Evolution by another name

David Resenberg talking the effect of trade rebalancing in Canada in the presence of capital controls. It is also the process of evolution, which is ongoing. Evolution is one of those politically threatened biological principles. We have a class of economists who believe in storks, life to infinity, and human perfection.

“These are not prices driven by the local fundamentals -- this is the foreign buyer coming in,” Rosenberg said. “Toronto has really emerged as a first-class city, not just politically, not just culturally and economically, but also in terms of being a major financial centre. But if you’re going to ask me at this stage, ‘do we need to approach taxation of this capital coming in differently to curb the demand?’ [That’s] absolutely right.”