, this is the kind of stuff that we use to try to predict one of the variables that we have in real estate that we cannot control. So, and one of those are interest rates, so we can’t control interest rates. So access to credit and interest rates are what we consider the two biggest variables that will dictate the price of real estate. So there’s of course demand and population growth and all that kind of stuff. But access to credit and interest rates in Canada are definitely two of the biggest things to be aware of and to watch. And we never know when access to credit might tighten up or loosen up, but we do our best to try to kind of figure it out for ourselves. And interest rates, those are actually a little bit easier to figure out and you’ll hear us discussing some of that stuff.
On today’s episode, this all started by the way in 2008 when the financial crisis hit. And if you’re younger than like 35, you might not even have paid attention to it. But when that hit, that caught us off guard and we, our family had been caught off guard a couple times by different economic events and we just thought enough’s enough. Let’s try to figure this stuff out for ourselves. And it was by doing that initial research back then that allowed us in about 2000 late 2009 early 2010 when everyone was telling us interest rates were going to spike up, we were saying that we don’t think it’s traits are going to go up at all, that they can’t go up. And it ended up being pretty accurate because interest rates didn’t go up for about 10 years. So it really kind of served us well and we stuck with it and that’s why we share this stuff.
So there’s no way on this type of podcast that we can share everything that we look at, but hopefully this gives you a little discussion or a little flavor of some of the things we discussed. So nick and I kind of banter back and forth and look if you like this kind of stuff and you want to hang out with real estate investors who are looking at this kind of stuff and buying properties and dealing with real estate and facing all the challenges that real estate brings, but overcoming those challenges, you can check out the rockstar inner circle membership. That’s where we host a whole bunch of classes. We have a monthly paper based newsletter that goes out to members with all this kind of information in it. We also in that newsletter share different member stories of what different investors are doing so we can all learn from each other. We have a special audio just for Rockstart inner circle members that goes out to them specifically every month. So if this is something that you want to explore and learn more about real estate, even if you’re not quite ready to purchase your first income property, you can check out the rockstar inner circle membership by to this URL.
It’s Rockstarinnercircle.com/member, that’s Rockstarinnercircle.com/member at that site. You can see all the benefits that you get as a rock star inner circle member. We’re really proud of this thing we’ve been around. I had no idea it would get as big as it’s gotten. We feel blessed and grateful that it’s all worked out the way it has. So you can go to Rockstarinnercircle.com/member to learn everything about the rockstar inner circle membership. And with that, let’s get on with the show.
Are you ready to live life on your terms? Is it time? Did take charge business building the economy, health and nutrition. And it’s your life, your term show with Tom and Nick Karadza. Are you ready? Let’s go.
Okay. We are live. I’m nick. Can you hear me? Yeah, I can hear you and I’m raring to go. And are they excited and I can’t hear you. I’m here and everything else. Okay, so listen, I found this, uh, um, headline. It says the housing crash, it begins. I’m trying to see the date on this thing. It’s from Canadian business and the date is, hold on, let me move away from the mic for a second. October 1st, 2012 so the housing crash began apparently nick in on October 1st in 2012 like it’s the main headline on Canadian business magazine. And this is just kind of the, the, these are the headlines that completely make me laugh because we’re in a scenario now where we’re seeing the same headlines again because year over year sales are down. Um, and prices are our prices in Toronto. He shared that RBC report with me and prices in Toronto up like 2.6% or whatever it though, like on average, but sales are down and they’re down enough, I think it’s like 10% or 12% or something like that.
And they’re down enough that it’s going to make for great headlines. So over the next few weeks, if we haven’t already seen them, we’re going to just see these awesome like real estate dooms day headlines. And who knows, maybe it is the beginning of some long plateau in real estate or even a correction. But, um, from what we’re about to talk about today, I just don’t see it quite yet as a longterm kind of thing. I don’t, I mean, I just, I don’t envy their position with those magazines. A lot of those magazines aren’t published as frequently as they used to be, but I don’t know if Kenny, and there’s been, yeah, I don’t know if it was like weekly one or not, but, but through some other thing, I got a free, recently I got a free subscription to the economist that keeps showing up now and now I probably would never get rid of it, but it, uh, that’s a weekly magazine, you know, so like the amount of content that those guys got to put out, it’s not easy.
So they need those headlines constantly. So they just, you know, take a stab at anything, at anything they can, whether it’s real estate or something else to, to, to sell, you know, sell books. But I mean, look, there’s some people who have been calling from the risk of crash longer than that. So it’s getting that they’re going to be right sooner or later. And I’m not saying like, to be clear, you know what, we’re not saying that it, you know, it’s going to go straight up forever. That’s not the case. But uh, yeah, we just want to be realistic about it. Like, you know, but it’s also a load of crap. Like statistically the, the, you know, I don’t know if it’s Canadian business and when they’re talking about the, the real estate market, like so much. So many of the headlines are driven about the real estate market nationally, which is a load of crap because like there’s different things going on in different areas.
And then even if, if you bring it down, like provincially, it doesn’t work. If you bring it down to the, the greater golden horseshoe area, it doesn’t work. If you bring it down to Toronto, it still doesn’t work because these points, yeah. Yeah. Like they so much of what’s happened recently in the Toronto so, so these are all backward looking numbers, the backward looking numbers with the drop in transactions and prices and stuff like that. It’s coming from a segment of the market, not another segment. Like the condo market last year was on fire. Now the condo market this year is likely gonna slow down. Hopefully it does. It wouldn’t be good to for it to continue to, you know the pace that has continued but but you know, so, so when people say the market and whole it’s kind of, it’s, there’s always more two way kind of your context will also justify what your own conclusions are because you’re in the 1.5 to two point $5 million market almost right across Toronto.
That market kind of has stalled and come down a little bit and somebody recently told me, they’re like, hey well Tom real estate is down like it’s a fact. And I’m like, well real estate is down in a price point of 1.5 to 2.5 million. If you, and now let me ask you the next question, is it down year over year? Like compared to last year or two years ago or compared to five years ago? Cause if I compare it to five years ago, I bet it’s actually still up then that’s what makes kind of real estate crazy. But at the same time for the investment properties that we work with investors on at the, around the 450 to 500,000 prices aren’t down at all. Prices have not stall. The, and in markets that we’re in, we’re seeing multiple offers. So like we’re seeing multiple offers again in Hamilton, Niagara region, like these, these are things we didn’t see like the six months ago.
