Insolvency "Hyper-Inflation": The 20% Spike No One Discusses

Описание: Canadian Insolvency Crisis EXPLODES: 20% Spike in January 2026 | The Mortgage Cliff Reality
In January 2026, Canadian insolvency filings spiked 20% month-over-month—the sharpest acceleration since 2019. While the government celebrates a "soft landing," 11,000 Canadians filed for bankruptcy last month alone. This is not a correction. This is a structural collapse.
What You'll Learn:

Why the 20% insolvency surge signals the start of a mortgage cliff crisis
How 79% of bankruptcies are hidden as "Consumer Proposals" (shadow defaults)
The $3.2 trillion Canadian household debt bomb and 176.7% debt-to-income ratio
Why 60% of mortgages resetting in 2025-2026 will destroy consumer spending
Business insolvencies up 40%+ in construction and hospitality sectors
The "Negative Amortization" trap that delayed the crisis until now
Why rate cuts cannot fix a solvency problem—only delay recognition
How the Debt Service Ratio remains at 14.6% despite rate cuts
The psychological traps keeping Canadians paralyzed (Normalcy Bias & Money Illusion)
Why hard assets (gold/silver) are the only exit from the counterparty chain
Critical Data Points:
→ Total insolvencies: +20% MoM (Jan 2026 vs Dec 2025)
→ Canadian household debt: $3.2 trillion (176.7% of disposable income)
→ Insolvency rate: 4.2 per 1,000 adults (highest since 2019)
→ Business failures: +40% in construction/hospitality sectors
→ Mortgage renewals: 60% of all mortgages resetting 2025-2026
→ Payment shock: 15-20% for fixed, up to 40% for variable rates
→ Consumer Proposals: 79% of all insolvency filings
→ Credit card debt: +$40.8B in Q3 2025 alone
→ Debt Service Ratio: 14.6% (near record highs despite rate cuts)
This is the lag effect of 2022-2023 rate hikes finally hitting households. The soft landing narrative ignores on-the-ground insolvency data. When 79% of filers are restructuring debt at cents on the dollar, you are a creditor to a defaulting system.
The Mortgage Cliff Explained:
In 2020-2021, Canadians locked in sub-2% mortgage rates on 5-year terms. Those terms are resetting NOW in 2025-2026 at 6-7%+. A $500,000 mortgage payment can jump $300-500/month instantly. This pulls spending directly out of the economy, collapsing discretionary sectors first (restaurants, construction, retail).
Why This Matters for Americans & Europeans:
The Canadian housing market is a leveraged microcosm of Western debt dynamics. The US has $17+ trillion in household debt. Europe faces similar mortgage resets. The insolvency mechanics are universal: cheap debt → maturity wall → payment shock → default wave.
Protect Yourself:
The counterparty chain is breaking. When 79% of borrowers file proposals to NOT pay you back, your claims (stocks, bonds, ETFs) are only as good as the system's ability to honor them. Hard assets (physical gold, silver) have no counterparty risk—they don't depend on a Canadian consumer making a mortgage payment to retain value.


#CanadianDebtCrisis #MortgageCliff2026 #InsolvencySurge #housingcrash #economiccollapse #debtcrisis #financialcrisis #HardAssets #goldsilver #canadahousing #MortgageReset


IMPORTANT DISCLAIMER:
This video is for educational and informational purposes only and should not be considered financial, investment, legal, or tax advice. The content represents my personal analysis and opinion based on publicly available information.
I am not a licensed financial advisor, investment advisor, or registered broker-dealer. Nothing in this video should be construed as a recommendation to buy, sell, or hold any security, commodity, or financial instrument.
All investments carry risk, including the potential loss of principal. Past performance does not guarantee future results. The financial markets are complex and unpredictable, and individual circumstances vary significantly.
By watching this video, you acknowledge that you are responsible for your own financial decisions and that neither I nor any affiliated parties bear responsibility for any losses or damages resulting from actions taken based on this content.
ALWAYS DO YOUR OWN RESEARCH. ALWAYS CONSULT PROFESSIONALS. ALWAYS UNDERSTAND THE RISKS.