Is a weak Loonie a positive for the Canadian economy?
A weak Loonie could be a good thing if you’re a Canadian business owner with most of your customers located in the United States however if you’re a Canadian with a 9 – 5 job for example a weak Canadian dollar puts you at serious risk especially with coming inflation and also potential rising interest rates. The position Stephen Harper put Canada in is beneficial for a stronger Loonie but it could be detrimental with a weaker Loonie because prices will start to rise prior to inflation thus making day to day living harder for everyday Canadians.
The upside to a lower loonie could be more jobs for Canadians but because prices will be going up on the retail scale with the lower loonie Canadians with jobs full or part time will find that their money is going very far. Again I want to add that inflation has happened yet and also you haven’t even factored in interest rates. In this current economy a lower Canadian dollar in my view means that Canada is playing with fire. Canadians are in debt and at least with a stronger Canadian dollar you can hide that debt but as prices for EVERYTHING rise with inflation what is going to happen when they raise interest rates?
Canada however is in a good position because it has a lot of mismanaged natural resources. If Canadians got more involved in politics at the very least they could be working together to bring gas prices down. If gas prices went down in Canada it could be a game changer and if they did it smart they could also provide jobs and more wealth for Canadians. Canada has oil yet it does nothing in manufacturing it’s oil and people all over Canada turn a blind eye to this. The natural resources in Canada should be used to more wisely, Canada has the potential to be a very wealthy nation especially with the rise of China.
I’m not a liberal but the liberal candidate said something that I found very intriguing Justin Trudeau said something on the lines of bringing more Canadians into politics which I completely agree with. Some changes need to happen in Canada because from what I’ve seen it seems like the major Canadian banks are pushing around the Canadian government which means they’re pushing around Canadians and as we all know that story never ends well. Canadians are in too much debt and we’re slowly becoming indebted slaves to the banks because of all the debt we’re all in. I hope Canadians will tackle this issue before it’s too late and 100 year mortgages become a reality in Canada.