Juggling Dynamite

I am just reading Rich Roll’s book “Finding Ultra” and highly recommend it.  His interview in this recent #EatForThePlanet podcast is also worthwhile.

If you are interested in the wellness space, you are likely familiar with Rich Roll. If not, Rich is a 51-year-old, vegan, ultra-endurance athlete (and we’re guessing you’re probably already pretty impressed by that sentence alone), who is also a bestselling author, host of a highly popular podcast, boasts over 140,000 followers on Instagram, oh and he was recently named “The World’s Fittest Vegan” by Men’s Health Magazine. In the world of wellness influencers, Rich stands above all the rest, known for not only his remarkable athleticism but also his unique and disarmingly honest brand. Today, Rich lives in southern California with his family and says his life is an “embarrassment of riches.” But if you met him about a decade back, you would hardly be able to recognize him.   Here is a direct audio link.

The International Monetary Fund has stepped up its warning on the economic and social risk of the synchronized housing bubbles that have billowed around the world on QE-driven mania, particularly since 2013.  You can read their April report here:  Global Financial Stability Report April 2018.

Some key takeaways are summarized in this article, see Sydney, Melbourne house prices are now global, IMF warns

“…during the past three decades house prices have become increasingly synchronised across countries, especially among major cities.

“Thus, policymakers cannot ignore the possibility that shocks to house prices elsewhere may affect domestic markets.”

“Increasingly, house prices have become determined at the global level,” the IMF said in the report.

“…a decline in external demand may exacerbate the challenges of stabilising household balance sheets, financial markets, and economic activity…

Worryingly for investors who like to believe houses are “always safer than stocks”, the IMF report cautions that “the dynamics of house prices are similar to those of other financial assets”.

Excellent article on why the social contract and stability requires us to curb housing speculation and tax foreign ‘investment’ flows.  Read Speculation tax is essential for housing affordability:

A problem arises, however, when people can buy housing with income or wealth not generated locally, and yet are still able to use social services — education, health care, etc. — and infrastructure — roads, bridges, legal system, etc.

If property taxes are comparatively low, as they are in B.C., this allows such individuals to pay much less than their fair share of taxes. They can, in short, free ride on the contributions of others.

What will be the effect of that dynamic? If the jurisdiction is an attractive place to live, it will mean that wealthy people from around the world will want to place their families there. They will buy expensive housing, pay minimal income taxes, and enjoy public amenities and services — all for the modest cost of their property taxes.

That prevailing dynamic means that housing prices come to reflect the purchasing power of a global elite, not local working people. Those working people, meanwhile, are left to subsidize that elite with their income taxes, and they struggle to save up enough to pay for what is now unaffordable housing.

…Should young working British Columbians [or Ontarians or anywhere else] be forced to subsidize those who are using foreign funds to out-compete them for housing? Would you accept that situation if you were in their shoes?