But the same thing happened in Toronto last year when, when, when everyone was saying the market was down, if you go to the smaller segment of the market, that starter home category, so it was condos, it actually wasn’t down, right? Yeah. And the [inaudible] can’t win. Well you can’t. But you can’t even paint condos with a broad brush because there’s different segments of the condo market, right? Like if you’re talking liberty village or going uptown or if you’re going east someplace or in Scarborough, really do it. And I also think it’s such a lazy way to analyze real estate because really when you’re looking at real estate, I’m looking at real estate because you want to own good assets in your life. I don’t care about the price year over year, I want to know is my real estate asset based paying for itself or is it not paying for itself? So like is it cash flow positive or is it not cashflow positive and can I hold onto it for a period of five and 10 years? The price point just kind of is the weakest. It’s the easiest and sexiest arguments talking about, but it’s also the weakest argument or a piece of information to talk about with real estate. So it’s, it’s, it’s fun to talk about price points. It gets the headlines, but it’s just kinda like, it’s not the big picture. Um, today. Okay.
So let me just transition over to what I wanted to talk about today. Today we’re going to share some, you asked specific economic data. And the reason I want to share some us specific economic data is because it is the biggest economy in the world and we happen to be sitting right next to it. So it greatly affects what our Bank of Canada does in here. So there’s some of the information that we’re going to talk about today. The reason we’re sharing it, it’s just because it has a direct impact on the decisions that the Bank of Canada in this country is going to take and whatever the decisions the Bank of Canada in this country takes affects the interest rates that you and I have to deal with when we’re buying properties in Toronto, Barrie, Durham region, Kitchener, Cambridge, Waterloo, Brantford, wherever it is.
So this stuff has a direct impact on us. And the reason, and I think some people, I like to kind of remind myself anyway, the u s economy, um, and this is 2017 data. It’s 24% of the world’s GDP. So it’s 24% of the world’s GDP. The next biggest one is China at 15% so the u s is still really big and Canada for context is 2.08% so we have an economy that is up 2% of the world GDP, but we are sitting right next to an economy that is 24% of world GDP. So that like has a massive benefit to us. It’s almost like we are sitting, we are, I don’t know if it’s blessed or not plus, but we’re sitting, we’re this tiny little economy that’s net and we’re in a country that has a lot of different laws and I think social services that really kind of support this country really well. And we’re sitting right next to the world’s biggest economy and it has a direct impact on us. So that’s why we kind of focus on the u s when we’re talking to economics so much.
Well look, I mean what’s happening with the u s dollar an hour versus our dollar, it directly impacts everything we do. So I, you know, I’m going to talk about my patio set. All right. So it’s very important for big money on your patio set, this patio set. But we, we, you didn’t buy the patio set, it’s going to rust when it rains. The, no, the patio set. My first patio that was from sellers and that, but it started raining. I guess I left it over the winter and didn’t cover it, but it just started to hold rustic like 160 bucks for the seller. So dive on our first patio furniture. It was just, it wasn’t a, it was, it wasn’t the table, it was just the little two seater and two seats in the table. Same thing. It was from Zellers when she bought it. I’m like, you know, it’s not aluminum, right?
So she’s like, what, why does that even matter? So I guess I probably learned from you. But anyway, so I went to buy this panel, said the place was closed all a winter. They had just reopened by chance. And I went, um, I went and bought it and I’m like, I have asking for a discount. You know, I was trying to negotiate a bit. They’re like, look, I’ll be honest with you, the prices are going, we’re putting the prices up, we’re in the middle of it. You know, and I thought it was a line, right? So I had to go pay the balance cause I didn’t have the right card to pay the balance like a few days later, all of number of the prices across the, or almost all the parts of the cross, the board of the patio furniture all went up including our table. And the reason it went up his, and they were telling me that they’re like, look, the Canadian dollar, we can’t go and buy ins and, and, and replenish this, uh, this set.
Now our cost has gone up just simply because of the Canadian dollar, if nothing else because of the Lauren Canadian dollar. So it impacts us at home. The replacement value of the stuff that we’re doing, whether or not it’s homes or other things are replacement value is going up because our daughter’s getting crushed. Right. So that’s why if, if nothing, I mean it applies to more than that, but if nothing more than that is why it applies so directly to us. Right. Same as the cost of gas. The reason the cost of gas caught up, it’s going to dollars gone down. The only thing we can do is hopefully Disney carries on those promotions where they accept the Canadian dollar at par. That’s our only hope at ticket prices. I know Matt, those food prices, I’ve watched it. I’ve watched the commercial, you know commercial. It looks awesome cause it it, it is awesome.
It says seven. I think it’s, I want to go to Disney when I see that nobody says like 79 bucks a day or something. And I’m like that’s great when you, but then when you think about it’s per person per day, you know and I’m like yeah cause my taking no food. Y’all accommodation like my tickets orange, 79 bucks a day. How much did I pay for those names? I’ll never forget going with my family. I guess it was like five, six years ago. Walking up to Disney, we got the flight kind of landed right on time. We got, so we checked in and we thought, oh we’ll just go to the park tonight and we get to the park and it’s like 4:00 PM and I just remember at wonderland used to get like the nighttime paths or whatever. So I walk up and I’m like, yeah, it’s for a family of four and we’ll just take like, you know the nighttime pass for this park and the lady screams bag, not screams back but through the little intercom thing.
She’s like okay, that’ll be like $484 us. And I was like, oh no, no, like not for like three days. I don’t want the three day package I just really want in tonight for this one park. Not like a multi park pass or anything. And she’s like, no, that’s, that’s the cost. And I look at my watch, I guess at that time it’s not even four it’s like five 30 and close at like nine or something, maybe 10 that park it was the Hollywood studios are Mgen, whatever they call that thing. Now, and I’m like, oh my God. And I looked down at my daughter and she’s looking up at me and I’m like, oh, I realized I just have to pay it. I paid like, and that was US dollars and I paid that to go into the park and we didn’t even stay until 10.
