I’m also a bit disturbed by sentences like this out of no where from the Bank of Canada, as if we were in some kind of monetary experiment in 2021:

“At the same time, there has been considerable debate recently about the role of sovereign currencies in supporting greater fiscal capacity. Proponents of modern monetary theory (MMT), for example, argue that currency-issuing states face few—if any—budget constraints (Kelton 2020). It is far from clear if this idea applies as widely as MMT scholars suggest (Bonizzi, Kaltenbrunner and Michell 2019; Henwood 2019). Still, seigniorage is likely to remain an important resource that governments want to preserve, not only as a source of ongoing revenue but also, more importantly, as a flexible fiscal option in exceptional circumstances. Seigniorage is also critical to the financial autonomy of central banks. If seigniorage revenues fell so low that central bank operations had to be financed through taxes, this could raise important concerns about central bank independence and the politicization of monetary policy (Engert and Fung 2017).”

From 1993-2005 it was below 5. Since 2006 it’s above 5. That’s 17 years of housing bubble in Toronto.

Can’t have a meaningful life if you waste most of your money on rent or servicing your mortgage. Can’t get a better job because there are none and it’s highly competitive to get a high paying job. Love this city, it’s a real peach. Wish I was never born here.