I think we stayed till like eight 30 and everyone’s like, okay, let’s get out of here. I did. Um, you know, when I was at the park I gave multiple, cause I forget what I like, everything you buy, right. He’s like fairly expensive. So I would make comments to the workers about some of the things I’d buy, you know, a snow cone. Well I just went to Disney on ice with the kids about a snow cone, $20. It was 20 bucks, but he came in and Olaf Cup, right? So it’s $2,400 per tap water, frozen top water with some food coloring over. I think the con, the cotton candy because it came with a plastic crown, 20 bucks and then the light up, the light up. I love those light up things that spin around 40 bucks. I’m at 40 bucks. Really. I was like, wow, that’s like, those margins are awesome. But anyways, at the park I would make comments about to the people I’m like, hey look, just about things being expensive and I have so much respect for their workers, not a single person took me up on the opportunity to say like, yes it is or whatever. They all responded. I forget now the responses, but they were very good. I swear they were taught to how to respond to that. It was very good. Like I was purposely trying to go out of my way to try to get someone to say something. It was great man. I’ve, I’ve, I have respect for the way they run those things for sure. Okay. So now that we, we kind of killed the Disney story. Let me get back onto the economic stuff. Is that just as we mentioned, because of the u s economy is so big? Um, we pay attention to it a lot. And the biggest thing we’ve been paying attention to our interest rates, interest rates have been so low that it’s been, you have to go back to 2008 since this low period began. So it’s been a decade, um, basically 0% interest rates up until about the end of 2015 and now they’re up in the states to about 2.25 or so. That’s kind of where the US Fed funds rate is now.
So we’ve had like this over a decade of like super low rates. And the reason that’s important is that even with these super low rates, the average gross domestic product or average economic growth since 2009 in the US annually has been 2.23%. And the reason that’s important is that the average GDP growth since 1980 has been 3.2%. So entire percentage point higher. So one percentage point higher or in percentage terms, what would that be? Almost 40% higher growth. So even with super low rates, they’re not getting economic growth in that country. And this is an important thing for us to know as Canadians because they’re not getting economic growth, but what they are doing is continuing to add to their debt via annual deficits and if the are not getting the growth to go along with the accumulation of more debt. When you compare the debt growth to the economic size, it’s looking like a worse and worse picture every single year because the debt is accumulating faster than the economy is growing and that’s kind of a bad situation because the US is the biggest economy in the world.
They sell their us treasuries as bonds, as the best you as the best kind of government bond that you can buy. But if they continue to accumulate debt, you got to wonder, are people around the world who buy these things going to continue to have confidence in the u s and this is just kind of something for us to be, I don’t have the answers to that. Just something for us to be aware of that their economy is not growing fast, even with super low rates and they’re adding more and more debt on with an economy that is growing at a slower pace. So it’s just something for us to be aware of kind of in general. And then I want to share just kind of this other trend that we’re seeing on top of this that kind of raised our eyebrows a little bit, but nick, I don’t know if I’m making that clear, but basically the messages, super low interest rates for like a decade of not gotten super high economic growth and it’s something to be aware of because it’s going to ultimately dictate US monetary policy down there, which will trickle up to the Bank of Canada’s decisions up here.
Yeah, no, I’ll make sense. And what happened last year was a lot of their growth, I mean from everything that I’ve looked into and read, a lot of the growth is from the Trump tax cuts and it’s short lived. And another of those tax cuts of kind of the initial surge of those tax cuts have kind of worked its way through the system. Um, the growth is faltering again, right? So that without, and it’s not like they’re gonna be able to do that again. So last year it might not even be a good reflection of the actual growth. So we’ll kind of see. Yeah, see how it goes. And it Kinda gets scary when you look at the way they’re doing their, there are congressional budget office office does the projections of what is going to happen in the U s economy. They base their projections off the U s economy not having another recession for another 10 years.
And the reason, and we can all kind of like, no one has a crystal ball so they couldn’t, can’t be right. But the reason that that is a little scary is that we are about three, four months away from the longest economic expansion in US recorded history. So to say that like we’re not going to have another session for another 10 years after we’re at the second longest economic expansion since the recession of 2008 2009 2010 is kind of being super optimistic in my eyes. Um, but maybe they’re right, maybe they’re right, but that’s just something to kind of to be aware of. So the thing that raised our eyebrows was that, you know, from everything that we kind of studied and read, we don’t think economic growth or inflation, which is important to growth. I can’t believe I just said inflation is important.
But inflation’s important for w the way our economy is set up for economic growth. Um, but it’s not driven by like more money in the system or a or a larger money supply like, you know, that has been attempted that low interest rates have been around for 10 years. Um, new capital has been injected via quantitative easing that went through the banking system and ultimately into the stock market. And it kind of drove the stock market but didn’t drive. The overall economy has kind of proven in the GDP results, growth and inflation in our opinion is driven more by psychology and demographics. It’s more, it’s driven by people believing they are doing well. So they’ll go out and just kind of spend some money and ultimately by large demographic changes and there is this massive demographic time bomb that’s going on in the states right now that really doesn’t get discussed too much.
So I just want to kind of share some of those numbers. Were you gonna say something? No. So check this out. The US baby boomers are reaching retirement age right now at 4 million people a year and that 4 million mark is going to last for the next 10 years, which means that they think the US Congressional Budget Office thinks there is going to be another 10 year economic expansion at the exact same time that 40 million baby boomers are going to be retiring. So like I don’t know who I can speak to at their office just on why they think those two things are getting continue. But when you have 40 million, so for perspective, there’s 30 million baby boomers in the states right now that are retired and at the, uh, year 2019 in the next 10 years, that’s going to more than double. So it’s going to go from about 30 million today to about 70 million people like the population of Canada, they’re like, what, 36 million. So we’re talking more than double Canada is going to be a retirement age over the next 10 years. And this is a big deal because the demographics really kinda dictate what people say. I don’t know if anyone has ever lived or hung out with people who retire, but generally people who retire or go into retirement spend less, they’re not getting the brand new car, they’re not getting a brand new house and buying furnishings for the whole house. So now you have like 40 million people who are likely going to go into retirement and not spend more money to drive the economy. Just by the nature of their situation, they’re likely going to spend less money.
But if the millennials can come in and get jobs, isn’t that counteract that a lot? Because there’s a second biggest and they’re quite close to actually the baby boomer generation. No, I guess I guess they can’t, I just don’t know the number of baby of like, I don’t know if there’s 40 million coming in and even if there are, if the egg, if the GDP of the states hasn’t been strong now and then now we’re going to throw in over the next 10 years, 40 million more people retiring. I don’t think that’s like an economic boom, like I don’t think that’s a positive for economic growth. So even if the millennials come in, I just don’t know if they can offset that. That would be an interesting data point to find. So we should, we should actually dig that up just to see how many millennials, because I think the youngest millennials now are about 23 2123 I think that’s the kind of the end of the millennial generation.
They’re coming in. And so there was an article from, I mean in a Pew Research Center actually last year they were going to overtake baby boomers as American’s largest living generation in the next couple of years. So it looks like by about 2020 that little, they’re kind of close to the same now, but, but it doesn’t mean like a lot of them are, might be in the workforce already. So doesn’t mean the 40 million of them cause they’re there. There’s about 83 million they’re saying in the states, millennials, so doesn’t mean 40 million of them are going to come in to the workforce and next four years, that’s for sure. Yeah, it would be helpful if that would be helpful if they did and I see it. Yeah, it would be helpful if they did. The only thing that, the thing that strikes me with that and like even if they did is what, what’s interesting is I, it’s, it’ll be interesting to see what really happens to you because what’s been happening that Benjamin Tal shared that once CIVC chart.
Do you remember it about, uh, where in Canada where employment growth and employment decline was and employment growth of 55 plus was how to actually increase in employment growth in an employment numbers from younger generations as was decreasing. And he explained to that, he’s like, what’s happening is people are staying in the work for their living longer, so they’re staying in the workforce longer than a holding onto these jobs. So the young people can’t get these jobs and these, these people that maybe even at this age where they expect them to exit the workforce, maybe they don’t, maybe they stay in the workforce, but they’re not spending money. Cause it goes to your point, they’re not gonna spend money because retirement’s coming, things like that. Anyways. Yeah. And, and, and, and when you look at the, I actually have the data here, when you look at the labor force participation in a rate in the states, even with the millennials in the workforce today, it’s at like at the lowest rates since like 1965.
Yeah, I forgot about that. So like if we just look at labor force participation, that kind of goes to our millennial thinking that like maybe it’s not really off setting because the labor force participation rate has gone down over the last 10 years and now just plateaued. Like it hasn’t, it hasn’t ticked up at all. Yeah. So here’s the numbers. Births underlying each generation, number of us births by year and generation. So boomer, they’re saying 76 million, gen x 55 millennials, 62 and this, uh, 81 to 96 from the Pew Research Center. So yeah, it’s not, it’s about the same as the, what they’re calling gen x and s and is still lower than, than the boomers. So yeah, it’s still going to be, it’s going to be an impact for sure. And, and take a look at this. When we pulled up this data, the average baby boomer net worth, listen to these numbers.
They have $24,000 in bonds, $269,000 in stocks, $300,000 in equity in their house. $107,000 in savings, $264,000 in retirement, meaning come in 120,000 other assets. All right? When you say this, this was like some research pulled up by real, a real vision TV by the way. So it’s, it’s actually, these guys are well thought out. Good research. Um, the median, that was the average. So, so I’ll just repeat one number. Equity in the house was 300,000. If you go to the median baby boomer worth, so not the average, but the median. You see how much the high end or the super rich skew the numbers, because the, the average equity in the house with 300,000, the median equity of baby boomers in their house is 53,000. So from 300,000 to 53,000 stocks, 269,000 goes down to the median. 45,000 savings, 107,000. It goes down to seek 18,000 retirement income goes from 206 or retirement savings specifically goes from 264,000 to 44,000.
Like the median baby boomers don’t have a lot of retirement money. So not only are they going to spend less because they’re going into retirement, the money that they have to spend isn’t even there if they wanted to. Yeah. It’s Kinda, it’s kinda kindness. Grood right. I was going to say it’s kind of scary. I didn’t know how it’s gonna impact things. You know, the, the, the, you know what, what people have been talking about for a long time, uh, you know, and us from looking at the numbers of, of seeing it as well, this whole social security thing, it’s, it’s, you know, it’s in the relatively near future now it’s going to come to a head and we’re going to understand if this thing is going to survive. Yeah. Yeah. So in the states, if they’re really going to go bankrupt with their social security or not, because it’s all of these people, if these people running actually started running a negative right about last year, so we’ll see. It’s going to be, but here’s, so I’m going to bring it back to Canada and what I, how we think this might affect Canadian real estate, but I guess the thought is like what happens if there’s like a stock market correction? Any of any severity and any of the savings they do have are likely in the public markets. Most people are invested in the public stock market. Let’s face it, they don’t own real estate outside of their own home. They’re not invested in the private equity market, mutual funds, index funds, whatever. There’s like a massive stock market correction, like they’re just going to be wiped out. Did I? That would be the only good news for millennials right there because if it did, I shouldn’t laugh about that. But if they did, the millennials would have the buying opportunity, at least in the stock market. I’m not talking in real estate, right? Because if there was a big correction, it would present a buying opportunity anyway. Maybe I shouldn’t joke around on that kind of stuff. But anyway, I think that’s what would happen. So retirement is coming, baby boomers, there’s 40 million of them, labor force, a 40 million going into retirement over the next 10 years.
Labor force participation rate is it at the lower lowest point since the 1960s. And the reason this is important is when we break down the GDP breakdown of the u s listen to this, 16% is government consumption. 17% is gross, private domestic investment. Um, 68%. So almost 70% of us GDP is personal consumption. So 70% of the U s economy is driven by personal consumption. Right? At a time when 40 million people are going into their retirement age. So it just seems, Oh, here’s the labor force participation rate. Let me just make sure I have that data. Right. Yeah. It’s the lowest point since the, it’s tough to line that up. It’s since the, uh, it was, I said sixties it looks like it’s actually 1980 [inaudible] or late 70 [inaudible] late 1970s as a percentage or as a, as an actual number. It’s an actual, no, they reported as a percentage.
So it’s like 62, 63% of the people who are in the labor force, I’m unable to work, unable to work or not working. So they have the, the actual absolute number not working, no are working are 95 million adult Americans are not in the labor force. Basically 95 million Americans are 301 third just under one third somewhere. So not all lines up then. And so, uh, and that’s scary. And yeah, and in what w what real vision TV did on this youtube video. I’ll give everyone the name of this youtube video of one to track down. It’s pretty cool. Um, they mapped the US labor force participation rate against things like just retail prices of gasoline and there’s like a hundred percent correlation. Like the price of gasoline goes in direct correlation with how many people are in the labor force. And their thinking is that when people are in the labor force, they’re spending money, they’re driving to work, it’s driving the cost of gasoline.
And when they’re not, it comes down. So when, if you look around 2009, the price of gasoline or retail total, sorry, total retail sales, I should be making that clear, not the price of gas. The total retail sales volume of gasoline fell exactly in line with the labor force participation participation rate. Um, as it came down from about 2005 then again in 2000 and, and then it came all the way down to where it is today. Um, total gasoline retail sales came down at the same exact point. So it’s just kind of like really interesting that like, you know, the GDP is often measured as like the, at the amount of money flushing around the system and, and you multiply that by the velocity of money or how fast people are spending it. But, but we just have all these people kind of retiring and the labor force participation rate and the velocity of money has the same correlation as well.
Like as people retire or sorry, as the labor force participation rate declines, the amount of money movement in the economy also declines. So we just kind of like have this big demographic trend where the labor force participation rate has come down over the last 10 years. So less a smaller percentage of Americans who want to be working or I guess claim to want to work are not working. And then you have this retirement coming our way to, and if you map that against the amount of money that the US has pushed into the system. So like if you do this like inverse relationship where you invert the Federal Reserve’s balance sheet and map it against labor force participation rate, it’s a really direct correlation. So you know like the $4 trillion that the u s pushed in to the banking system via quantitative easing. When you map that against the labor force participation rate from the historic fed balance sheet numbers and you invert it, they actually have this really kind of inline correlation, which makes me think if the labor force participation rate continues to decline, the US Federal Reserve is going to push more money into the system to try to compensate for that.
So, uh, the name of that youtube video by the way. Um, it’s real vision TV. If you Google up the coming retirement crisis, um, you’ll see this real vision video. So it’s called the coming retirement crisis. Just interesting information. So, uh, so, so bottom line is like if you extrapolate out the US labor force participation rate going forward over the next 10 years to include 40 million more people retiring and you subtract out of the labor force participation rate, we can guess that the US is going to have to push in another $4 trillion into their economy. This is the big point for Canadians to me because if that many people, if there’s this kind of correlation between us labor force participation rate, whereas less people are participating in participating in the labor force and it maps to the inverted amount of quantity of funds via quantitative easing, easing the Federal Reserve has pushed into the system. Totally confusing everyone, but the point makes sense. Um, then, and they’ve done $4 trillion of that and they’re trying to pull it back. Now that’s been kind of the QT or quantitative tightening, tightening. If, if that kind of fails and the, and the Fed has kind of talked about being patient with more interest rate increases and tapering some of their quantitative tightening a little bit didn’t, they didn’t say they’re going to stop, but they might slow the pace of it. What happens if it reverses and instead of pulling out the 4 trillion that they pushed into
the system, what happens in the next year if they decide they need to push more money into the system and to the tune of another $4 trillion? Like what does that do to the economy like it does, does that mean like are they doing that because like, uh, and I guess when would they do that? What they do that if there’s a big stock market correction, what they’d done then decide, okay, we’re just going to push all this in. Or if just GDP growth isn’t take off, but they’re, the data does seem to line up that like this does have some probability of happening over the next 10 years. A lot of people are retiring. That’s not going to be a big boost for the economy. And does that mean the US Fed isn’t going to stop the quantitative easing that they’ve done, but instead they’re going to just like double down on it and I’ll tie it back to Canada.
But I guess that’s my, that’s my big question. So if anybody has the answer to that, please email it to us here at Rockstar so we can know in advance. No, it’s, I mean look, it’s, it’s, it’s kind of interesting. I was looking at something, you know, as you were saying that and what I found a pretty interesting is when you were talking about the, the quantitative easing and stuff, you know, because people always talk about, well, interest rates are going up so you know, that what’s not doing, I want it to look up at the Bank of Canada prime rates. And I pulled up this graft here and what I found interesting is that rates have gone up a little bit over the last few years, right? They’ve got a little bit, but they’re, they’re still at it. If you remove from 2008 when the world financially almost went off the cliff.
So if you remove the from 2008 until they win, when they started going up and went about 2016 I guess there was the first like quarter point raise or whatever it end of 2015 those 15 so, so if you remove that, that period of time, this chart goes back to about the 19 nine oh 65 or maybe 60 days or whenever they started tracking it here. So it’s still today at an all time low other than the last, you know, whatever that period of time, the eight years, it’s at a historic low from the mid sixties mid to early sixties till now, just barely because of 2002 it came right down to close to where it is today. Just a little bit higher than where it is to, or the Nasdaq crashed. But it’s at an all time low and people are talking about race. So look, we’ve kept talking about like rates being up or high.
So you were talking about the quantitative easing and the grow, the lack of growth and how they’re expecting growth now. Right. How we didn’t get the recovery. So in Canada, we’ve had now 10 years of all time low rates for a decade, not for as little period of time for a decade. And we haven’t been able to get the growth that we’re after either. So you know, the, the chances of what you’re talking about, this quantitative easing, if something hits the fan, you’re like, you know, if maybe it’s, you know, demographic because it, which is entirely, you know, yeah. Well we’ve been hearing about the demographic trends for years, but now it’s like coming to fruition. Totally. And it’s totally reasonable. So, you know, they can’t do much with rates because they’re aren’t all time lows. They can try to cut them a little bit more back down to the Zeros of where they were. But I mean there’s going to have to be other something else if something happens like that. Right. So, um, yeah that’s, that’s just what I wanted to share cause I didn’t realize it was still at an all time low outside of just sleeping. I remember, I think it was around the year 2007 we were getting our 2008 maybe nick, I forget, but we were getting mortgages on some income properties that like we were getting them for a while, like 4.5% and we’re like, oh that’s pretty good. And I don’t know if you remember right around that time, maybe it was 2006 rates went up a little bit and all of a sudden we were getting some interest rates at like five five five and we were like, oh well we’ll change the numbers quick. We’re kind of getting screwed. Let’s can we get back to the force?
Cause the fours are like glory land and now if anybody gets a mortgage or an interest rate at like 4.5 which was like glory land for us now it’s like insulting like 4.5% like that’s a ripoff. Oh yeah. You know what I mean? Like the context of Stoli changed. So when we look at this kind of stuff, I guess like the way to summarize it from from our point of view or from, I remember, remember this, all of this is our 2 cents like we, we don’t have, there’s no magical rock star crystal ball that we have, but if we look at it, the US has the richest generation that they’ve ever had, the baby boomers that have now become an aging population and this aging population, you will just naturally in our opinion, decreased consumption in their economy at a time when their labor force is already at a low rate and that people are not in the labor force as much as they used to be.
And this this is might increase the Fed’s balance sheet because the Federal Reserve might say, oh my gosh, we’re going to push more money into the system because of all this kind of stuff. And this is all happening at a time when the velocity of money, which is what economists track to see how fast people are spending money is super low and therefore we’re not getting any inflation in the economy, which economists want because when the economy inflates it kind of is an artificial way for it to grow. So that debt looks less when you compare it to the growth. And so, and we don’t have any of that kind of low growth or inflation happening. All of this happening with decreasing population growth in the U s which we haven’t even talked about. But there is global decreasing population growth going on, not increasing. And the U S has a decreasing population growth number as well.
So naturally they’re not replenishing their population from natural means. So all of these kinds of trends to me mean and, and there’s some, there’s something coming our way and I don’t know exactly what it is, but to me it still means I want to own good assets, I want to make sure they pay for themselves and I want to kind of hold on to those assets for dear life. Because there’s going to be ups and downs like we’re going through in the Toronto market now. Um, but uh, but, but with all these trends, if the US Federal Reserve does say holy crap, we are going to have to like lower interest rates a little bit and not continue to raise them and we’re going to have to put more money into the system, what happens to Canada?
We’re likely going to match that. No. Like do you think Canada would say, oh, the u s is lowering interest rates. We’re going to continue to keep them flat or raised them? Like that’s never happened in history. You, the Canada’s always matched whatever the u s does with some leg but then always matches. There’s been, I looked it up, well this was a few years ago when I was looking at that stuff up at that time a few years ago, there was only two times in history that the Bank of Canada wa had started a different trend than the Federal Reserve had going on and it probably re correct it both times they had to go, they had to revert back chains directly. The trend of the Federal Reserve. It’s just too big of an economy and our dollar, we’re totally dependent on it. You are totally dependent on some. So my kind of thinking is this like here’s where I just go banana.
Oh, go ahead. No, I just wanted to share something with you. I found out these charts. So look, so they’re pretty impressed with yourself with these shorts are you know what I, because I hadn’t found this source before. So the candidate, so you were talking about assets, right? It owning assets and, and and, and see the thing about owning assets is whether it’s real estate or something else. If it’s something that holds its value and you know, if you’re a believer in these long term trends and you think these trends are going to continue, it’s in, in, in my opinion, it’s like the best thing that you can do for yourself. Whatever the asset is. And here’s an example. Like from 76 so from 63 to 76 the Canada consumer price index had, had raised from maybe, you know, went from like 18 to the, on this, on this charter.
It was like 18 to 22 or something like it wasn’t this huge jump from 76 it just started this, this trend line that basically goes up on about a 45 50 to 55 degree angle. Just starts going up straight off the chart and he goes from whatever that number is, 22 to like one 40 and this chart just keeps going up. And with the policies that you’re talking about, like that’s what they’re doing there. They’re raising the prices for inflation and for this type of stuff. So the, the, the cost of everything has continued to increase. So if you own assets that can, they can are either hold their value or better yet pay for themselves, then it’s, it’s valuable, right? Like it doesn’t even have to be real estate but dividend paying stocks now and now there’s risk involved in that, but at least you’re getting this cash flow component, that dividend paying stock.
If it’s like this stable company, you know that it’s nice because there’s no CEO scandals and there’s all this and then depending on of the bigger market. That’s what I was going to say. I just try to use another example. It’s not just what, it stinks. I know people are thinking about these guys are resisting. What else? I think people do use that example with me a lot. They’ll say, well, it’s not the same. It’s not the same because you don’t have an information advantage. You always talk about that. Like when you own a stock, you’ll know what’s going on. And it’s the same. It’s like, it’s like if you owned an apartment in a, you know, a communist country when there’s a hundred buildings being built, every building, like like lick at the buildings and creation, right from the communist era. They’re all just, they’re pretty funny looking, building square concrete, right?
So if, if they look like bonkers. Yeah. So if downtown Toronto had 1000 buildings belt and every building was a square and everything was the same, it took the built those things, I will just build a rectangle or windows creativity. But uh, and if everything was the exact same, then your unit’s the same as anywhere else that you have no advantage. Whereas with others, some other things. Um, it’s why I prefer having like a piece of land. So then on the land with will, depending on the property, you can do different things. You can knock on the property bill too stiff. It’s a bundle of build a two story or build a to two units, whatever it is. Right? Um, you have some options to do things with. Where does, where if you have one share that is the same as one a hundred million of the other shares, there’s, you don’t really have anything else that you can differentiate yourself as well.
So you’re kind of tied to some market forces a little bit more. I’m not against stocks. I mean, I have, I, I don’t have much. I’m against the man. I, you know, I know you’re, you’re, you’re a nicer person than me. I just, I just feel like I’m always knocking. We have that crazy life insurance policy that we have, that we put in and they’re, they’re, they’re seeing signs, efficiencies. Yeah. It’s for the tax stuff. I just mean with the stock market, I never feel like I have an information advantage with a piece of real estate or my own business. I feel like I can earn myself an information advantage cause I can say I know that area in Saint Catherine’s or Durham or Barry, I know that street. I know what people pay for rent in that street. And I know that’s a good deal.
I know what my costs are going to be like. I just feel like I have an information advantage with stocks, no matter what anyone tells me. I always feel like, I think it’s the control. Like, totally. That’s what I mean. That’s you’re closer to your money because there’s no, I have all the information about the acid. The only missing information I don’t have is what the Bank of Canada’s going to do with interest rates. Yep. You know where with stocks I’m like, I dunno. It’s like if I buy a good dividend stock, like let’s say Bank of Montreal, like Bank of Montreal. It’s definitely a large bank and an amazing bank I’m sure. But we’re not bank of Montreal customers or anything and they pay out a dividend and stuff, but I don’t know, like one day are they going to like if the u s financial has another US financial crisis and the Bank of Montreal was like heavily invested in the, in that in some way and that it affects it like then I’m just [inaudible] their CEO, CFO, there’s all these other people in between you and your money.
To me it just comes down to it. Back to control. Control closer you are to your money. The seat to, in my opinion, it’s the safer. There is no one cares what your money as much as you do. Maybe we’re just control freaks. I mean, I dunno. Throughout history, I mean that sense if you just look at examples that we’re not trying to reinvent the wheel here. No. But anyways, these trends, that’s the thing is, yeah, I want to talk about the population here. There’s one more point I just wanna make on that. I’ve literally never met a person in my life who said, Tom, I made all my money by investing in the stock market. I’ve never met that person. I’ve met people who’ve made money elsewhere and then put it in the stock market or have also met money who have like good company stock payment, stock up plans where the company matches their contribution. So if you contribute 3% of your salary, they contribute, which is like 100% gain and that’s great. But I’ve really never met anyone who said, Tom, I really have just gotten wealthy from the stock market. But I have met people who’ve had equity ownership in companies directly, like direct goods, equity, ownership in companies or equity from real estate. Come and say, yeah, know what? I’ve made this much money in my life and it’s come from real estate. Like I’ve met lots of people like that. I’ve just never met anybody from, uh, from purely going into the public stock markets investing in stocks. So the trends I wanted to talk about is that if the u s based on all of these trends that they are having, if they decide to not raise interest rates and instead flush more money into their economy, Canada, like we were saying, is likely going to have to match that. Now here’s the flip side on our demographics, our demographics here in Canada and specifically in Ontario are very different than the US. We don’t have a declining slowing population growth rate. We have had a rapidly increasing population growth rate in a rapidly increasing growth of adults in Ontario, primarily through immigration. So here’s a kind of like my hypothetical situation in the US, they’re going to have to flush in a lot of money to try to keep the economy going because they have a lot of people leaving the workforce, right?
So it’s kind of like people are leaving the workforce that are going to replace that with newfound, cheap money. What happens when Canada matches that monetary policy? And, but instead in Canada, we don’t have a declining kind of population. We are going to have easy money and stimulus with a growing population base. To me that’s fire for a growing economy like in a good way because if you have, there’s going to be some negatives to it as well. But if you have a growing population base and easy cheap money flushing into the system, that economy, those are, those are the two ingredients for the economy to grow. So like to me it’s like holy smokes. Yeah, yes. But it can be artificial growth too. Oh No. And that’s the negative I was going to bring up. It could be artificial growth and it could, it could and it might grow some asset classes like real estate, faster than incomes.
It’s what’s happened, what’s happened. So I’m not saying it’s perfect and it’s like, you know, kind of like all unicorns and rainbows, but I just mean there might be a situation here where we’re going to get some rapid growth in certain asset classes because we’re going to have low interest rates, new found stimulus money with a population base that’s not grow, not declining, but it’s growing. That’s to me, the mix here that like what happens to us here, what happens in a situation where Canada matches what the u s is going to have to do because of their demographics. But our demographics are very different. And if you look at all the projections for Canada’s population growth, we’re like double number two. Like our population growth rate is double that of what the u s is protected. But on a per capita basis, we’re number one. Yeah.
Yeah. No, yeah. We’re number one. But, and I guess what I’m trying to say is we’re number one by a lot. Yeah. Yeah. You know, like we’re number one by a lot and it doesn’t look like the government of Canada as we shared with rockstar members kind of on their, uh, their monthly audio for Rockstar members. So if you don’t know for rockstar inner circle members, we do a special monthly audio specifically for Rockstar members. And we did one recently where we just dove into the population numbers of right here in Ontario and they’re kind of fascinating. Like when you break down the numbers of the Canadian government is not looking to decrease immigration over the next two, three, four years. If you look at the, uh, federal government’s website, well, whoops, I can’t see my, my own year, my own URL. But if one of the federal government’s websites has the immigration level plans from 2019 to 2021 each year it’s going up.
So like each year we used to have about 250,000. That was the target for immigrants into this country. We’re now at 330. Like percentage wise, that’s a big increase to 2020 is going to be 3,341 2021 is going to be like 350. And by the way, Canada did a horrible job meeting its target last year cause last year was supposed to be about three 10 when we had 400,000. So whoever’s counting the numbers that they’re trying to do in here, it really kind of missed the mark and it’s part of what’s driving the population growth in here. And it, the adult population specifically in Ontario, in the Toronto area is on the increase, not on the decline because of this. So like I mean 15, um, the, the report that I’m looking at is a change in the population of 15 years or older, not 18. I don’t know why they did 15, but it’s on the increase.
So I guess that’s Kinda like my big thing. I’m like, Whoa, hold on a second here. The US is likely going to have to change its policies from tightening and increasing rates to lowering rates and flushing more money into the economy. And then if we mimic that situation here in Canada where our population, even Ontario’s projections are like that Ontario is going to grow. It grew at like over 300,000 people last year and they’re projecting out it’s going to be at least 200,000 which I think is low. Um Yeah cause that’s been what they’ve been saying. Yeah. Long period of time and they always miss the mark. But if that’s happening we have a million more people coming into a Ontario for sure over the next five years. That’s a dollar low projected mark. But it might be, might not be another million people over the next five years.
It might be another million people over the, if, if the current pace hold over like the next two and a half years, the population of Toronto is like 2.7 million people. I mean over the next 20 years we have another city the size of Toronto moving into this area at a time when interest rates are going to be low and there’s more money flushing into the system and I don’t think it’s going to be equal distribution of opportunity. To your point, I think it’s going to drive asset prices because people are going to need houses and incomes might increase, but they’re not going to increase on average as much as property prices May. So that’s Kinda like the interesting dynamic to me. I’m just thinking that I want a helicopter because I don’t want to drive on the QEW of the floor. Oh, I know. It happens. And, and just another trend. Did you see in Milton how they said that? Uh, there was that, I think I sent you that fault. And it’s their first condo, kind of a development that’s going up right around the Gautrain stations. We’re just going to see more of that. Like every Gautrain station in Ontario is going to be a com, a new hub for residential development with retail because a lot of them were being built with some retail at the bottom. So the little there’ll be, it’ll read, they’ll almost be like little communities upon themselves. Yeah and it felt like there’s like like, like in in, you know, I’ll go back to Croatia like in the villages, right. There’s like the, the main kind of village area and then there’s like the small kind of like there’s like a small cluster of homes here and then you’ve got to walk for five minutes to another small cluster of homes and then it’s almost going to be like that I think. I agree. Cause look we’re, our office is right here at the, we’re, we’re at Trafalgar in the Qw, the old fogo station with the amount of law with the zoning changes that they’ve made and the amount of land at the time the, the town’s bought, the parking changes they’ve made to the go station and the infrastructure had plans for all around here with the roads and stuff like that.
This little area is going to in the relatively near future is going to swallow up a lot of residents with new, when you housing and the retail at the bottom, like it’s going to be this little community within a community right here, this right at this intersection. Right. And it’s not far down the road. It’s great. He was in 10 years, it’s happened basically happening. It looks like it’s happening. Slow, slow motion until you look around to see it every day cause you see it everyday. So he, it’s like when your kids grow up, you see them every day. They don’t even realize the bigger, you look at a picture from a year ago, you’re like, what the heck happened? Cause that that’s, that’s my son. Yeah. Um, but I, I just want to share some specific numbers because I hate just throwing around stuff and not sharing specifics.
The latest Ontario population data for the latest quarter being reported, which, which would have ended October 1st, 2018 was 88,667 people. That was the population growth. If you extrapolate that to four quarters or one year, it would be a population growth of 354,000 people in one year, which is crazy. And Q three notoriously has high numbers in Ontario, so that’s not going to be accurate. 354,000 people a year. That’s like too big. But it’s well above the 200,000 that that Ontario’s government seems to be forecasting. So somewhere between 200,300 54,000 is likely where we’re going to land. But that is a lot of people because if it, if it really stayed true to 354,000 people a year, that means every two years a city, the size of Mississauga comes into Ontario. So it’s gotta be slower than that. But even if it’s slower, even if it’s a lot slower, like every five years, that’s like every five years a city, the size of Mississauga has to jam it’s way into Ontario.
Like it’s a lot of people, you know? And that’s kind of what we’re talking about when people talk about, like when we see the headlines going back to the beginning, like the, when we talked about like the headlines that are definitely going to say like, oh real estate sales volume are down and that might be accurate for it right now. I think people who really make money and wealth for themselves and their families have long term approaches and longterm vision. And when we look at this stuff, that’s what we’re trying to have for ourselves. We’re trying to be short term paranoid with real estate and covering our asses at all times. And you know, making sure our properties paid for themselves. But the long term is that these trends look like they’re coming this way. And do we want to own assets in an environment like this or not? And I think the answer for us is that, that we do, right? So yeah, and I’ll, I’ll, I mean I’ll say it again. It’s not like we’re tied to real estate. If there’s other options that are, can pay for, you can, you can kind of rent out so they can cover their costs. People will pay off self liquidating assets. Yeah. People would pay off the acid for you, you know, all those things then, then you know what, I’m up for anything. I don’t want it. I always look around and pick an example. I’m like, doors, chairs, I’ll invest in chairs. If I can rent out the chair, you’re actually be easier. If I could rent out these chairs by the hour and there was a long line of people willing to do it, I’d be all for buying chores. You know what, that Chair, oh my God, I forgot to tell you yesterday in our, in our Monday team meeting, uh, we had a plumber come in and a good guy, really good guy.
His name’s frank and maybe we should probably at some point share more about what he’s up to. But, uh, frank came in and he, he’s been in the industry for so long and he’s, we were talking about investing in real estate and how you have to deal with like, people think people who don’t own it sometimes think you’re making good amount of money and it’s easy, but they don’t see you behind the scenes, all the shit that you’re dealing with when you own real estate. And he’s like, you know, when shit hits the fan you have to deal with it. And he’s like, I’ve literally seen shit hit the fan because he had a toilet above a ceiling fan and shit was coming out from the ceiling and hit the ceiling fan and it was spewing around them. Oh Man. So He’s like, I’ve literally seen shit at the fen anyway.
So, uh, that’s what we, I’ve never heard that before. Yeah, we want to hear that again. No, I know, I know. So basically if I was to sum this whole thing up, I just think with the u s trends here in Ontario, we might be in this very unique position globally almost that gets both like income growth through a growing economy that won’t be even, it’s not going to be even to everybody, but there’ll be some definite economic growth year and that economic growth will likely drive appreciation of hard assets. So we are in this like globally we think very unique situation where populations are slowing down the growth rate of the miss slowing down lots of retirees around the world, especially in the biggest economy in the U.S I mean Japan has been going through this for a long time, but here in Canada we kind of have like the opposite trends happening.
And I just want to say something because I think millennials kind of get a bad rap from what we see about millennials. They might have some of these economic headwinds coming their way, but they seem to me to have a very entrepreneurial spirit. And I think in these times, if you have an entrepreneur, it’s from a bunch of the millennials, we know they’re all kind of starting businesses or trying different businesses. I think this is the right mix of ingredients to be really successful in your own entrepreneurial adventure, whether it’s like real estate or business building in some other capacity and in Ontario with a rapidly growing population base combined with that entrepreneurial opportunity. I just think we’re kind of blessed and I feel grateful and lucky to be Kinda here where we are today. Like we have a lot of things going for us right here. So unless shit hits the fan and work totally wrong. But anyway, that’s what we think. So, uh, nick, that’s everything I wanted to share. Just some thinking on where the U.S is at and how it might affect us. Yeah, no, it works for me. I mean, I always think, you know, I just think that watching the U.S is, is happening there is more important than a lot of Canadians give, give crack. Because sometimes some people are like, ah, it’s so important. It’s still the largest economy in the world. It’s how we’ve been able to predict low rates here for so long. And it’s direct. It’s our trading partner right next door like worked. So we’re way more tied to it than people realize. Like for everything we do. Right. So yeah, I, it’s, it’s worthless. And for us it’s always been worth, then we tend to ignore all the politics of it. Like the politics of the u s doesn’t really matter to us and the politics even of Canada. We just look at what the banks do, like the central bank and the Bank of Canada’s here. And that’s been really useful to us. It’s allowed us to see through a lot of the crap. Yeah. Especially the last couple of years, there’s been a good argument to ignoring what Trudeau does and what Trump does to ignoring the both as a shipping, a lot of shit hitting the fan on different, uh, different things. Having said that, if you’ve see a leaky toilet above a ceiling fan to and turn on Shit. Anyway, that’s it. Everyone.
Hey everyone. It’s Tom Karadza again. So hopefully enjoyed that. A little bit of that banter back and forth. I’m not sure if all of that made any sense when you’re listening to it and you can’t see some of the data points. Hopefully you got something from that. Um, and if you are wanting to get more real estate information, you go to a rock star in circle.com that’s our primary website for different real estate information. You can get it free access to our books on that site. You can get access to the weekly videos that we put out. You can read different blog posts and articles and get access to some of the reports that we put out all on rockstar inner circle.com. You can also join our weekly email from that website. In the top right hand corner, there’s a little box to join our weekly email list where we share all of this information on a weekly basis. So you can join that, um, email list right there. I think that’s it for now. Until next time, everyone, your life, your terms.